[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2637 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2637

   To amend the Internal Revenue Code of 1986 and the Surface Mining 
 Control and Reclamation Act of 1977 to protect the health benefits of 
retired miners and to restore stability and equity to the financing of 
   the United Mine Workers of America Combined Benefit Fund and 1992 
Benefit Plan by providing additional sources of revenue to the Fund and 
                     Plan, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 18, 2002

   Mr. Conrad (for himself, Mr. Smith of Oregon, Mr. Allen, and Mr. 
    Warner) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 and the Surface Mining 
 Control and Reclamation Act of 1977 to protect the health benefits of 
retired miners and to restore stability and equity to the financing of 
   the United Mine Workers of America Combined Benefit Fund and 1992 
Benefit Plan by providing additional sources of revenue to the Fund and 
                     Plan, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Coal Industry 
Retiree Health Benefit Stability and Fairness Act''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title, etc.
                     TITLE I--FINANCING PROVISIONS

                       Subtitle A--Federal Funds

Sec. 101. Mandatory transfer of general funds to Combined Benefit Fund 
                            and the 1992 Fund.
Sec. 102. Annual audit.
Sec. 103. Appointment of Government trustees.
                          Subtitle B--Premiums

Sec. 111. Elimination of unassigned beneficiaries premium.
Sec. 112. Refunds to certain operators.
Sec. 113. Reduction in annual premiums to Combined Benefit Fund if 
                            surplus exists.
Sec. 114. Refund of contributions paid by certain small entities to 
                            United Mine Workers Combined Benefit Fund.
Sec. 115. First year payments of 1988 operators.
Sec. 116. Liability in the event of pre-funding.
Sec. 117. Definition of successor in interest.
                    TITLE II--RETROACTIVE PROVISIONS

Sec. 201. Reform of retroactive provisions of Coal Industry Health 
                            Benefit System.

                     TITLE I--FINANCING PROVISIONS

                       Subtitle A--Federal Funds

SEC. 101. MANDATORY TRANSFER OF GENERAL FUNDS TO COMBINED BENEFIT FUND 
              AND THE 1992 FUND.

    (a) In General.--Subsection (b) of section 9705 (relating to 
transfers to the Combined Benefit Fund) is amended to read as follows:
    ``(b) Mandatory Transfers From General Fund.--
            ``(1) In general.--There are hereby authorized and 
        appropriated, out of any amounts in the Treasury not otherwise 
        appropriated, to the Combined Fund and the UMWA 1992 Benefit 
        Plan such sums as may be necessary to--
                    ``(A) pay any benefit or administrative costs of 
                unassigned beneficiaries of the Combined Fund,
                    ``(B) pay any benefit or administrative costs of 
                unassigned beneficiaries of the 1992 UMWA Plan, and
                    ``(C) eliminate any annual deficit in any premium 
                account of the Combined Fund as certified by the 
                Trustees of the Combined Fund.
        Deficits referred to in subparagraph (C) shall be certified by 
        the trustees only after utilizing and taking into account all 
        premiums and other government reimbursements to the Fund.
            ``(2) Use of funds.--Any amounts transferred under 
        paragraph (1) shall be available, without fiscal year 
        limitation.
            ``(3) Transfer.--The Secretary of the Treasury shall 
        transfer amounts appropriated under paragraph (1) on October 1 
        of each fiscal year.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 102. ANNUAL AUDIT.

    (a) In General.--Section 9702 (relating to establishment of the 
Combined Fund) is amended by adding at the end the following:
    ``(d) Annual Audit.--
            ``(1) Audit.--The Comptroller General of the United States 
        shall conduct an annual audit of the Combined Fund. Such audit 
        shall include--
                    ``(A) a review of the progress the Combined Fund is 
                making toward a managed care system as required under 
                this subchapter, and
                    ``(B) a review of the use of, and necessity for, 
                amounts transferred to the Combined Fund under section 
                9705(c).
            ``(2) Report.--The Comptroller General shall report the 
        results of any audit under paragraph (1) to the Secretary of 
        the Treasury and to the appropriate committees of Congress, 
        including its recommendations (if any) as to any administrative 
        savings which may be achieved without reducing the effective 
        level of benefits under section 9703.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to years beginning after the date of the enactment of this Act.

SEC. 103. APPOINTMENT OF GOVERNMENT TRUSTEES.

    (a) In General.--Section 9702(b) (relating to the Board of 
Trustees) is hereby amended by adding the following new subparagraph:
                    ``(D) 2 persons designated by the Secretary of the 
                Treasury.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

                          Subtitle B--Premiums

SEC. 111. ELIMINATION OF UNASSIGNED BENEFICIARIES PREMIUM.

    Section 9704(d) (establishing unassigned beneficiaries premium) is 
amended to read as follows:
    ``(d) Unassigned Beneficiaries Premium.--
            ``(1) Plan years ending on or before september 30, 2001.--
        For plan years ending on or before September 30, 2001, the 
        unassigned beneficiaries premium for any assigned operator 
        shall be equal to the applicable percentage of the product of 
        the per beneficiary premium for the plan year multiplied by the 
        number of eligible beneficiaries who are not assigned under 
        section 9706 to any person for such plan year.
            ``(2) Plan years beginning on or after october 1, 2001.--
        For plan years beginning on or after October 1, 2001, here 
        shall be no unassigned beneficiaries premium.''.

SEC. 112. REFUNDS TO CERTAIN OPERATORS.

    (a) In General.--Section 9704 (relating to the liability of 
assigned operators) is further amended by adding at the end the 
following new subsection:
    ``(j) The Combined Fund shall, before December 31, 2001, refund to 
an assigned operator which was an assigned operator prior to the date 
of the enactment of this subsection (and any related person to such 
operator) an amount equal to the sum of--
            ``(1) any amount paid by such operator or person to the 
        Combined Fund (and not previously refunded) by reason of the 
        operator having been a signatory to a pre-1974 coal wage 
        agreement, and
            ``(2) interest on the amount under paragraph (1) at the 
        overpayment rate established under section 6621 for the period 
        from the payment of such amount to the refund under this 
        subsection.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 113. REDUCTION IN ANNUAL PREMIUMS TO COMBINED BENEFIT FUND IF 
              SURPLUS EXISTS.

    (a) In General.--Part II of subchapter B of chapter 99 (relating to 
financing of Combined Benefit Fund) is amended by inserting after 
section 9704 the following new section:

``SEC. 9704A. REDUCTIONS IN HEALTH BENEFIT PREMIUM IF SURPLUS EXISTS.

    ``(a) General Rule.--If this section applies to any plan year, the 
per beneficiary premium used for purposes of computing the health 
benefit premium under section 9704(b) for the plan year shall be the 
reduced per beneficiary premium determined under subsection (c).
    ``(b) Years to Which Section Applies.--
            ``(1) In general.--This section applies to any plan year 
        beginning after September 30, 2001, if the trustees determine 
        that the Combined Fund has an excess reserve for the plan year.
            ``(2) Excess reserve.--For purposes of this section--
                    ``(A) In general.--The term `excess reserve' means, 
                with respect to any plan year, the excess (if any) of--
                            ``(i) the projected net assets as of the 
                        close of the test period for the plan year, 
                        over
                            ``(ii) the projected 3-month asset reserve 
                        as of such time.
                    ``(B) Projected net assets.--For purposes of 
                subparagraph (A)(i), the projected net assets shall be 
                the amount of the net assets which the trustees 
                determine will be available at the end of the test 
                period for projected fund benefits. Such determination 
                shall be made in the same manner used by the Combined 
                Fund to calculate net assets available for projected 
                fund benefits in the Statement of Net Assets (Deficits) 
                Available for Fund Benefits for purposes of the monthly 
                financial statements of the Combined Fund for the plan 
                year beginning October 1, 2001.
                    ``(C) Projected 3-month asset reserve.--For 
                purposes of subparagraph (A)(ii), the projected 3-month 
                asset reserve is an amount equal to 25 percent of the 
                projected expenses (including administrative expenses) 
                from the health benefit premium account and unassigned 
                beneficiaries premium account for the plan year 
                immediately following the test period. The 
                determination of such amount shall be based on the 10-
                year forecast of the projected net assets and cash 
                balance of the Combined Fund prepared annually by an 
                actuary retained by the Combined Fund.
                    ``(D) Test period.--For purposes of this section, 
                the term `test period' means, with respect to any plan 
                year, the plan year, and the following plan year.
    ``(c) Reduced Per Beneficiary Premium.--For purposes of this 
section, the reduced per beneficiary premium for any plan year to which 
this section applies is the per beneficiary premium determined under 
section 9704(b)(2) without regard to this section, reduced (but not 
below zero) by--
            ``(1) the excess reserve for the plan year, divided by
            ``(2) the total number of eligible beneficiaries which are 
        assigned to assigned operators under section 9706 as of the 
        close of the preceding plan year.
    ``(d) Termination of Premium Reduction.--If, on any day during a 
plan year to which this section applies, the Combined Fund has net 
assets available for projected fund benefits (determined in the same 
manner as projected net assets under subsection (b)(2)(B)) in an amount 
less than the projected 3-month asset reserve determined under 
subsection (b)(2)(C) for the plan year--
            ``(1) this section shall not apply to months in the plan 
        year beginning after such day, and
            ``(2) the monthly installment under section 9704(g)(1) for 
        such months shall be equal to the amount which would have been 
        determined if the health benefits premium under section 9704(b) 
        had not been reduced under this section for the plan year.''.
    (b) Conforming Amendments.--
            (1) Section 9704(a) (relating to annual premiums) is 
        amended by striking ``Each'' and inserting ``Subject to section 
        9704A, each''.
            (2) The table of sections for part II of subchapter B of 
        chapter 99 is amended by inserting after the item relating to 
        section 9704 the following new item:

                              ``Sec. 9704A. Reductions in health 
                                        benefit premium if surplus 
                                        exists.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years of the Combined Fund beginning after September 30, 
2001.

SEC. 114. REFUND OF CONTRIBUTIONS PAID BY CERTAIN SMALL ENTITIES TO 
              UNITED MINE WORKERS COMBINED BENEFIT FUND.

    (a) In General.--Part II of subchapter B of chapter 99 is amended 
by inserting after section 9704A the following new section:

``SEC. 9704B. REFUNDS OF ANNUAL PREMIUMS OF CERTAIN SMALL ENTITIES.

    ``(a) General Rule.--The annual premiums paid by certain small 
entities under section 9704(a) shall, in the case of an eligible small 
entity which was an assigned operator prior to the date of the 
enactment of this section, be refunded as provided in subsection (b).
    ``(b) Refunds for Eligible Small Entities Which Were Formerly 
Assigned Operators.--
            ``(1) In general.--To the extent an eligible small entity 
        which was an assigned operator prior to October 1, 2001, has 
        paid premiums to the Combined Fund, any such premiums shall be 
        refunded by the Combined Fund.
            ``(2) Years to which subsection applies.--This subsection 
        shall apply to any plan year of the Combined Fund which began 
        before October 1, 2001.
            ``(3) Eligible small entities.--For purposes of this 
        section, the term `eligible small entity' means any entity 
        which was an assigned operator prior to October 1, 2001, and, 
        according to the records of the Combined Fund, such operator 
        (or any related persons of such operator)--
                    ``(A) was not a signatory to the 1981 or later 
                National Bituminous Coal Wage Agreement or any `me too' 
                agreement related to such Coal Wage Agreement;
                    ``(B) reported credit hours to the UMWA 1974 
                Pension Plan on fewer than ten classified mine workers 
                in every month during its last year of operations under 
                the National Bituminous Coal Wage Agreement of 1978 or 
                any `me too' agreement related to such Coal Wage 
                Agreement;
                    ``(C) has had not more than 60 beneficiaries, 
                including eligible dependents of retired miners, 
                assigned to it under section 9706 not including 
                beneficiary assignments relieved by the Social Security 
                Administration;
                    ``(D) was assessed premiums by the Combined Fund, 
                made payments pursuant to those assessments, and has no 
                delinquency as of September 30, 2001; and
                    ``(E) is not directly engaged in the production or 
                sale of coal and has no related person engaged in the 
                production of coal as of September 30, 2001.''.
    (b) Conforming Amendment.--The table of sections for part II of 
subchapter B of chapter 99 is amended by inserting after the item 
relating to section 9704A the following new item:

                              ``Sec. 9704B. Refunds of annual premiums 
                                        of certain small entities.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 115. FIRST YEAR PAYMENTS OF 1988 OPERATORS.

    (a) In General.--So much of section 9704(i)(1)(D) as precedes 
clause (ii) is amended to read as follows:
                    ``(D) Premium reductions and refunds.--
                            ``(i) 1st year payments.--In the case of a 
                        1988 agreement operator making payments under 
                        subparagraph (A)--
                                    ``(I) the premium of such operator 
                                under subsection (a) shall be reduced 
                                by the amount paid under subparagraph 
                                (A) by such operator for the plan year 
                                beginning February 1, 1993, or
                                    ``(II) if the amount so paid 
                                exceeds the operator's liability under 
                                subsection (a), the excess shall be 
                                refunded to the operator before 
                                December 31, 2001.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 116. LIABILITY IN THE EVENT OF PRE-FUNDING.

    (a) In General.--Section 9701(c)(2) is amended by adding the 
following new subparagraphs:
                    ``(C) Exception upon establishment of certain 
                voluntary employees' benefit association.--In the event 
                an association described in section 501(c)(9) is 
                established by a signatory operator, or a related 
                person to such signatory operator, or a member of the 
                controlled group of corporations which includes the 
                signatory operator, and such association is described 
                in subparagraph (D), all persons considered to be 
                related persons to such signatory operator under 
                subparagraph (A) shall permanently cease to be 
                considered related persons to such signatory operator 
                when--
                            ``(i) the balance of funds held by the 
                        association, resulting from one or more 
                        contributions to the association and earnings 
                        thereon, equals or exceeds the sum of--
                                    ``(I) the present value of the 
                                total premium liability of the 
                                signatory operator for its assignees 
                                under section 9704 with respect to the 
                                Combined Fund, plus
                                    ``(II) the amount necessary to pay 
                                administrative and other incidental 
                                expenses of such association,
                        as determined by the association's enrolled 
                        actuary (as defined in section 7701(a)(35)), 
                        using actuarial methods and assumptions each of 
                        which is reasonable and which are reasonable in 
                        the aggregate, as determined by such enrolled 
                        actuary;
                            ``(ii) a signed actuarial report is filed 
                        with the Secretary by the association's 
                        enrolled actuary containing--
                                    ``(I) the date of the actuarial 
                                valuation applicable to the report,
                                    ``(II) a description of the funding 
                                method and actuarial assumptions used 
                                to determine costs of the association,
                                    ``(III) a statement by the enrolled 
                                actuary signing the report that to the 
                                best of the actuary's knowledge the 
                                report is complete and accurate and 
                                that in the actuary's opinion the 
                                actuarial assumptions used are in the 
                                aggregate--
                                            ``(aa) reasonably related 
                                        to the experience of the 
                                        association and to reasonable 
                                        expectations, and
                                            ``(bb) represent the 
                                        actuary's best estimate of 
                                        anticipated experience of the 
                                        association, and
                                    ``(IV) such other information as 
                                may be necessary to fully and fairly 
                                disclose the actuarial position of the 
                                association;
                            ``(iii) security (in the form of a bond, 
                        letter of credit, or cash escrow) is provided 
                        to the trustees of the 1992 UMWA Benefit Plan, 
                        solely for the purpose of paying premiums for 
                        beneficiaries described in section 
                        9712(b)(2)(B), equal in amount to one year's 
                        liability of the signatory operator under 
                        section 9711, determined by using the average 
                        cost of such operator's liability during its 
                        prior three calendar years; and
                            ``(iv) 30 calendar days have elapsed after 
                        the report required by clause (ii) is filed 
                        with the Secretary, along with a description of 
                        the security required by clause (iii), and the 
                        Secretary has not notified the association's 
                        enrolled actuary in writing that the 
                        requirements of this subparagraph have not been 
                        satisfied.
                The security described in clause (iii) shall remain in 
                place for a period of 5 years.
                    ``(D) Requirements for association.--An association 
                is described in this subparagraph if--
                            ``(i) the purpose of the association is 
                        exclusively--
                                    ``(I) to satisfy the premium 
                                liability of the signatory operator 
                                with respect to the Combined Fund,
                                    ``(II) to fund health benefits 
                                provided pursuant to a collective 
                                bargaining agreement, including 
                                benefits for individuals covered by 
                                sections 9711 and 9712, or to fund 
                                premiums for insurance exclusively 
                                covering such benefits, and
                                    ``(III) to pay administrative and 
                                other incidental expenses of such 
                                association;
                            ``(ii) no part of the assets of the 
                        association may be used for, or diverted to, 
                        any purpose other than the purpose described in 
                        clause (i); and
                            ``(iii) payments from such association for 
                        the purpose described in clause (i)(II) shall 
                        only be made to the extent that--
                                    ``(I) the signatory operator no 
                                longer has an obligation to make 
                                payments under clause (i)(I); or
                                    ``(II) during any annual accounting 
                                period of the association such payments 
                                do not exceed in the aggregate 90 
                                percent of the excess between the fair 
                                market value of the association's 
                                assets and the present value of the 
                                liability described in clause (i)(I), 
                                both determined as of the end of the 
                                association's prior year annual 
                                accounting period, as determined by the 
                                association's enrolled actuary (as 
                                defined in section 7701(a)(35)), using 
                                actuarial methods and assumptions each 
                                of which is reasonable and which are 
                                reasonable in the aggregate, as 
                                determined by such enrolled actuary.
                    ``(E) Other rules relating to associations.--For 
                purposes of an association described in subparagraph 
                (C)--
                            ``(i) if a payment is made under clause 
                        (iii) of paragraph (D), an enrolled actuary 
                        shall within 30 days after the end of the 
                        association's annual accounting period file 
                        with the Secretary an actuarial report 
                        containing the information described in 
                        subparagraph (C)(ii) and a statement that the 
                        requirements of subparagraph (D)(iii) have been 
                        satisfied during the prior year; and
                            ``(ii) a signatory operator, or member of 
                        the controlled group of corporations which 
                        includes such signatory operator, which has 
                        previously established an association under 
                        section 501(c)(9) for purposes including those 
                        set forth in subparagraph (D), may use funds 
                        from such previously established association to 
                        fund all or a portion of the association 
                        established pursuant to this section.''.
    (b) Conforming Amendment.--Section 419A(f)(5) is amended by adding 
before the comma in subparagraph (A) the following: ``, which shall 
include an association established under section 9701(c)(2)(C)''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to associations established after the date of the 
enactment of this Act.

SEC. 117. DEFINITION OF SUCCESSOR IN INTEREST.

    (a) In General.--Subsection (c) of section 9701 is amended by 
adding at the end the following new paragraph:
            ``(8) Successor in interest.--
                    ``(A) Safe harbor.--The term `successor in 
                interest' shall not include any person who is an 
                unrelated person and, as a result of a bona fide, 
                arm's-length sale, purchases for fair market value 
                assets, or all the stock of a related person, if the 
                transaction is subject to--
                            ``(i) section 5 of the Securities Act of 
                        1933 (15 U.S.C. 77f et seq.), or
                            ``(ii) the Securities Exchange Act of 1934 
                        (15 U.S.C.78a et seq.).
                    ``(B) Unrelated party.--The term `unrelated party' 
                means a purchaser who does not bear a relationship to 
the seller described in section 267(b).
                    ``(C) Contingent liability.--This paragraph shall 
                apply if the contract for sale provides that, if the 
                seller fails to make a premium payment to the Combined 
                Fund during the first 5 plan years beginning after the 
                sale, then the purchaser shall be secondarily liable 
                for any liability to the Combined Fund it would have 
                had but for the provisions of this paragraph.
                    ``(D) No inference.--In the event of a sale not 
                described in this paragraph, there shall be no 
                inference that because the sale is not so described the 
                purchaser is a `successor in interest'.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to transactions after the date of the enactment of this Act.

                    TITLE II--RETROACTIVE PROVISIONS

SEC. 201. REFORM OF RETROACTIVE PROVISIONS OF COAL INDUSTRY HEALTH 
              BENEFIT SYSTEM.

    (a) Agreements Covered by Health Benefit System.--
            (1) In general.--Section 9701(b)(1) (defining coal wage 
        agreement) is amended to read as follows:
            ``(1) Coal agreements.--
                    ``(A) 1988 agreement.--The term `1988 agreement' 
                means the collective bargaining agreement between the 
                settlors which became effective on February 1, 1988.
                    ``(B) Coal wage agreement.--The term `coal wage 
                agreement' means the 1988 agreement and any predecessor 
                to the 1988 agreement.''.
            (2) Conforming amendment.--Section 9701(b) (relating to 
        agreements) is amended by striking paragraph (3).
    (b) Definitions Applicable to Operators.--
            (1) Signatory operator.--Section 9701(c)(1) (defining 
        signatory operator) is amended to read as follows:
            ``(1) Signatory operator.--The term `signatory operator' 
        means a 1988 agreement operator.''.
            (2) 1988 agreement operator.--Section 9701(c)(3) (defining 
        1988 agreement operator) is amended to read as follows:
            ``(3) 1988 agreement operator.--The term `1988 agreement 
        operator' means--
                    ``(A) an operator which was a signatory to the 1988 
                agreement, or
                    ``(B) a person in business which, during the term 
                of the 1988 agreement, was a signatory to an agreement 
                (other than the National Coal Mine Construction 
                Agreement or the Coal Haulers' Agreement) containing 
                pension and health care contribution and benefit 
                provisions which are the same as those contained in the 
                1988 agreement.
        Such term shall not include any operator who was assessed, and 
        paid the full amount of, contractual withdrawal liability to 
        the 1950 UMWA Benefit Plan, the 1974 UMWA Benefit Plan, or the 
        Combined Fund.''.
            (3) Conforming amendments.--
                    (A) Section 9711(a) is amended by striking 
                ``maintained pursuant to a 1978 or subsequent coal wage 
                agreement''.
                    (B) Section 9711(b)(1) is amended by striking 
                ``pursuant to a 1978 or subsequent coal wage 
                agreement''.
    (c) Modifications To Reflect Reachback Reforms.--
            (1) Board of trustees of combined fund.--
                    (A) In general.--Section 9702(b)(1) is amended--
                            (i) by striking ``one individual who 
                        represents'' in subparagraph (A) and inserting 
                        ``two individuals who represent'',
                            (ii) by striking subparagraph (B) and 
                        redesignating subparagraphs (C) and (D) as 
                        subparagraphs (B) and (C), respectively, and
                            (iii) by striking ``(A), (B), and (C)'' in 
                        subparagraph (C) (as so redesignated) and 
                        inserting ``(A) and (B)''.
                    (B) Conforming amendment.--Section 9702(b)(3) is 
                amended to read as follows:
            ``(3) Special rule.--If the BCOA ceases to exist, any 
        trustee or successor under paragraph (1)(A) shall be designated 
        by the 3 employers who were members of the BCOA on October 24, 
        1992, and who have been assigned the greatest number of 
        eligible beneficiaries under section 9706.''.
                    (C) Transition rule.--Any trustee serving on the 
                date of the enactment of this Act who was appointed to 
                serve under section 9702(b)(1)(B) of the Internal 
Revenue Code of 1986 (as in effect before the amendments made by this 
paragraph) shall continue to serve until a successor is appointed under 
section 9702(b)(1)(A) of such Code (as in effect after such 
amendments).
            (2) Assignment of beneficiaries.--Section 9706 (relating to 
        assignment of eligible beneficiaries) is amended by adding at 
        the end the following:
    ``(h) Assignment as of October 1, 2001.--
            ``(1) In general.--Effective October 1, 2001, the 
        Commissioner of Social Security shall--
                    ``(A) revoke all assignments to persons other than 
                1988 agreement operators for purposes of assessing 
                premiums for periods after September 30, 2001,
                    ``(B) make no further assignments to persons other 
                than 1988 agreement operators, and
                    ``(C) terminate all unpaid liabilities of persons 
                other than 1988 agreement operators with respect to 
                eligible beneficiaries whose assignment to such persons 
                is pending on October 1, 2001.
            ``(2) Reassignment upon purchase.--This subsection shall 
        not be construed to prohibit the reassignment under subsection 
        (b)(2) of an eligible beneficiary.''.
            (3) Liability for 1992 plan.--
                    (A) In general.--Section 9712(d) (relating to 
                guarantee of benefits) is amended by striking paragraph 
                (3) and by redesignating paragraphs (4), (5), and (6) 
                as paragraphs (3), (4), and (5), respectively.
                    (B) Conforming amendment.--Section 9712(d)(3) (as 
                redesignated under subparagraph (A)) is amended by 
                striking ``or last signatory operator described in 
                paragraph (3)''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to premiums assessed for periods 
                after September 30, 2001, except that a person other 
                than a 1988 agreement operator shall not be liable for 
                any unpaid premium under section 9712(d) of the 
                Internal Revenue Code of 1986 as of such date if 
                liability for such premium had not been assessed or was 
                being contested on such date.
                                 <all>