163
not actively engaged in the production of 
coal as of July 1, 2005, and 
‘‘(iii) the assigned operator was, as of 
July 20, 1992, a member of a controlled 
group of corporations described in sub-
paragraph (B). 
‘‘(B) CONTROLLED
GROUP
OF
CORPORA-
TIONS.—A controlled group of corporations is 
described in this subparagraph if the common 
parent of such group is a corporation the shares 
of which are publicly traded on a United States 
exchange. 
‘‘(C) COORDINATION WITH REPEAL OF AS-
SIGNMENTS.—A person shall not fail to be 
treated as an assigned operator to which this 
subsection applies solely because the person 
ceases to be an assigned operator by reason of 
section 9706(h)(1) if the person otherwise 
meets the requirements of this subsection and 
is liable for the payment of premiums under 
section 9706(h)(3). 
‘‘(D) CONTROLLED GROUP.—For purposes 
of this subsection, the term ‘controlled group of 
corporations’ has the meaning given such term 
by section 52(a).
164
‘‘(3) REQUIREMENTS.—A payment meets the 
requirements of this paragraph if—
‘‘(A) the amount of the payment is not less 
than the present value of the total premium li-
ability under this chapter with respect to the 
Combined Fund of the assigned operators or re-
lated persons described in paragraph (1) or 
their assignees, as determined by the operator’s 
or related person’s enrolled actuary (as defined 
in section 7701(a)(35)) using actuarial methods 
and assumptions each of which is reasonable 
and which are reasonable in the aggregate, as 
determined by such enrolled actuary; 
‘‘(B) such enrolled actuary files with the 
Secretary of Labor a signed actuarial report 
containing—
‘‘(i) the date of the actuarial valuation 
applicable to the report; and 
‘‘(ii) a statement by the enrolled actu-
ary signing the report that, to the best of 
the actuary’s knowledge, the report is com-
plete and accurate and that in the actu-
ary’s opinion the actuarial assumptions 
used are in the aggregate reasonably re-
165
lated to the experience of the operator and 
to reasonable expectations; and 
‘‘(C) 90 calendar days have elapsed after 
the report required by subparagraph (B) is filed 
with the Secretary of Labor, and the Secretary 
of Labor has not notified the assigned operator 
in writing that the requirements of this para-
graph have not been satisfied. 
‘‘(4) USE
OF
PREPAYMENT.—The Combined 
Fund shall—
‘‘(A) establish and maintain an account for 
each assigned operator or related person by, or 
on whose behalf, a payment described in para-
graph (3) was made, 
‘‘(B) credit such account with such pay-
ment (and any earnings thereon), and 
‘‘(C) use all amounts in such account ex-
clusively to pay premiums that would (but for 
this subsection) be required to be paid by the 
assigned operator. 
Upon termination of the obligations for the premium 
liability of any assigned operator or related person 
for which such account is maintained, all funds re-
maining in such account (and earnings thereon) 
shall be refunded to such person as may be des-
166
ignated by the common parent described in para-
graph (1)(B).’’. 
(b) 
INDIVIDUAL
EMPLOYER
PLANS.—Section 
9711(c) of the Internal Revenue Code of 1986 (relating 
to joint and several liability) is amended to read as follows: 
‘‘(c) JOINT AND SEVERAL LIABILITY OF RELATED 
PERSONS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), each related person of a last signatory op-
erator to which subsection (a) or (b) applies shall be 
jointly and severally liable with the last signatory op-
erator for the provision of health care coverage de-
scribed in subsection (a) or (b). 
‘‘(2) LIABILITY
LIMITED
IF
SECURITY
PRO-
VIDED.—If—
‘‘(A) security meeting the requirements of 
paragraph (3) is provided by or on behalf of—
‘‘(i) any last signatory operator which 
is an assigned operator described in section 
9704(j)(2), or 
‘‘(ii) any related person to any last 
signatory operator described in clause (i), 
and 
‘‘(B) the common parent of the controlled 
group of corporations described in section