[Code of Federal Regulations] [Title 29, Volume 2] [Revised as of July 1, 2005] From the U.S. Government Printing Office via GPO Access [CITE: 29CFR453.1] [Page 201-202] TITLE 29--LABOR CHAPTER IV--OFFICE OF LABOR-MANAGEMENT STANDARDS, DEPARTMENT OF LABOR PART 453_GENERAL STATEMENT CONCERNING THE BONDING REQUIREMENTS OF THE LABOR-MANAGEMENT REPORTING AND DISCLOSURE ACT OF 1959--Table of Contents Sec. 453.1 Scope and significance of this part. Introduction Sec. 453.1 Scope and significance of this part. Criteria for Determining Who Must Be Bonded 453.2 Provisions of the statute. 453.3 Labor organizations within the coverage of section 502(a). 453.4 Trusts (in which a labor organization is interested) within the coverage of section 502(a). 453.5 Officers, agents, shop stewards, or other representatives or employees of a labor organization. 453.6 Officers, agents, shop stewards or other representatives or employees of a trust in which a labor organization is interested. 453.7 ``Funds or other property'' of a labor organization or of a trust in which a labor organization is interested. 453.8 Personnel who ``handle'' funds or other property. 453.9 ``Handling'' of funds or other property by personnel functioning as a governing body. Scope of the Bond 453.10 The statutory provision. 453.11 The nature of the ``duties'' to which the bonding requirement relates. 453.12 Meaning of fraud or dishonesty. Amount of Bonds 453.13 The statutory provision. 453.14 The meaning of ``funds''. 453.15 The meaning of funds handled ``during the preceding fiscal year''. 453.16 Funds handled by more than one person. 453.17 Term of the bond. Form of Bonds 453.18 Bonds ``individual or schedule in form.'' 453.19 The designation of the ``insured'' on bonds. Qualified Agents, Brokers, and Surety Companies for the Placing of Bonds 453.20 Corporate sureties holding grants of authority from the Secretary of the Treasury. 453.21 Interests held in agents, brokers, and surety companies. Miscellaneous Provisions 453.22 Prohibition of certain activities by unbonded persons. 453.23 Persons becoming subject to bonding requirements during fiscal year. 453.24 Payment of bonding costs. 453.25 Effective date of the bonding requirement. 453.26 Powers of the Secretary of Labor to exempt. Authority: Sec. 502, 73 Stat. 536; 79 Stat. 888 (29 U.S.C. 502); Secretary's Order No. 5-96, 62 FR 107, January 2, 1997. Source: 28 FR 14394, Dec. 27, 1963, unless otherwise noted. Introduction (a) Functions of the Department of Labor. This part discusses the meaning and scope of section 502 of the Labor-Management Reporting and Disclosure Act of 1959 \1\ (hereinafter referred to as [[Page 202]] the Act), which requires the bonding of certain officials, representatives, and employees of labor organizations and of trusts in which labor organizations are interested. The provisions of section 502 are subject to the general investigatory authority of the Secretary of Labor, embodied in section 601 of the Act (and delegated by him to the Assistant Secretary), which empowers him to investigate whenever he believes it necessary in order to determine whether any person has violated or is about to violate any provisions of the Act (except title I or amendments to other statutes made by section 505 or title VII). The Department of Labor is also authorized, under the general provisions of section 607, to forward to the Attorney General, for appropriate action, any evidence of violations of section 502 developed in such investigations, as may be found to warrant criminal prosecution under the Act or other Federal law. --------------------------------------------------------------------------- \1\ 73 Stat. 536; 29 U.S.C. 502. --------------------------------------------------------------------------- (b) Purpose and effect of interpretations. Interpretations of the Assistant Secretary with respect to the bonding provisions are set forth in this part to provide those affected by these provisions of the Act with ``a practical guide * * * as to how the office representing the public interest in its enforcement will seek to apply it.'' \2\ The correctness of an interpretation can be determined finally and authoritatively only by the courts. It is necessary, however, for the Assistant Secretary to reach informed conclusions as to the meaning of the law to enable him to carry out his statutory duties of administration and enforcement. The interpretations of the Assistant Secretary contained in this part, which are issued upon the advice of the Solicitor of Labor, indicate the construction of the law which will guide him in performing his duties unless and until he is directed otherwise by authoritative rulings of the courts or unless and until he subsequently decides that a prior interpretation is incorrect. However, the omission to discuss a particular problem in this part, or in interpretations supplementing it, should not be taken to indicate the adoption of any position by the Assistant Secretary with respect to such problem or to constitute an administrative interpretation or practice. --------------------------------------------------------------------------- \2\ Skidmore v. Swift & Co., 323 U.S. 134, 138. --------------------------------------------------------------------------- (c) Earlier interpretations superseded. To the extent that prior opinions and interpretations under the Act, relating to the bonding of certain officials, representatives, and employees of labor organizations and of trusts in which labor organizations are interested, are inconsistent or in conflict with the principles stated in this part, they are hereby rescinded and withdrawn. [28 FR 14394, Dec. 27, 1963, as amended at 50 FR 31309, Aug. 1, 1985] Criteria for Determining Who Must Be Bonded