[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1756 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1756

   To amend the Internal Revenue Code of 1986 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 
 by providing additional sources of revenue to the Fund, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 17, 2003

   Mr. Conrad (for himself, Mr. Smith, Mr. Breaux, Mr. Cochran, Ms. 
Landrieu, and Mr. Craig) 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 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 
 by providing additional sources of revenue to the Fund, 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.
Sec. 102. Annual audit.
Sec. 103. Appointment of Government trustees.
                          Subtitle B--Premiums

Sec. 111. Modifications of premiums to reflect transfers from general 
                            fund.
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 prefunding.
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.

    (a) In General.--Section 9705 (relating to transfers to the 
Combined Benefit Fund) is amended by adding at the end the following 
new subsection:
    ``(c) 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 such sums as may be 
        necessary to--
                    ``(A) pay any benefit or administrative costs of 
                unassigned beneficiaries of the Combined Fund remaining 
                after the transfer under subsection (b), and
                    ``(B) 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 (B) 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) Transfer From Abandoned Mine Reclamation Fund.--Section 
9705(b)(2) (relating to use of funds) is amended to read as follows:
            ``(2) Use of funds.--Any amount transferred under paragraph 
        (1) for any fiscal year shall be used to pay any benefit or 
        administrative costs of unassigned beneficiaries of the 
        Combined Fund for the plan year in which transferred.''
    (c) Effective Date.--The amendments made by this section shall 
apply to fiscal years beginning after September 30, 2003.

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 the Comptroller General's 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 plan years of the Combined Fund beginning after the date of 
the enactment of this Act.

SEC. 103. APPOINTMENT OF GOVERNMENT TRUSTEES.

    (a) In General.--Section 9702(b)(1) (relating to the Board of 
Trustees), as amended by section 201(c), is amended by striking ``and'' 
at the end of subparagraph (B), by striking the period at the end of 
subparagraph (C) and inserting ``; or'', and by inserting after 
subparagraph (C) the following new subparagraph:
                    ``(D) 2 persons designated by the Secretary of the 
                Treasury.''
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

                          Subtitle B--Premiums

SEC. 111. MODIFICATIONS OF PREMIUMS TO REFLECT TRANSFERS FROM GENERAL 
              FUND.

    (a) 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, 2003.--
        For plan years ending on or before September 30, 2003, 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, 2003.--
        For plan years beginning on or after October 1, 2003, there 
        shall be no unassigned beneficiaries premium.''.
    (b) Premium Accounts.--
            (1) Crediting of accounts.--Section 9704(e)(1) (relating to 
        premium accounts; adjustments) is amended by inserting ``and 
        amounts transferred under section 9705 (b) or (c)'' after 
        ``premiums received''.
            (2) Shortfalls.--Section 9704(e)(3) (relating to shortfalls 
        and surpluses) is amended--
                    (A) by striking ``shortfall or'' each place it 
                appears in subparagraph (A),
                    (B) by striking ``reduced or increased, whichever 
                is applicable,'' in subparagraph (A) and inserting 
                ``reduced'',
                    (C) by striking ``or the unassigned beneficiaries 
                premium account'' in subparagraph (B), and
                    (D) by striking ``Shortfalls and surpluses'' in the 
                heading and inserting ``Surpluses''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years of the Combined Fund beginning after September 30, 
2003.

SEC. 112. REFUNDS TO CERTAIN OPERATORS.

    (a) In General.--Section 9704 (relating to the liability of 
assigned operators) is amended by adding at the end the following new 
subsection:
    ``(j) Refunds to Certain Operators.--The Combined Fund shall, 
before December 31, 2003, 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, 2003, 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, 2003.
                    ``(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, that 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, 
2003.

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, as amended 
by section 113, 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 Combined Fund shall refund to each 
eligible small entity any premiums paid by the entity to the Combined 
Fund under section 9704 for any plan year of the Combined Fund which 
began before October 1, 2003. This section shall not apply to any 
premium which was previously refunded.
    ``(b) Eligible Small Entity.--For purposes of this section, the 
term `eligible small entity' means an assigned operator, but only if, 
as determined under the records of the Combined Fund, such operator (or 
any related person of such operator)--
            ``(1) 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;
            ``(2) 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;
            ``(3) has had not more than 60 beneficiaries, including 
        eligible dependents of retired miners, assigned to it under 
        section 9706 (determined without regard to beneficiary 
        assignments relieved by the Social Security Administration);
            ``(4) was assessed premiums by the Combined Fund, made 
        payments pursuant to those assessments, and has no delinquency 
        as of September 30, 2003; and
            ``(5) is not directly engaged in the production or sale of 
        coal engaged in the production of coal as of September 30, 
        2003.''
    (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, and
                                    ``(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, 2003.''
    (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 PREFUNDING.

    (a) In General.--Section 9704 is amended--
            (1) by striking ``Any'' in the last sentence of subsection 
        (a) and inserting ``Except as provided in subsection (k), 
        any'', and
            (2) by adding at the end the following new subsection:
    ``(k) Related Persons Relieved of Liability Funded Through 
Voluntary Employees' Beneficiary Association.--
            ``(1) In general.--If a qualified voluntary employees' 
        beneficiary association is established with respect to any 
        signatory operator, then, as of the date determined under 
        paragraph (2)--
                    ``(A) the last sentence of subsection (a) shall not 
                apply to any related person with respect to the 
                operator (determined without regard to this 
                subsection), and
                    ``(B) all such persons shall permanently cease to 
                be treated for purposes of this subchapter as related 
                persons with respect to the signatory operator.
            ``(2) Timing of limitation on liability.--The date 
        determined under this paragraph shall be the first date by 
        which all of the following have occurred:
                    ``(A) The qualified voluntary employees' 
                beneficiary 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), determines the balance of funds held 
                by the association, resulting from 1 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.
                    ``(B) The enrolled actuary files a signed actuarial 
                report with the Secretary 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--
                                    ``(I) reasonably related to the 
                                experience of the association and to 
                                reasonable expectations, and
                                    ``(II) 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.
                    ``(C) The signatory operator provides security (in 
                the form of a bond, letter of credit, or cash escrow) 
                to the trustees of the 1992 UMWA Benefit Plan which--
                            ``(i) is solely for the purpose of paying 
                        premiums for beneficiaries described in section 
                        9712(b)(2)(B),
                            ``(ii) is in an amount equal to 1 year's 
                        liability of the signatory operator under 
                        section 9711, determined by using the average 
                        cost of such operator's liability during its 
                        prior 3 calendar years, and
                            ``(iii) is to remain in place for a period 
                        of 5 years.
                    ``(D) 30 calendar days have elapsed after the 
                report required by subparagraph (B) is filed with the 
                Secretary, along with a description of the security 
                required by subparagraph (C), and the Secretary has not 
                notified the association's enrolled actuary in writing 
                that the requirements of this subparagraph have not 
                been satisfied.
            ``(3) Qualified voluntary employees' beneficiary 
        association.--For purposes of this subsection, the term 
        `qualified voluntary employees' beneficiary association' means, 
        with respect to a signatory operator, an association described 
        in section 501(c)(9)--
                    ``(A) which is established by the operator, a 
                related person to the operator (determined without 
                regard to this subsection), or a member of a controlled 
                group of corporations which includes the operator;
                    ``(B) the purpose of which 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;
                    ``(C) no part of the assets of which may be used 
                for, or diverted to, any purpose other than the 
                purposes described in subparagraph (B); and
                    ``(D) payments from which may be made for the 
                purposes described in subparagraph (B)(ii) only to the 
                extent that--
                            ``(i) the signatory operator no longer has 
                        an obligation to make payments under 
                        subparagraph (B)(i); or
                            ``(ii) during any annual accounting period 
                        of the association such payments do not exceed, 
                        in the aggregate, 90 percent of the excess of--
                                    ``(I) fair market value of the 
                                association's assets, over
                                    ``(II) the present value of the 
                                liability described in subparagraph 
                                (B)(i).
        Amounts under subparagraph (D)(ii) shall be determined, as of 
        the end of the association's prior year annual accounting 
        period, 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).
            ``(4) Other rules relating to associations.--For purposes 
        of this subsection--
                    ``(A) if a qualified voluntary employees' 
                beneficiary association makes a payment, the 
                association's enrolled actuary shall, within 30 days 
                after the end of the association's annual accounting 
                period which includes the payment, file with the 
                Secretary an actuarial report containing the 
                information described in paragraph (2)(B) and a 
                statement that the requirements of paragraph (3)(D) 
                have been satisfied during the prior year; and
                    ``(B) 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 which 
                include purposes described in paragraph (3) may use 
                funds from such previously established association to 
                fund all or a portion of the association established 
                under this subsection.''
    (b) Conforming Amendment.--Section 419A(f)(5)(A) is amended by 
inserting ``, including a qualified voluntary employees' beneficiary 
association (as defined in section 9704(k))''.
    (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--
                            ``(i) who is an unrelated person to a 
                        seller, and
                            ``(ii) who purchases for fair market value 
                        assets, or all the stock of a related person, 
                        in a bona fide, arm's-length sale which is 
                        subject to section 5 of the Securities Act of 
                        1933 (15 U.S.C. 77f et seq.) or the Securities 
                        Exchange Act of 1934 (15 U.S.C.78a et seq.).
                    ``(B) Unrelated person.--The term `unrelated 
                person' means a purchaser who does not bear a 
relationship to the seller described in section 267(b).
                    ``(C) Contingent liability.--This paragraph shall 
                only 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.--Nothing in this paragraph 
                shall be construed to infer that a purchaser in a sale 
                not described in this paragraph is a successor in 
                interest.''
    (b) Effective Date.--The amendment 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, 2003.--
            ``(1) In general.--Effective October 1, 2003, 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, 2003,
                    ``(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, 2003.
            ``(2) Reassignment upon purchase.--This subsection shall 
        not be construed to prohibit the reassignment under subsection 
        (b)(2) of an eligible beneficiary.''
                                 <all>