These LMRDA statutes apply to situations in which a subordinate body of a labor organization is placed in trusteeship under the supervision of the superior organization. Section 463 provides that delegates from the organization under trusteeship (e.g., a local union) 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 and subject to prosecution under section 463(a)(1). Section 463(a)(2) 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(a) may result in imprisonment for one year and/or a fine under section 463(b).

A willful failure by a labor organization or its principal officers to file reports in regard to the trusteeship of a subordinate organization with the Department of Labor, 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. 29 U.S.C. §§ 461(c) and 461(d).

[updated January 2020]