Small Non-Coal Producing Company Relief Act

Summary: Small Non-Coal Producing Company Relief Act - Amends the Internal Revenue Code to:  (1) limit annual premiums paid to the United Mine Workers of America Combined Benefit Fund by eligible small assigned operators; and (2) eliminate (for assigned operators) or reduce (for other operators) premiums for any year in which the Fund has a surplus over a certain level.  Defines an eligible small assigned operator as one having a five-year average annual gross income under a specified amount and not being engaged in the production of coal for the year involved. Limits overall premium reductions under the amendments made by this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Non-Coal Producing Company 
Relief Act''.

SEC. 2. REDUCTION IN CONTRIBUTIONS OF CERTAIN PERSONS TO COAL MINERS 
              COMBINED BENEFIT FUND.

    (a) In General.--Part II of subchapter B of chapter 99 of the 
Internal Revenue Code of 1986 (relating to financing of Combined 
Benefit Fund) is amended by inserting after section 9704 the following 
new section:

``SEC. 9704A. REDUCTIONS IN ANNUAL PREMIUMS OF CERTAIN ASSIGNED 
              OPERATORS.

    ``(a) General Rule.--The annual premium of an assigned operator 
under section 9704(a) shall--
            ``(1) in the case of an eligible small assigned operator, 
        be reduced as provided in subsection (b), and
            ``(2) in any case in which there is a surplus in the 
        Combined Fund to which subsection (c) applies, be reduced as 
        provided in subsection (c).
    ``(b) Reductions for Eligible Small Assigned Operators.--
            ``(1) In general.--If this subsection applies to an 
        eligible small assigned operator for any plan year of the 
        Combined Fund, the annual premium under section 9704(a) for 
        such operator for such plan year shall not exceed 5 percent of 
        the operator's average annual taxable income for purposes of 
        chapter 1 for the 5-taxable year period ending with the 
        operator's most recent taxable year ending before the beginning 
        of the plan year.
            ``(2) Years to which subsection applies.--
                    ``(A) In general.--This subsection shall apply to 
                any plan year of the Combined Fund--
                            ``(i) which begins before October 1, 1998,
                            ``(ii) which begins after September 30, 
                        1998, and before October 1, 2003, but only if 
                        the Combined Fund has a surplus as of the close 
                        of the plan year ending September 30, 1998, 
                        equal to or greater than $150,000,000, or
                            ``(iii) which begins after September 30, 
                        2003, but only if the Combined Fund has a 
                        surplus as of the close of the plan year ending 
                        September 30, 2003, equal to or greater than 
                        $100,000,000.
                    ``(B) Coordination with surplus reductions.--This 
                subsection shall not apply to any eligible small 
                assigned operator for any plan year for which no annual 
                premium is imposed on such operator by reason of 
                subsection (c).
            ``(3) Eligible small assigned operators.--For purposes of 
        this section--
                    ``(A) In general.--The term `eligible small 
                assigned operator' means any assigned operator--
                            ``(i) the average annual gross income of 
                        which for purposes of chapter 1 for the 5-
                        taxable year period ending with the operator's 
                        most recent taxable year ending before October 
                        1, 1993, did not exceed $25,000,000, and
                            ``(ii) which is not engaged in the 
                        production of coal for the plan year for which 
                        the determination is being made.
                For purposes of this subparagraph, production by a 
                related person shall be treated as production by the 
                assigned operator.
                    ``(B) Production of coal.--For purposes of 
                subparagraph (A), an assigned operator or related 
                person shall be treated as engaged in the production of 
                coal if it has employed employees in--
                            ``(i) the extraction of coal, or
                            ``(ii) the preparation, processing, or 
                        changing of coal for sale.
            ``(4) Aggregation rules.--In determining gross income or 
        taxable income for purposes of this section, an assigned 
        operator and any related persons shall be treated as 1 person.
    ``(c) Reductions Based Upon Fund Surplus.--
            ``(1) Assigned operators.--If, as of the close of any plan 
        year ending after September 30, 1997, the Combined Fund has a 
        surplus equal to or greater than 50 percent of the net expenses 
        of the Combined Fund for the plan year, no annual premium shall 
        be imposed under section 9704(a) on any eligible small assigned 
        operator for the succeeding plan year.
            ``(2) Other operators.--If, as of the close of any plan 
        year ending after September 30, 1997, the Combined Fund has a 
        surplus equal to or greater than 100 percent of the net 
        expenses of the Combined Fund for the plan year, the annual 
        premium under section 9704(a) for the succeeding plan year of 
        any assigned operator other than an eligible small assigned 
        operator shall be reduced by an amount which bears the same 
        ratio to the surplus in excess of 100 percent of the net 
        expenses of the Combined Fund for the plan year as--
                    ``(A) such assigned operator's applicable 
                percentage (expressed as a whole number), bears to
                    ``(B) the sum of the applicable percentages 
                (expressed as whole numbers) of all assigned operators 
                other than eligible small assigned operators.
    ``(d) Overall Limitation.--
            ``(1) In general.--In no event shall the total reductions 
        in annual premiums payable to the Combined Fund under this 
        section for any plan year exceed $5,000,000.
            ``(2) Calculation of reductions.--For purposes of paragraph 
        (1), the total reductions in annual premiums for any plan year 
        shall not include any reductions under this section in premiums 
        payable by an eligible small assigned operator who, prior to 
        the date of the enactment of this section, has not paid at 
        least 50 percent of the premiums assessed such assigned 
        operator for the period October 1, 1994, through June 30, 1995.
            ``(3) Ordering rule.--Any decrease in premium reductions 
        under this section for any plan year by reason of paragraph (1) 
        shall be applied first against the reductions under subsection 
        (b) and then against reductions under subsection (c). Any such 
        decreases shall be made ratably among operators.
    ``(e) Computation of Surplus.--For purposes of this section, any 
determination of a surplus in the Combined Fund--
            ``(1) shall be calculated on an accrual basis,
            ``(2) shall be made and certified by an independent auditor 
        retained by the trustees, and
            ``(3) once so certified, shall be reviewable by a court of 
        law only to determine if such determination is reasonable.
A determination shall be considered reasonable for purposes of 
paragraph (3) if it is made in accordance with generally accepted 
accounting principles and is based on assumptions which, in the 
aggregate, are reasonable.''
    (b) Conforming Amendment.--The table of sections for part II of 
subchapter B of chapter 99 of the Internal Revenue Code of 1986 is 
amended by inserting after the item relating to section 9704 the 
following new item:

        ``Sec. 9704A. Reductions in annual premiums of certain assigned 
                            operators.''
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after January 31, 1993.

SEC. 3. WAIVER OF PENALTIES.

    (a) In General.--In the case of an eligible small assigned operator 
(as defined in section 9704A(b)(3) of the Internal Revenue Code of 
1986, as added by section 1), no penalty shall be imposed under section 
9707 of such Code on any failure of such operator to pay any 
installment of a premium due under section 9704 of such Code before 
January 1, 1996, if the operator pays such installment before such 
date. For purposes of this subsection, the amount of the installment 
shall be determined after application of the amendments made by section 
1.
    (b) Compliance.--An operator shall not be treated as failing to 
meet the requirements of subsection (a) with respect to any installment 
if--
            (1) the failure to pay the installment before January 1, 
        1996, was due to reasonable cause and not to willful neglect, 
        and
            (2) the failure is corrected within 90 days of the later 
        of--
                    (A) notice of the failure, or
                    (B) a final administrative or judicial 
                determination of the amount of the installment which is 
                not reviewable or appealable.