[Congressional Record Volume 151, Number 5 (Tuesday, January 25, 2005)]
[Senate]
[Page S491]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER:
  S. 162. A bill to amend chapter 99 of the Internal Revenue code of 
1986 to clarify that certain coal industry health benefits may not be 
modified or terminated; to the Committee on Finance.
  Mr. ROCKEFELLER. Mr. President, today I am introducing legislation to 
make very clear that Congress fully protected the health insurance 
benefits of miners and their families when we passed the Coal Act in 
1992. This legislation is identical to S. 3004 which I introduced in 
the 108th Congress. Unfortunately, it is necessary, because we have 
recently seen bankruptcy courts disregard the Coal Act and absolve 
companies of their obligations to provide health benefits for workers 
and retirees. This is unacceptable. And the bill I am introducing today 
reiterates that the bankruptcy code does not supersede the Coal Act.
  Last fall, another company abandoned promises it made to workers and 
retirees in West Virginia. Horizon Natural Resources sought and 
received a court ruling that released it from its contracts with union 
miners and allowed it to avoid honoring health care benefit obligations 
for over 2,300 retired miners. This is a morally bankrupt corporate 
strategy, and is inconsistent with the Coal Act passed by Congress in 
1992.
  The Coal Act was needed in 1992 to prevent some companies from 
walking away from their clear contractual obligations and agreements 
with their workers. One of the provisions of that bill was written 
especially with the intent of not allowing companies to simply 
reorganize as a way to get out of their obligations to their workers. 
Unfortunately, too many companies are increasingly using bankruptcy 
courts to achieve the same results.
  It should not be necessary for me to introduce this bill today. 
Congress has already spoken on this subject. The law is clear: Coal Act 
retirees are entitled to full benefits provided under the statute. No 
judge should rewrite the law to take those benefits away. However, 
because judges are legislating from the bench, it will be helpful for 
Congress to reiterate our intention to protect the health benefits of 
coal miners and their families.
  This issue is extremely important to all of those who are being 
victimized by the bankruptcy courts. I hope that my colleagues will 
join me in this effort to protect the miners, retired miners, and 
families who are simply seeking the benefits they were promised in 
exchange for years of hard work.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 162

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

     SECTION 1. PROTECTION OF COAL INDUSTRY HEALTH BENEFITS.

        Section 9711(g) of the Internal Revenue Code of 1986 
     (relating to rules applicable to this part and part II) is 
     amended by adding at the end the following new paragraph:
       ``(3) Prohibition on termination and modification of 
     benefits.--Except as provided in subsection (d), the benefits 
     required to be provided by a last signatory operator under 
     this chapter may not be terminated or modified by any court 
     in a proceeding under title 11 of the United States Code or 
     by agreement at any time when such operator is participating 
     in such a proceeding.''.
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