Union Transparency and Accountability Act
Bill: H.R.3640 | Sponsor: Rep. Steel, Michelle (R-CA)
Policy area: Labor and Employment

Summary:
Union Transparency and Accountability Act
This bill requires labor organizations to file certain disclosure forms detailing expenditures of union dues, imposes civil fines on labor organizations that fail to file required disclosures, and makes it unlawful for any labor organization to discharge or discriminate against any employee who has filed a whistle-blower complaint or who is testifying in a disclosure proceeding.

To ensure labor organization transparency and accountability.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Union Transparency and 
Accountability Act''.

SEC. 2. DISCLOSURE REQUIREMENTS.

    Section 208 of the Labor-Management Reporting and Disclosure Act of 
1959 (29 U.S.C. 438) is amended--
            (1) by striking ``The Secretary'' and inserting ``(a) The 
        Secretary''; and
            (2) by adding at the end the following:
    ``(b) Notwithstanding subsection (a) and for each fiscal year, a 
labor organization that would be required to file form LM-2 under part 
403 of title 29, Code of Federal Regulations, (as such part was in 
effect on October 12, 2009) shall be required to annually file with the 
Secretary--
            ``(1) form LM-2, as published in the appendix to the final 
        rule issued by the Secretary of Labor entitled `Labor 
        Organization Annual Financial Reports' (74 Fed. Reg. 3678 
        (January 21, 2009)); or
            ``(2) a successor form that includes all of the information 
        required in such form LM-2 (as such form was published on 
        January 21, 2009).
    ``(c) Notwithstanding subsection (a) and for each fiscal year, a 
labor organization that would be required to file form T-1 under part 
403 of title 29, Code of Federal Regulations (as such part was in 
effect on November 30, 2010) shall file with the Secretary, as the 
report concerning trusts in which a labor organization is interested--
            ``(1) form T-1, as published in the appendix to the final 
        rule issued by the Secretary entitled `Labor Organization 
        Annual Financial Reports for Trusts in Which a Labor 
        Organization Is Interested, Form T-1' (73 Fed. Reg. 57412 
        (October 2, 2008)); or
            ``(2) a successor form that includes all of the information 
        required in such form T-1 (as such form was published on 
        October 2, 2008).
    ``(d) Notwithstanding subsection (a) and for each fiscal year, an 
officer or employee of a labor organization who would be required to 
file form LM-30 under part 404 of title 29, Code of Federal Regulations 
(as such part was in effect on October 25, 2011) shall be required to 
file with the Secretary--
            ``(1) form LM-30, as published in the appendix to the final 
        rule issued by the Secretary entitled `Labor Organization 
        Officer and Employee Report, Form LM-30' (72 Fed. Reg. 36106 
        (July 2, 2007)); or
            ``(2) a successor form that includes all of the information 
        required in such form LM-30 (as such form was published on July 
        2, 2007).''.

SEC. 3. CIVIL FINES RELATING TO DISCLOSURE VIOLATIONS.

    (a) Civil Fines for Failure To Provide Information to Members.--
Section 201 of the Labor-Management Reporting and Disclosure Act of 
1959 (29 U.S.C. 431) is amended--
            (1) by redesignating subsection (c) as subsection (c)(1); 
        and
            (2) by inserting after such subsection (c)(1) the 
        following:
    ``(2) Any labor organization that fails to meet the requirements of 
paragraph (1) with respect to a member, by refusing to make available 
the information required to be contained in a report required to be 
submitted under this title, and any books, records, and accounts 
necessary to verify such report (unless such failure or refusal results 
from matters reasonably beyond the control of the labor organization), 
may in the court's discretion, and in addition to any other relief 
provided by law and determined proper by the court, be liable to such 
member for an amount that is not more than $250 for each day after the 
date of such failure or refusal (except that such amount shall be 
adjusted for inflation in the same manner as the Secretary adjusts the 
amount of a civil fine under section 211(c)). For purposes of this 
paragraph, each violation with respect to any single member shall be 
treated as a separate violation.''.
    (b) Civil Enforcement for Failure To File a Timely Report.--Section 
210 of the Labor-Management Reporting and Disclosure Act of 1959 (29 
U.S.C. 440) is amended to read as follows:

``SEC. 210. CIVIL ENFORCEMENT.

    ``(a) In General.--Whenever it shall appear that any person has 
violated or is about to violate any of the provisions of this title, or 
section 301(a), the Secretary may bring a civil action for such relief, 
including an injunction or the enforcement of a civil fine imposed 
under section 211, as may be appropriate. Any such action may be 
brought in the district court of the United States where the violation 
occurred or in the United States District Court for the District of 
Columbia.
    ``(b) Judicial Review for Enforcement of Civil Fines.--
            ``(1) Standard of review.--Upon a complaint filed by the 
        Secretary seeking the enforcement of a civil fine, the 
        appropriate district court shall impose the civil fine that has 
        been determined to be appropriate by the Secretary--
                    ``(A) if the person, labor organization, or 
                employer against whom the civil fine is sought has been 
                provided written notice and an opportunity to be heard 
                before the Secretary or a designee of such Secretary, 
                in accordance with procedures established by the 
                Secretary under section 211(g)(1); and
                    ``(B) unless the Secretary's determination is shown 
                to be arbitrary and capricious.
            ``(2) Scope of review.--The appropriate court shall not 
        consider any objection or argument that was not raised in the 
        proceedings before the Secretary.
    ``(c) Appropriateness of Injunctive Relief.--Upon a complaint filed 
by the Secretary seeking relief under this section demonstrating that a 
person, labor organization, or employer has failed to file timely and 
complete reports required by this title or section 301(a), or has filed 
reports that are substantially incomplete or inaccurate, or that 
information required to be reported may be lost or destroyed absent 
such relief, the district court shall issue an order enjoining 
continued violation of this title or section 301(a). Injunctive relief 
may be awarded in addition to any other additional civil or criminal 
remedy and whether or not the Secretary seeks enforcement of a civil 
fine.''.
    (c) Authority To Impose Civil Fines.--Title II of the Labor-
Management Reporting and Disclosure Act of 1959 (29 U.S.C. 431 et seq.) 
is amended--
            (1) by redesignating section 211 as section 212; and
            (2) by inserting after section 210 the following:

``SEC. 211. CIVIL FINES.

    ``(a) Notice; Correction Period.--Upon finding a violation of 
subsection (a) or (b) of section 201 or section 202, 203, 207, 212, or 
301(a), the Secretary shall, in accordance with standards and 
procedures established by the Secretary under subsection (g), provide 
the person, labor organization, or employer responsible for such 
violation--
            ``(1) written notice of the violation; and
            ``(2) a period of time to correct the violation that is not 
        more than 30 days after the date that the Secretary provides 
        such written notice.
    ``(b) Fines Assessed.--Subject to the other provisions of this 
section, if the Secretary determines that a person, labor organization, 
or employer has violated subsection (a) or (b) of section 201 or 
section 202, 203, 207, 212, or 301(a) and has not corrected the 
violation within the period described in subsection (a)(2), the 
Secretary may assess a civil fine against the person, labor 
organization, or employer responsible for such violation.
    ``(c) Amount of Civil Fine.--
            ``(1) Maximum amount.--A civil fine under this section 
        shall be for an amount that is not more than $250 for each day 
        after the date of the violation, and not more than $45,000 in 
        the aggregate, except that such amounts shall be adjusted in 
        accordance with the inflation adjustment procedures prescribed 
        in the Federal Civil Penalties Inflation Adjustment Act of 1990 
        (28 U.S.C. 2461 note; Public Law 101-410).
            ``(2) Factors in determining amount.--In determining the 
        amount of a civil fine under this section, the Secretary may 
        consider--
                    ``(A) the gravity of the offense;
                    ``(B) any history of prior offenses (including 
                offenses occurring before the date of enactment of this 
                section) of the person, labor organization, or employer 
                responsible for such violation;
                    ``(C) the ability of such person, labor 
                organization, or employer to pay the civil fine without 
                material impairment of the ability to carry out 
                representational functions or honor other financial 
                obligations;
                    ``(D) any injury to uninvolved members of the labor 
                organization or to the public;
                    ``(E) any benefits to such person, labor 
                organization, or employer resulting from such 
                violation;
                    ``(F) the ability of the civil fine to deter future 
                such violations; and
                    ``(G) any other factors that the Secretary may 
                determine to be appropriate to further the purposes of 
                this Act.
    ``(d) Limitation.--A person, labor organization, or employer shall 
not be required to pay a civil fine under this section for a violation 
of subsection (a) or (b) of section 201 or section 202, 203, 207, 212, 
or 301(a) for which a material cause was reasonably beyond the control 
of such person, labor organization, or employer.
    ``(e) Incomplete Reports.--A report rejected by the Secretary as 
incomplete shall be considered not filed for purposes of determining 
the existence of a violation of subsection (a) or (b) of section 201 or 
section 202, 203, 207, 212, or 301(a), and a civil fine may be assessed 
for such violation.
    ``(f) Effect on Criminal Sanctions.--The imposition of a civil fine 
under this section shall not affect the availability of criminal 
sanctions against any person, labor organization, or employer who 
knowingly or willfully violates a provision of this Act.
    ``(g) Standards and Procedures.--
            ``(1) In general.--The Secretary shall establish, pursuant 
        to sections 208 and 606, standards and procedures governing the 
        imposition of a civil fine under this section that include 
        providing the person, labor organization, or employer 
        responsible for an alleged violation of subsection (a) or (b) 
        of section 201 or section 202, 203, 207, 212, or 301(a) with--
                    ``(A) written notice of such violation; and
                    ``(B) an opportunity for a hearing before the 
                Secretary or a designee of such Secretary.
            ``(2) Judicial review.--
                    ``(A) In general.--After exhausting all 
                administrative remedies established by the Secretary 
                under paragraph (1), a person, labor organization, or 
                employer against whom the Secretary has imposed a civil 
                fine under this section may obtain a review of such 
                fine in the United States District Court where the 
                violation occurred or in the United States District 
                Court for the District of Columbia, by filing in such 
                court, within 30 days of the entry of a final order 
                imposing the civil fine, a written petition that the 
                Secretary's order or determination be modified or be 
                set aside in whole or in part.
                    ``(B) Standard of review.--Upon petition for review 
                of a civil fine under this section, the appropriate 
                district court shall impose the civil fine determined 
                to be appropriate by the Secretary--
                            ``(i) if the person, labor organization, or 
                        employer against whom the civil fine is sought 
                        has been provided written notice and an 
                        opportunity to be heard, in accordance with the 
                        procedures established by the Secretary under 
                        paragraph (1); and
                            ``(ii) unless the Secretary's determination 
                        is shown to be arbitrary and capricious.
                    ``(C) Scope of review.--In reviewing a civil fine 
                under this section, the appropriate district court 
                shall not consider any objection or argument that was 
                not raised in the proceedings before the Secretary.
    ``(h) Settlement by Secretary.--The Secretary may compromise, 
modify, or remit any civil fine that may be, or has been, imposed under 
this section.''.
    (d) Technical and Conforming Amendments.--The Labor-Management 
Reporting and Disclosure Act of 1959 (29 U.S.C. 401 et seq.) is further 
amended--
            (1) in section 205 (29 U.S.C. 435), by striking ``211'' 
        each place it appears and inserting ``212'';
            (2) in section 207(b) (29 U.S.C. 437(b)), by striking 
        ``211'' each place it appears and inserting ``212''; and
            (3) in section 301(b) (29 U.S.C. 461(b)), by striking ``and 
        210'' and inserting ``210, and 211''.

SEC. 4. WHISTLEBLOWER PROTECTIONS FOR LABOR ORGANIZATION EMPLOYEES.

    Title II of the Labor-Management Reporting and Disclosure Act of 
1959 (29 U.S.C. 431 et seq.) is amended by inserting after section 211 
the following:

``SEC. 211A. WHISTLEBLOWER PROTECTION FOR LABOR ORGANIZATION EMPLOYEES.

    ``(a) Whistleblower Protection.--It shall be unlawful for any labor 
organization to discharge or in any other manner discriminate against 
any employee because such employee has filed any complaint or 
instituted or caused to be instituted any proceeding under or related 
to this Act, or has testified or is about to testify in any such 
proceeding.
    ``(b) Enforcement and Remedies.--Any person whose rights secured by 
the provisions of this title have been infringed by any violation of 
this title may bring a civil action in the appropriate district court 
of the United States for such relief as may be appropriate, including 
an injunction. A civil action under this subsection against a labor 
organization shall be brought in the district court of the United 
States for the district where the alleged violation occurred or where 
the principal office of such labor organization is located.''.
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