168 
section (and earnings thereon) shall be refunded to 
the last signatory operator as of the earlier of— 
‘‘(A) the termination of the obligations of 
the last signatory operator under this section, 
or 
‘‘(B) the end of the 5-year period described 
in paragraph (4)(C).’’. 
(c) 
1992 
UMWA 
BENEFIT
PLAN.—Section 
9712(d)(4) of the Internal Revenue Code of 1986 (relating 
to joint and several liability) is amended by adding at the 
end the following new sentence: ‘‘The provisions of section 
9711(c)(2) shall apply to any last signatory operator de-
scribed in such section (without regard to whether security 
is provided under such section, a payment is made under 
section 9704(j), or both) and if security meeting the re-
quirements of section 9711(c)(3) is provided, the common 
parent described in section 9711(c)(2)(B) shall be exclu-
sively responsible for any liability for premiums under this 
section which, but for this sentence, would be required to 
be paid by the last signatory operator or any related per-
son.’’. 
(d) SUCCESSOR IN INTEREST.—Section 9701(c) of 
the Internal Revenue Code of 1986 (relating to terms re-
lating to operators) is amended by adding at the end the 
following new paragraph: 
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169 
‘‘(8) SUCCESSOR IN INTEREST.— 
‘‘(A) SAFE HARBOR.—The term ‘successor 
in interest’ shall not include any person who— 
‘‘(i) is an unrelated person to an eligi-
ble seller described in subparagraph (C); 
and 
‘‘(ii) purchases for fair market value 
assets, or all of the stock, of a related per-
son to such seller, in a bona fide, arm’s- 
length sale. 
‘‘(B) UNRELATED
PERSON.—The term 
‘unrelated person’ means a purchaser who does 
not bear a relationship to the eligible seller de-
scribed in section 267(b). 
‘‘(C) ELIGIBLE SELLER.—For purposes of 
this paragraph, the term ‘eligible seller’ means 
an assigned operator described in section 
9704(j)(2) or a related person to such assigned 
operator.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act, except that the amendment made by sub-
section (d) shall apply to transactions after the date of 
the enactment of this Act. 
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170 
SEC. 322. TRANSFERS TO FUNDS; PREMIUM RELIEF. 
(a) COMBINED FUND.— 
(1) FEDERAL TRANSFERS.—Section 9705(b) of 
the Internal Revenue Code of 1986 (relating to 
transfers from Abandoned Mine Reclamation Fund) 
is amended— 
(A) in paragraph (1), by striking ‘‘section 
402(h)’’ and inserting ‘‘subsections (h) and (i) 
of section 402’’; 
(B) by striking paragraph (2) and insert-
ing the following new paragraph: 
‘‘(2) USE OF FUNDS.—Any amount transferred 
under paragraph (1) for any fiscal year shall be used 
to pay benefits and administrative costs of bene-
ficiaries of the Combined Fund or for such other 
purposes as are specifically provided in the Acts de-
scribed in paragraph (1).’’; and 
(C) by striking ‘‘FROM ABANDONED MINE 
RECLAMATION FUND’’. 
(2) MODIFICATIONS OF PREMIUMS TO REFLECT 
FEDERAL TRANSFERS.— 
(A) ELIMINATION OF UNASSIGNED BENE-
FICIARIES PREMIUM.—Section 9704(d) of such 
Code (establishing unassigned beneficiaries pre-
mium) is amended to read as follows: 
‘‘(d) UNASSIGNED BENEFICIARIES PREMIUM.— 
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171 
‘‘(1) PLAN YEARS ENDING ON OR BEFORE SEP-
TEMBER 30, 2006.—For plan years ending on or be-
fore September 30, 2006, the unassigned bene-
ficiaries premium for any assigned operator shall be 
equal to the applicable percentage of the product of 
the per beneficiary premium for the plan year multi-
plied by the number of eligible beneficiaries who are 
not assigned under section 9706 to any person for 
such plan year. 
‘‘(2) PLAN YEARS BEGINNING ON OR AFTER OC-
TOBER 1, 2006.— 
‘‘(A) IN GENERAL.—For plan years begin-
ning on or after October 1, 2006, subject to 
subparagraph (B), there shall be no unassigned 
beneficiaries premium, and benefit costs with 
respect to eligible beneficiaries who are not as-
signed under section 9706 to any person for 
any such plan year shall be paid from amounts 
transferred under section 9705(b). 
‘‘(B) INADEQUATE
TRANSFERS.—If, for 
any plan year beginning on or after October 1, 
2006, the amounts transferred under section 
9705(b) are less than the amounts required to 
be transferred to the Combined Fund under 
subsection (h)(2)(A) or (i) of section 402 of the 
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172 
Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1232)), then the unassigned 
beneficiaries premium for any assigned operator 
shall be equal to the operator’s applicable per-
centage of the amount required to be so trans-
ferred which was not so transferred.’’. 
(B) PREMIUM ACCOUNTS.— 
(i) CREDITING
OF
ACCOUNTS.—Sec-
tion 9704(e)(1) of such Code (relating to 
premium accounts; adjustments) is amend-
ed by inserting ‘‘and amounts transferred 
under section 9705(b)’’ after ‘‘premiums 
received’’. 
(ii) SURPLUSES
ATTRIBUTABLE
TO 
PUBLIC FUNDING.—Section 9704(e)(3)(A) 
of such Code is amended by adding at the 
end the following new sentence: ‘‘Amounts 
credited to an account from amounts 
transferred under section 9705(b) shall not 
be taken into account in determining 
whether there is a surplus in the account 
for purposes of this paragraph.’’. 
(C) APPLICABLE
PERCENTAGE.—Section 
9704(f)(2) of such Code (relating to annual ad-
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173 
justments) is amended by adding at the end the 
following new subparagraph: 
‘‘(C) In the case of plan years beginning 
on or after October 1, 2007, the total number 
of assigned eligible beneficiaries shall be re-
duced by the eligible beneficiaries whose assign-
ments 
have 
been 
revoked 
under 
section 
9706(h).’’. 
(3) ASSIGNMENTS AND REASSIGNMENT.—Sec-
tion 9706 of the Internal Revenue Code of 1986 (re-
lating to assignment of eligible beneficiaries) is 
amended by adding at the end the following: 
‘‘(h) ASSIGNMENTS AS OF OCTOBER 1, 2007.— 
‘‘(1) IN GENERAL.—Subject to the premium ob-
ligation set forth in paragraph (3), the Commis-
sioner of Social Security shall— 
‘‘(A) revoke all assignments to persons 
other than 1988 agreement operators for pur-
poses of assessing premiums for plan years be-
ginning on and after October 1, 2007; and 
‘‘(B) make no further assignments to per-
sons other than 1988 agreement operators, ex-
cept that no individual who becomes an unas-
signed beneficiary by reason of subparagraph 
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174 
(A) may be assigned to a 1988 agreement oper-
ator. 
‘‘(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
OF
PERSONS
DURING
THREE 
FISCAL YEARS BEGINNING ON AND AFTER OCTOBER 
1, 2007.—In the case of each of the fiscal years be-
ginning on October 1, 2007, 2008, and 2009, each 
person other than a 1988 agreement operator shall 
pay to the Combined Fund the following percentage 
of the amount of annual premiums that such person 
would otherwise be required to pay under section 
9704(a), determined on the basis of assignments in 
effect without regard to the revocation of assign-
ments under paragraph (1)(A): 
‘‘(A) For the fiscal year beginning on Oc-
tober 1, 2007, 55 percent. 
‘‘(B) For the fiscal year beginning on Oc-
tober 1, 2008, 40 percent. 
‘‘(C) For the fiscal year beginning on Oc-
tober 1, 2009, 15 percent.’’. 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to plan years of the 
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175 
Combined Fund beginning after September 30, 
2006. 
(b) 1992 UMWA BENEFIT AND OTHER PLANS.— 
(1) TRANSFERS TO PLANS.—Section 9712(a) of 
the Internal Revenue Code of 1986 (relating to the 
establishment and coverage of the 1992 UMWA 
Benefit Plan) is amended by adding at the end the 
following: 
‘‘(3) TRANSFERS
UNDER
OTHER
FEDERAL 
STATUTES.— 
‘‘(A) IN
GENERAL.—The 1992 UMWA 
Benefit Plan shall include any amount trans-
ferred to the plan under subsections (h) and (i) 
of section 402 of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1232). 
‘‘(B) USE OF FUNDS.—Any amount trans-
ferred under subparagraph (A) for any fiscal 
year shall be used to provide the health benefits 
described in subsection (c) with respect to any 
beneficiary for whom no monthly per bene-
ficiary premium is paid pursuant to paragraph 
(1)(A) or (3) of subsection (d). 
‘‘(4) SPECIAL RULE FOR 1993 PLAN.— 
‘‘(A) IN GENERAL.—The plan described in 
section 402(h)(2)(C) of the Surface Mining 
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176 
Control and Reclamation Act of 1977 (30 
U.S.C. 
1232(h)(2)(C)) 
shall 
include 
any 
amount transferred to the plan under sub-
sections (h) and (i) of the Surface Mining Con-
trol and Reclamation Act of 1977 (30 U.S.C. 
1232). 
‘‘(B) USE OF FUNDS.—Any amount trans-
ferred under subparagraph (A) for any fiscal 
year shall be used to provide the health benefits 
described in section 402(h)(2)(C)(i) of the Sur-
face Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1232(h)(2)(C)(i)) to individ-
uals described in section 402(h)(2)(C) of such 
Act (30 U.S.C. 1232(h)(2)(C)).’’. 
(2) PREMIUM ADJUSTMENTS.— 
(A) IN GENERAL.—Section 9712(d)(1) of 
such Code (relating to guarantee of benefits) is 
amended to read as follows: 
‘‘(1) IN GENERAL.—All 1988 last signatory op-
erators shall be responsible for financing the benefits 
described in subsection (c) by meeting the following 
requirements in accordance with the contribution re-
quirements established in the 1992 UMWA Benefit 
Plan: 
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