I
106TH CONGRESS
2D SESSION
H. R. 4713
To amend the Internal Revenue Code of 1986 and the Surface Mining
Control and Reclamation Act of 1977 to restore stability and equity
to the financing of the United Mine Workers of America Combined
Benefit Fund by eliminating the liability of reachback operators, to
provide additional sources of revenue to the Fund, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
JUNE 21, 2000
Ms. PRYCE of Ohio (for herself, Mr. ARMEY, Mr. CAMP, Ms. DUNN, Mrs.
JOHNSON of Connecticut, Mr. SESSIONS, and Mr. UPTON) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Resources, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 and the Sur-
face Mining Control and Reclamation Act of 1977 to
restore stability and equity to the financing of the United
Mine Workers of America Combined Benefit Fund by
eliminating the liability of reachback operators, to pro-
vide additional sources of revenue to the Fund, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
(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 ‘signa-
tory 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 signa-
tory 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 Com-
bined Fund.’’
(3) CONFIRMING AMENDMENTS.—
(A) Section 9711(a) is amended by strik-
ing ‘‘maintained pursuant to a 1978 or subse-
quent 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 RE-
FORMS.—
(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 in-
serting ‘‘two individuals who represent’’,
(ii) by striking subparagraph (B) and
redesignating subparagraphs (C) and (D)
as subparagraphs (B) and (C), respec-
tively, 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 the enactment date
and who have been assigned the greatest number of
eligible beneficiaries under section 9706.’’
(C) TRANSITION RULE.—Any trustee serv-
ing 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 bene-
ficiaries) is amended by adding at the end the fol-
lowing:
‘‘(h) ASSIGNMENT AS OF OCTOBER 1, 2000.—
‘‘(1) IN GENERAL.—Effective October 1, 2000,
the Commissioner of Social Security shall—
‘‘(A) revoke all assignments to persons
other than 1988 agreement operators for pur-
poses of assessing premiums for periods after
September 30, 2000,
‘‘(B) make no further assignments to per-
sons other than 1988 agreement operators, and
‘‘(C) terminate all unpaid liabilities of per-
sons other than 1988 agreement operators with
respect to eligible beneficiaries whose assign-
ment to such persons is pending on October 1,
2000.
‘‘(2) REASSIGNMENT
UPON
PURCHASE.—This
subsection shall not be construed to prohibit the re-
assignment under subsection (b)(2) of an eligible
beneficiary.’’
(3) LIABILITY FOR 1992 PLAN.—
(A) IN GENERAL.—Section 9712(d) (relat-
ing to guarantee of benefits) is amended by
striking paragraph (3) and by redesignating
paragraphs (4), (5), and (6) as paragraphs (3),
(4), and (5), respectively.
(B) CONFORMING
AMENDMENT.—Section
9712(d)(3) (as redesignated under subpara-
graph (A)) is amended by striking ‘‘or last sig-
natory operator described in paragraph (3)’’.
(C) EFFECTIVE DATE.—The amendments
made by this paragraph shall apply to pre-
miums assessed for periods after September 30,
2000, except that a person other than a 1988
agreement operator shall not be liable for any
unpaid premium under section 9712(d) of the
Internal Revenue Code of 1986 as of such date
if liability for such premium had not been as-
sessed or was being contested on such date.
TITLE II—FINANCING
PROVISIONS
Subtitle A—Premiums
SEC. 201. REDUCTION IN ANNUAL PREMIUMS TO COAL MIN-
ERS COMBINED FUND IF SURPLUS EXISTS.
(a) IN GENERAL.—Part II of subchapter B of chap-
ter 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 bene-
ficiary 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, 2000, 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 re-
serve’ 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 re-
serve as of such time.
‘‘(B) PROJECTED NET ASSETS.—For pur-
poses 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 pur-
poses of the monthly financial statements of the
Combined Fund for the plan year beginning Oc-
tober 1, 1999.
‘‘(C) PROJECTED
3-MONTH
ASSET
RE-
SERVE.—For purposes of subparagraph (A)(ii),
the projected 3-month asset reserve is an
amount equal to 25 percent of the projected ex-
penses (including administrative expenses) from
the health benefit premium account and unas-
signed 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 re-
spect to any plan year, the plan year and the
following plan year.
‘‘(c) REDUCED PER BENEFICIARY PREMIUM.—For
purposes of this section, the reduced per beneficiary pre-
mium 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, di-
vided by
‘‘(2) the total number of eligible beneficiaries
which are assigned to assigned operators under sec-
tion 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 ap-
plies, the Combined Fund has net assets available for pro-
jected 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 de-
termined 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 pre-
miums) is amended by striking ‘‘Each’’ and insert-
ing ‘‘Subject to section 9704A, each’’.
(2) The table of sections for part II of sub-
chapter 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 ex-
ists.’’
(c) EFFECTIVE DATE.—The amendments made by
this subsection shall apply to plan years of the Combined
Fund beginning after September 30, 2000.
SEC. 202. REFUND OF CONTRIBUTIONS PAID BY CERTAIN
SMALL ENTITIES TO UNITED MINE WORKERS
COMBINED BENEFIT FUND.
(a) IN GENERAL.—Insert after section 9704A the fol-
lowing:
‘‘SEC. 9704B. REFUNDS OF ANNUAL PREMIUMS OF CERTAIN
SMALL ENTITIES.
‘‘(a) GENERAL RULE.—The annual premiums paid
by certain small entities under section 9704(a) shall, in
the case of an eligible small entity which was an assigned
operator prior to October 1, 2000, be refunded as provided
in subsection (b).
‘‘(b) REFUNDS
FOR ELIGIBLE SMALL ENTITIES
WHICH WERE FORMERLY ASSIGNED OPERATORS.—
‘‘(1) IN GENERAL.—To the extent an eligible
small entity which was an assigned operator prior to
October 1, 2000, has paid premiums to the com-
bined fund, any such premiums shall be refunded by
the combined fund.
‘‘(2) YEARS TO WHICH SUBSECTION APPLIES.—
This subsection shall apply to any plan year of the
combined fund which began before October 1, 2000.
‘‘(3) ELIGIBLE
SMALL
ENTITIES.—For pur-
poses of this section, the term ‘eligible small entity’
means any entity which was an assigned operator
prior to October 1, 2000, is not a 1988 agreement
operator and had average annual gross income for
purposes of chapter 1 for the 5-taxable-year period
ending with the entity’s most recent taxable year
ending before October 1, 1993, not exceeding
$2,000,000.
‘‘(4) AGGREGATION
RULES.—In determining
gross income or taxable income for purposes of this
section, an entity which was an assigned operator
prior to October 1, 2000, and any related persons
shall be treated as 1 person.
‘‘(c) OVERALL LIMITATION.—In no event shall the
total refunds of annual premiums made by the combined
fund under this section for any plan year exceed
$10,000,000.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for part II of subchapter B of chapter 99 of the In-
ternal Revenue Code of 1986 is amended by inserting
after the item relating to section 9704 the following new
item:
‘‘Sec. 9704B. Refunds of annual premiums of certain small enti-
ties.’’.
SEC. 203. ELECTION TO PREFUND REQUIRED CONTRIBU-
TIONS.
(a) COMBINED FUND.—Section 9704(g) (relating to
payment of premiums) is amended by redesignating para-
graph (2) as paragraph (3) and by inserting after para-
graph (1) the following:
‘‘(2) ELECTION TO PREFUND.—
‘‘(A) IN GENERAL.—An assigned operator
shall be entitled to prefund its obligations to
the Combined Fund by depositing into an irrev-
ocable trust dedicated solely to the payment of
such obligations an amount which the board of
trustees determines, on the basis of reasonable
actuarial assumptions, to be equal to the
present value of the operator’s present and fu-
ture obligations to the Combined Fund.
‘‘(B) EFFECTS ON LIABILITY.—If an as-
signed operator prefunds its obligations under
this paragraph—
‘‘(i) the assigned operator (and any
successor) shall continue to remain liable
for such obligations if the amount depos-
ited is insufficient, but
‘‘(ii) any related person to such oper-
ator (or successor) shall be relieved of any
liability for such obligations.’’
(b) 1992 FUND.—Section 9712(d) (relating to guar-
antee of benefits), as amended by section 101, is amended
by adding at the end the following:
‘‘(6) ELECTION TO PREFUND.—
‘‘(A) IN GENERAL.—A 1988 last signatory
operator shall be entitled to prefund its obliga-
tions to the 1992 UMWA Benefit Plan by de-
positing into an irrevocable trust dedicated sole-
ly to the payment of such obligations an
amount which the board of trustees determines,
on the basis of reasonable actuarial assump-
tions, to be equal to the present value of the op-
erator’s present and future obligations to such
plan.
‘‘(B) EFFECTS ON LIABILITY.—If a 1988
last signatory operator prefunds its obligations
under this paragraph—
‘‘(i) the operator (and any successor)
shall continue to remain liable for such ob-
ligations if the amount deposited is insuffi-
cient, but
‘‘(ii) any related person to such oper-
ator (or successor) shall be relieved of any
liability for such obligations.’’
SEC. 204. FIRST YEAR PAYMENTS OF 1988 OPERATORS.
So much of section 9704(i)(1)(D) as precedes clause
(ii) is amended to read as follows:
‘‘(D) PREMIUM
REDUCTIONS
AND
RE-
FUNDS.—
‘‘(i) 1st YEAR
PAYMENTS.—In the
case of a 1988 agreement operator making
payments under subparagraph (A)—
‘‘(I) the premium of such oper-
ator under subsection (a) shall be re-
duced by the amount paid under sub-
paragraph (A) by such operator for
the plan year beginning February 1,
1993, or
‘‘(II) if the amount so paid ex-
ceeds the operator’s liability under
subsection (a), the excess shall be re-
funded to the operator.’’
Subtitle B—Transfers From Aban-
doned Mine Reclamation Fund
SEC. 211. TRANSFER OF INTEREST FROM ABANDONED
MINE RECLAMATION FUND TO COMBINED
FUND.
(a) IN GENERAL.—Section 402(h)(2) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1232(h)(2)) is amended to read as follows:
‘‘(2)(A) Except as provided in subparagraph
(B), the Secretary shall transfer from the fund to
the United Mine Workers of America Combined
Benefit Fund established under section 9702 of the
Internal Revenue Code of 1986 for any fiscal year
the amount of interest which the Secretary estimates
will be earned and paid to the fund during the fiscal
year.
‘‘(B) The Secretary shall increase the amount
transferred under subparagraph (A) for fiscal year
2001 by the excess of—
‘‘(i) the total amount of interest earned
and paid to the fund after September 30, 1992,
and before October 1, 2000, over
‘‘(ii) the total amount transferred to the
Combined Fund under this subsection for fiscal
years beginning before October 1, 2000.’’
(b) CONFORMING AMENDMENTS.—Section 204(h) of
such Act (30 U.S.C. 1232(h)) is amended by striking
paragraph (3) and by redesignating paragraph (4) as
paragraph (3).
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to fiscal years beginning after Sep-
tember 30, 2000.
SEC. 212. MODIFICATIONS OF ABANDONED MINE RECLAMA-
TION FEE PROGRAM.
(a) REDUCTIONS IN RECLAMATION FEES.—Section
402(a) of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1232(a)) is amended—
(1) by striking ‘‘35 cents’’ and inserting ‘‘20
cents’’,
(2) by striking ‘‘15 cents’’ and inserting ‘‘5
cents’’, and
(3) by striking ‘‘10 cents’’ and inserting ‘‘5
cents’’.
(b) EXTENSION OF FEE PROGRAM.—Section 402(b)
of such Act (30 U.S.C. 1232(b)) is amended by striking
‘‘2004’’ and inserting ‘‘2010’’.
(c) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to fiscal years beginning after
September 30, 2000.
SEC. 213. USE OF FUNDS TRANSFERRED FROM ABANDONED
MINE RECLAMATION FUND.
(a) IN GENERAL.—Section 9705(b)(2) (relating to
use of funds) is amended to read as follows:
‘‘(2) USE OF FUNDS.—The amount transferred
under paragraph (1) for any fiscal year shall be
used—
‘‘(A) first, to refund to an assigned oper-
ator (and any related person to such operator)
an amount equal to the sum of—
‘‘(i) any amount paid by such oper-
ator or person to the Combined Fund (and
not previously refunded) solely by reason
of the operator having been a signatory to
a pre-1974 coal wage agreement, plus
‘‘(ii) interest on the amount under
clause (i) at the overpayment rate estab-
lished under section 6621 for the period
from the payment of such amount to the
refund under this subparagraph,
‘‘(B) second, to make any refund required
under section 9704(i)(1)(D)(i)(II),
‘‘(C) third, to proportionately reduce the
unassigned beneficiary premium under section
9704(a)(3) of each assigned operator for the
plan year in which transferred, and
‘‘(D) last, to pay the amount of any other
obligation occurring in the Combined Fund.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to fiscal years beginning after Sep-
tember 30, 2000.
Subtitle C—Authorization
SEC. 221. AUTHORIZATION OF TRANSFER OF FUNDS TO
COMBINED BENEFIT FUND.
Section 9705 (relating to transfers to the Combined
Benefit Fund) is amended by adding at the end the fol-
lowing:
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be
appropriated $38,000,000 for each fiscal year begin-
ning after September 30, 2000.
‘‘(2) USE
OF
FUNDS.—Any amounts trans-
ferred to the Combined Fund under paragraph (1)
shall be available, without fiscal year limitation, to
cover any shortfall in any premium account estab-
lished under section 9704(e).
‘‘(3) TRANSFERS.—
‘‘(A) IN
GENERAL.—The Secretary shall
transfer amounts appropriated under paragraph
(1) on October 1 of each fiscal year.
‘‘(B) EXCESS AMOUNTS.—If the Secretary,
after examining the audit of the Combined
Fund by the Comptroller General of the United
States, determines that the amount transferred
for any fiscal year exceeds the amount required
to cover shortfalls for that year, the Secretary
shall notify the Committees on Appropriations
of the House of Representatives and the Senate
and the authorization of appropriations for the
first fiscal year after the determination shall be
reduced by the amount of the excess.’’
SEC. 222. ANNUAL AUDIT.
Section 9702 (relating to establishment of the Com-
bined Fund) is amended by adding at the end the fol-
lowing:
‘‘(d) ANNUAL AUDIT.—