The partners of Legacy Professionals LLP were honored to welcome Dr. John Lund, Director of OLMS, to our offices earlier this year. During his visit Lund indicated that one future item on the Department of Labor (DOL) rule making calendar would be a proposal to revise Form LM-30, Labor Organization Officer and Employee Report. On August 10, the DOL published a notice of proposed rulemaking to revise Form LM-30.
Under section 202 of the Labor-Management Reporting and Disclosure Act (LMRDA), and subject to certain exceptions, every labor organization officer or employee (other than clerical or custodial employees) who has directly or indirectly held an interest in, received any payments from, or engaged in any transactions or arrangements with certain employers or businesses must file a report with OLMS. The information is reported on Form LM-30 and is required to make public any actual or potential conflict between the personal financial interests of union officers or employees and their obligations to the union and its members.
In 2007, the DOL attempted to clarify instructions and, in some aspects, expanded reporting requirements for public disclosure. However, the 2007 Form LM-30 Final Rule has generated numerous fundamental questions regarding the complexity of the form and its instructions, as well as the scope and extent of the LM-30 reporting obligations. As a result of these concerns, OLMS announced a non-enforcement policy under which it would accept either the old Form LM-30 or the new (2007) form.
OLMS now proposes to revise the Form LM-30 and its instructions, based on an examination of certain changes implemented in the 2007 rule. To address fundamental questions concerning the Form LM-30, the DOL proposes revisions that address the complexity of the form and its instructions, as well as the scope and extent of the LM-30 reporting obligations. Proposals for consideration include: the coverage of shop stewards under the LMRDA section 202 reporting requirement; the requirement to report union-leave/no-docking payments; the requirement to report certain loans, including home mortgages; the requirement to report payments from certain trusts and unions; and the scope of reporting for higher level union officials.
The revisions proposed by OLMS would simplify the form, narrowing the scope of reporting while ensuring that all meaningful conflicts of interest are disclosed, lessening the reporting burden, including associated costs, for union officials.
You may submit comments on or before October 12, 2010, identified by RIN 1215-AB74 or RIN 1245-AA01, only by one of the following methods:
Internet: Federal eRulemaking Portal through www.regulations.gov. To locate the proposed rule, use the RIN numbers indicated above and follow the instructions.
Delivery: Send 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, N.W., Room N-5609, Washington, DC20210. 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.
By Bob Cann, CPA, Partner, rcann@legacycpas.com