§ 204.27

Prohibited acts relating to subordinate body under trusteeship. During any period when a subordinate body of a labor organization is in trusteeship, (a) the votes of delegates or other representatives from such body in any convention or election of officers of the labor organization shall not be counted unless the representatives have been chosen by secret ballot in an election in which all the members in good standing of such subordinate body were eligible to participate; and (b) no current receipts or other funds of the subordinate body except the normal per capita tax and assessments payable by subordinate bodies not in trusteeship shall be transferred directly or indirectly to the labor organization which has imposed the trusteeship: Provided, however, That nothing contained in this section shall prevent the distribution of the assets of a labor organization in accordance with its constitution and bylaws upon the bona fide dissolution thereof. § 204.28 Presumption of validity.

In any proceeding involving § 204.26, a trusteeship established by a labor organization in conformity with the procedural requirements of its constitution and bylaws and authorized or ratified after a fair hearing either before the executive board or before such other body as may be provided in accordance with its constitution and bylaws shall be presumed valid for a period of 18 months from the date of its establishment and shall not be subject to attack during such period except upon clear and convincing proof that the trusteeship was not established or maintained in good faith for purposes allowable under § 204.26. After the expiration of 18 months the trusteeship shall be presumed invalid in any such proceeding, unless the labor organization shall show by clear and convincing proof that the continuation of the trusteeship is necessary for a purpose allowable under § 204.26.

such standards are relevant to elections held pursuant to the order.

ADDITIONAL PROVISIONS APPLICABLE

§ 204.30

Removal of elected officers.

When an elected officer of a local labor organization is charged with serious misconduct and the constitution and bylaws of such organization do not provide an adequate procedure meeting the standards of § 417.2(e) of this title for removal of such officer, the labor organization shall follow a procedure which meets those standards. A labor organization which has adequate procedures in its constitution and bylaws shall follow those procedures.

§ 204.31 Maintenance of fiscal integrity in the conduct of the affairs of labor organizations.

The standards of fiduciary responsibility prescribed in section 501(a) of the LMRDA are incorporated into this subpart by reference and made a part hereof.

(a) No officer or agent of a labor organization shall, directly or indirectly through his spouse, minor child, or otherwise (1) have or acquire any pecuniary or personal interest which would conflict with his fiduciary obligation to such labor organization, or (2) engage in any business or financial transaction which conflicts with his fiduciary obligation.

(b) Actions prohibited by paragraph (a) of this section include, but are not limited to, buying from, selling, or leasing directly or indirectly to, or otherwise dealing with the labor organization, its affiliates, subsidiaries, or trusts in which the labor organization is interested, or having an interest in a business any part of which consists of such dealings, except bona fide investments of the kind exempted from reporting under section 202(b) of the LMRDA. The receipt of salaries and reimbursed expenses for services actually performed or expenses actually incurred in carrying out the duties of the officer or agent is not prohibited.

§ 204.34 Loans to officers or employees.

No labor organization shall directly or indirectly make any loan to any officer or employee of such organization which results in a total indebtedness on the part of such officer or employee to the labor organization in excess of $2,000. § 204.35 Bonding requirements.

Every officer, agent, shop steward, or other representative of any labor organization subject to the order (other than a labor organization whose property and annual financial receipts do not exceed $5,000 in value), or of a trust in which a labor organization is interested, who handles funds or other property thereof shall be bonded in accordance with the principles of section 502(a) of the LMRDA. In enforcing this requirement the Assistant Secretary will be guided by the interpretations and policies followed by the Department of Labor in applying the provisions of section 502(a) of the LMRDA.

§ 204.36 Prohibitions against certain persons holding office or employ

ment.

The prohibitions against holding office or employment in a labor organization contained in section 504(a) of the LMRDA are incorporated into this subpart by reference and made a part hereof. The prohibitions shall also be applicable to any person who has been convicted of, or who has served any part of a prison term resulting from his conviction of, violating 18 U.S.C. 1001 by making a false statement in any report required to be filed pursuant to this subpart: Provided, however, That the duties and responsibilities of the Board of Parole of the U.S. Department of Justice under section 504 (a) of the LMRDA shall be assumed under this section by the Assistant Secretary or such other person as he may designate for the purpose of determining whether it would not be contrary to the order and this section to permit a person barred from holding office or employment to hold such office or employment.

§ 204.37 Prohibition of certain discipline.

No labor organization or any officer, agent, shop steward, or other representative or any employee thereof shall fine, suspend, expel, or otherwise discipline any of its members for exercising any right to which he is entitled under the provisions of the order or of this chapter.

of

§ 204.38 Deprivation of rights under the order by violence or threat violence.

No labor organization or any officer, agent, shop steward, or other representative or any employee thereof shall use, conspire to use, or threaten to use force or violence to restrain, coerce, or intimidate, or attempt to restrain, coerce, or intimidate any member of a labor organization for the purpose of interfering with or preventing the exercise of any right to which he is entitled under the provisions of the order or this chapter. Subpart B-Proceedings for Enforcing Standards of Conduct

When he believes it necessary in order to determine whether any person has violated or is about to violate any provisions of this part (other than § 204.2, Bill of Rights of members of labor organizations) the Director shall cause an investigation to be conducted. The authority to investigate possible violations of this part (other than § 204.2) shall not be contingent upon receipt of a complaint.

§ 204.51 Inspection of records and questioning.

In connection with such investigation an Area Administrator or his representative may inspect such records and question such persons as he may deem necessary to enable him to determine the relevant facts. Every labor organization, its officers, employees, agents, or representatives shall cooperate fully in any investigation and shall testify and produce the records or other documents requested in connection with the investigation. This section shall be enforced in accordance with the procedures in §§ 204.66 through 204.73.

§ 204.52 Report of investigation.

The Area Administrator's report of investigation (except those relating to complaints under § 204.2, Bill of Rights of members of labor organizations) shall be submitted through the Regional Administrator to the Director, who may report to interested persons concerning any matter which he deems to be appropriate as a result of such an investigation.

§ 204.53 Filing of complaints.

A complaint alleging violations of this part may be filed with any Area Administrator.

PROCEDURES UNDER BILL OF RIGHTS

§ 204.54 Complaints alleging violations of § 204.2, Bill of Rights of members of labor organizations.

Any member of a labor organization whose rights under the provisions of § 204.2 are alleged to have been infringed or violated, may file a complaint in accordance with § 204.53: Provided, however, That such member may be required to exhaust reasonable hearing procedures (but not to exceed a 4-month lapse of time) within such organization. § 204.55 Content of complaint.

(a) The complaint shall contain appropriate identifying information and a clear and concise statement of the facts constituting the alleged violation.

(b) The complainant shall submit with his complaint a statement setting forth the procedures, if any, invoked to remedy the alleged violation including the dates when such procedures were invoked and copies of any written ruling or decision which he has received. § 204.56 Service on respondent.

Simultaneously with the filing of a complaint, a copy of the complaint shall be served upon the respondent, and a written statement of such service shall be furnished to the Area Administrator.

§ 204.57 Investigation.

(a) Upon the filing of a complaint pursuant to §§ 204.54-204.56, the Area Administrator shall make such investigation as he deems necessary and shall report the essential facts, the positions of the parties, and any offers of settlement to the Regional Administrator.

(b) An investigation to determine whether any person has violated § 204.2 shall be conducted only after receipt of a complaint filed pursuant to §§ 204.54204.56 and shall be limited to the allegations of such complaint. § 204.53

Dismissal of complaint.

If the Regional Administrator, after receipt of a report of the Area Administrator pursuant to § 204.57, determines that a reasonable basis for the complaint has not been established, or that a satisfactory offer of settlement has been

§ 204.60

Actionable complaint.

If it appears to the Regional Administrator that there is a reasonable basis for the complaint, and that no satisfactory offer of settlement has been made, he shall cause a notice of hearing to be issued and served on both the complainant and the labor organization.

204.61 Notice of hearing.

The notice of hearing shall include:
(a) A copy of the complaint;

(b) A statement of the time and place of the hearing which shall be not less than 10 days after service of notice of the hearing, except in extraordinary circumstances;

(c) A statement of the nature of the hearing; and

(d) A statement of the authority and jurisdiction under which the hearing is to be held.

204.62 Hearing procedures.

The proceedings following issuance of the notice of hearing shall be as provided in §§ 203.10 through 203.26 of this chapter.

(a) If the Director concludes that there is probable cause to believe that a violation has occurred and has not been remedied and may have affected the outcome of the election, he shall proceed in accordance with §§ 204.66 through 204.73.

(b) The challenged election shall be presumed valid pending a final decision thereon by the Assistant Secretary, and in the interim the affairs of the organization shall be conducted by the officers elected or in such other manner as its constitution and bylaws may provide.

OTHER ENFORCEMENT PROCEEDINGS § 204.66 Procedures for institution of enforcement proceedings.

Whenever it appears to the Director that a violation of this part (other than § 204.2, Bill of Rights of members of labor organizations) has occurred and has not been remedied, he shall immediately notify any appropriate person and labor organization. Within ten (10) days following receipt of such notification, any such person or labor organization may request a conference with the Director or his representatives concerning such alleged violation. At any such conference, the Director may enter into an agreement providing for appropriate remedial action. If no person or labor organization requests such a conference, or upon fail

ure to reach agreement following any such conference, the Director shall, through the Regional Administrator, cause a notice of hearing to be issued. § 204.67 Notice of hearing.

The notice of hearing shall constitute the institution of a formal enforcement proceeding in the name of the Director, who shall be the only complaining party in the proceeding and shall, where he believes it appropriate, refrain from disclosing the identity of any person who called the violation to his attention (except in proceedings involving violations of § 204.29, Election of officers). The notice of hearing shall include the following:

(a) The name and identity of each respondent.

(b) A clear and concise statement of the facts alleged to constitute violations of the order or of this part.

(c) A statement of the authority and jurisdiction under which the hearing is to be held.

(d) A statement of the time and place of the hearing which shall be not less than ten (10) days after service of the notice of the hearing.

(e) In any notice of hearing issued upon the basis of a complaint filed pursuant to § 204.63, a statement setting forth the procedures, if any, followed to invoke available remedies, including the dates when such procedures were invoked, and the substance of any ruling or decision received by the complaining member from the labor organization or any parent body.

(a) Within fourteen (14) days from the service of the notice of hearing, the respondent shall file an answer thereto with the Chief Hearing Examiner or with the Hearing Examiner if one has been designated, and furnish a copy to the Director. The answer shall be signed by the respondent or his attorney.

(b) The answer shall (1) contain a statement of the facts which constitute the grounds of defense, and shall specifically admit, explain, or deny each of the allegations of the notice of hearing unless the respondent is without knowledge, in which case the answer shall so state; or (2) state that the respondent admits all of the allegations in the notice of hearing. Failure to file an answer to or plead specifically to any allegation in

The admission, in the answer or by failure to file an answer, of all the material allegations of fact in the notice of hearing shall constitute a waiver of hearing. Upon such admission, the Hearing Examiner without further hearing shall prepare his report and recommendation in which he shall adopt as his proposed findings of fact the material facts alleged in the notice of hearing. § 204.70 Motions.

Motions made prior to the hearing shall be filed with the Chief Hearing Examiner or with the Hearing Examiner if one has been designated. Motions during the course of the hearing may be stated orally or filed in writing and shall be made part of the record. Each motion shall state the particular order, ruling, or action desired, and the grounds therefor. The Hearing Examiner is authorized to rule upon all motions made prior to the filing of his report. The Chief Hearing Examiner may rule upon motions made prior to the designation of the Hearing Examiner or may refer such motions to a Hearing Examiner. § 204.71 Prehearing conferences.

(a) Upon his own motion or the motion of the parties, the Hearing Examiner may direct the parties or their counsel to meet with him for a conference to consider:

(1) Simplification of the issues;

(2) Necessity or desirability of amendments to the notice of hearing or answer for purposes of clarification, simplification, or limitation;

(3) Stipulations, admissions of fact, and of contents and authenticity of documents;

(4) Limitation of the number of expert witnesses; and

(5) Such other matters as may tend to expedite the disposition of the proceeding.

(b) The record shall show the matters disposed of by order and by agreement in such pretrial conferences. The subsequent course of the proceeding shall be controlled by such action. § 204.72 Hearing procedures.

After the opening of a hearing, the procedures shall be as provided in §§ 203.10 through 203.26 of this chapter,

In computing any period of time prescribed by or allowed by the regulations in this chapter, the day of the act, event, or default after which the designated period of time begins to run, shall not be included. The last day of the period so computed is to be included unless it is a Saturday, Sunday, or Federal legal holiday in which event the period shall run until the end of the next day which is neither a Saturday, Sunday, or a Federal legal holiday. When the period of time prescribed or allowed is less than seven (7) days, intermediate Saturdays, Sundays, and Federal legal holidays shall be excluded from the computations. When the regulations in this chapter require the filing of any paper, such document must be received by the Assistant Secretary or the officer or agent designated to receive such matter before the close of business of the last day of the time limit, if any, for such filing or extension of time that may have been granted.