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29 U.S.C. 461 and 463—Labor Organization Under Trusteeship

These statutes, which apply to situations where a subordinate body of a labor organization is placed in trusteeship, provide that delegates from the organization under trusteeship (e.g., a local) to any convention or election (e.g., by an international union) must be democratically elected by all eligible members by secret ballot. Any other method of delegate selection renders their votes a nullity. It also provides that funds of the organization under trusteeship may not be transferred to the international or other level of the labor organization. Exceptions are that normal per capita tax and assessments payable by organizations not under trusteeship may continue to be collected by superior levels of the labor organization, and the assets of the organization under trusteeship may be distributed in accordance with that organization's constitution and bylaws upon dissolution. A willful violation of 29 U.S.C. §  463 may result in imprisonment for one year and/or a fine. A willful failure to file reports in regard to such trusteeships with the Department of Labor or the willful failure to keep records supporting such reports, the knowing falsification of such reports, or the willful falsification or destruction of the supporting records, may also result in imprisonment for one year and/or a fine. See 29 U.S.C. §§ 461(c) and 461(d). [cited in USAM 9-139.020]