Trust Annual Reports, 63335-63336 [E9-28780]

Agencies

• DEPARTMENT OF LABOR
• Office of Labor-Management Standards

[Federal Register Volume 74, Number 231 (Thursday, December 3, 2009)]
[Proposed Rules]
[Pages 63335-63336]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-28780]


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DEPARTMENT OF LABOR

Office of Labor-Management Standards

29 CFR Parts 403 and 408

RIN 1215-AB75


Trust Annual Reports

AGENCY: Office of Labor-Management Standards, Department of Labor.

ACTION: Notice of proposed extension of filing due date.

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SUMMARY: This proposed rule seeks public comment on a proposal to delay 
the filing due date of the Form T-1, Trust Annual Report. The Form T-1 
is an annual financial disclosure report to be filed, pursuant to the 
Labor-Management Reporting and Disclosure Act (LMRDA), by labor unions 
with total annual receipts of $250,000 or more about certain trusts in 
which they are interested. Labor unions would use the Form T-1 to 
disclose financial information about the trusts, such as assets, 
liabilities, receipts, and disbursements. The Department established 
the Form T-1 with a final rule published on October 2, 2008, 73 FR 
57412 (Oct. 2, 2008), with an effective date of January 1, 2009. 
Subsequently, the Department announced its intention to propose 
withdrawal of the Form T-1 (Spring 2009 Regulatory Agenda). The 
Department held a public meeting on July 21, 2009, and received 
comments from interested parties concerning provisions of the Form T-1 
and its proposed rescission. The Department now seeks comments on a 
proposal to delay the filing due date of the initial Form T-1 reports, 
pending the outcome of the Department's proposal to withdraw the 
October 2, 2008 rule.

DATES: This proposed rule proposes to delay for one calendar year the 
filing due dates for Form T-1 reports required to be filed during 
calendar year 2010. The comment period on this proposal will close on 
December 14, 2009.

ADDRESSES: You may submit comments, identified by RIN 1215-AB75, only 
by the following methods:
    Internet--Federal eRulemaking Portal. Electronic comments may be 
submitted through https://www.regulations.gov. To locate the proposed 
rule, use key words such as ``Labor-Management Standards'' or ``Trust 
Annual Reports'' to search documents accepting comments. Follow the 
instructions for submitting comments. Please be advised that comments 
received will be posted without change to https://www.regulations.gov, 
including any personal information provided.
    Delivery: Comments should be sent to: Denise M. Boucher, Director 
of the Office of Policy, Reports and Disclosure, Office of Labor-
Management Standards, U.S. Department of Labor, 200 Constitution 
Avenue, NW., Room N-5609, Washington, DC 20210. Because of security 
precautions the Department continues to experience delays in U.S. mail 
delivery. You should take this into consideration when preparing to 
meet the deadline for submitting comments.
    The Office of Labor-Management Standards (OLMS) recommends that you 
confirm receipt of your delivered comments by contacting (202) 693-0123 
(this is not a toll-free number). Individuals with hearing impairments 
may call (800) 877-8339 (TTY/TDD). Only those comments submitted 
through https://www.regulations.gov, hand-delivered, or mailed will be 
accepted. Comments will be available for public inspection at https://www.regulations.gov and during normal business hours at the above 
address.

FOR FURTHER INFORMATION CONTACT: Denise M. Boucher, Director, Office of 
Policy, Reports and Disclosure, Office of Labor-Management Standards, 
U.S.

[[Page 63336]]

Department of Labor, 200 Constitution Avenue, NW., Room N-5609, 
Washington, DC 20210, (202) 693-0123 (this is not a toll-free number), 
(800) 877-8339 (TTY/TDD).

SUPPLEMENTARY INFORMATION: On October 2, 2008, the Department of Labor, 
Office of Labor-Management Standards (OLMS), published a Final Rule 
establishing the Form T-1, Trust Annual Report. 73 FR 57411. The Form 
T-1 is an annual financial disclosure report to be filed by labor 
unions about certain trusts in which they are interested. For an 
organization or fund to be a labor union's trust subject to Form T-1 
reporting, it must be established by the labor union or have a 
governing body that includes at least one member appointed or selected 
by the labor union, and a primary purpose of the trust must be to 
provide benefits to the members of the labor union or their 
beneficiaries. Examples of such trusts include building and 
redevelopment corporations, educational institutes, credit unions, 
labor union and employer joint funds, and job targeting funds. Labor 
unions currently are required to disclose financial information about 
the trust, such as assets, liabilities, receipts and disbursements 
through use of Form T-1.
    Labor unions with total annual receipts of $250,000 or more (those 
required to file Form LM-2, Labor Organization Annual Report) are 
required to file the Form T-1 report. A labor union must file a Form T-
1 report for each trust where the labor union, alone or in combination 
with other labor unions, appoints or selects a majority of the members 
of the trust's governing board or the labor union's contribution to the 
trust, alone or in combination with other labor unions, represents more 
than 50% of the trust's receipts. Contributions by an employer under a 
collective bargaining agreement are considered contributions by the 
labor union.
    The Form T-1 rule also provides that unions will not be required to 
file a Form T-1 under certain circumstances, such as when the trust is 
a political action committee, if publicly available reports on the 
committee are filed with appropriate Federal or State agencies; an 
independent audit has been conducted for the trust, in accordance with 
standards set forth in the final rule; or the trust is required to file 
a Form 5500 with the Employee Benefits Security Administration (EBSA).
    The Form T-1 final rule took effect on January 1, 2009. Filing due 
dates depend on the fiscal year ending dates of both the reporting 
union and the trust being reported. The fiscal year of both the labor 
union and its trust must begin on or after January 1, 2009, for a Form 
T-1 report to be owed, and the labor union must file any owed Form T-1 
report within 90 days of the close of its own fiscal year. The earliest 
Form T-1 reports are required of unions that have, and whose trusts 
have, a fiscal year start date of January 1, 2009. These first Form T-1 
reports are therefore due on or after January 1, 2010, but no later 
than March 31, 2010.
    In the Spring 2009 Regulatory Agenda, the Department notified the 
public of its intent to initiate rulemaking proposing to rescind the 
Form T-1 and to require reporting of wholly owned, wholly controlled, 
and wholly financed (``subsidiary'') organizations on their Form LM-2 
or LM-3 reports. See https://www.reginfo.gov/public/do/eAgendaViewRule?pubId=200904&RIN=1215-AB75. Additionally, the 
Department held a public meeting on July 21, 2009, which allowed 
interested parties to comment on any aspect of the Form T-1. A draft 
proposed rule to withdraw the October 2, 2008 Form T-1 rule is 
currently under review by the Administration.
    In view of its plan to propose rescission of the Form T-1 Trust 
Annual Report, the Department now proposes to extend the filing due 
dates of Form T-1 reports that would otherwise be due in 2010, pending 
review and consideration of comments on the proposal to rescind. 
Extension of the filing due dates will delay or eliminate the first 
year recurring and nonrecurring burdens on labor organizations 
associated with the reporting requirements of the Form T-1 rule, 
pending the outcome of the proposed withdrawal. Without this proposal 
to delay the filing date of the initial Form T-1 reports, many affected 
labor organizations likely will incur the reporting costs and burdens 
associated with filing the form, including the nonrecurring first year 
costs and burdens associated with implementing the reporting system for 
the Form T-1. In particular, the October 2, 2008 rule estimated that 
unions would incur 41.20 hours in reporting burden per Form T-1 filed 
during the first year of the rule's implementation, for a total first 
year reporting burden of 128,978.11 hours. The estimated reporting cost 
per form filed in the first year is $1,632.41, and the estimated 
reporting cost in the first year for all projected Form T-1 filings is 
$5,110,324.80. The Department notes that the first year burden is 
higher than that in later years, which is estimated to be 28.28 hours 
per form filed and 88,542.01 hours total. 73 FR 57444-5. If the 
proposal to rescind the rule ultimately is effectuated, these expenses, 
including upfront costs, will have been incurred unnecessarily.
    This proposal to delay the filing dates for Form T-1 reports due in 
2010 would not affect the filing due date of Form T-1 reports that 
would be owed in any subsequent year. The Department's proposal would 
not extend the filing due date of any Form T-1 report that normally 
would be due during calendar year 2011 or beyond. Further, in the event 
that the Department determines to retain the Form T-1 rule, the initial 
Form T-1 reports that would have been due during 2010 must be filed in 
2011, in addition to those Form T-1 reports normally due in 2011.
    For the foregoing reasons, the Department has determined to propose 
delay of the filing dates of Form T-1 reports due during calendar year 
2010 and seeks comment on this proposal.

John Lund,
Director, Office of Labor-Management Standards.
[FR Doc. E9-28780 Filed 12-2-09; 8:45 am]
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