176
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 
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-
177
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: 
‘‘(A) The payment of a monthly per bene-
ficiary premium by each 1988 last signatory op-
erator for each eligible beneficiary of such oper-
ator who is described in subsection (b)(2) and 
who is receiving benefits under the 1992 
UMWA benefit plan. 
‘‘(B) The provision of a security (in the 
form of a bond, letter of credit, or cash escrow) 
in an amount equal to a portion of the pro-
jected future cost to the 1992 UMWA Benefit 
Plan of providing health benefits for eligible 
and potentially eligible beneficiaries attributable 
to the 1988 last signatory operator.
178
‘‘(C) If the amounts transferred under 
subsection (a)(3) are less than the amounts re-
quired to be transferred to the 1992 UMWA 
Benefit Plan under subsections (h) and (i) of 
section 402 of the Surface Mining Control and 
Reclamation Act of 1977 (30 U.S.C. 1232), the 
payment of an additional backstop premium by 
each 1988 last signatory operator which is 
equal to such operator’s share of the amounts 
required to be so transferred but which were 
not so transferred, determined on the basis of 
the number of eligible and potentially eligible 
beneficiaries attributable to the operator.’’. 
(B) CONFORMING AMENDMENTS.—Section 
9712(d) of such Code is amended—
(i) in paragraph (2)(B), by striking 
‘‘prefunding’’ and inserting ‘‘backstop’’, 
and 
(ii) in paragraph (3), by striking 
‘‘paragraph (1)(B)’’ and inserting ‘‘para-
graph (1) (A)’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to fiscal 
years beginning on or after October 1, 2010.
179
SEC. 323. OTHER PROVISIONS. 
(a) BOARD OF TRUSTEES.—Section 9702(b) of the 
Internal Revenue Code of 1986 (relating to board of trust-
ees of the Combined Fund) is amended to read as follows: 
‘‘(b) BOARD OF TRUSTEES.—
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the board of trustees for the Combined Fund 
shall be appointed as follows: 
‘‘(A) 2 individuals who represent employers 
in the coal mining industry shall be designated 
by the BCOA; 
‘‘(B) 2 individuals designated by the 
United Mine Workers of America; and 
‘‘(C) 3 individuals selected by the individ-
uals appointed under subparagraphs (A) and 
(B). 
‘‘(2) SUCCESSOR
TRUSTEES.—Any successor 
trustee shall be appointed in the same manner as 
the trustee being succeeded. The plan establishing 
the Combined Fund shall provide for the removal of 
trustees. 
‘‘(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
180
and who have been assigned the greatest number of 
eligible beneficiaries under section 9706.’’. 
(b) ENFORCEMENT OF OBLIGATIONS.—
(1) FAILURE
TO
PAY
PREMIUMS.—Section 
9707(a) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(a) FAILURES TO PAY.—
‘‘(1) 
PREMIUMS
FOR
ELIGIBLE
BENE-
FICIARIES.—There is hereby imposed a penalty on 
the failure of any assigned operator to pay any pre-
mium required to be paid under section 9704 with 
respect to any eligible beneficiary. 
‘‘(2) CONTRIBUTIONS
REQUIRED
UNDER
THE 
MINING LAWS.—There is hereby imposed a penalty 
on the failure of any person to make a contribution 
required under section 402(h)(5)(B)(ii) of the Sur-
face Mining Control and Reclamation Act of 1977 to 
a plan referred to in section 402(h)(2)(C) of such 
Act. For purposes of applying this section, each such 
required monthly contribution for the hours worked 
of any individual shall be treated as if it were a pre-
mium required to be paid under section 9704 with 
respect to an eligible beneficiary.’’. 
(2) CIVIL
ENFORCEMENT.—Section 9721 of 
such Code is amended to read as follows: