[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 318 Introduced in House (IH)]
104th CONGRESS
1st Session
H. R. 318
To amend title 11 of the United States Code to establish a priority for
the payment of claims for retiree health benefits in liquidation cases
under chapters 7 and 11.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 4, 1995
Mr. McCollum introduced the following bill; which was referred to the
Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 11 of the United States Code to establish a priority for
the payment of claims for retiree health benefits in liquidation cases
under chapters 7 and 11.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. PRIORITY OF CLAIMS FOR RETIREE HEALTH BENEFITS.
(a) Definition.--Section 101 of title 11, United States Code, is
amended--
(1) by redesignating paragraphs (4) through (12A) as
paragraphs (3) through (12), respectively,
(2) by redesignating paragraphs (48) through (55) as
paragraphs (53) through (68), respectively,
(3) by inserting after paragraph (47) the following:
``(52) `retiree health benefits' means payments to any
entity or person for the purpose of providing or reimbursing
payments for retired employees and their spouses and
dependents, for medical, surgical, or hospital care benefits
under any plan, fund, or program (through the purchase of
insurance or otherwise) maintained or established in whole or
in part by the debtor prior to filing a petition commencing a
case under this title;'', and
(4) by redesignating paragraphs (21A) through (47) as
paragraphs (22) through (51), respectively,
(b) Priority Under Chapter 7.--(1) Section 726(a)(1) of title 11,
United States Code, is amended to read as follows:
``(1) first--
``(A) except as provided in subparagraph (B), in
payment of claims of the kind specified in, and in the
order specified in section 507 of this title, proof of
which is timely filed under section 501 of this title
or tardily filed before the date on which the trustee
commences distribution under this section; and
``(B) immediately after payment of claims of the
kind specified in section 507(a)(4), in payment of
allowed unsecured claims for retiree health benefits,
but only to the extent of the aggregate amount that
represents $10,000 multiplied by the number of former
employees with respect to whom a retiree health benefit
accrues;''.
(2) Section 724(b)(2) of title 11, United States Code, is amended
by inserting ``, and to holders of claims for retiree health benefits
payable under section 726(a)(1)(B) of this title,'' after ``this
title''.
(c) Priority Under Chapter 11.--Section 1129(a) of title 11, United
States Code, is amended--
(1) in paragraph (9)--
(A) in subparagraph (B)--
(i) by inserting ``subject to subparagraph
(D)'' after ``receive'', and
(ii) by striking ``and'' at the end,
(B) in subparagraph (C) by striking the period at
the end and inserting ``; and'', and
(C) by adding at the end the following:
``(D) if liquidation is proposed in the plan, with
respect to a class of claims for retiree health
benefits, such class will receive immediately after
payment of claims of the kinds specified in paragraphs
(1), (2), (3), and (4) of section 507(a) of this
title--
``(i) if such class has accepted the plan,
deferred cash payments of a value, as of the
effective date of the plan; or
``(ii) if such class has not accepted the
plan, cash on the effective date of the plan;
equal to the allowed aggregate amount of such claims,
but only to the extent of the aggregate amount that
represents $10,000 multiplied by the number of former
employees with respect to whom a retiree health benefit
accrues.'', and
(2) by amending paragraph (13) to read as follows:
``(13) The plan provides--
``(A) except as provided in subparagraph (B), for
the continuation after its effective date of payment of
all retiree benefits (as defined in section 1114 of
this title) at the level established pursuant to
subsection (e)(1)(B) or (g) of section 1114 of this
title, at any time prior to confirmation of the plan,
for the duration of the period the debtor has obligated
itself to provide such benefits; and
``(B) if the plan provides for liquidation, for the
payment of allowed unsecured claims for retiree health
benefits, but only to the extent of the aggregate
amount that represents $10,000 multiplied by the number
of former employees with respect to whom a retiree
health benefit accrues.''.
SEC. 2. RULE OF CONSTRUCTION.
The amendments made by this Act shall not be construed to limit any
priority to which claims for retiree health benefits are entitled under
the provisions of title 11 of the United States Code that are not
amended by this Act.
SEC. 3. EFFECTIVE DATES; APPLICATION OF AMENDMENTS.
(a) Effective Date.--Except as provided in subsection (b), this Act
and the amendments made by section 1 shall take effect on the date of
the enactment of this Act.
(b) Application of Amendments.--(1) Except as provided in paragraph
(2), the amendments made by section 1 shall apply only with respect to
cases commenced under title 11, United States Code, after the date of
the enactment of this Act.
(2) The amendments made by section 1 shall apply with respect to--
(A) cases commenced under chapter 11 of title 11, United
States Code, on or after March 1, 1989; and
(B) cases converted from chapter 11 of title 11, United
States Code, to chapter 7 of such Code on or after September 1,
1991.
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