Contact: Sunny Mindel/Curt Ritter 212-788-2958
"Allegations of corruption, misappropriation of union members dues and the disregard for individual union members by union officials has led the City to take these steps," said Mayor Giuliani. "Requiring financial disclosures and fiduciary responsibility will result in greater accountability for union members and the public and aid in the prevention of corruption and impropriety. This legislation will bring accountability to unions throughout the City and will provide reassurances to union members that their dues are being properly spent and that their officials are adhering to the highest standards of responsibility and ethical conduct."
The law would require unions to file annual reports with the COIB financial information including: the assets and liabilities of the organization, salaries and disbursements paid to each officer and employee, any loans made to any officer, employee or member in excess of $250 per year, and any other disbursements. Unions would also be required to disclose general information about the operations and management of their organizations. Moreover, union officials and employees would be required to file financial disclosure forms similar to that of city employees relating to any loans, investments and compensation that may be a basis for a conflict of interest.
This legislation would ensure that every member of a public union have an opportunity to view the contents of the organization's annual report. Members can also require the organization to allow them, for just cause, to examine the books, records and accounts necessary to verify the information contained in that annual report. Similarly, the reports and documents filed with the Conflict of Interest Board will be made available to the public.
The legislation would impose civil and criminal penalties for willful or intentional violations of the this law, such as breach of fiduciary duty, false statements or the concealment of books and records. Any public employee, organization or person who intentionally violates any duty or responsibility imposed under this law could be charged with a misdemeanor. Any such violation by an employee could also serve as grounds for disciplinary action or removal from office. In addition, the Conflict of Interest Board will have the authority to impose a civil penalty in an amount up to $10,000.
This proposed local law is modeled after the Federal Landrum-Griffith Act of 1959 which has required private and federal employee unions to file similar reports to the Department of Labor.