Prohibited Transaction Class Exemption for Multiemployer Apprenticeship Plans: PTE 78-6

E s p o ? ~ i e t o E e n ~ e n e ,dated hlzy 10.

'L.-.

n e n t s of S t a t e Inw 2nd f u r t h e r public
1977; S 19?3.1028. a.menr';cd send added pariicipa:io;l and cciilment nould be
2 ~?,i.!.'graph t.o tile E:ni.rg:?ncy Tc;m;l~o- uz~cecessriry.
rnry S r r n d a i d for C . C C ' J ~ ~ ~ ~
F.20O I : Z ~ This decision is eifecti7:e May 30,
..l.re
"... t o E?rz?r.e, dated May 24, 1977; a, 1978.
.
r,e.;j S~i:SpnrtT t o P ~ r 1910,
t
Coxnzer~ 2r.g.
i ~ G :2 t ~ d J u l y 22. 1977; (Set. 1 8 , 3 1 b . L. PJl-596, 84 S t n t . 1SC3 ( 2 9
I
. r
e Ca:?ratior.s and U.S C. 6671.1
1., ! l ;.-,...<:.
A.u:neni a:nendt?d to include ComSigned a t -4t:enta. En., this 19th day
:r.i:i.ci?l D i ~ i n g ,dat.ed Suly 23, 157'7; of D2cernbt.r 1977.
5 1028.21 Ssfety and ZIealth StandCors M. GROWN,
zrc's f o r k,-ricultiire, arnznded t o exActizg Regional Aclixi7:istra.tor.
cluZe C ~ m m n r c i a lDiving, dated July
CFZ DOC.78-l.?9Ol P:!ed 5-26-73; 8:45 am]
2 3 , 197.7; 5 1028.21 Safety a n d iI?slth
.
Srzndards for A ~ ~ i c u l t u r2i:lond.od
e,
to
e?:clcde rLir cgntrirnir?ant s f a ~ d a r d sin
SilSaarts B through T anc! Subpart Z 14510-261
rrom ag;icilltural operations, d.?ted
WASZf:NGfCN STATE STANDARDS
J u l y 29, 19.77: $19:0.1C43 Zmei-gency
Plo?ice of Approval
Tamporary Stnnd;~i-df o r Occupational
E x p o s ~ r et o 1,2-riibr0n.0-3-chl0ropio- 1. .E?ctckgrol~nd.P n r t 1953 of Title 29,
pane, dated S e j ~ t r n b e r 9, 1977; Code of I?ec??ral Rt?,rrulntions pre5 1910.1044 E.n?r.t;ency
Temporcry
procedur::~ under section I8 of
S i a n d a r d t o r Occupaiional Exposure scribes
the0ccupation.a.l Safety and Ilealth
t o 1,2-diSrorr,o-3-c>li0r0~1r~?aili:
correc- Act by which t h e Regional Administio:~s, datecl S?pt,ember IS, 1977.
trator for Occugational Sa.fet.y a n d
Tl?ese stnnclarcls were pro!nulgated
I.lea!th (h2reina:tcr called t h e R e g i ~ n b y filizg with tile I\:orth Caroiin;: Ai- 2.1 A:!!l?i?ist:a.ior)
ur!der a dttlegztion
toi-n-y G e ~ t t r a lon _May 15, 19$7; 3:ine
act11orit.y irorn tile Assis!.ant, Secre" 197.7; J ~ l y20. 1977; A L I Z L Ela,~ 1977; of
t a r y of Lahor for Occupational S a l e t y
SepteriiSnr 29, 1977, resptctively, pur- a n d Heal~lz(hereinafter czlled t h e Ass x z n t t o t h e X o r t h Ca:-olina Cccupa- sist.a.nt Secretary), (29 G I 3 1953.4)
tion~.lSafety r?r,d.1Iez;tn Act of 1973 will review and epprove sialtdards pro( . 2 2 p t e r 233. C.eneral Scatut").
mu!gat.ed pursuant t o a, Strtte plan
2. Decision, iIz:.ing rc7:ie\"ed t h e
x!licfi has Z'ccn :?pproved i;l a.ccordS t a t e sukmission !i co:-npnrison ivith zilce with section 13(c) of t?>eAct zr?d
T.ec!r.ral star:c!:cds, i t 112s been deter- 29 C3'R P z r t 1902. O n J a n u a r y - 26,
rr,k_;d t:?~.t t h e Stn:.? s!.,?i?r:~rds e r e 1073, notice w?s ppi:Slishf:d in t h e FEDidt:n:ical to th- Fcdgx;a! s t a n d e r d s n d I:?AL RZGISTER
(33 FF1 2421) of t h e ap;i?c h ~ r e b y.r.:spro7:cd.
proval of t h e SV?-sklington pian 2nd
3. Locction of s!~~;;Zi'mlie7zt.for
izspec- t h e adoption of S a S p a r t 3' to Part
Lis7? c.nd c o ~ ; ! ~ i A
z . copy
~ . of t k e stand- 1 3 2 containing t h o decision.
a r d s sopp!.-meet ziong n-ith t h e apThe \Vn?hingicn plan piovi:ies for
pro~:e!: plan, ]nay be ins:,ectcd 2nd t h e sdogt.ion of F~c'.eralstazdards as
ccpier! 6:.i;L?g r.or;r,a! business i ~ o u r s S t n t e standards cft.er public hekring.
at t h e io:!o-sing 1ocat.icns: OIiice of Ssction 1933.2G provides that "where
t h e C;om:nksioner of 1,zbor. North
any 2:teration In t h e Fsdern! pro::?am
Cr-.ro!lr;a Z~:~nrt:r?nantof Labor. 11 could i?zve zn adverse im3act on the
\:;?st
Ed,;ilton, Zz!:igh,
N.C. 27511:
a t ! e a t as effective zs" s t a t u s of t h e
' OIfice af t h e Regional Adminis:.iafor.
Stnte progrzm, 2 p r o g a m cfiailge supSl;lte 597, 1395 Pe2cht::e
S t r e e t NE., p1ec:ent to a S t a t e plan shn:! be reAt!:~r,tz, GE. 30309; a c d Office oi t h e q~1iri.d.I n response to F e i i e ~ z lstzndCirector of Frderol Cor3giiance and a.rcis rhaages, t.1:~: SLs1.e !?ls submitted
S t a t e r"rc#.-zms, Eorrm N3112. 200 by llettei, dated October 20, 1977, from
Chnstitution ?li'eni~e NW., Vr'i7-shiny- 2s-nes P. Srlili?:'arl, Assistant Ciri-ct,or,
t c n , D.C. ZD710.
t o James I,a!ce.. IJ,eaic)nai
-qd:;linistra5 . Pcb!.ic ~ a r t i r i p : ~ l i o n .Under 20
t.or, 2zd iccorporated zs p a r t of t h e
C?"i? 195?,.2(c) t h e 1is:;is'sant Srcretzry plan, a State stanclard compa:.a.b!e to
ri:a j. pre:;criSe zl!c;n?-'.il\,e prcicr.clures 29 CFX !910.309(c), Grouzd F z u l t Cirt o c;-.;l?tilte t h e rcvipw Ijrncfss or for cuit !:lterru;~tcrs, es published in ti-,e
( d l 3'ft 555GS1, dated.
oil;-:. good cncse w!lich n;ny be con- F=;2i:nt\~REGISTI:I'\
...c2rnber 21. 1576. This S t a t e stxnds',s;cr~t with ,?>p!iczk:.e !k:;s.
Thr &- sL,.-;
sistnnt .S?cr.ei~r;' f i n i s ~ c o d ccldse 2.r-d, which i? osnt:!ir.led in \VSC 235e..-:
..:.,.,-,s f o r ~ : o t p.;3!is'::ing
t h e snppk- 2,?-!)55!c) Gcni.ia.1 S a f e l y sad il'eelth
1115iti t o t h e i'.iorth C'vo!ina St:.-Le i'is.3
S:;..nclard
:
a
;
pro:nil!gatcd
ziter
z
i e prcpnser! change ;tnd ma!r:ng t h e public h;ari.?g 1i:'ld 03 Jciie 2 3 . 1977,
Rc&:io;lnl Ad:r.;nist;ator's ::s:~rovnl ef- pursuxnt, t.0 Cl~:!?t.er 34.04 EC\V : ~ n d
fe,..:..
,,,. e upon p::biicalian f o r ti;c fa!- of :i:e C)acn P:l!>lic 1-Ieetint.s Act oZ
~ ~ 1 r r. <
g *wons:
1971, C!I:-..pier 42.30 ECW.
1. ' i i ? r:ar~d:.rds
~
Lre il strrndkrd 2x3 hns been
l>ro:?~!lpated in acz:crd?-ncewith S t a t e
I&\-<, approval 11:sy be eifective upon
puhiication ~ ~ i t h o ban
t opportunity
for f u r t h e r public p?rt.iclsation. As t1:e
standard under considciation is identical to t.!l~. F c d e r d : standrrrd znd has
becn promu!gated jn ;tccorc'.;.-r~ce;vitf~
S t a t e la%. it . i s Z - D- D ~ O V w~ i ~t h o u t
public comment.
T h i s decision is 1effec:ive Mey 30.
-,.-

.

Sis::ed L-2 Z~eatilz,7,7?.sh., this 11th
day of Zenuarjr 1978.
S~:.:ss \V. Lqxz,
Regional A d n r ? a i ~ l ; a t o t , Occupnt?oncl Sc$?lq c;cd .GecZih Ad?r:in.tslra Lion.
[ F X Doc. 'iS-140i!ZI ~ j i t \ t l5-2678: 8:45 arz3
i

SUI$>;LARY: T h i s rilzss exempt.ion
c:-.~~:~pts
f;om seciishs 605(a)(Z) (A),
( C ) , z~nd(3)
of t h e I;::r.aio;ce Reiiren ? c n iIi~:oc;e Sccuiityl Act of S97t ( t h e
Act) ce;:ni-.. trnnsactii~r!~
b e t ~ e e coli~
l.ycti-,'~lyk?r::2Lqec! r.:cltini? ein?!ay~r
~ . ; ; ~ ~ n t i c e z h pl lpz r s c : ~ d er~p1o::ers
;!;nl:ing ccr,t:.ibu:ior!s :.o t!l?sf! ~?l.?!lscr
err,3:syra oscd, a:culd
A t this tin:e, t h e De;.,nrt;~:.~:c.t112%delisve pro-;idcG rtlief for cer:%in trr.:;st extend ex?xigti3;c-re!icf to
Mr. Eudol::h Kcis:!, D-c.>zrtment c f G C ~ ~ C . I ; S ~ ? ~ F : L ? c 2j:!:~~enti~~"Jiii3
~I
plfiiis cided r ~ c i.o
Iracs~ctlc~
for
s t.he ;~urzhe:c or :ecsc
Labar, I:Ta.shi!l:::,o?. P.C., 202-5.23:,!;r! contribuli!ig c:;;~;loyers. S?i:cre!
of pcrsonzl 2rc;icrty (PII;E.Tt?,;:.? h c i t5'i:I- !:),is is no:. 2 t.::!!-f:"
nnun:ber). . cc:::!l?c.nts
UrgC: t!'!~ 3tp2riir;cnt to
irom dent21 to t:lc I e z e oC rez! pr.c;>ir:y) by
ST)'P';3lJEh: ~
~
]hTF;>R!,lAT:O;$:
~
~
T
~s - x p ~
L z dt h e p:ir:ies i ! ~ interest
..
\::hich. pilrSil:~i?tt3 tflt CXe:X>ilOil, a n zppre!i!ini-chi? p:axs froln s g ~ n s o r i n g
0:1 5 c l y 3,1':?7,
r~otlcev:-s
ppub!is';t.d
er~:il:ie:.?ee c!-~;x,izatio:~or for the
apprc~tices!;ip 3:an cbiild purcli..se
in :I-.?
I'::z~:sLL
R~;~:Js~LT:
( 4 2 FR
:ewe
of JL.-1 property (other t h a n
t nther
Sc'i?i!. t h s t tlle Dc.partzie!~tof Laahor goods or leasf ~ ~ c ! p i : : e ~or
orficc:
spar.c) or yurchzse cr.lezse cf
property. Epeci:icz!!y, it 't\r::c s u ~ ~ r s l e d
( i h e Ez~;.'-r:.n~er-,t)
I.i:..ri~ . : ~ ? econsiCerr
persor;;ti pro2eri.y 5 y , ail a;j>renbicet h a t an agpren;.icr-s?ii:: plbn be pe;rr,itatian :: :rc~j;?::d d'c!~~?s
c::ex:pt.ion fro.?
s h j p~l z n frorn e re:etnd elr.p;c.yer LSt.lie rr..c:riciions of sectians 4 0 t i ( z ) ( l ) ted to obtzin gosfis s!>d ren'ais fro.sociatic:l. T!ic co:men;i !ef.!.ers di6 not
z
n
aissociatlon
c
i
\:.:ilic;i
a
contrii:uthg
(A), ((3,
zncl (D) of t!le Act for transsupp!y e;?ougn irLForrn$tion t.o d e x c n zci.ior~5Bli:o!\:L?g; (1) 'l.?lc-gt:rcl;ase of empioyer is 2 r-,:?~;:ber (hereheftei-'ie- strate to ti?€ Eop&rtr/~e:l t..'.,at such
persc~:l?-i property by a c.oll.ectively ferred to 2s, E rrel-,lcd employcr ec:ioci- transections zre snffitcjently common
btirg;;i:~id multlple employer-emp!oy- atjcn), from 211 C:;lpi~pEC o r ~ s n i z n t i j n t o justify ciass-wide relief.
k
ee weIfare hircefit p!en meinteined for my of a'horn mc:nSers' ~ o r rezults'in
IVith rtspcct to t.rer,.fizctior.s for the
t5e' Durpcse of providing apprentice- cor;iribatior!s b e k g made to t h e &p- l e x e of r a l properqy (other than
ship or other iraini:lg pxgrzrns (kcre- prenticeship plan (hereinait.er re- office s;ince) or p u r e r i s e or lezqe of
inziier rcierred t,o 2s r ~ r iappre~lt,ice- ferred to as a sponsoring eniployee or- persons-] ~ r o p e r t yby /.;m spprenticeship plzn) frotn an eniployer who con- g ~ r i z s t i o n )hli:! i r o n 2 multiple em- shlp pi;n,frorz z related mVr;Jtipleemtributes to such p i m (berekiafter re- ployer plan which is a pzrty h interest p l o y € ~p:m, t h e D e z ~ a r t m m t notes
f e r r ~ dto zs 2 c,ontribvrting employer) with respect to t h e apprenticeship t h a t section C of Propibitc-.d 'Trensscor a ulbclly ows~edsub.cidiary of sucll plan o r relaied t,o t h e rgprenticeship tion Exemption 76-1 (PI'S 56-1) (41
plan by rezsari of tlie existence of PR 15740; A5arch 26, 19TIB) hlready
zn einplo~~er;
and (2) the lsasing of
rezl pro;,eriy (excluding office spzce) t.rustf;es camrnon to both t h e :ipprc:n- provides exemptiva rellef for transac- .
or p ~ ; s o ~ ; bpropert.y
l
by e.n'spprentice- ticcship plar! s n d the multiple elnpioy- tjons for t h e leasing ,of oificc spnce
-a and sale or I e i ~ i n gof p?ods by a multiship p!en from z contributiqg employ- er plan ihereinafl ar r e f e r k d to -s
re:a.ted mu!:ipie
Dlan).
e r , or a nhcily oicrneci subsidiary of
emplcger plan I,o vi2o'iher n:uiti;;le
After cor~sideraiion cif these cem- ple
such E n ,c,rcgloyer. T h e cxcrn>t,ion w a s
employer p1s.n which i: a phrty in inrncnts,
t
h
e
Dzpnrlrnent.
ilxs
dr.ci6i.d
to
reqoes:~d ix aaplicztions iilec by t!le
t.ert:st with respect tcysi~chp??.n.'prohl.~rr;:itior;cl Union o: Ctperatixlg En- expend 1,he prr;>oscd exempt.ion t o vided ceri.ein ronditionk are !net. Subg i n ~ e r s on
, behalf of 55 local affiliated permit sp;,r'entic.es:lip plans to lease ject to t.1:
cclndil;ic_ns: of FTE 76-1.
sppreziiceshi:> zndjor t ~ a i r i i n gp l a s real proDerty othcr t f ~ a noffice s ~ z c e , ~then, a multiple employer s]:przriticeand t h e Laborers' TI-zizhg and Re- and t o lease perscnel property inciden- ship plan is not prohibit.ed by t h e prot.reking 'Inst. h n d f@;-Xorthern Cali- tal t o t h e lease of .such real property. h i b i t i o ~ sof seciior, 4Q5(2) fro-m t h e
froin s p o r s o r h ~ g enployee orgzniza- lease of office space or /he pilic:'l~seor
iorilin. Tiie ~ p p l i c ~ t l i represenkd
s
t h z t a>prcntic.esXp snc! oiher t r z i n h g tions. It hw b e e n represented t h a t l e a e of goods irom z r;elst.ec! ~ u l t i p l e
r1ee2 among ap- employer p l m . The o$Iy trznsar,t.ion
plans z.:.r: an essential e l e ~ n c n tin pro- thr:;e is 2 ~ i d e s i ? : e ~ C
ridhig t~einecixorkers for t h e irlaus- prenticeship pians :or facilities t o n o t already e x e n p t frum t h e prckibitries ii: a h i c h they operate. The train zipp?.enl.iccz... ?\' h ~ hmdiicielit
01EYTE 70-1 is the l e ~ s ~i
e re.?.? properquires !?et., from time to time. t h e y capitzl to bili!d sue:!? t x k i h g centcrs, ty o i h f r t h % office
~
spa-ce betv eer, repi:rci.!rzr- g o ~ 3 s&rid lease equipment er.2, t h u , t.iiei: GI?;:; rcallstic ejtcrna- 1st.ed multiple t.rn>loyei F.!:~ss. The
or oLher pro9ert.p for U S E in t h e pro- tive is to enter into leixinp arrange- comments, hcwever, 843 n e t n z k e a
grzms ~ i ' i : i c n they nfLintaLq, It h u ments. Tradiiiol:i.!!y,
ap?renticeship showing t1,a::relief
beyond t k p t probps12 cirsto~rarjrfor 1,hc.se plsns, which p1ar.s have 1em-ced such trziriirip facili- vidpd by Pm 76-1 is justifled cr neceszrc j3ir?:ly sponsored I:,? cnioxis anci ties from, ainarig cthers, t h e employee sary and, ncrordb-sly, t3?e D ~ p a f ~ m e n t
rmgisyc-rs. to cbtain ~ i l c hgoods ~ ~ n odr g ~ z i z a t i c : ~n!:ic,
~h
sponsor such 11= dcterxined n o t to e~;pzndt . h ~
apresthis fro-- cmpiajers x h o are con- plszs. Sponsorkr: cxpioyee org~fiizet.rib;itors to t h e p:ans. Xi1 such em- tlons have a n i:!teri.;t h.1 e n s u r k ~ gt h e
'One cozimenthtor h d i d t r d t h a t feur unpioyers zre s i ~ ~ a t o r i eto
s colleciive conthuec! existence a d fin?drciel. sta- releted
p h r L i e s v:ould be r;il1iri :o enter in'a
bar;-;irAir!g z ~ e e x e n kwith t h e spon- biiity of tl;e rentic ice ship plans lozg terz, ] e w e s with en 2>pre~tlces?Jp
soring 1n;iocs. .
which they spomcr. Whereas persons plan bec;.';se of h e i r mnctjm t h a t the plzn
T h e e:iem,tion w~-s pproposed in zc- unrelated to spprestlceship p l m may r.ighL not. receive sdditionzF nt-cess~.ryfundcordsnce ~ 5 t h
t h e procedure set f o r t h be una4link or ur.in!.cresied in le&.sk;g
ir:p ~ f t e rt h e conclu~ion131 the coliective
ic
in EZISA Procedure 75-1 ( 4 0 FR property to s x h plzns, sponsorins em- b r z ~ ~ i n i r apreernent.
'It shoujd be noted. hou$ver. t h a t not ;rU
l8c'il. April 28. 19751 and a!l interest,ployee organk:iors
often ere willing
ed perscrs nere invited to submit corn- to devote t h e necesszry tune and ex- r e l ~ t . e dmu:tip?e employer :plzns srr parties
r. lnlerezt with respect tc: each other. for
ments cn t h e proposcci cteixption.
pense t.o provide ;pprenticest.,ip plzns i
ex~inpJe.if pian A merely has t h e same conThe pilhlit commefi'h received in retributing ern=loyer(s). the same s p a n s o r i ? ~
spgnse to this request generally sup'Section 4CE(5)(2) of the Act ~ t ; d regcla- emplcyee 0:;-f.rhtionts). t h e ski]-.e pzrliciported t h e prclposec! e?:e:nption, 21- tiom L~sued:hr:ci~;~r:e~. 6 255C.4(1Sh--2 ( 4 2 p c i k clcd t!;e szme trustees ?is pi=> B, und
t.houeh some C O I I I : I ) ~ T I ~ . K ~ T Surged
plen A a n d p:an U have no othcr reistionF'X 32389. J u ? c 25. 1C:$:,
al-etrdy ycrrnit a
that. it bc e?:pr-:nded to provide exernp- plzn to lazsc o1:icc .:en?ption a i t.his t.i:~:,c to
fitr:;:it nultiple er:~'j:oyer ap$ien:.ic:2shis 5 2 5 3 to lease real property o t l ~ e r
tha:? o!'lice space from related ~:~u!tip!c er,:.:;oyer plans.
S~i'i.rz1C O I E - T ~1irge
~ ~ St h e D ~ p a r t iz?i?t i 4 c!ciete from i h s p r o p ~ s e dexc!:~pf,ion t h e condition coatained in
s?c:ion I i ( n ) ( l )thereof which provided
that:
Beiiher t h e contrib1:;ing employer, the
a-hcl!)' o;?.rd ~ubsidiary of the ernployer
nor a n y zffi:iste of such r ~ ~ p i o yor
e r subsidi?-y .is
a :i.'uciary with respect to the ap.
p:in~!ceship plm on the date of the tl-ansaction c r k s s been a fiduciary respecting the
z?p;ei::iceship plan a t =illy tima during the,
2 yews p r f c e d k ~thi: :irtr=ent e;ngfi?sizi.s t h a t t h e exe.mplisn.
zadpted, does a o t c o n k h
rslief Tram szction 40B(b) of t h e Act.
111 this 1-ogsrd,t h e D'partment h?ci receiV;ec!c;om,~rntswhich urge that tila
p r o g o x d exernption bi: i-xpanded t.3
irc!1:32 relief fr3m t h e p;~hicition of
.rec;i-n 4DS(S)(S) oi t h e Act. Section
456:b)!2) prohibits n fiduciary with respect tv a p!xn lrorn acting. in his i;.,Bivid::~lor in any other capacity. in 5injr
trn~:r:~ci.ioni~n'olving t h e plan on
t?ek:?.if o,! a pr-rty (or regresenting a
i;ar:.:)
s:iiqse i n t e r ~ s !ere
~ ndver:je t o
t h e irlter2s:s of tl?i? plan c r t h e icterests of its p:lrtici~antsor beneficiaries.
Zscnption from-srction 4(;6(b) is not
necessary for many of t h e tr:insactions .

, '

in ~ h i c h:L;I>;~-nticeship p:nn; pur- (!~:!c:ILI:I
is ;.5>licn$!e :ro:n c e r t ~ L 3
c:lzsa or !ea:;e yropkl.ty irorn parties in ci!.Ler aro1;isic;cs of i t h e Act inc!l;ding
inici-cst bt.cnl.:se such ~ ~ - ~ E Z ? - ~ L I Oare
; ~ S any !-?rc!:i'.?it?d lradsnction provlsiors
\\it11 par ti?^ who ?.re ~ : o t ficl~icirtries to vrhi-11 tile exz'n?:;tion does not
?.nd do not i:lvo!ve the a>pro7ving fidu- asply 2-nd tile geceral fiduciary reciary in tier~sactiar,s:vfiich v;ould be sga-sibiiity arovlsiqns of s x t i o n 404
reallire, r~!noEz othar
prohibited by s e c t i ~ n 4CGib). &:./:ore- 0; the Act ~;.:7ich
over, section 4OX2.1 of ti;? A.:t stetes thir,:;~, !:lzt, a fiduciary disc?:.:nrge his
-,.c.-soti
-.-,. +..aY,ngif?(l)(B)of t h e Act;
( 2 ) This cxcmptiop does .not extend
f u r t l ~ e r delay its acloption in fizal
form. Csrisaquentip, for these rexons. to ti-nr,sactiors prohibited under sectile Departmefit liss determined to t i o . ~-:06(a)(l) (B)jnd (El, 405(a)(2)
adiipt t h e esemp:ion x i ~ h o o tpiovid- or 436!b) si th: Act; / a d
(3) This exprnptioh is supp!emental
ing relief frarn section 405(b) of t h e
Act. Interested perso.fs n a y x i s h to to, a+ c o t in dercgdtinn of, r n y other
hring to t b e zttention o: t h e Depart- . provisions of t h e Aqt, inc1:idir.z statument, by a3plication in eccor2iincs tviy or a.cirn!iiistrati\~eexe-nptions and
99th t h e pisci?dure established in transitional rn!is. :Wrthu:-more, t h e
fact thxt a transzctipn is s ~ b j e c to
t an
ERISA Pros. 75-1 (<0 F Z 18471, ,4pril
23, 19751, as a;r?.sndzd ( 4 2 F 3 57183. arhninlstrative or ~"Ltuuioryexe!nption
I.Tovember 1, 19771, their vizxvs :
x to or transitional rulei4 not dispositive of
~ h e t h e rt h e exer.rtion, aj. adopted, whether t h e transection Is in fact a
proZribit.ed trinsactidn.
'
should be ~menrlodt o inclgde relief
Iron? m y of t h e :.:rohibitior?s of sectioa
Esn~~ro_.r
405(b) of t h e Azt, a:ld, if so, the reaIil ~ ~ : c o r B ~ nwitti
c t : section 506(a) of
sons t h e r e f x .
With r ~ s a e c t.3
t t h e zS,,-nce o i relief t h e Act a n d t h e prcjcedures set forth
from section 4rJXb) of the -4ct. t h e D e - in EIZISA B o c . 'i'5-1 (40 FR 18471,.
partment notes t h e fol;oxviny. E x t i o n April 22, 1975). ar.d brsed upon t h e
406(b)(l) of t h e Act prohibits a iidu- er.t.ire record, the Department makes
ciary of a p!;in frog] de:lling ~ i t n
the t h e following deterrvLqations: ( a ) t h e
%sets o i ?. plsn in his ov%-ninterest or exemption is ecl?lini$iratively feasible;
f o r his own :icrount. I t n~ouldc c ~ s t i - ( b ) t h e ex?~nDtionIs !in t h e inteiests of
t,?lte a prohibited trcrnsaction 11nder t h e plans affzcfecl br:d their pnrticiscction ICd(b)(l)of the Act for a trust- pants 2nd beneficiaries; and ( c ) the exee of a.n epprent.iceship glan who 1 x 2 ~ , cnption is protecti:,e of t.he rights of
for exangle, ar. em?!oyee. officer, di- p"rc,ici?ar,ts and beneiici:*ries of t h s
r ~ c t o or
i other afliiint-e of 3 c o ~ i r i b u i - zfiected alar,s. Accbrr?ir.giy, the fole:ierr;ption isg~z.nted.effective
jag employer to pnrticiante
a deci- l~-:~ing
Jancsry 1. 1975, cnpzr t h e authcrit.y
sion of t h e plan to p11:chr:je
o r !,-ase
pr0,peri.y from s\:ch ?ontr!buting em- of section 403(a) o f t h e Act and in xcployer. Simik-ljr, 2 trustee of e p ! ~ n cord+ncs witin the prbcedures set forth
who y i s a rr,.zrr!ber cz ol!icrr of t h e in E S 1 3 A i"loc. 75-1.;
Seciisn I . - T T C ~ S C Cove:ed
~~~O~
b yL S
union s;;onsnriag t h e plan would
engage in z n act c!escr;.bed in section tnis Eie;7xpli0~- (a) .The acrcfime of
40G(b)(1) of t h e Act b y pzrticlpating in personzl property bp a multiple ema ciecision of t!ze plan to lease property ployer welfare benefit plan mainfrom such inion. I-Iocever, by remov- tained for t 3 e purpoie of providing apir,,a hirnse1.f from ail consid?iation by prenticeship or ottjer trzining pro"ihc 3lsn wic-tker or not to C C ~ A ~inZ gr:m (hereinafter :yeTerred to &* 2n
the tra.rsaction a c d by not otherwise apprenticeship plan) from en employexercising s n y of t b e a~:thority, con- er \;li:o rnakes coatnbL!tions to such
troi or r?spor,siSlli:,y r;hich malres him p l y iher:in?.fter reflerrcd to 2-9 a contr1n:ltin:j rcip:dg?r) nr Irom a ~ct'hcllya fli!uclary t.o czusi? t h s plxn t:o en:,.e.ge ou-ned
subsidlr=ry o i such zn, employer.
ia the ti-xiinctior.. t h t-ilstez
~
(who is
The leaiiing of personal propsrip
r.ssocizied ;.i.ith thd c c n i r i b u t i n ~em- by(b)
an 2:,,prentices:?i;i plan from a conp?clxcr or s~oi:sorlr~ge:-~;J!iolly
z:~tion sr.!iinj or 1er.sing t h e property oicncd 5::bsidirry of sach a n einploy~r.
t o t h e plan) ccul:l zvcld eng?ging in a
tc) T h e leasiag of real. properw
szcti?n 4C5(b)(i) giohibiteci ti-ansac- (other t!~:+.nr~fficespace v:i;.hi;l tile
iion.
conte:r?p:.:tion of sektion 402(b;i2) a i
t h e Act) by an epprenticiiship plan
Iro~n s o
r r.n;,loyer, e
T!:E 2t:tntion of inte:t:sted pel-cons ~;!?clly oi';iled s~ibsic!i:rry O: such an
is .I;.-e c t ~ d
cY1:3 t h e fal!o?ving:
e:n~~ioyc-r,
or Irom an emsloye? org2r.i(1) T h e i > c i that 2 transaction is tke zatlon 2ny of whose ;!naz~:~el-s'
v+G;!: r?.c,u>jezt of an ext.rnp;ion g:?-r.t?d urirler sults in con-lributiorbs tleizg made t.o
sec.t.ion 406(z) of t h e Act. clorss n c t re- t h e e:,r.>rcntizesllip plnri (il-~.rci;:~_f
:.er
lieve a fiduciaiy or party in interest rcfcrred to as z s2o:nsoring cn:p?oyee
with rcsgect to a )[)Ianto which t h e ex- organization).

.

c7

I

.

..

'

I

r erty 1;?, an c;;r>rentjccshi:, p!:;n i r o n n
spo~:coriri~
cmpio)'c-c o r ~ a ~ l z c i i o l ~ .
. Scciicn /I.--Cc;iZit:~n.~, T h c trcns.
&cljo:~s
describe-d iil re:t.ion 1 above arc
cz;ei;ip; c?lly if:
' r h c tri.?~!,zction is on terms a t
:c,s.st a ial,crab;c t o t l ~ eplan ::s ell
.:a's-lesi[:tl? Lransaction ~:jiii En 11zrc.:ricxi.p%rty \;:ou!d be;
('o) T h e trarisociion is rp;jroprjkte
and hr'i1::uI
in c,;rr\-inz out t h e purp3ses i ~ v:l.?ich
r
t h e p;an is esl.aSlis!:c-d
t;r na'n!:iincd;
( c ) TI-c 2pprer!tices:?i1? pian ivhich
enters i ~ : c2ny o i t.!>e tr:insc?Ljons described in seci.ion I rhoi-e r n z i n t e i ~ so r
c e ~ ~ ateo?be rrrz.izt-,iiled for a period oZ
6 ye;lrs icmm t h e i:erminaticn of 2ny
such trannsction SECIXT ~ C O T G ' S zs 21e
'nect-ssery t o enable t h e persons described 1:1 p B ~ E p ~ i p( dhl of this sict.ion
t o detcmlinle \::hetfier t b e conditicns
of Chis exemption haye been met,
except that:
(1) This peragr-raph (c) and parag r a p h (d) below will not 2pp15; t o
t n n s a c t i o n s eiiecied prior to July 2 4 ,

V

.

.

' ( 6 )T l ~ leasing
c
o: pers.2i>alproperly
. j~lcidrn;;;: to t h e lei-qin:: of re:-I prop-

-4

.

..
.

1078, and
( 2 ) A prohibited trens-,ction will n o t
be deemed t o hew occurred, if due t o
circums?ences begcnZ t h e coni.rol of

- t h e fiduci2ries of svch apprent.iceshin

-1

PI::-n, such reco~c?s :.re lost 01% ciestroye8 prior io the end of t h e 6-year.
.. period: and
( 6 ) No!v:ithstandirlg
eny provisicns
of s u b s e c t i o ~ ~((2!;2)
s
and ( b ) cf section
5Gd of t h e ect, t t ~ erecords refei-red t:,
ia parsgraph (b) of this cecljon r.re unco;rCii;onallgl pvailsble a,t their cust.on;ary location lor examination
: 6urLig nonnal bil5irie.s~h o u r s ,by ( 1 )
t.he Department of Lzbor. (2) iiny con"
tributisg ernaloyer, ( 3 ) m y e:nplogee
.
of a contribuline employer, (<) a n y
spoi-soring employec orgcnizztion, (5)
-.
any per.?or? recpiving fiene3t.s uncier
t h e a;:gren!icesikip plan, and (6) s c y
.. du1y authcrized employee or rcsreI
sertative of a pe-son described i
q (1)
t h r o u e h (5) of inis pzragraph.
.
Section I.?I.-Dejizitfozs,
For purposes of t!lis exercptioa the t%im
"multiple e=.ployer v,:elfa:e
ben~fit
plan" means a v,yelisre plaz whic2 is a
rnu:tjs;r~player ~ I z nv;it!lirr t h e meanii;g of cec:ica 8 3 : ) of ti;? Act, or a
xeifare p!:~;7K : ? ! T ~ meets tile reqcirerr,encs of tit. le;;t
~ t - b ~ e c t i c3(S'13(A)
g
(i), (ii) r;nd (u) of t h e Act.
S f g ~ d2t. \T.yzhi:~c~',on,
D.C.. ti-:is
24th d;y of ! h ~ y15.78.
IAND. L.%r\.O??.
Admini~:i~!or, Pension A'c?.l~~e
E~7;eJlitPrograim, Labor-blazc g e n c x . t S e r ~ c e sA fnizi:lration, Dcparhtcnl of L ~ c o r .
I

[I??Dce. ' i 8 . - 1 G R Q i E ; e d 5-24-76; 3:CZ wl

percd t.o 1 C i 5 , domdstic c1cr:l;~nti i r r creased nt only a fraGLion of i h a t rete.
Illvenbi-y levc-Is of domestic 2nd imported copper on cojlsigrimcnt a t domestic refinei'ies in Uecernber l!l'i6
v.:Ere 31.4 pvrcent ii??ive Dece::;i)r-r
Ctrli!iccl;on Rtgcrdirog E;is!bility To A p ~ ! yfor
1975 levels 2nd weie 143.2 pcrc;t.r~t
K'orirr A l j u r t n ~ n n tb s s i s f u n c e
a?love Deceixber 1974 level!;. I?:inc?icrs
aud other d31nest:c :prod';c~rs GI
re.
111 acco:c:encq.c v:it!l section 7 2 3 of
finer! coppcl- l~:jt.sale+ in I 4 7 7 !;?cc?u:c
t h e Trzcic Act of 1574 Ihc r)r.pzrit:?cnt
oi Pdbcr hrrcin prpse1:ts t h e rect:!t.s of a i tile t.xcc.sii'c jnvciltories of L'cnlestic 2nd i:nported reiine:l co?;,:cr.
TA-IT,:-2575: investigaticn re;c!.di!~g
Iinports @f copper 2rc xf;c?ted by
ceriifich;ion of eligibili1.y to s s s i y for
c;or?:rr ;;Gji~~i.%cnt
~.s;is:.encc 6-5 pre- t h e dil;cr~r.:iz? bet~v$ellt h e 6 ~ : n e s t i c
proc'zcrrs price for I cc9;;;lr 355. t h e
scribed in s?c.tion 222 o i t h e Act.
The i i l v e s t i ~ ~ i i owas
n
irtjtia!.c.d 011 price estc'c.lic:!:ed by l!he LI;!E (Lc:ntlon
Lxchel~g,?).k7Jilen t h e LP.53
I>er ore a t t h e B!ueb;rd
price. At t h c same t%e, the s b u i ~ d ~
Mine cwned by R m c h e r s Exp!oiation
x l d Development Coxp. During t.he suaply of co>prr stocks in t h e ioreseccoul-.;c of t h e investigation, i t A'as de- abie fuiurc providesjrlo reaao!l for dot e p i n e d t h a t Ranchers Exploration mestic coilsun3crs o$ copper t o n;zinLain ties u3th dornegtic producers l o r
and Develo?ment Corp. i s the workers'
purposes of a ghzrentce ogzinst
firm.
T h e Kotice of ~nrfestibation
i~~;.s
pub- cop;)er shortages. ~onsequent,ly, in
1977, when m a y domestic cogper prolis!led in t h e FED>:*L
R E C I S T E ?,011
~ ?TOvernber 18, 1577 ( 4 2 Xi?i 595GS). KO ducers cl!r:.aileC prot~uciionbt-ceuse of
public hearing w;;s recluestc'd End nor?e the depressed market price f c r copper,
i?xpor'i.s of refined coppcr increased
W ~ L Sheld.
T h e informstion u?on which i h e de- compared t.o 1976. '1
I n Oct:obcr, 1957. F?trnc!xrs curttiled
t e r n i n z t i o n was made n'?? obtciizeci
princ;pallg from 0fiici2ls of )ia:~chers mining operations z t t h e B!uebird
Esploraijon a.nd Devejop!.ner.t Corp., hnporls of zrtic!es
314 thousznd s h o r t tons. res>ectively, like o r directly hompeiitive Kith
i~ 1973 a d 1976. U.S. i-npo:-ts of re- coppe; produced z t the Blae5;rd Mine.
f i l e d copper deciined t o 147 t h o * a a n d MI~rr.i, P-riz., of Rsvchers ExploratTon
'zhort tons in i 9 7 5 before i ; l c r e s i n s to %lid Dsveiopnlent JCorp. cor,tribut.ed
354 'r5ousznd s h o r t Lens in 1976 a d import:-ntly t o t h e decline ir! szles &nd
5 9 1 l!!ousanc! ~ h c j rttc z s in 1977.
~rod::ction a t t h e imine a n d L O t h e
-.
I n e ratio of importetl reiiu~edcgppor
totar or portial s e p ~ r ~ t i o n
ofs workers
t o d o m e t i c prodxction i x 3 r e 2 ~ ~frcln
d
of h d e : ~ ~ r Development
~
Corporz:icn
8.6 percciit i;l 1 5 2 to 9.0 pcrrrrlt end a t t!]~ E!u~bird Mine. Iil &ccord?.~cc
15.2 percel-t, respectively, h 11.73 hcd v.?i-isllt ! . ~provisiqns of t!:e Act, 1 make
1974. The rztio of irn2orts t o 6~n:estic t h e Solicning certificztion:
prodllction dec;izled t o 6.6 percext jn
All workers of AnFerson D e r e l c p ~ e n
1975 before i n c ~ e ~ z tio~ 21.0
g
pcrcent Corp.,
st t h e . Bluebird Mine, hcizrni. &,-%
in 1976. The ra!io of imports t o doines- a-ho
becarr~etota!!y OF psrtia!l:; separz!c~
tic production izcreased fi:r:!ic-r, t o f r c x c15pJoy~:enf on Or p3tc.r S?plcxber I
22.2 p e r c e ~in
t 1977.
1977, ?.re elie;ble t o zs$:y for cdjusme.?: 22
Wfliie i r : ~ r , r t sof refined copper h ~ d ~ i s ; h r i ~c:ldcr
e
Title ?I. Cnapler 2 of if:
i!lcre=ecj b y iG1 percent in 197t; cow- 3 a Z c -4c1 cjf 1.674.
.
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FEDEKAL EEGISTEP., VOL. 53, NO. lo$-TUESDAY,

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M A Y 2i3, \F7E