CHAIRMAN LONG: The next order of business will be the reading of the Recommendations of the District Secretary.

         SECRETARY DI SCIULLO: Recommendations of the District Secretary:

         1. DEATH BENEFIT FUND: To enter into a agreement with United of Omaha to provide a $1500.00 policy for all members now covered under the District No. One Death Benefit Fund and to pay United of Omaha $100,000.00 in advance to purchase paid up insurance for all members 72 years or older covered under the District No. One Death Benefit it Fund and purchase a $1500.00 for all other members and all new members for $24.36 per member per year or $2.03 per month.

         2. Salary of the District secretary shall remain at $1500-00 annually until December 31, 1991. Effective the first quarter of 1992 it will increase to $1600.00 annually.

         3. Per Capita from the Local Unions based on membership shall be increased to $1.30 effective first quarter 1991 and to $1.35 effective first quarter 1993.

         4. Per Diem payments to Delegates who are approved at this 48th District No. One Convention shall be a sum calculated by dividing the number of delegates assembled into Twelve Hundred Dollars ($1200.00). In the event that the number of Delegates less than Twelve (12), the maximum per them shall be One Hundred Dollars ($100.00). Approved Special Department guests in attendance shall receive one-half (1/2) of the Delegates per diem.

         5. If the United of Omaha plan is approved, amend the Constitution and By-Laws of District No. One as follows:

         Section 1. The District Death Benefit Fund is a part of the Constitution and By-Laws of District No. One and operates under the following rules and guidelines.

         Section 2. The monies collected and disbursed shall be transacted to and from account(s) designated DISTRICT NO. ONE, I.A.T.S.E. INSURANCE FUND. Assessments levied on members through the Local Unions shall be deposited into accounts that are easily accessible and provide the highest yield of interest with the least amount of risk that can be expected in order to conform with normal standards of a fiduciary responsibility.

         Section 3. All members of Local Unions affiliated with this District shall be required to participate in the Death Benefit Fund. Any person obligated to pay full membership dues in a Local Union of this District shall be required to fill out a Beneficiary card, supplied by the District, (strike)accompanied with an enrollment fee payable to the Local Union.(end strike) The locals of this District shall handle all data, assessments and fees collectible from the members and forward to the District offices. (strike>Enrollment fee shall be a sum approved by delegates at a regular Convention of this District, however when the International deems it appropriate to wave a applicant processing fee for organizational purposes, the Local may also wave the applicant Enrollment fee. This can only be changed by a two-thirds majority vote of the Advisory Board, for emergency reasons, in the interim of regular Conventions.(end strike)

         NEW-Any Local Union having members paying less than full membership dues will have the option of having those members participate in Death Benefit Fund by following the above conditions.

         Section 4. (strike)Upon the death of a member of an affiliated Local Union, there shall be an assessment levied on each full dues paying member of a Legal Union of this District. The District Secretary shall notify each Local of the assessment due for the deceased by name, Local number and Death Assessment number.(end strike) NEW-Each Local Union shall pay $2.03 per month on each full dues paying member under the age of 72 of a Local Union and the option of paying $2.03 per month on members paying less than full dues of a Local Union of this District. Assessments shall be billed quarterly and END NEW each Local Union shall be responsible for payment of assessments to this District. Amount of assessment due shall be fixed in the amount as approved by delegates convened at a regular Convention of this District. This could only be changed by a two thirds majority vote of the Advisory Board, for emergency reasons, in the interim of regular Conventions .

         CHAIRMAN LONG: Would anybody else like to speak?

         Section 5. Upon the death of an enrolled member in the Death Benefit Fund, the District Secretary shall NEWbe supplied with a Death Certificate by the Local Union and the District Secretary will forward it to United of Omaha for payment END NEW (strike)pay the benefit(end strike to the named beneficiary in accordance with procedures outlined:.

         (strike) (a) Full amount of designated beneiit to be paid to beneficiary upon receipt of Death Certificate and copy of funeral (burial) expense paid.(end strike)

         (a) For purpose of defining beneficiary and in the event of beneficiary deceased, the following shall apply: Benefit due shall be payable per conditions set forth in Section 4 and 5 a (strike)and b(end strike). In the event beneficiary is deceased, or nonapplicable because of legal findings, the benefit due shall be paid to one in the following order: first, to the spouse of the member; second, to the members's living children (legal and/or adopted) equally divided; third, to the living mother and/or father of the member; fourth, to estate of the deceased.

         (strike) Less than fulll amount of benefit due, but no less than one half of amount due upen receipt of Death certificate and copy of funeral (burial) expense not paid. N0 more than one half of benefit due will be paid to Funeral Home when the expenses has not been satisfied. The balance, no less than one half, will be paid to the applicable beneficiary.(end strike)

         Section 6. Any member who has held continuous membership of a local union in this District for at least twenty (20) years or has reached age 65 with fifteen (15) years continuous membership may, upon being granted an honorable withdrawal card, participate in the District Death Benefit Fund by paying Death Assessments when due. The member receiving the Honorable Withdrawal Card shall be advised to apply to the District Secretary for continuance in the Fund and the Local Union must notify the District Secretary of such action. The holder of the Honorable Withdrawal Cards shall pay all future assessments direct to the District Office.

         Section 7. A retired member of a Local Union who has met retired qualifications under Article IV, Section 1.A. of the International Constitution and By-Laws will be considered a member of a Local Union and will participate in the Death Benefit Fund as outlined in Section (strike)2(end strike) 3 of this Fund description.

         Section 8. Death assessment shall be in the amount as approved by delegates assembled at a regular Convention upon recommendation from the District Secretary. Benefit payable shall be in the amount as approved by delegates assembled at a regular Convention upon recommendation from the District Secretary. Assessments levied or benefit payable could only be changed, for emergency reasons, between Conventions upon a two-thirds majority vote of the Advisory Board.

         6. Add to Article IX, Section 1 which reads: "Revenue into the General Fund of this District shall be derived from a per capita tax as recommended by the District Secretary and/or approved by delegates assembled in a regular Convention." NEW Per Capita Tax will not be required on members of any Local Union who have received a GOLD CARD from the International. END NEW

         CHAIRMAN LONG: Any discussion on the Recommendations?

         DELEGATE JACKSON LOCAL 918: 1 have some questions about the Death Benefit, but is this the right time to bring it up.

         CHAIRMAN LONG: I think this is a good time for any questions you may have on any of the recommendations.

         DELEGATE JACKSON LOCAL 918: How is United of Omaha going to cover death claims during the policy year when we only have 580 paying members at $24.36 per year, that would only amount to $12,100 per year. If we have over 13 deaths per year and they are paying $1500.00 per death, that amounts to $19,500.00 that there would still be a loss on their part. How will they handle that?

         SECRETARY DI SCIULLO: They are getting $100,000.00 up front they are hoping that all the members that die are over the age of 72, but we know that will not happen so what we pay in each month will make up the difference. Also, I am sure they will invest the $100,000.00 better than we can, so the interest off of that amount will also help. The rate is based on all the members under the age of 72 and that age average is what rate they are charging us. Out of the $2.03 per month, a $1.53 goes into a paid-up policy for all the members under the age of 72. They feel that the $100,000.00 is taking care of their liability. If you look at some of the other rates, you will see that United of Omaha is half the rate of Union Labor Life.

         DELEGATE JACKSON LOCAL 918: As members get older and we are still only getting $1500.00 death benefit, it seems to me that we are not getting much for our money ten years down the road if we are still paying the $2.03 per month. $1500.00 thirty years from now is considerable less than $1500.00 today.

         SECRETARY DI SCIULLO: Let me try and answer your question. We also looked at a $2000.00 pay off, but that would have cost us $2.36 per month and they would have paid-up all members who were 71 years or older. The reason I thought we should start with the $1500.00 is because that is where we are now, but at the end of three years we may be able to buy more insurance at the same rate. This will happen if our age average is better then it is now and we will be getting more members on with paid-up insurance also.

         DELEGATE BUGAS LOCAL 28: What he is saying, is that the rate per month could go down but also the company is saying what will go down is the age level because of the paid-up policy, but that will never fall below 65 years of age. We would hope that sometime, that all members of the District will receive a paid-up policy when they reach the age of 65.

         DELEGATE JACKSON LOCAL 918: Was there any thought at all given to the idea of taking the $100.000.00 and doing something with it, as giving paid up policies to these seventy some members and then just eliminating the whole thing?

         SECRETARY DI SCIULLO: Yes we did, but we don't have enough money to do that.

         DELEGATE JACKSON LOCAL 918: I mean just eliminating this insurance all together. We're the only District doing this.

         SECRETARY DI SCIULLO: We discussed this at the last Convention and I thought we could, but legally I can't see how we could do it - At least by buying this policy we will be paying off many of the members who have paid in to it for many years. There is nothing said that three years from now you come back to the Convention and say we now have only a couple thousand dollars left in the Insurance account, so let's quit this policy. The main thing we are doing here is getting the District out of the Insurance business.

         DELEGATE JACKSON LOCAL 918: It looks to me that we are starting of f with a policy that has a high rate, but as we go along it will average out in the long run that it will get cheaper.

         SECRETARY DI SCIULLO: That's right. We are at the worst level we can be at because of the age average of the members. The only way it gets better is the Local's taking in younger members.

         DELEGATE DEVEREAUX LOCAL 93: 1 don't think any of us here would vote to start a plan like this right now. Fortunately, it's there and I think we have to deal with it. I think John has come up with a way to do it and I know ten years ago we use to talk about the Death Benefit in our Local and everybody complained about it. Three months ago I brought up this plan and the Union was in favor of it.

         DELEGATE COOK LOCAL 15: I make a motion we accept the District Secretaries recommendation.

         DELEGATE HART LOCAL 15: I second the motion.

         CHAIRMAN LONG: Is there any question on the motion?

         DELEGATE HART LOCAL 15: 1 would like to say this before we vote on this motion. We brought this up in Local 15 and there was a unanimous vote to accept the new insurance.

         CHAIRMAN LONG: Any other questions? Those in favor say I, opposed no, carried.

         SECRETARY DI SCIULLO: This will probably go into effect around the first of September, as that is when the time deposit comes due. The biggest problem we are going to have is to get new Enrollment Cards from all the members. We will need new cards from everybody showing who their beneficiary will be. United of Omaha will use the ones I have already for a while, but please tell your members to get a new card filled out and sent back to me.

         CHAIRMAN LONG: Advisory Board Report.

         ADVISORY BOARD CHAIRMAN HART: We did not have any meetings but had telephone calls regarding this Insurance program and that the Advisory Board also approved this new Death Benefit Plan.

         CHAIRMAN LONG: Do I hear a motion to accept the report?

         DELEGATE JACKSON LOCAL 918: I so move.

         DELEGATE GILBERT LOCAL 175: I second the motion.

         CHAIRMAN LONG: Any questions? Those in favor say I, opposed no, carried.

         CHAIRMAN LONG: Communications and Bills.

         SECRETARY DI SCIULLO: There is not a lot of correspondence to report about, but the most important is from the IRS regarding filling 990 forms and the two EIN numbers the District has. After many letters with the IRS and a few telephone calls, I found out that the EIN number that was used was the wrong number and that they would cancel that number and we should use the other one as it is a non-prof it number. Finally after a couple of months I was sent a letter telling that, so now we are all square with the IRS. I received a letter from the IA on bonding insurance and the rate they charge. I was able to renew our old insurance for $261.00 for a three-year period. This rate was $40.00 a year cheaper than the IA insurance. A letter from Local 339 about sharing labor calls in Montana.

         DELEGATE DEVEREAUX LOCAL 93: Brother Devereaux reported on crews he has sent to Montana for movie work, as Local 339 could not cover the work and also did not inform Local 93 that they need help filling the call.

         Discussion followed about Locals talking to one another so that when jobs come up in their areas that they can't fill they ask for help from other Locals or give the employer the name and phone numbers of other Locals so they can contact them directly.

         CHAIRMAN LONG: Do I hear a motion to accept that report?

         DELEGAtE HART LOCAL 15: I so move.

         DELEGATE JACKSON LOCAL 918: Second the motion.

         CHAIRMAN LONG: Any questions? Those in favor say I, opposed no, carried.