[Congressional Record Volume 149, Number 146 (Friday, October 17, 2003)]
[Senate]
[Pages S12846-S12849]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CONRAD (for himself, Mr. Smith, Mr. Breaux, Mr. Cochran, 
        Ms. Landrieu, and Mr. Craig):
  S. 1756. 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; to the Committee on Finance.
  Mr. CONRAD. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1756

       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.--

[[Page S12847]]

       ``(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.

[[Page S12848]]

     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

[[Page S12849]]

     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.''

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