[Congressional Record Volume 151, Number 28 (Thursday, March 10, 2005)]
[Senate]
[Pages S2487-S2488]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SPECTER:
  S. 594. A bill to amend section 1114 of title 11, United States Code, 
to preserve the health benefits of certain retired miners; to the 
Committee on the Judiciary.
  Mr. SPECTER. Mr. President, yesterday during consideration of the 
Bankruptcy Reform Act of 2005, I offered an amendment regarding a 
serious matter involving the guaranteed health benefits of retired coal 
miners and their families. Unfortunately due to an objection to the 
unanimous consent request for consideration of my amendment, it was not 
considered. Therefore, to continue my efforts on behalf of our Nation's 
coal miners, I have elected today to introduce the Retired Coal Miner 
Health Benefits Preservation Act.
  This legislation would reaffirm the commitment stipulated in the Coal 
Act of 1992, which guaranteed health benefits to retired coal miners 
and their families and would clarify the lack of authority of the 
bankruptcy court to

[[Page S2488]]

modify or terminate statutory obligations required under Section 9711 
of the Coal Act. This legislation is a direct response to a recent 
bankruptcy court proceeding in which the court determined it had the 
authority under Section 1114 of the Bankruptcy Code to modify the level 
of benefits required to be provided under Section 9711 of the Coal Act.
  The Coal Act of 1992 mandated coal operators to fulfill their promise 
to provide their employees and families health benefits and those 
obligations could not be modified. As an original cosponsor to this 
legislation, I am intimately aware of its effect on the 14,000 retired 
coal miners and their dependents in Pennsylvania. Nationally, this Act 
effects over 60,000 individuals including every State except for 
Hawaii. These health benefits form a central underpinning for the 
medical care structure of the coal field communities. The promise of 
the Coal Act applied to a fixed pool of coal miners that was closed as 
of 1994.
  Additionally, I want to note that there may be some speculation 
raised by my colleagues in reference to the recent bankruptcy of 
Horizon Natural Resources. In this particular bankruptcy proceeding, 
the court concluded that Section 1114 trumped the Coal Act, which is 
simply not the case. This or other statutory obligations cannot be 
undermined by the bankruptcy court. Congress intended that Section 1114 
be a statutory obligation and not a contractual obligation. Therefore, 
this egregious court decision unfortunately trumps the true intent of 
the Coal Act.
  Finally, I am aware that my colleague, Senator Rockefeller, offered 
legislation in the 108th Congress to address this issue and I commend 
him for it. Today, I am continuing his prodigious work by introducing 
this legislation which reinforces what Congress intended, which was not 
to obstruct the statutory requirements of the Coal Act. I urge my 
colleagues to strongly support this legislation.
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