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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 2135 Introduced in Senate (IS)]

104th CONGRESS
  2d Session
                                S. 2135

  To amend the Internal Revenue Code of 1986 to provide reductions in 
 required contributions to the United Mine Workers of America Combined 
                 Benefit Fund, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 26, 1996

Mr. Cochran (for himself and Mr. Conrad) 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 provide reductions in 
 required contributions to the United Mine Workers of America Combined 
                 Benefit 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.

    This Act may be cited as the ``Coal Industry Retiree Health Equity 
Act''.

SEC. 2. REDUCTION IN CONTRIBUTIONS OF ELIGIBLE SMALL ASSIGNED OPERATORS 
              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 ELIGIBLE SMALL ASSIGNED 
              OPERATORS.

    ``(a) General Rule.--The annual premium of an assigned operator 
under section 9704(a) shall, in the case of an eligible small assigned 
operator, be reduced as provided in subsection (b).
    ``(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) Credit for overpayments.--To the extent that an 
        eligible small assigned operator has paid annual premiums in 
        excess of such premiums required by paragraph (1) for plan 
        years beginning before the date of the enactment of this 
        section, any annual premiums owed by such operator on or after 
        October 1, 1996 (after the application of paragraph (1)) shall 
        be reduced (but not below zero) by the amount of such excess.
    ``(b) Years to Which Section Applies.--
            ``(1) In general.--This section shall apply to any plan 
        year of the Combined Fund which begins after January 31, 1993 
        and before October 1, 2003.
            ``(2) Coordination.--This section shall not apply to any 
        eligible small assigned operator for any plan year for which no 
        annual premium is imposed on such operator.
    ``(c) Eligible Small Assigned Operators.--For purposes of this 
section--
            ``(1) In general.--The term `eligible small assigned 
        operator' means any assigned operator--
                    ``(A) 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
                    ``(B) 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.
            ``(2) Production of coal.--For purposes of paragraph (1), 
        an assigned operator or related person shall be treated as 
        engaged in the production of coal if it has employed employees 
        in--
                    ``(A) the extraction of coal, or
                    ``(B) the preparation, processing, or changing of 
                coal for sale.
    ``(d) 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.
    ``(e) 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, 1993, through September 30, 
        1996.''
    (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 eligible small 
                            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(c) of the Internal Revenue Code of 1986, 
as added by section 2), 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, 1997, 
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 2.
    (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, 
        1997, 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.

SEC. 4. SUSPENSION OF CONTRIBUTIONS FOR CERTAIN ASSIGNED OPERATORS TO 
              THE COMBINED FUND.

    (a) In General.--Section 9704 of the Internal Revenue Code of 1986 
(relating to liability of assigned operators) is amended by adding at 
the end the following new subsection:
    ``(j) One-Time Suspension of Contributions for Certain Assigned 
Operators.--
            ``(1) In general.--Effective on and after the date of the 
        enactment of the Coal Industry Retiree Health Equity Act, 
        whenever the net assets in the Combined Fund (as reported in 
        the monthly UMWA Combined Fund Financial Statements) first 
        exceed 10 percent of the benefits and administrative costs paid 
        by the Combined Fund during the preceding plan year, no further 
        monthly premium payments shall be made by assigned operators 
        which are not 1988 agreement operators for the succeeding 24-
        month period. In the case of assigned operators which sought 
        protection under title 11 of the United States Code before 
        October 24, 1992, the preceding sentence shall be applied 
        without regard to section 9706(b)(1)(A).
            ``(2) Termination of suspension.--The period of suspension 
        under paragraph (1) shall terminate whenever such net assets no 
        longer exceed 10 percent of such costs, and assigned operators 
        which are not 1988 agreement operators shall resume making 
        monthly premium payments with the next monthly installment due 
        after such termination.
            ``(3) Report.--Not later than the end of the first 12-month 
period of the 24-month period described in paragraph (1), the 
Comptroller General of the United States shall report to Congress on 
the current operations of the Combined Fund for such 12-month period 
and the background history of the Combined Fund.''
    (b) Conforming Amendment.--Section 9704(a) of the Internal Revenue 
Code of 1986 is amended by striking ``Each'' and inserting ``Except as 
provided in subsection (j), each''.

SEC. 5. AMOUNT OF PER BENEFICIARY PREMIUM.

    Paragraph (2) of section 9704(b) of the Internal Revenue Code of 
1986 (relating to per beneficiary premium) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following new subparagraph:
                    ``(A) $2,116.67, plus'', and
            (2) by striking ``the amount determined under subparagraph 
        (A)'' in subparagraph (B) and inserting ``$2,116.67''.

SEC. 6. DISCLOSURE REQUIREMENTS.

    (a) In General.--Section 9704(h) of the Internal Revenue Code of 
1986 (relating to information) is amended--
            (1) by striking ``(h) Information.--The'' and inserting:
    ``(h) Information.--
            ``(1) Information to secretary.--The'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Information to contributors.--
                    ``(A) In general.--The trustees of the Combined 
                Fund shall, within 30 days of a written request, make 
                available to any assigned operator information relating 
                to the employment history of assigned beneficiaries.
                    ``(B) Fees.--The trustees may charge reasonable 
                fees (not in excess of actual expenses) for providing 
                documents under this paragraph.''
    (b) Additional Amendment.--Clause (ii) of section 9703(b)(2)(A) of 
the Internal Revenue Code of 1986 is amended by inserting ``(without 
regard to any reduction under section 9704(e)(3)(B)(ii))'' after ``for 
the plan year''.

SEC. 7. TREATMENT OF WITHDRAWAL LIABILITY.

    (a) Withdrawal Liability.--Subsection (g) of section 9711 of the 
Internal Revenue Code of 1986 (relating to continued obligations of 
individual employer plans) is amended by adding at the end the 
following new paragraph:
            ``(3) Certain 1988 agreement operators.--Notwithstanding 
        any other provision of this chapter, in the case of 1988 
        agreement operators which either have contingent liability for, 
        or which were assessed by and did pay contractual withdrawal 
        liability to, the 1950 UMWA Benefit Plan, the 1974 UMWA Benefit 
        Plan or the Combined Fund; the following shall apply as of the 
        date of the enactment of the Coal Industry Retiree Health 
        Equity Act:
                    ``(A) The Combined Fund shall immediately cease 
                assessing, collecting, or attempting to collect 
                contractual withdrawal liability under Article XX, 
                Section (i) or (j), or both, of the 1988 agreement, and 
                promptly shall segregate from its other assets a sum 
                equal to the contractual withdrawal liability 
                previously paid by any such 1988 agreement operator.
                    ``(B) Each such 1988 agreement operator and any 
                related persons are hereafter exempted from the 
                requirements of subsections (a) and (b).
                    ``(C) The 1992 UMWA Benefit Plan hereafter shall 
                provide health benefits coverage to all beneficiaries 
                who would have been eligible to receive health benefits 
                under such 1988 agreement operator's individual 
                employer plans, but for this paragraph.
                    ``(D) The 1992 UMWA Benefit Plan shall assess no 
                premiums against any such 1988 agreement operator under 
                subparagraphs (A) and (B) of section 9712(d)(1) and, 
                instead, shall assess such premiums against the 
                Combined Fund, which shall promptly pay such premiums 
                until the sum segregated with respect to such 1988 
                Agreement operator from the Combined Fund's other 
                assets pursuant to this paragraph has been exhausted. 
                The segregated sum shall continue to earn interest at 
                the rate prescribed under section 6621 until such sum 
                is exhausted, at which time the 1992 UMWA Benefit Plan 
                shall commence assessing premiums against such 1988 
                agreement operator.''
    (b) Conforming Amendment.--Subsections (a) and (b)(2) of section 
9711 of the Internal Revenue Code of 1986 are each amended by striking 
the period at the end of the second sentence thereof and inserting ``, 
except as provided in subsection (g)(3).''
                                 <all>
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