Internal Revenue Code:Sec. 9701. Definitions of general applicability
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter A - Definitions of General Applicability
Statute
Sec. 9701. Definitions of general applicability
(a) Plans and funds
For purposes of this chapter -
(1) UMWA Benefit Plan
(A) In general
The term ''UMWA Benefit Plan'' means a plan -
(i) which is described in section 404(c), or a continuation
thereof; and
(ii) which provides health benefits to retirees and
beneficiaries of the industry which maintained the 1950 UMWA
Pension Plan.
(B) 1950 UMWA Benefit Plan
The term ''1950 UMWA Benefit Plan'' means a UMWA Benefit
Plan, participation in which is substantially limited to
individuals who retired before 1976.
(C) 1974 UMWA Benefit Plan
The term ''1974 UMWA Benefit Plan'' means a UMWA Benefit
Plan, participation in which is substantially limited to
individuals who retired on or after January 1, 1976.
(2) 1950 UMWA Pension Plan
The term ''1950 UMWA Pension Plan'' means a pension plan
described in section 404(c) (or a continuation thereof),
participation in which is substantially limited to individuals
who retired before 1976.
(3) 1974 UMWA Pension Plan
The term ''1974 UMWA Pension Plan'' means a pension plan
described in section 404(c) (or a continuation thereof),
participation in which is substantially limited to individuals
who retired in 1976 and thereafter.
(4) 1992 UMWA Benefit Plan
The term ''1992 UMWA Benefit Plan'' means the plan referred to
in section 9713A. (FOOTNOTE 1)
(FOOTNOTE 1) See References in Text note below.
(5) Combined Fund
The term ''Combined Fund'' means the United Mine Workers of
America Combined Benefit Fund established under section 9702.
(b) Agreements
For purposes of this section -
(1) Coal wage agreement
The term ''coal wage agreement'' means -
(A) the National Bituminous Coal Wage Agreement, or
(B) any other agreement entered into between an employer in
the coal industry and the United Mine Workers of America that
required or requires one or both of the following:
(i) the provision of health benefits to retirees of such
employer, eligibility for which is based on years of service
credited under a plan established by the settlors and
described in section 404(c) or a continuation of such plan;
or
(ii) contributions to the 1950 UMWA Benefit Plan or the
1974 UMWA Benefit Plan, or any predecessor thereof.
(2) Settlors
The term ''settlors'' means the United Mine Workers of America
and the Bituminous Coal Operators' Association, Inc. (referred to
in this chapter as the ''BCOA'').
(3) National Bituminous Coal Wage Agreement
The term ''National Bituminous Coal Wage Agreement'' means a
collective bargaining agreement negotiated by the BCOA and the
United Mine Workers of America.
(c) Terms relating to operators
For purposes of this section -
(1) Signatory operator
The term ''signatory operator'' means a person which is or was
a signatory to a coal wage agreement.
(2) Related persons
(A) In general
A person shall be considered to be a related person to a
signatory operator if that person is -
(i) a member of the controlled group of corporations
(within the meaning of section 52(a)) which includes such
signatory operator;
(ii) a trade or business which is under common control (as
determined under section 52(b)) with such signatory operator;
or
(iii) any other person who is identified as having a
partnership interest or joint venture with a signatory
operator in a business within the coal industry, but only if
such business employed eligible beneficiaries, except that
this clause shall not apply to a person whose only interest
is as a limited partner.
A related person shall also include a successor in interest of
any person described in clause (i), (ii), or (iii).
(B) Time for determination
The relationships described in clauses (i), (ii), and (iii)
of subparagraph (A) shall be determined as of July 20, 1992,
except that if, on July 20, 1992, a signatory operator is no
longer in business, the relationships shall be determined as of
the time immediately before such operator ceased to be in
business.
(3) 1988 agreement operator
The term ''1988 agreement operator'' means -
(A) a signatory operator which was a signatory to the 1988
National Bituminous Coal Wage Agreement,
(B) an employer in the coal industry which was a signatory to
an agreement containing pension and health care contribution
and benefit provisions which are the same as those contained in
the 1988 National Bituminous Coal Wage Agreement, or
(C) an employer from which contributions were actually
received after 1987 and before July 20, 1992, by the 1950 UMWA
Benefit Plan or the 1974 UMWA Benefit Plan in connection with
employment in the coal industry during the period covered by
the 1988 National Bituminous Coal Wage Agreement.
(4) Last signatory operator
The term ''last signatory operator'' means, with respect to a
coal industry retiree, a signatory operator which was the most
recent coal industry employer of such retiree.
(5) Assigned operator
The term ''assigned operator'' means, with respect to an
eligible beneficiary defined in section 9703(f), the signatory
operator to which liability under subchapter B with respect to
the beneficiary is assigned under section 9706.
(6) Operators of dependent beneficiaries
For purposes of this chapter, the signatory operator, last
signatory operator, or assigned operator of any eligible
beneficiary under this chapter who is a coal industry retiree
shall be considered to be the signatory operator, last signatory
operator, or assigned operator with respect to any other
individual who is an eligible beneficiary under this chapter by
reason of a relationship to the retiree.
(7) Business
For purposes of this chapter, a person shall be considered to
be in business if such person conducts or derives revenue from
any business activity, whether or not in the coal industry.
(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 eligible
seller described in subparagraph (C); and
(ii) purchases for fair market value assets,
or all of the stock, of a related person 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 described 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.
(d) Enactment date
For purposes of this chapter, the term ''enactment date'' means
the date of the enactment of this chapter.
Sources
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3037.)
References in Text
REFERENCES IN TEXT
Section 9713A, referred to in subsec. (a)(4), probably should be
a reference to section 9712 which provided for the establishment of
the United Mine Workers of America 1992 Benefit Plan, referred to
in that section as the ''1992 UMWA Benefit Plan''. No section 9713A
of this title has been enacted.
The date of the enactment of this chapter, referred to in subsec.
(d), is the date of the enactment of Pub. L. 102-486, which was
approved Oct. 24, 1992.
Miscellaneous
AMENDMENTS
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
Subtitle B--Coal Industry Retiree Health Benefit Act
SEC. 211. CERTAIN RELATED PERSONS AND SUCCESSORS IN INTEREST RELIEVED OF
LIABILITY IF PREMIUMS PREPAID.
(d) Successor in Interest.--Section 9701(c) of the Internal Revenue
Code of 1986 (relating to terms relating to operators) is amended by
adding at the end the following new paragraph:
``(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 eligible
seller described in subparagraph (C); and
``(ii) purchases for fair market value assets,
or all of the stock, of a related person 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 described 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.''.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
Subtitle B--Coal Industry Retiree Health Benefit Act
SEC. 211(e) <<NOTE: 26 USC 9701 note.>> 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 subsection (d) shall apply to
transactions after the date of the enactment of this Act.
FINDINGS AND DECLARATION OF POLICY
Section 19142 of Pub. L. 102-486 provided that:
''(a) Findings. - The Congress finds that -
''(1) the production, transportation, and use of coal
substantially affects interstate and foreign commerce and the
national public interest; and
''(2) in order to secure the stability of interstate commerce,
it is necessary to modify the current private health care benefit
plan structure for retirees in the coal industry to identify
persons most responsible for plan liabilities in order to
stabilize plan funding and allow for the provision of health care
benefits to such retirees.
''(b) Statement of Policy. - It is the policy of this subtitle
(subtitle C (Sec. 19141-19143) of title XIX of Pub. L. 102-486,
enacting this subtitle, amending sections 1231 and 1232 of Title
30, Mineral Lands and Mining, and enacting provisions set out as a
note under section 1 of this title) -
''(1) to remedy problems with the provision and funding of
health care benefits with respect to the beneficiaries of
multiemployer benefit plans that provide health care benefits to
retirees in the coal industry;
''(2) to allow for sufficient operating assets for such plans;
and
''(3) to provide for the continuation of a privately financed
self-sufficient program for the delivery of health care benefits
to the beneficiaries of such plans.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 9704 of this title.
