Subtitle ITrust Fund Code

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9500. Short title CHAPTER 98TRUST FUND CODE ( 95019602)

9500. Short title

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This subtitle may be cited as the Trust Fund Code of 1981.

CHAPTER 98TRUST FUND CODE

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Subchapter AEstablishment of Trust Funds ( 95019511) Subchapter BGeneral Provisions ( 96019602)

Subchapter AEstablishment of Trust Funds

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9501. Black Lung Disability Trust Fund 9502. Airport and Airway Trust Fund 9503. Highway Trust Fund 9504. Sport Fish Restoration and Boating Trust Fund 9505. Harbor Maintenance Trust Fund 9506. Inland Waterways Trust Fund 9507. Hazardous Substance Superfund 9508. Leaking Underground Storage Tank Trust Fund 9509. Oil Spill Liability Trust Fund 9510. Vaccine Injury Compensation Trust Fund [ 9511. Repealed.]

9501. Black Lung Disability Trust Fund

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(a) Creation of Trust Fund

(1) In general There is established in the Treasury of the United States a trust fund to be known as the Black Lung Disability Trust Fund, consisting of such amounts as may be appropriated or credited to the Black Lung Disability Trust Fund. (2) Trustees The trustees of the Black Lung Disability Trust Fund shall be the Secretary of the Treasury, the Secretary of Labor, and the Secretary of Health and Human Services. (b) Transfer of certain taxes; other receipts (1) Transfer to Black Lung Disability Trust Fund of amounts equivalent to certain taxes There are herby appropriated to the Black Lung Disability Trust Fund amounts equivalent to the taxes received in the Treasury under section4121 or subchapter B of chapter 42. (2) Certain repaid amounts, etc. The following amounts shall be credited to the Black Lung Disability Trust Fund: (A) Amounts repaid or recovered under subsection (b) of section 424of the Black Lung Benefits Act (including interest thereon). (B) Amounts paid as fines or penalties, or interest thereon, under section 423, 431, or 432 of the Black Lung Benefits Act. (C) Amounts paid into the Black Lung Disability Trust Fund by a trust described in section 501 (c)(21). (c) Repayable advances (1) Authorization There are authorized to be appropriated to the Black Lung Disability Trust Fund, as repayable advances, such sums as may from time to time be necessary to make the expenditures described in subsection (d). (2) Repayment with interest Repayable advances made to the Black Lung Disability Trust Fund shall be repaid, and interest on such advances shall be paid, to the general fund of the Treasury when the Secretary of the Treasury determines that moneys are available in the Black Lung Disability Trust Fund for such purposes. (3) Rate of interest Interest on advances made pursuant to this subsection shall be at a rate determined by the Secretary of the Treasury (as of the close of the calendar month preceding the month in which the advance is made) to be equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the anticipated period during which the advance will be outstanding. (d) Expenditures from Trust Fund Amounts in the Black Lung Disability Trust Fund shall be available, as provided by appropriation Acts, for (1) the payment of benefits under section 422 of the Black Lung Benefits Act in any case in which the Secretary of Labor determines that (A) the operator liable for the payment of such benefits (i) has no commenced payment of such benefits within 30 days after the date of an initial determination of eligibility by the Secretary of Labor, or (ii) has not made a payment within 30 days after that payment is due, except that, in the case of a claim filed on or after the date of the enactment of the Black Lung Benefits Revenue Act of 1981, amounts will be available under this subparagraph only for benefits accruing after the date of such initial determination, or (B) there is no operator who is liable for the payment of such benefits, (2) the payment of obligations incurred by the Secretary of Labor with respect to all claims of miners of their survivors in which the miners last coal mine employment was before January 1, 1970, (3) the repayment into the Treasury of the United States of an amount equal to the sum of the amounts expended by the Secretary of Labor for claims under part C of the Black Lung Benefits Act which were paid before April 1, 1978, except that the Black Lung Disability Trust Fund shall not be obligated to pay or reimburse any such amounts which are attributable to periods of eligibility before January 1, 1974,

(4) the repayment of, and the payment of interest on, repayable advances to the Black Lung Disability Trust Fund, (5) the payment of all expenses of administration on or after March 1, 1978 (A) incurred by the Department of Labor or the Department of Health and Human Services under part C of the Black Lung Benefits Act (other than under section 427 (a) or 433), or (B) incurred by the Department of the Treasury in administering subchapter B of chapter 32 and in carrying out its responsibilities with respect to the Black Lung Disability Trust Fund, (6) the reimbursement of operators for amounts paid by such operators (other than as penalties or interest) before April 1, 1978, in satisfaction (in whole or in part) of claims of miners whose last employment in coal mines was terminated before January 1, 1970, and (7) the reimbursement of operators and insurers for amounts paid by such operators and insurers (other than amounts paid as penalties, interest, or attorney fees) at any time in satisfaction (in whole or in part) of any claim denied (within the meaning of section 402(i) of the Black Lung Benefits Act) before March 1, 1978, and which is or has been approved in accordance with the provisions of section 435 [1] of the Black Lung Benefits Act. For purposes of the preceding sentence, any reference to section 402(i), 422, or 435 [1] of the Black Lung Benefits Act shall be treated as a reference to such section as in effect immediately after the enactment of this section.

[1] See References in Text note below.

9502. Airport and Airway Trust Fund

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(a) Creation of Trust Fund There is established in the Treasury of the United States a trust fund to be known as the Airport and Airway Trust Fund, consisting of such amounts as may be appropriated, credited, or paid into the Airport and Airway Trust Fund as provided in this section, section 9503 (c)(7),[1] or section 9602 (b). (b) Transfers to Airport and Airway Trust Fund There are hereby appropriated to the Airport and Airway Trust Fund amounts equivalent to (1) the taxes received in the Treasury under (A) section 4041 (c) (relating to aviation fuels), (B) sections 4261 and 4271 (relating to transportation by air), and (C) section 4081 with respect to aviation gasoline and kerosene to the extent attributable to the rate specified in section 4081 (a)(2)(C), and (2) the amounts determined by the Secretary of the Treasury to be equivalent to the amounts of civil penalties collected under section 47107(n) of title 49, United States Code. There shall not be taken into account under paragraph (1) so much of the taxes imposed by section 4081 as are determined at the rate specified in section4081 (a)(2)(B). (c) Appropriation of additional sums There are hereby authorized to be appropriated to the Airport and Airway Trust Fund such additional sums as may be required to make the expenditures referred to in subsection (d) of this section. (d) Expenditures from Airport and Airway Trust Fund (1) Airport and airway program Amounts in the Airport and Airway Trust Fund shall be available, as provided by appropriation Acts, for making expenditures before April 1, 2010, to meet those obligations of the United States (A) incurred under title I of the Airport and Airway Development Act of 1970 or of the Airport and Airway Development Act Amendments of 1976 or of the Aviation Safety and Noise Abatement Act of 1979 or under the Fiscal Year 1981 Airport Development Authorization Act or the provisions of the Airport and Airway Improvement Act of 1982 or the Airport and Airway Safety and Capacity Expansion Act of 1987 or the Federal Aviation Administration Research, Engineering, and Development Authorization Act of 1990 or the Aviation Safety and Capacity Expansion Act of 1990 or the Airport and Airway Safety, Capacity, Noise

Improvement, and Intermodal Transportation Act of 1992 or the Airport Improvement Program Temporary Extension Act of 1994 or the Federal Aviation Administration Authorization Act of 1994 or the Federal Aviation Reauthorization Act of 1996 or the provisions of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999 providing for payments from the Airport and Airway Trust Fund or the Interim Federal Aviation Administration Authorization Act or section 6002 of the 1999 Emergency Supplemental Appropriations Act, Public Law 10659, or the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century or the Aviation and Transportation Security Act or the Vision 100Century of Aviation Reauthorization Act or any joint resolution making continuing appropriations for the fiscal year 2008 or the Department of Transportation Appropriations Act, 2008 or the Airport and Airway Extension Act of 2008 or the Federal Aviation Administration Extension Act of 2008 or the Federal Aviation Administration Extension Act of 2008, Part II or the Federal Aviation Administration Extension Act of 2009 or any joint resolution making continuing appropriations for the fiscal year 2010 or the Fiscal Year 2010 Federal Aviation Administration Extension Act or the Fiscal Year 2010 Federal Aviation Administration Extension Act, Part II; (B) heretofore or hereafter incurred under part A of subtitle VII of title 49, United States Code, which are attributable to planning, research and development, construction, or operation and maintenance of (i) air traffic control, (ii) air navigation, (iii) communications, or (iv) supporting services, for the airway system; or (C) for those portions of the administrative expenses of the Department of Transportation which are attributable to activities described in subparagraph (A) or (B). Any reference in subparagraph (A) to an Act shall be treated as a reference to such Act and the corresponding provisions (if any) of title 49, United States Code, as such Act and provisions were in effect on the date of the enactment of the last Act referred to in subparagraph (A). (2) Transfers from Airport and Airway Trust Fund on account of certain refunds The Secretary of the Treasury shall pay from time to time from the Airport and Airway Trust Fund into the general fund of the Treasury amounts equivalent to the amounts paid after August 31, 1982, in respect of fuel used in aircraft, under section 6420 (relating to amounts paid in respect of gasoline used on farms,[2] 6421 (relating to amounts paid in respect of gasoline used for certain nonhighway purposes), or 6427 (relating to fuels not used for taxable purposes) (other than subsection (l)(4) thereof). (3) Transfers from the Airport and Airway Trust Fund on account of certain section 34 credits The Secretary of the Treasury shall pay from time to time from the Airport and Airway Trust Fund into the general fund of the Treasury amounts equivalent to the credits allowed under section 34 (other than payments made by reason of paragraph (4) of section 6427 (l)) with respect to fuel used after August 31, 1982. Such amounts shall be transferred on the basis of estimates by the Secretary of the Treasury, and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the credits allowed. (4) Transfers for refunds and credits not to exceed Trust Fund revenues attributable to fuel used The amounts payable from the Airport and Airway Trust Fund under paragraph (2) or (3) shall not exceed the amounts required to be appropriated to such Trust Fund with respect to fuel so used. (5) Transfers from Airport and Airway Trust Fund on account of refunds of taxes on transportation by air The Secretary of the Treasury shall pay from time to time from the Airport and Airway Trust Fund into the general fund of the Treasury amounts equivalent to the amounts paid after December 31, 1995, under section6402 (relating to authority to make credits or refunds) or section 6415(relating to credits or refunds to persons who collected certain taxes) in respect of taxes under sections 4261 and 4271.

(6) Transfers from the Airport and Airway Trust Fund on account of certain airports The Secretary of the Treasury may transfer from the Airport and Airway Trust Fund to the Secretary of Transportation or the Administrator of the Federal Aviation Administration an amount to make a payment to an airport affected by a diversion that is the subject of an administrative action under paragraph (3) or a civil action under paragraph (4) of section 47107 (n) of title 49, United States Code. (e) Limitation on transfers to Trust Fund (1) In general Except as provided in paragraph (2), no amount may be appropriated or credited to the Airport and Airway Trust Fund on and after the date of any expenditure from the Airport and Airway Trust Fund which is not permitted by this section. The determination of whether an expenditure is so permitted shall be made without regard to (A) any provision of law which is not contained or referenced in this title or in a revenue Act; and (B) whether such provision of law is a subsequently enacted provision or directly or indirectly seeks to waive the application of this subsection. (2) Exception for prior obligations Paragraph (1) shall not apply to any expenditure to liquidate any contract entered into (or for any amount otherwise obligated) before April 1, 2010, in accordance with the provisions of this section.

[1] See References in Text note below. [2] So in original. A closing parenthesis probably should precede the comma.

9503. Highway Trust Fund

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(a) Creation of Trust Fund There is established in the Treasury of the United States a trust fund to be known as the Highway Trust Fund, consisting of such amounts as may be appropriated or credited to the Highway Trust Fund as provided in this section or section 9602 (b). (b) Transfer to Highway Trust Fund of amounts equivalent to certain taxes and penalties (1) Certain taxes There are hereby appropriated to the Highway Trust Fund amounts equivalent to the taxes received in the Treasury before October 1, 2011, under the following provisions (A) section 4041 (relating to taxes on diesel fuels and special motor fuels), (B) section 4051 (relating to retail tax on heavy trucks and trailers), (C) section 4071 (relating to tax on tires), (D) section 4081 (relating to tax on gasoline, diesel fuel, and kerosene), and (E) section 4481 (relating to tax on use of certain vehicles). For purposes of this paragraph, taxes received under sections 4041 and4081 shall be determined without reduction for credits under section 6426. (2) Liabilities incurred before October 1, 2011 There are hereby appropriated to the Highway Trust Fund amounts equivalent to the taxes which are received in the Treasury after September 30, 2011, and before July 1, 2012, and which are attributable to liability for tax incurred before October 1, 2011, under the provisions described in paragraph (1). [(3) Repealed. Pub. L. 10959, title XI, 11161(c)(2)(C), Aug. 10, 2005, 119 Stat. 1972] (4) Certain taxes not transferred to Highway Trust Fund For purposes of paragraphs (1) and (2), there shall not be taken into account the taxes imposed by (A) section 4041 (d), (B) section 4081 to the extent attributable to the rate specified in section 4081 (a)(2)(B),

(C) section 4041 or 4081 to the extent attributable to fuel used in a train, or (D) in the case of gasoline and special motor fuels used as described in paragraph (4)(D) or (5)(B) of subsection (c), section 4041 or 4081 with respect to so much of the rate of tax as exceeds (i) 11.5 cents per gallon with respect to taxes imposed before October 1, 2001, (ii) 13 cents per gallon with respect to taxes imposed after September 30, 2001, and before October 1, 2003, and (iii) 13.5 cents per gallon with respect to taxes imposed after September 30, 2003, and before October 1, 2005. (5) Certain penalties There are hereby appropriated to the Highway Trust Fund amounts equivalent to the penalties paid under sections 6715, 6715A, 6717,6718, 6719, 6720A, 6725, 7232, and 7272 (but only with regard to penalties under such section related to failure to register under section4101). (6) Limitation on transfers to Highway Trust Fund (A) In general Except as provided in subparagraph (B), no amount may be appropriated to the Highway Trust Fund on and after the date of any expenditure from the Highway Trust Fund which is not permitted by this section. The determination of whether an expenditure is so permitted shall be made without regard to (i) any provision of law which is not contained or referenced in this title or in a revenue Act, and (ii) whether such provision of law is a subsequently enacted provision or directly or indirectly seeks to waive the application of this paragraph. (B) Exception for prior obligations Subparagraph (A) shall not apply to any expenditure to liquidate any contract entered into (or for any amount otherwise obligated) before September 30, 2009 (October 1, 2009, in the case of expenditures for administrative expenses), in accordance with the provisions of this section. (c) Expenditures from Highway Trust Fund (1) Federal-aid highway program Except as provided in subsection (e), amounts in the Highway Trust Fund shall be available, as provided by appropriation Acts, for making expenditures before September 30, 2009 (October 1, 2009, in the case of expenditures for administrative expenses), to meet those obligations of the United States heretofore or hereafter incurred which are authorized to be paid out of the Highway Trust Fund under the first Continuing Appropriations Resolution for Fiscal Year 2010 enacted into law or any other provision of law which was referred to in this paragraph before the date of the enactment of such Continuing Appropriations Resolution (as such Resolution and provisions of law are in effect on the date of the enactment of the last amendment to such Resolution). (2) Transfers from Highway Trust Fund for certain repayments and credits (A) In general The Secretary shall pay from time to time from the Highway Trust Fund into the general fund of the Treasury amounts equivalent to (i) the amounts paid before July 1, 2012, under (I) section 6420 (relating to amounts paid in respect of gasoline used on farms), (II) section 6421 (relating to amounts paid in respect of gasoline used for certain nonhighway purposes or by local transit systems), and (III) section 6427 (relating to fuels not used for taxable purposes), on the basis of claims filed for periods ending before October 1, 2011, and (ii) the credits allowed under section 34 (relating to credit for certain uses of fuel) with respect to fuel used before October 1, 2011. The amounts payable from the Highway Trust Fund under this subparagraph or paragraph (3) shall be determined by taking into account only the portion of the taxes which are deposited into the Highway Trust Fund. Clauses (i)(III) and (ii) shall not apply to claims under section 6427 (e). (B) Transfers based on estimates

Transfers under subparagraph (A) shall be made on the basis of estimates by the Secretary, and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess or less than the amounts required to be transferred. (C) Exception for use in aircraft and motorboats This paragraph shall not apply to amounts estimated by the Secretary as attributable to use of gasoline and special fuels in motorboats or in aircraft. (3) Floor stocks refunds The Secretary shall pay from time to time from the Highway Trust Fund into the general fund of the Treasury amounts equivalent to the floor stocks refunds made before July 1, 2012, under section 6412 (a). (4) Transfers from the Trust Fund for motorboat fuel taxes (A) Transfer to Land and Water Conservation Fund (i) In general The Secretary shall pay from time to time from the Highway Trust Fund into the land and water conservation fund provided for in title I of the Land and Water Conservation Fund Act of 1965 amounts (as determined by the Secretary) equivalent to the motorboat fuel taxes received on or after October 1, 2005, and before October 1, 2011. (ii) Limitation The aggregate amount transferred under this subparagraph during any fiscal year shall not exceed $1,000,000. (B) Excess funds transferred to Sport Fish Restoration and Boating Trust Fund Any amounts in the Highway Trust Fund (i) which are attributable to motorboat fuel taxes, and (ii) which are not transferred from the Highway Trust Fund under subparagraph (A), shall be transferred by the Secretary from the Highway Trust Fund into the Sport Fish Restoration and Boating Trust Fund. (C) Motorboat fuel taxes For purposes of this paragraph, the term motorboat fuel taxes means the taxes under section 4041 (a)(2) with respect to special motor fuels used as fuel in motorboats and under section 4081 with respect to gasoline used as fuel in motorboats, but only to the extent such taxes are deposited into the Highway Trust Fund. (D) Determination The amount of payments made under this paragraph after October 1, 1986 shall be determined by the Secretary in accordance with the methodology described in the Treasury Departments Report to Congress of June 1986 entitled Gasoline Excise Tax Revenues Attributable to Fuel Used in Recreational Motorboats. (5) Transfers from the Trust Fund for small-engine fuel taxes (A) In general The Secretary shall pay from time to time from the Highway Trust Fund into the Sport Fish Restoration and Boating Trust Fund amounts (as determined by him) equivalent to the smallengine fuel taxes received on or after December 1, 1990, and before October 1, 2011. (B) Small-engine fuel taxes For purposes of this paragraph, the term small-engine fuel taxes means the taxes under section 4081 with respect to gasoline used as a fuel in the nonbusiness use of small-engine outdoor power equipment, but only to the extent such taxes are deposited into the Highway Trust Fund. (6) Transfers from the Trust Fund for certain aviation fuel taxes The Secretary shall pay at least monthly from the Highway Trust Fund into the Airport and Airway Trust Fund amounts (as determined by the Secretary) equivalent to the taxes received on or after October 1, 2005, and before October 1, 2011, under section 4081 with respect to so much of the rate of tax as does not exceed (A) 4.3 cents per gallon of kerosene subject to section 6427 (l)(4)(A)with respect to which a payment has been made by the Secretary under section 6427 (l), and (B) 21.8 cents per gallon of kerosene subject to section 6427 (l)(4)(B) with respect to which a payment has been made by the Secretary under section 6427 (l). Transfers under the preceding sentence shall be made on the basis of estimates by the Secretary, and proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred. Any amount allowed as a credit under section 34 by reason of paragraph (4) of

section6427 (l) shall be treated for purposes of subparagraphs (A) and (B) as a payment made by the Secretary under such paragraph. (d) Adjustments of apportionments (1) Estimates of unfunded highway authorizations and net highway receipts The Secretary of the Treasury, not less frequently than once in each calendar quarter, after consultation with the Secretary of Transportation, shall estimate (A) the amount which would (but for this subsection) be the unfunded highway authorizations at the close of the next fiscal year, and (B) the net highway receipts for the 48-month period beginning at the close of such fiscal year. (2) Procedure where there is excess unfunded highway authorizations If the Secretary of the Treasury determines for any fiscal year that the amount described in paragraph (1)(A) exceeds the amount described in paragraph (1)(B) (A) he shall so advise the Secretary of Transportation, and (B) he shall further advise the Secretary of Transportation as to the amount of such excess. (3) Adjustment of apportionments where unfunded authorizations exceed 4 years receipts (A) Determination of percentage If, before any apportionment to the States is made, in the most recent estimate made by the Secretary of the Treasury there is an excess referred to in paragraph (2)(B), the Secretary of Transportation shall determine the percentage which (i) the excess referred to in paragraph (2)(B), is of (ii) the amount authorized to be appropriated from the Trust Fund for the fiscal year for apportionment to the States. If, but for this sentence, the most recent estimate would be one which was made on a date which will be more than 3 months before the date of the apportionment, the Secretary of the Treasury shall make a new estimate under paragraph (1) for the appropriate fiscal year. (B) Adjustment of apportionments If the Secretary of Transportation determines a percentage under subparagraph (A) for purposes of any apportionment, notwithstanding any other provision of law, the Secretary of Transportation shall apportion to the States (in lieu of the amount which, but for the provisions of this subsection, would be so apportioned) the amount obtained by reducing the amount authorized to be so apportioned by such percentage. (4) Apportionment of amounts previously withheld from apportionment If, after funds have been withheld from apportionment under paragraph (3)(B), the Secretary of the Treasury determines that the amount described in paragraph (1)(A) does not exceed the amount described in paragraph (1)(B) or that the excess described in paragraph (1)(B) is less than the amount previously determined, he shall so advise the Secretary of Transportation. The Secretary of Transportation shall apportion to the States such portion of the funds so withheld from apportionment as the Secretary of the Treasury has advised him may be so apportioned without causing the amount described in paragraph (1)(A) to exceed the amount described in paragraph (1)(B). Any funds apportioned pursuant to the preceding sentence shall remain available for the period for which they would be available if such apportionment took effect with the fiscal year in which they are apportioned pursuant to the preceding sentence. (5) Definitions For purposes of this subsection (A) Unfunded highway authorizations The term unfunded highway authorizations means, at any time, the excess (if any) of (i) the total potential unpaid commitments at such time as a result of the apportionment to the States of the amounts authorized to be appropriated from the Highway Trust Fund, over (ii) the amount available in the Highway Trust Fund at such time to defray such commitments (after all other unpaid commitments at such time which are payable from the Highway Trust Fund have been defrayed). (B) Net highway receipts The term net highway receipts means, with respect to any period, the excess of (i) the receipts (including interest) of the Highway Trust Fund during such period, over

(ii) the amounts to be transferred during such period from such Fund under subsection (c) (other than paragraph (1) thereof). (6) Measurement of net highway receipts For purposes of making any estimate under paragraph (1) of net highway receipts for periods ending after the date specified in subsection (b)(1), the Secretary shall treat (A) each expiring provision of subsection (b) which is related to appropriations or transfers to the Highway Trust Fund to have been extended through the end of the 48-month period referred to in paragraph (1)(B), and (B) with respect to each tax imposed under the sections referred to in subsection (b)(1), the rate of such tax during the 48-month period referred to in paragraph (1)(B) to be the same as the rate of such tax as in effect on the date of such estimate. (7) Reports Any estimate under paragraph (1) and any determination under paragraph (2) shall be reported by the Secretary of the Treasury to the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, the Committees on the Budget of both Houses, the Committee on Public Works and Transportation of the House of Representatives, and the Committee on Environment and Public Works of the Senate. (e) Establishment of Mass Transit Account (1) Creation of account There is established in the Highway Trust Fund a separate account to be known as the Mass Transit Account consisting of such amounts as may be transferred or credited to the Mass Transit Account as provided in this subsection or section 9602 (b). (2) Transfers to Mass Transit Account The Secretary of the Treasury shall transfer to the Mass Transit Account the mass transit portion of the amounts appropriated to the Highway Trust Fund under subsection (b) which are attributable to taxes under sections 4041 and 4081 imposed after March 31, 1983. For purposes of the preceding sentence, the term mass transit portion means, for any fuel with respect to which tax was imposed under section 4041 or 4081and otherwise deposited into the Highway Trust Fund, the amount determined at the rate of (A) except as otherwise provided in this sentence, 2.86 cents per gallon, (B) 1.43 cents per gallon in the case of any partially exempt methanol or ethanol fuel (as defined in section 4041 (m)) none of the alcohol in which consists of ethanol, (C) 1.86 cents per gallon in the case of liquefied natural gas, (D) 2.13 cents per gallon in the case of liquefied petroleum gas, and (E) 9.71 cents per MCF (determined at standard temperature and pressure) in the case of compressed natural gas. (3) Expenditures from Account Amounts in the Mass Transit Account shall be available, as provided by appropriation Acts, for making capital or capital related expenditures (including capital expenditures for new projects) before October 1, 2009, in accordance with the first Continuing Appropriations Resolution for Fiscal Year 2010 enacted into law or any other provision of law which was referred to in this paragraph before the date of the enactment of such Continuing Appropriations Resolution (as such Resolution and provisions of law are in effect on the date of the enactment of the last amendment to such Resolution). (4) Limitation Rules similar to the rules of subsection (d) shall apply to the Mass Transit Account. (5) Portion of certain transfers to be made from account (A) In general Transfers under paragraphs (2), (3), and (4) of subsection (c) shall be borne by the Highway Account and the Mass Transit Account in proportion to the respective revenues transferred under this section to the Highway Account (after the application of paragraph (2)) and the Mass Transit Account. (B) Highway Account For purposes of subparagraph (A), the term Highway Account means the portion of the Highway Trust Fund which is not the Mass Transit Account. (f) Determination of Trust Fund balances after September 30, 1998 (1) In general

For purposes of determining the balances of the Highway Trust Fund and the Mass Transit Account after September 30, 1998 (A) the opening balance of the Highway Trust Fund (other than the Mass Transit Account) on October 1, 1998, shall be $8,000,000,000, and (B) notwithstanding section 9602 (b), obligations held by such Fund after September 30, 1998, shall be obligations of the United States which are not interest-bearing. The Secretary shall cancel obligations held by the Highway Trust Fund to reflect the reduction in the balance under this paragraph. (2) Increase in fund balance Out of money in the Treasury not otherwise appropriated, there is hereby appropriated (without fiscal year limitation) to the Highway Trust Fund $7,000,000,000.

9504. Sport Fish Restoration and Boating Trust Fund

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(a) Creation of Trust Fund There is hereby established in the Treasury of the United States a trust fund to be known as the Sport Fish Restoration and Boating Trust Fund. Such Trust Fund shall consist of such amounts as may be appropriated, credited, or paid to it as provided in this section, section 9503 (c)(4), section 9503(c)(5), or section 9602 (b). (b) Sport Fish Restoration and Boating Trust Fund (1) Transfer of certain taxes to Trust Fund There is hereby appropriated to the Sport Fish Restoration and Boating Trust Fund amounts equivalent to the following amounts received in the Treasury on or after October 1, 1984 (A) the taxes imposed by section 4161 (a) (relating to sport fishing equipment), and (B) the import duties imposed on fishing tackle under heading 9507 of the Harmonized Tariff Schedule of the United States (19 U.S.C.1202) and on yachts and pleasure craft under chapter 89 of the Harmonized Tariff Schedule of the United States. (2) Expenditures from Trust Fund Amounts in the Sport Fish Restoration and Boating Trust Fund shall be available, as provided by appropriation Acts, for making expenditures (A) to carry out the purposes of the Dingell-Johnson Sport Fish Restoration Act (as in effect on the date of the enactment of the last amendment to the first Continuing Appropriations Resolution for Fiscal Year 2010), (B) to carry out the purposes of section 7404(d) of the Transportation Equity Act for the 21st Century (as in effect on the date of the enactment of the last amendment to the first Continuing Appropriations Resolution for Fiscal Year 2010), and (C) to carry out the purposes of the Coastal Wetlands Planning, Protection and Restoration Act (as in effect on the date of the enactment of the last amendment to the first Continuing Appropriations Resolution for Fiscal Year 2010). Amounts transferred to such account under section 9503 (c)(5) may be used only for making expenditures described in subparagraph (C) of this paragraph. (c) Expenditures from Boat Safety Account Amounts remaining in the Boat Safety Account on October 1, 2005, and amounts thereafter credited to the Account under section 9602 (b), shall be available, without further appropriation, for making expenditures before October 1, 2010, to carry out the purposes of section 15 of the Dingell-Johnson Sport Fish Restoration Act (as in effect on the date of the enactment of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users). For purposes of section 9602, the Boat Safety Account shall be treated as a Trust Fund established by this subchapter. (d) Limitation on transfers to Trust Fund (1) In general Except as provided in paragraph (2), no amount may be appropriated or paid to the Sport Fish Restoration and Boating Trust Fund on and after the date of any expenditure from such

Trust Fund which is not permitted by this section. The determination of whether an expenditure is so permitted shall be made without regard to (A) any provision of law which is not contained or referenced in this title or in a revenue Act, and (B) whether such provision of law is a subsequently enacted provision or directly or indirectly seeks to waive the application of this subsection. (2) Exception for prior obligations Paragraph (1) shall not apply to any expenditure to liquidate any contract entered into (or for any amount otherwise obligated) before October 1, 2009, in accordance with the provisions of this section. (e) Cross reference For provision transferring motorboat fuels taxes to Sport Fish Restoration and Boating Trust Fund, see section 9503 (c)(4).

9505. Harbor Maintenance Trust Fund

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(a) Creation of Trust Fund There is hereby established in the Treasury of the United States a trust fund to be known as the Harbor Maintenance Trust Fund, consisting of such amounts as may be (1) appropriated to the Harbor Maintenance Trust Fund as provided in this section, (2) transferred to the Harbor Maintenance Trust Fund by the Saint Lawrence Seaway Development Corporation pursuant to section 13(a) of the Act of May 13, 1954, or (3) credited to the Harbor Maintenance Trust Fund as provided in section9602 (b). (b) Transfer to Harbor Maintenance Trust Fund of amounts equivalent to certain taxes There are hereby appropriated to the Harbor Maintenance Trust Fund amounts equivalent to the taxes received in the Treasury under section 4461(relating to harbor maintenance tax). (c) Expenditures from Harbor Maintenance Trust Fund Amounts in the Harbor Maintenance Trust Fund shall be available, as provided by appropriation Acts, for making expenditures (1) to carry out section 210 of the Water Resources Development Act of 1986 (as in effect on the date of the enactment of the Water Resources Development Act of 1996), (2) for payments of rebates of tolls or charges pursuant to section 13(b) of the Act of May 13, 1954 (as in effect on April 1, 1987), and (3) for the payment of all expenses of administration incurred by the Department of the Treasury, the Army Corps of Engineers, and the Department of Commerce related to the administration of subchapter A of chapter 36 (relating to harbor maintenance tax), but not in excess of $5,000,000 for any fiscal year.

9506. Inland Waterways Trust Fund

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(a) Creation of Trust Fund There is hereby established in the Treasury of the United States a trust fund to be known as the Inland Waterways Trust Fund, consisting of such amounts as may be appropriated or credited to such Trust Fund as provided in this section or section 9602 (b). (b) Transfer to Trust Fund of amounts equivalent to certain taxes There are hereby appropriated to the Inland Waterways Trust Fund amounts equivalent to the taxes received in the Treasury under section 4042 (relating to tax on fuel used in commercial transportation on inland waterways). The preceding sentence shall apply only to so much of such taxes as are attributable to the Inland Waterways Trust Fund financing rate under section4042 (b). (c) Expenditures from Trust Fund (1) In general

Except as provided in paragraph (2), amounts in the Inland Waterways Trust Fund shall be available, as provided by appropriation Acts, for making construction and rehabilitation expenditures for navigation on the inland and coastal waterways of the United States described in section 206 of the Inland Waterways Revenue Act of 1978, as in effect on the date of the enactment of this section. (2) Exception for certain projects Not more than 1/2 of the cost of any construction to which section 102(a) of the Water Resources Development Act of 1986 applies (as in effect on the date of the enactment of this section) may be paid from the Inland Waterways Trust Fund.

9507. Hazardous Substance Superfund

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(a) Creation of Trust Fund There is established in the Treasury of the United States a trust fund to be known as the Hazardous Substance Superfund (hereinafter in this section referred to as the Superfund), consisting of such amounts as may be (1) appropriated to the Superfund as provided in this section, (2) appropriated to the Superfund pursuant to section 517(b) of the Superfund Revenue Act of 1986, or (3) credited to the Superfund as provided in section 9602 (b). (b) Transfers to Superfund There are hereby appropriated to the Superfund amounts equivalent to (1) the taxes received in the Treasury under section 59A, 4611, 4661, or4671 (relating to environmental taxes), (2) amounts recovered on behalf of the Superfund under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (hereinafter in this section referred to as CERCLA), (3) all moneys recovered or collected under section 311(b)(6)(B) of the Clean Water Act, [1] (4) penalties assessed under title I of CERCLA, and (5) punitive damages under section 107(c)(3) of CERCLA. In the case of the tax imposed by section 4611, paragraph (1) shall apply only to so much of such tax as is attributable to the Hazardous Substance Superfund financing rate under section 4611 (c). (c) Expenditures from Superfund (1) In general Amounts in the Superfund shall be available, as provided in appropriation Acts, only for purposes of making expenditures (A) to carry out the purposes of (i) paragraphs (1), (2), (5), and (6) of section 111(a) of CERCLA as in effect on the date of the enactment of the Superfund Amendments and Reauthorization Act of 1986, (ii) section 111(c) of CERCLA (as so in effect), other than paragraphs (1) and (2) thereof, and (iii) section 111(m) of CERCLA (as so in effect), or (B) hereafter authorized by a law which does not authorize the expenditure out of the Superfund for a general purpose not covered by subparagraph (A) (as so in effect). (2) Exception for certain transfers, etc., of hazardous substances No amount in the Superfund or derived from the Superfund shall be available or used for the transfer or disposal of hazardous waste carried out pursuant to a cooperative agreement between the Administrator of the Environmental Protection Agency and a State if the following conditions apply (A) the transfer or disposal, if made on December 13, 1985, would not comply with a State or local requirement, (B) the transfer is to a facility for which a final permit under section 3005(a) of the Solid Waste Disposal Act was issued after January 1, 1983, and before November 1, 1984, and (C) the transfer is from a facility identified as the McColl Site in Fullerton, California. (d) Authority to borrow

(1) In general There are authorized to be appropriated to the Superfund, as repayable advances, such sums as may be necessary to carry out the purposes of the Superfund. (2) Limitation on aggregate advances The maximum aggregate amount of repayable advances to the Superfund which is outstanding at any one time shall not exceed an amount equal to the amount which the Secretary estimates will be equal to the sum of the amounts appropriated to the Superfund under subsection (b)(1) during the following 24 months. (3) Repayment of advances (A) In general Advances made to the Superfund shall be repaid, and interest on such advances shall be paid, to the general fund of the Treasury when the Secretary determines that moneys are available for such purposes in the Superfund. (B) Final repayment No advance shall be made to the Superfund after December 31, 1995, and all advances to such Fund shall be repaid on or before such date. (C) Rate of interest Interest on advances made to the Superfund shall be at a rate determined by the Secretary of the Treasury (as of the close of the calendar month preceding the month in which the advance is made) to be equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the anticipated period during which the advance will be outstanding and shall be compounded annually. (e) Liability of United States limited to amount in Trust Fund (1) General rule Any claim filed against the Superfund may be paid only out of the Superfund. (2) Coordination with other provisions Nothing in CERCLA or the Superfund Amendments and Reauthorization Act of 1986 (or in any amendment made by either of such Acts) shall authorize the payment by the United States Government of any amount with respect to any such claim out of any source other than the Superfund. (3) Order in which unpaid claims are to be paid If at any time the Superfund has insufficient funds to pay all of the claims payable out of the Superfund at such time, such claims shall, to the extent permitted under paragraph (1), be paid in full in the order in which they were finally determined.

[1] See References in Text note below.

9508. Leaking Underground Storage Tank Trust Fund

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(a) Creation of Trust Fund There is established in the Treasury of the United States a trust fund to be known as the Leaking Underground Storage Tank Trust Fund, consisting of such amounts as may be appropriated or credited to such Trust Fund as provided in this section or section 9602 (b). (b) Transfers to Trust Fund There are hereby appropriated to the Leaking Underground Storage Tank Trust Fund amounts equivalent to (1) taxes received in the Treasury under section 4041 (d) (relating to additional taxes on motor fuels), (2) taxes received in the Treasury under section 4081 (relating to tax on gasoline, diesel fuel, and kerosene) to the extent attributable to the Leaking Underground Storage Tank Trust Fund financing rate under such section,

(3) taxes received in the Treasury under section 4042 (relating to tax on fuel used in commercial transportation on inland waterways) to the extent attributable to the Leaking Underground Storage Tank Trust Fund financing rate under such section, and (4) amounts received in the Treasury and collected under section 9003(h)(6) of the Solid Waste Disposal Act. For purposes of this subsection, there shall not be taken into account the taxes imposed by sections 4041 and 4081 on diesel fuel sold for use or used as fuel in a diesel-powered boat. (c) Expenditures Amounts in the Leaking Underground Storage Tank Trust Fund shall be available, as provided in appropriation Acts, only for purposes of making expenditures to carry out sections 9003(h), 9003(i), 9003(j), 9004(f), 9005(c), 9010, 9011, 9012, and 9013 of the Solid Waste Disposal Act as in effect on the date of the enactment of the [1] Public Law 109168. (d) Liability of the United States limited to amount in Trust Fund (1) General rule Any claim filed against the Leaking Underground Storage Tank Trust Fund may be paid only out of such Trust Fund. (2) Coordination with other provisions Nothing in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 or the Superfund Amendments and Reauthorization Act of 1986 (or in any amendment made by either of such Acts) shall authorize the payment by the United States Government of any amount with respect to any such claim out of any source other than the Leaking Underground Storage Tank Trust Fund. (3) Order in which unpaid claims are to be paid If at any time the Leaking Underground Storage Tank Trust Fund has insufficient funds to pay all of the claims out of such Trust Fund at such time, such claims shall, to the extent permitted under paragraph (1), be paid in full in the order in which they were finally determined. (e) Limitation on transfers to Leaking Underground Storage Tank Trust Fund (1) In general Except as provided in paragraph (2), no amount may be appropriated to the Leaking Underground Storage Tank Trust Fund on and after the date of any expenditure from the Leaking Underground Storage Tank Trust Fund which is not permitted by this section. The determination of whether an expenditure is so permitted shall be made without regard to (A) any provision of law which is not contained or referenced in this title or in a revenue Act, and (B) whether such provision of law is a subsequently enacted provision or directly or indirectly seeks to waive the application of this paragraph. (2) Exception for prior obligations Paragraph (1) shall not apply to any expenditure to liquidate any contract entered into (or for any amount otherwise obligated) before October 1, 2011, in accordance with the provisions of this section.

[1] So in original.

9509. Oil Spill Liability Trust Fund

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(a) Creation of Trust Fund There is established in the Treasury of the United States a trust fund to be known as the Oil Spill Liability Trust Fund, consisting of such amounts as may be appropriated or credited to such Trust Fund as provided in this section or section 9602 (b). (b) Transfers to Trust Fund There are hereby appropriated to the Oil Spill Liability Trust Fund amounts equivalent to (1) taxes received in the Treasury under section 4611 (relating to environmental tax on petroleum) to the extent attributable to the Oil Spill Liability Trust Fund financing rate under section 4611 (c),

(2) amounts recovered under the Oil Pollution Act of 1990 for damages to natural resources which are required to be deposited in the Fund under section 1006(f) of such Act, (3) amounts recovered by such Trust Fund under section 1015 of such Act, (4) amounts required to be transferred by such Act from the revolving fund established under section 311(k) of the Federal Water Pollution Control Act, (5) amounts required to be transferred by the Oil Pollution Act of 1990 from the Deepwater Port Liability Fund established under section 18(f) of the Deepwater Port Act of 1974, (6) amounts required to be transferred by the Oil Pollution Act of 1990 from the Offshore Oil Pollution Compensation Fund established under section 302 of the Outer Continental Shelf Lands Act Amendments of 1978, (7) amounts required to be transferred by the Oil Pollution Act of 1990 from the TransAlaska Pipeline Liability Fund established under section 204 of the Trans-Alaska Pipeline Authorization Act, and (8) any penalty paid pursuant to section 311 of the Federal Water Pollution Control Act, section 309(c) of such Act (as a result of violations of such section 311), the Deepwater Port Act of 1974, or section 207 of the Trans-Alaska Pipeline Authorization Act. (c) Expenditures (1) Expenditure purposes Amounts in the Oil Spill Liability Trust Fund shall be available, as provided in appropriation Acts or section 6002(b) of the Oil Pollution Act of 1990, only for purposes of making expenditures (A) for the payment of removal costs and other costs, expenses, claims, and damages referred to in section 1012 of such Act, (B) to carry out sections 5 and 7 of the Intervention on the High Seas Act relating to oil pollution or the substantial threat of oil pollution, (C) for the payment of liabilities incurred by the revolving fund established by section 311(k) of the Federal Water Pollution Control Act, (D) to carry out subsections (b), (c), (d), (j), and (l) of section 311 of the Federal Water Pollution Control Act with respect to prevention, removal, and enforcement related to oil discharges (as defined in such section), (E) for the payment of liabilities incurred by the Deepwater Port Liability Fund, and (F) for the payment of liabilities incurred by the Offshore Oil Pollution Compensation Fund. (2) Limitations on expenditures (A) $1,000,000,000 per incident, etc. The maximum amount which may be paid from the Oil Spill Liability Trust Fund with respect to (i) any single incident shall not exceed $1,000,000,000, and (ii) natural resource damage assessments and claims in connection with any single incident shall not exceed $500,000,000. (B) $30,000,000 minimum balance Except in the case of payments of removal costs, a payment may be made from such Trust Fund only if the amount in such Trust Fund after such payment will not be less than $30,000,000. (d) Authority to borrow (1) In general There are authorized to be appropriated to the Oil Spill Liability Trust Fund, as repayable advances, such sums as may be necessary to carry out the purposes of such Trust Fund. (2) Limitation on amount outstanding The maximum aggregate amount of repayable advances to the Oil Spill Liability Trust Fund which is outstanding at any one time shall not exceed $1,000,000,000. (3) Repayment of advances (A) In general Advances made to the Oil Spill Liability Trust Fund shall be repaid, and interest on such advances shall be paid, to the general fund of the Treasury when the Secretary determines that moneys are available for such purposes in such Fund. (B) Final repayment No advance shall be made to the Oil Spill Liability Trust Fund after December 31, 1994, and all advances to such Fund shall be repaid on or before such date.

(C) Rate of interest Interest on advances made pursuant to this subsection shall be (i) at a rate determined by the Secretary of the Treasury (as of the close of the calendar month preceding the month in which the advance is made) to be equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the anticipated period during which the advance will be outstanding, and (ii) compounded annually. (e) Liability of the United States limited to amount in Trust Fund (1) General rule Any claim filed against the Oil Spill Liability Trust Fund may be paid only out of such Trust Fund. (2) Coordination with other provisions Nothing in the Oil Pollution Act of 1990 (or in any amendment made by such Act) shall authorize the payment by the United States Government of any amount with respect to any such claim out of any source other than the Oil Spill Liability Trust Fund. (3) Order in which unpaid claims are to be paid If at any time the Oil Spill Liability Trust Fund has insufficient funds (or is unable by reason of subsection (c)(2)) to pay all of the claims out of such Trust Fund at such time, such claims shall, to the extent permitted under paragraph (1) and such subsection, be paid in full in the order in which they were finally determined. (f) References to Oil Pollution Act of 1990 Any reference in this section to the Oil Pollution Act of 1990 or any other Act referred to in a subparagraph of subsection (c)(1) shall be treated as a reference to such Act as in effect on the date of the enactment of this subsection.

9510. Vaccine Injury Compensation Trust Fund

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(a) Creation of Trust Fund There is established in the Treasury of the United States a trust fund to be known as the Vaccine Injury Compensation Trust Fund, consisting of such amounts as may be appropriated or credited to such Trust Fund as provided in this section or section 9602 (b). (b) Transfers to Trust Fund (1) In general There are hereby appropriated to the Vaccine Injury Compensation Trust Fund amounts equivalent to the net revenues received in the Treasury from the tax imposed by section 4131 (relating to tax on certain vaccines). (2) Net revenues For purposes of paragraph (1), the term net revenues means the amount estimated by the Secretary based on the excess of (A) the taxes received in the Treasury under section 4131 (relating to tax on certain vaccines), over (B) the decrease in the tax imposed by chapter 1 resulting from the tax imposed by section 4131. (3) Limitation on transfers to Vaccine Injury Compensation Trust Fund No amount may be appropriated to the Vaccine Injury Compensation Trust Fund on and after the date of any expenditure from the Trust Fund which is not permitted by this section. The determination of whether an expenditure is so permitted shall be made without regard to (A) any provision of law which is not contained or referenced in this title or in a revenue Act, and (B) whether such provision of law is a subsequently enacted provision or directly or indirectly seeks to waive the application of this paragraph. (c) Expenditures from Trust Fund (1) In general Amounts in the Vaccine Injury Compensation Trust Fund shall be available, as provided in appropriation Acts, only for

(A) the payment of compensation under subtitle 2 of title XXI of the Public Health Service Act (as in effect on October 18, 2000) for vaccine-related injury or death with respect to any vaccine (i) which is administered after September 30, 1988, and (ii) which is a taxable vaccine (as defined in section 4132 (a)(1)) at the time compensation is paid under such subtitle 2, or (B) the payment of all expenses of administration (but not in excess of $9,500,000 for any fiscal year) incurred by the Federal Government in administering such subtitle. (2) Transfers for certain repayments (A) In general The Secretary shall pay from time to time from the Vaccine Injury Compensation Trust Fund into the general fund of the Treasury amounts equivalent to amounts paid under section 4132 (b) and section 6416 with respect to the taxes imposed by section 4131. (B) Transfers based on estimates Transfers under subparagraph (A) shall be made on the basis of estimates by the Secretary, and proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred. (d) Liability of United States limited to amount in Trust Fund (1) General rule Any claim filed against the Vaccine Injury Compensation Trust Fund may be paid only out of such Trust Fund. (2) Coordination with other provisions Nothing in the National Childhood Vaccine Injury Act of 1986 (or in any amendment made by such Act) shall authorize the payment by the United States Government of any amount with respect to any such claim out of any source other than the Vaccine Injury Compensation Trust Fund. (3) Order in which unpaid claims to be paid If at any time the Vaccine Injury Compensation Trust Fund has insufficient funds to pay all of the claims out of such Trust Fund at such time, such claims shall, to the extent permitted under paragraph (1) be paid in full in the order in which they are finally determined.

9511. Repealed. Pub. L. 105178, title IX, 9011(a), June 9, 1998, 112 Stat. 508]
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Section, added Pub. L. 102240, title VIII, 8003(a), Dec. 18, 1991, 105 Stat. 2205; amended Pub. L. 105130, 9(c), Dec. 1, 1997, 111 Stat. 2561, related to National Recreational Trails Trust Fund.

Subchapter BGeneral Provisions

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9601. Transfer of amounts 9602. Management of Trust Funds

9601. Transfer of amounts

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The amounts appropriated by any section of subchapter A to any Trust Fund established by such subchapter shall be transferred at least monthly from the general fund of the Treasury to such Trust Fund on the basis of estimates made by the Secretary of the Treasury of the amounts referred to in such section. Proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.

9602. Management of Trust Funds

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(a) Report It shall be the duty of the Secretary of the Treasury to hold each Trust Fund established by subchapter A, and (after consultation with any other trustees of the Trust Fund) to report to the Congress each year on the financial condition and the results of the operations of each such Trust Fund during the preceding fiscal year and on its expected condition and operations during the next 5 fiscal years. Such report shall be printed as a House document of the session of the Congress to which the report is made. (b) Investment (1) In general It shall be the duty of the Secretary of the Treasury to invest such portion of any Trust Fund established by subchapter A as is not, in his judgment, required to meet current withdrawals. Such investments may be made only in interest-bearing obligations of the United States. For such purpose, such obligations may be acquired (A) on original issue at the issue price, or (B) by purchase of outstanding obligations at the market price. (2) Sale of obligations Any obligation acquired by a Trust Fund established by subchapter A may be sold by the Secretary of the Treasury at the market price. (3) Interest on certain proceeds The interest on, and the proceeds from the sale or redemption of, any obligations held in a Trust Fund established by subchapter A shall be credited to and form a part of the Trust Fund.

Subtitle JCoal Industry Health Benefits

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CHAPTER 99COAL INDUSTRY HEALTH BENEFITS ( 97019722)

CHAPTER 99COAL INDUSTRY HEALTH BENEFITS

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Subchapter ADefinitions of General Applicability ( 9701) Subchapter BCombined Benefit Fund ( 97029708) Subchapter CHealth Benefits of Certain Miners ( 97119712) Subchapter DOther Provisions ( 97219722)

Subchapter ADefinitions of General Applicability

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9701. Definitions of general applicability

9701. Definitions of general applicability

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(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.[1] (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, arms-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.

[1] See References in Text note below.

Subchapter BCombined Benefit Fund

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PART IESTABLISHMENT AND BENEFITS ( 97029703) PART IIFINANCING ( 97049706) PART IIIENFORCEMENT ( 9707) PART IVOTHER PROVISIONS ( 9708

PART IESTABLISHMENT AND BENEFITS

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9702. Establishment of the United Mine Workers of America Combined Benefit Fund 9703. Plan benefits

9702. Establishment of the United Mine Workers of America Combined Benefit Fund
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(a) Establishment (1) In general As soon as practicable (but not later than 60 days) after the enactment date, the persons described in subsection (b) shall designate the individuals to serve as trustees. Such trustees shall create a new private plan to be known as the United Mine Workers of America Combined Benefit Fund. (2) Merger of retiree benefit plans As of February 1, 1993, the settlors of the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan shall cause such plans to be merged into the Combined Fund, and such merger shall not be treated as an employer withdrawal for purposes of any 1988 coal wage agreement. (3) Treatment of plan The Combined Fund shall be (A) a plan described in section 302(c)(5) of the Labor Management Relations Act, 1947 (29 U.S.C. 186 (c)(5)), (B) an employee welfare benefit plan within the meaning of section 3(1) of the Employee Retirement Income Security Act of 1974 (29U.S.C. 1002 (1)), and

(C) a multiemployer plan within the meaning of section 3(37) of such Act (29 U.S.C. 1002 (37)). (4) Tax treatment For purposes of this title, the Combined Fund and any related trust shall be treated as an organization exempt from tax under section 501 (a). (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 individuals 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 and who have been assigned the greatest number of eligible beneficiaries under section 9706. (c) Plan year The first plan year of the Combined Fund shall begin February 1, 1993, and end September 30, 1993. Each succeeding plan year shall begin on October 1 of each calendar year.

9703. Plan benefits

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(a) In general Each eligible beneficiary of the Combined Fund shall receive (1) health benefits described in subsection (b), and (2) in the case of an eligible beneficiary described in subsection (f)(1), death benefits coverage described in subsection (c). (b) Health benefits (1) In general The trustees of the Combined Fund shall provide health care benefits to each eligible beneficiary by enrolling the beneficiary in a health care services plan which undertakes to provide such benefits on a prepaid risk basis. The trustees shall utilize all available plan resources to ensure that, consistent with paragraph (2), coverage under the managed care system shall to the maximum extent feasible be substantially the same as (and subject to the same limitations of) coverage provided under the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of January 1, 1992. (2) Plan payment rates (A) In general The trustees of the Combined Fund shall negotiate payment rates with the health care services plans described in paragraph (1) for each plan year which are in amounts which (i) vary as necessary to ensure that beneficiaries in different geographic areas have access to a uniform level of health benefits; and (ii) result in aggregate payments for such plan year from the Combined Fund which do not exceed the total premium payments required to be paid to the Combined Fund under section 9704 (a)for the plan year, adjusted as provided in subparagraphs (B) and (C). (B) Reductions The amount determined under subparagraph (A)(ii) for any plan year shall be reduced (i) by the aggregate death benefit premiums determined under section 9704 (c) for the plan year, and (ii) by the amount reserved for plan administration under subsection (d). (C) Increases The amount determined under subparagraph (A)(ii) shall be increased

(i) by any reduction in the total premium payments required to be paid under section 9704 (a) by reason of transfers described in section 9705, (ii) by any carryover to the plan year from any preceding plan year which (I) is derived from amounts described in section 9704 (e)(3)(B)(i), and (II) the trustees elect to use to pay benefits for the current plan year, and (iii) any interest earned by the Combined Fund which the trustees elect to use to pay benefits for the current plan year. (3) Qualified providers The trustees of the Combined Fund shall not enter into an agreement under paragraph (1) with any provider of services which is of a type which is required to be certified by the Secretary of Health and Human Services when providing services under title XVIII of the Social Security Act unless the provider is so certified. (4) Effective date Benefits shall be provided under paragraph (1) on and after February 1, 1993. (c) Death benefits coverage (1) In general The trustees of the Combined Fund shall provide death benefits coverage to each eligible beneficiary described in subsection (f)(1) which is identical to the benefits provided under the 1950 UMWA Pension Plan or 1974 UMWA Pension Plan, whichever is applicable, on July 20, 1992. Such coverage shall be provided on and after February 1, 1993. (2) Termination of coverage The 1950 UMWA Pension Plan and the 1974 UMWA Pension Plan shall each be amended to provide that death benefits coverage shall not be provided to eligible beneficiaries on and after February 1, 1993. This paragraph shall not prohibit such plans from subsequently providing death benefits not described in paragraph (1). (d) Reserves for administration The trustees of the Combined Fund may reserve for each plan year, for use in payment of the administrative costs of the Combined Fund, an amount not to exceed 5 percent of the premiums to be paid to the Combined Fund under section 9704 (a) during the plan year. (e) Limitation on enrollment The Combined Fund shall not enroll any individual who is not receiving benefits under the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan as of July 20, 1992. (f) Eligible beneficiary For purposes of this subchapter, the term eligible beneficiary means an individual who (1) is a coal industry retiree who, on July 20, 1992, was eligible to receive, and receiving, benefits from the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan, or (2) on such date was eligible to receive, and receiving, benefits in either such plan by reason of a relationship to such retiree.

PART IIFINANCING
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9704. Liability of assigned operators 9705. Transfers 9706. Assignment of eligible beneficiaries

9704. Liability of assigned operators

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(a) Annual premiums

Each assigned operator shall pay to the Combined Fund for each plan year beginning on or after February 1, 1993, an annual premium equal to the sum of the following three premiums (1) the health benefit premium determined under subsection (b) for such plan year, plus (2) the death benefit premium determined under subsection (c) for such plan year, plus (3) the unassigned beneficiaries premium determined under subsection (d) for such plan year. Any related person with respect to an assigned operator shall be jointly and severally liable for any premium required to be paid by such operator. (b) Health benefit premium For purposes of this chapter (1) In general The health benefit premium for any plan year for any assigned operator shall be an amount equal to the product of the per beneficiary premium for the plan year multiplied by the number of eligible beneficiaries assigned to such operator under section 9706. (2) Per beneficiary premium The Commissioner of Social Security shall calculate a per beneficiary premium for each plan year beginning on or after February 1, 1993, which is equal to the sum of (A) the amount determined by dividing (i) the aggregate amount of payments from the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan for health benefits (less reimbursements but including administrative costs) for the plan year beginning July 1, 1991, for all individuals covered under such plans for such plan year, by (ii) the number of such individuals, plus (B) the amount determined under subparagraph (A) multiplied by the percentage (if any) by which the medical component of the Consumer Price Index for the calendar year in which the plan year begins exceeds such component for 1992. (3) Adjustments for medicare reductions If, by reason of a reduction in benefits under title XVIII of the Social Security Act, the level of health benefits under the Combined Fund would be reduced, the trustees of the Combined Fund shall increase the per beneficiary premium for the plan year in which the reduction occurs and each subsequent plan year by the amount necessary to maintain the level of health benefits which would have been provided without such reduction. (c) Death benefit premium The death benefit premium for any plan year for any assigned operator shall be equal to the applicable percentage of the amount, actuarially determined, which the Combined Fund will be required to pay during the plan year for death benefits coverage described in section 9703 (c). (d) Unassigned beneficiaries premium (1) Plan years ending on or before September 30, 2006 For plan years ending on or before September 30, 2006, the unassigned beneficiaries premium for any assigned operator shall be equal to the applicable percentage of the product of the per beneficiary premium for the plan year multiplied 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 October 1, 2006 (A) In general For plan years beginning 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 assigned 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 Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232)),[1] then the unassigned beneficiaries premium for any assigned operator shall be equal to the operators applicable percentage of the amount required to be so transferred which was not so transferred. (e) Premium accounts; adjustments

(1) Accounts The trustees of the Combined Fund shall establish and maintain 3 separate accounts for each of the premiums described in subsections (b), (c), and (d). Such accounts shall be credited with the premiums received and amounts transferred under section 9705 (b) and debited with expenditures allocable to such premiums. (2) Allocations (A) Administrative expenses Administrative costs for any plan year shall be allocated to premium accounts under paragraph (1) on the basis of expenditures (other than administrative costs) from such accounts during the preceding plan year. (B) Interest Interest shall be allocated to the account established for health benefit premiums. (3) Shortfalls and surpluses (A) In general Except as provided in subparagraph (B), if, for any plan year, there is a shortfall or surplus in any premium account, the premium for the following plan year for each assigned operator shall be proportionately reduced or increased, whichever is applicable, by the amount of such shortfall or surplus. 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. (B) Exception Subparagraph (A) shall not apply to any surplus in the health benefit premium account or the unassigned beneficiaries premium account which is attributable to (i) the excess of the premiums credited to such account for a plan year over the benefits (and administrative costs) debited to such account for the plan year, but such excess shall only be available for purposes of the carryover described in section 9703(b)(2)(C)(ii) (relating to carryovers of premiums not used to provide benefits), or (ii) interest credited under paragraph (2)(B) for the plan year or any preceding plan year. (C) No authority for increased payments Nothing in this paragraph shall be construed to allow expenditures for health care benefits for any plan year in excess of the limit under section 9703 (b)(2). (f) Applicable percentage For purposes of this section (1) In general The term applicable percentage means, with respect to any assigned operator, the percentage determined by dividing the number of eligible beneficiaries assigned under section 9706 to such operator by the total number of eligible beneficiaries assigned under section 9706 to all such operators (determined on the basis of assignments as of October 1, 1993). (2) Annual adjustments In the case of any plan year beginning on or after October 1, 1994, the applicable percentage for any assigned operator shall be redetermined under paragraph (1) by making the following changes to the assignments as of October 1, 1993: (A) Such assignments shall be modified to reflect any changes during the period beginning October 1, 1993, and ending on the last day of the preceding plan year pursuant to the appeals process under section 9706 (f). (B) The total number of assigned eligible beneficiaries shall be reduced by the eligible beneficiaries of assigned operators which (and all related persons with respect to which) had ceased business (within the meaning of section 9701 (c)(6)) during the period described in subparagraph (A). (C) In the case of plan years beginning on or after October 1, 2007, the total number of assigned eligible beneficiaries shall be reduced by the eligible beneficiaries whose assignments have been revoked under section 9706 (h). (g) Payment of premiums (1) In general The annual premium under subsection (a) for any plan year shall be payable in 12 equal monthly installments, due on the twenty-fifth day of each calendar month in the plan year. In

the case of the plan year beginning February 1, 1993, the annual premium under subsection (a) shall be added to such premium for the plan year beginning October 1, 1993. (2) Deductibility Any premium required by this section shall be deductible without regard to any limitation on deductibility based on the prefunding of health benefits. (h) Information The trustees of the Combined Fund shall, not later than 60 days after the enactment date, furnish to the Commissioner of Social Security information as to the benefits and covered beneficiaries under the fund, and such other information as the Secretary [2] may require to compute any premium under this section. (i) Transition rules (1) 1988 agreement operators (A) 1st year costs During the plan year of the Combined Fund beginning February 1, 1993, the 1988 agreement operators shall make contributions to the Combined Fund in amounts necessary to pay benefits and administrative costs of the Combined Fund incurred during such year, reduced by the amount transferred to the Combined Fund under section 9705 (a) on February 1, 1993. (B) Deficits from merged plans During the period beginning February 1, 1993, and ending September 30, 1994, the 1988 agreement operators shall make contributions to the Combined Fund as are necessary to pay off the expenses accrued (and remaining unpaid) by the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of February 1, 1993, reduced by the assets of such plans as of such date. (C) Failure If any 1988 agreement operator fails to meet any obligation under this paragraph, any contributions of such operator to the Combined Fund or any other plan described in section 404 (c) shall not be deductible under this title until such time as the failure is corrected. (D) Premium reductions (i) 1st year payments In the case of a 1988 agreement operator making contributions under subparagraph (A), the premium of such operator under subsection (a) shall be reduced by the amount paid under subparagraph (A) by such operator for the plan year beginning February 1, 1993. (ii) Deficit payments In the case a 1988 agreement operator making contributions under subparagraph (B), the premium of such operator under subsection (a) shall be reduced by the amounts which are paid to the Combined Fund by reason of claims arising in connection with the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of February 1, 1993, including claims based on the evergreen clause found in the language of the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan, and which are allocated to such operator under subparagraph (E). (iii) Limitation Clause (ii) shall not apply to the extent the amounts paid exceed the contributions. (iv) Plan years Premiums under subsection (a) shall be reduced for the first plan year for which amounts described in clause (i) or (ii) are available and for any succeeding plan year until such amounts are exhausted. (E) Allocations of contributions and refunds Contributions under subparagraphs (A) and (B), and premium reductions under subparagraph (D)(ii), shall be made ratably on the basis of aggregate contributions made by such operators under the applicable 1988 coal wage agreements as of January 31, 1993. (2) 1st plan year In the case of the plan year of the Combined Fund beginning February 1, 1993 (A) the premiums under subsections (a)(1) and (a)(3) shall be 67 percent of such premiums without regard to this paragraph, and (B) the premiums under subsection (a) shall be paid as provided in subsection (g). (3) Startup costs The 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan shall pay the costs of the Combined Fund incurred before February 1, 1993. For purposes of this section, such costs

shall be treated as administrative expenses incurred for the plan year beginning February 1, 1993. (j) Prepayment of premium liability (1) In general If (A) a payment meeting the requirements of paragraph (3) is made to the Combined Fund by or on behalf of (i) any assigned operator to which this subsection applies, or (ii) any related person to any assigned operator described in clause (i), and (B) the common parent of the controlled group of corporations described in paragraph (2)(B) is jointly and severally liable for any premium under this section which (but for this subsection) would be required to be paid by the assigned operator or related person, then such common parent (and no other person) shall be liable for such premium. (2) Assigned operators to which subsection applies (A) In general This subsection shall apply to any assigned operator if (i) the assigned operator (or a related person to the assigned operator) (I) made contributions to the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan for employment during the period covered by the 1988 agreement; and (II) is not a 1988 agreement operator, (ii) the assigned operator (and all related persons to the assigned operator) are 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 subparagraph (B). (B) Controlled group of corporations 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 assignments 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). (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 liability under this chapter with respect to the Combined Fund of the assigned operators or related persons described in paragraph (1) or their assignees, as determined by the operators or related persons enrolled actuary (as defined in section7701 (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 actuary signing the report that, to the best of the actuarys knowledge, the report is complete and accurate and that in the actuarys opinion the actuarial assumptions used are in the aggregate reasonably related 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 paragraph 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 paragraph (3) was made,

(B) credit such account with such payment (and any earnings thereon), and (C) use all amounts in such account exclusively 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 remaining in such account (and earnings thereon) shall be refunded to such person as may be designated by the common parent described in paragraph (1)(B).

[1] So in original. Second closing parenthesis probably should not appear. [2] So in original. Probably should be Commissioner.

9705. Transfers
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(a) Transfer of assets from 1950 UMWA Pension Plan (1) In general From the funds reserved under paragraph (2), the board of trustees of the 1950 UMWA Pension Plan shall transfer to the Combined Fund (A) $70,000,000 on February 1, 1993, (B) $70,000,000 on October 1, 1993, and (C) $70,000,000 on October 1, 1994. (2) Reservation Immediately upon the enactment date, the board of trustees of the 1950 UMWA Pension Plan shall segregate $210,000,000 from the general assets of the plan. Such funds shall be held in the plan until disbursed pursuant to paragraph (1). Any interest on such funds shall be deposited into the general assets of the 1950 UMWA Pension Plan. (3) Use of funds Amounts transferred to the Combined Fund under paragraph (1) shall (A) in the case of the transfer on February 1, 1993, be used to proportionately reduce the premium of each assigned operator under section 9704 (a) for the plan year of the Fund beginning February 1, 1993, and (B) in the case of any other such transfer, be used to proportionately reduce the unassigned beneficiary premium under section 9704 (a)(3)and the death benefit premium under section 9704(a)(2) of each assigned operator for the plan year in which transferred and for any subsequent plan year in which such funds remain available. Such funds may not be used to pay any amounts required to be paid by the 1988 agreement operators under section 9704 (i)(1)(B). (4) Tax treatment; validity of transfer (A) No deduction No deduction shall be allowed under this title with respect to any transfer pursuant to paragraph (1), but such transfer shall not adversely affect the deductibility (under applicable provisions of this title) of contributions previously made by employers, or amounts hereafter contributed by employers, to the 1950 UMWA Pension Plan, the 1950 UMWA Benefit Plan, the 1974 UMWA Pension Plan, the 1974 UMWA Benefit Plan, the 1992 UMWA Benefit Plan, or the Combined Fund. (B) Other tax provisions Any transfer pursuant to paragraph (1) (i) shall not be treated as an employer reversion from a qualified plan for purposes of section 4980, and (ii) shall not be includible in the gross income of any employer maintaining the 1950 UMWA Pension Plan. (5) Treatment of transfer Any transfer pursuant to paragraph (1) shall not be deemed to violate, or to be prohibited by, any provision of law, or to cause the settlors, joint board of trustees, employers or any

related person to incur or be subject to liability, taxes, fines, or penalties of any kind whatsoever. (b) Transfers (1) In general The Combined Fund shall include any amount transferred to the Fund under subsections (h) and (i) of section 402 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232 (h)). (2) Use of funds Any amount transferred under paragraph (1) for any fiscal year shall be used to pay benefits and administrative costs of beneficiaries of the Combined Fund or for such other purposes as are specifically provided in the Acts [1] described in paragraph (1).

[1] So in original. Probably should be Act.

9706. Assignment of eligible beneficiaries

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(a) In general For purposes of this chapter, the Commissioner of Social Security shall, before October 1, 1993, assign each coal industry retiree who is an eligible beneficiary to a signatory operator which (or any related person with respect to which) remains in business in the following order: (1) First, to the signatory operator which (A) was a signatory to the 1978 coal wage agreement or any subsequent coal wage agreement, and (B) was the most recent signatory operator to employ the coal industry retiree in the coal industry for at least 2 years. (2) Second, if the retiree is not assigned under paragraph (1), to the signatory operator which (A) was a signatory to the 1978 coal wage agreement or any subsequent coal wage agreement, and (B) was the most recent signatory operator to employ the coal industry retiree in the coal industry. (3) Third, if the retiree is not assigned under paragraph (1) or (2), to the signatory operator which employed the coal industry retiree in the coal industry for a longer period of time than any other signatory operator prior to the effective date of the 1978 coal wage agreement. (b) Rules relating to employment and reassignment upon purchase For purposes of subsection (a) (1) Aggregation rules (A) Related person Any employment of a coal industry retiree in the coal industry by a signatory operator shall be treated as employment by any related persons to such operator. (B) Certain employment disregarded Employment with (i) a person which is (and all related persons with respect to which are) no longer in business, or (ii) a person during a period during which such person was not a signatory to a coal wage agreement, shall not be taken into account. (2) Reassignment upon purchase If a person becomes a successor of an assigned operator after the enactment date, the assigned operator may transfer the assignment of an eligible beneficiary under subsection (a) to such successor, and such successor shall be treated as the assigned operator with respect to such eligible beneficiary for purposes of this chapter. Notwithstanding the preceding sentence, the assigned operator transferring such assignment (and any related person) shall remain the guarantor of the benefits provided to the eligible beneficiary under this chapter.

An assigned operator shall notify the trustees of the Combined Fund of any transfer described in this paragraph. (c) Identification of eligible beneficiaries The 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan shall, by the later of October 1, 1992, or the twentieth day after the enactment date, provide to the Commissioner of Social Security a list of the names and social security account numbers of each eligible beneficiary, including each deceased eligible beneficiary if any other individual is an eligible beneficiary by reason of a relationship to such deceased eligible beneficiary. In addition, the plans shall provide, where ascertainable from plan records, the names of all persons described in subsection (a) with respect to any eligible beneficiary or deceased eligible beneficiary. (d) Cooperation by other agencies and persons (1) Cooperation The head of any department, agency, or instrumentality of the United States shall cooperate fully and promptly with the Commissioner of Social Security in providing information which will enable the Commissioner to carry out his responsibilities under this section. (2) Providing of information (A) In general Notwithstanding any other provision of law, including section 6103, the head of any other agency, department, or instrumentality shall, upon receiving a written request from the Commissioner of Social Security in connection with this section, cause a search to be made of the files and records maintained by such agency, department, or instrumentality with a view to determining whether the information requested is contained in such files or records. The Commissioner shall be advised whether the search disclosed the information requested, and, if so, such information shall be promptly transmitted to the Commissioner, except that if the disclosure of any requested information would contravene national policy or security interests of the United States, or the confidentiality of census data, the information shall not be transmitted and the Commissioner shall be so advised. (B) Limitation Any information provided under subparagraph (A) shall be limited to information necessary for the Commissioner to carry out his duties under this section. (3) Trustees The trustees of the Combined Fund, the 1950 UMWA Benefit Plan, the 1974 UMWA Benefit Plan, the 1950 UMWA Pension Plan, and the 1974 UMWA Pension Plan shall fully and promptly cooperate with the Commissioner in furnishing, or assisting the Commissioner to obtain, any information the Commissioner needs to carry out the Commissioners responsibilities under this section. (e) Notice by Commissioner (1) Notice to Fund The Commissioner of Social Security shall advise the trustees of the Combined Fund of the name of each person identified under this section as an assigned operator, and the names and social security account numbers of eligible beneficiaries with respect to whom he is identified. (2) Other notice The Commissioner of Social Security shall notify each assigned operator of the names and social security account numbers of eligible beneficiaries who have been assigned to such person under this section and a brief summary of the facts related to the basis for such assignments. (f) Reconsideration by Commissioner (1) In general Any assigned operator receiving a notice under subsection (e)(2) with respect to an eligible beneficiary may, within 30 days of receipt of such notice, request from the Commissioner of Social Security detailed information as to the work history of the beneficiary and the basis of the assignment. (2) Review An assigned operator may, within 30 days of receipt of the information under paragraph (1), request review of the assignment. The Commissioner of Social Security shall conduct such

review if the Commissioner finds the operator provided evidence with the request constituting a prima facie case of error. (3) Results of review (A) Error If the Commissioner of Social Security determines under a review under paragraph (2) that an assignment was in error (i) the Commissioner shall notify the assigned operator and the trustees of the Combined Fund and the trustees shall reduce the premiums of the operator under section 9704 by (or if there are no such premiums, repay) all premiums paid under section 9704with respect to the eligible beneficiary, and (ii) the Commissioner shall review the beneficiarys record for reassignment under subsection (a). (B) No error If the Commissioner of Social Security determines under a review conducted under paragraph (2) that no error occurred, the Commissioner shall notify the assigned operator. (4) Determinations Any determination by the Commissioner of Social Security under paragraph (2) or (3) shall be final. (5) Payment pending review An assigned operator shall pay the premiums under section 9704pending review by the Commissioner of Social Security or by a court under this subsection. (6) Private actions Nothing in this section shall preclude the right of any person to bring a separate civil action against another person for responsibility for assigned premiums, notwithstanding any prior decision by the Commissioner. (g) Confidentiality of information Any person to which information is provided by the Commissioner of Social Security under this section shall not disclose such information except in any proceedings related to this section. Any civil or criminal penalty which is applicable to an unauthorized disclosure under section 6103 shall apply to any unauthorized disclosure under this section. (h) Assignments as of October 1, 2007 (1) In general Subject to the premium obligation set forth in paragraph (3), the Commissioner of Social Security shall (A) revoke all assignments to persons other than 1988 agreement operators for purposes of assessing premiums for plan years beginning on and after October 1, 2007; and (B) make no further assignments to persons other than 1988 agreement operators, except that no individual who becomes an unassigned beneficiary by reason of subparagraph (A) may be assigned to a 1988 agreement operator. (2) Reassignment upon purchase This subsection shall not be construed to prohibit the reassignment 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 beginning 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 assignments under paragraph (1)(A): (A) For the fiscal year beginning on October 1, 2007, 55 percent. (B) For the fiscal year beginning on October 1, 2008, 40 percent. (C) For the fiscal year beginning on October 1, 2009, 15 percent.

PART IIIENFORCEMENT

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9707. Failure to pay premium

9707. Failure to pay premium

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(a) Failures to pay (1) Premiums for eligible beneficiaries There is hereby imposed a penalty on the failure of any assigned operator to pay any premium required to be paid under section 9704with 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 Surface 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 premium required to be paid under section9704 with respect to an eligible beneficiary. (b) Amount of penalty The amount of the penalty imposed by subsection (a) on any failure with respect to any eligible beneficiary shall be $100 per day in the noncompliance period with respect to any such failure. (c) Noncompliance period For purposes of this section, the term noncompliance period means, with respect to any failure to pay any premium or installment thereof, the period (1) beginning on the due date for such premium or installment, and (2) ending on the date of payment of such premium or installment. (d) Limitations on amount of penalty (1) In general No penalty shall be imposed by subsection (a) on any failure during any period for which it is established to the satisfaction of the Secretary of the Treasury that none of the persons responsible for such failure knew, or exercising reasonable diligence would have known, that such failure existed. (2) Corrections No penalty shall be imposed by subsection (a) on any failure if (A) such failure was due to reasonable cause and not to willful neglect, and (B) such failure is corrected during the 30-day period beginning on the 1st date that any of the persons responsible for such failure knew, or exercising reasonable diligence would have known, that such failure existed. (3) Waiver In the case of a failure that is due to reasonable cause and not to willful neglect, the Secretary of the Treasury may waive all or part of the penalty imposed by subsection (a) for failures to the extent that the Secretary determines, in his sole discretion, that the payment of such penalty would be excessive relative to the failure involved. (e) Liability for penalty The person failing to meet the requirements of section 9704 shall be liable for the penalty imposed by subsection (a). (f) Treatment For purposes of this title, the penalty imposed by this section shall be treated in the same manner as the tax imposed by section 4980B.

PART IVOTHER PROVISIONS

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9708. Effect on pending claims or obligations

9708. Effect on pending claims or obligations

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All liability for contributions to the Combined Fund that arises on and after February 1, 1993, shall be determined exclusively under this chapter, including all liability for contributions to the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan for coal production on and after February 1, 1993. However, nothing in this chapter is intended to have any effect on any claims or obligations arising in connection with the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of February 1, 1993, including claims or obligations based on the evergreen clause found in the language of the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan. This chapter shall not be construed to affect any rights of subrogation of any 1988 agreement operator with respect to contributions due to the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan as of February 1, 1993.

Subchapter CHealth Benefits of Certain Miners

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PART IINDIVIDUAL EMPLOYER PLANS ( 9711) PART II1992 UMWA BENEFIT PLAN ( 9712)

PART IINDIVIDUAL EMPLOYER PLANS

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9711. Continued obligations of individual employer plans

9711. Continued obligations of individual employer plans

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(a) Coverage of current recipients The last signatory operator of any individual who, as of February 1, 1993, is receiving retiree health benefits from an individual employer plan maintained pursuant to a 1978 or subsequent coal wage agreement shall continue to provide health benefits coverage to such individual and the individuals eligible beneficiaries which is substantially the same as (and subject to all the limitations of) the coverage provided by such plan as of January 1, 1992. Such coverage shall continue to be provided for as long as the last signatory operator (and any related person) remains in business. (b) Coverage of eligible recipients (1) In general The last signatory operator of any individual who, as of February 1, 1993, is not receiving retiree health benefits under the individual employer plan maintained by the last signatory operator pursuant to a 1978 or subsequent coal wage agreement, but has met the age and service requirements for eligibility to receive benefits under such plan as of such date, shall,

at such time as such individual becomes eligible to receive benefits under such plan, provide health benefits coverage to such individual and the individuals eligible beneficiaries which is described in paragraph (2). This paragraph shall not apply to any individual who retired from the coal industry after September 30, 1994, or any eligible beneficiary of such individual. (2) Coverage Subject to the provisions of subsection (d), health benefits coverage is described in this paragraph if it is substantially the same as (and subject to all the limitations of) the coverage provided by the individual employer plan as of January 1, 1992. Such coverage shall continue for as long as the last signatory operator (and any related person) remains in business. (c) Joint and several liability of related persons (1) In general Except as provided in paragraph (2), each related person of a last signatory operator to which subsection (a) or (b) applies shall be jointly and severally liable with the last signatory operator for the provision of health care coverage described in subsection (a) or (b). (2) Liability limited if security provided 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 9704 (j)(2)(B) is jointly and severally liable for the provision of health care under this section which, but for this paragraph, would be required to be provided by the last signatory operator or related person, then, as of the date the security is provided, such common parent (and no other person) shall be liable for the provision of health care under this section which the last signatory operator or related person would otherwise be required to provide. Security may be provided under this paragraph without regard to whether a payment was made under section9704 (j). (3) Security Security meets the requirements of this paragraph if (A) the security (i) is in the form of a bond, letter of credit, or cash escrow, (ii) is provided to the trustees of the 1992 UMWA Benefit Plan solely for the purpose of paying premiums for beneficiaries who would be described in section 9712 (b)(2)(B) if the requirements of this section were not met by the last signatory operator, and (iii) is in an amount equal to 1 year of liability of the last signatory operator under this section, determined by using the average cost of such operators liability during the prior 3 calendar years; (B) the security is in addition to any other security required under any other provision of this title; and (C) the security remains in place for 5 years. (4) Refunds of security The remaining amount of any security provided under this subsection (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).[1] (d) Managed care and cost containment The last signatory operator shall not be treated as failing to meet the requirements of subsection (a) or (b) if benefits are provided to eligible beneficiaries under managed care and cost containment rules and procedures described in section 9712 (c) or agreed to by the last signatory operator and the United Mine Workers of America. (e) Treatment of noncovered employees The existence, level, and duration of benefits provided to former employees of a last signatory operator (and their eligible beneficiaries) who are not otherwise covered by this chapter and who are (or were) covered by a coal wage agreement shall only be determined by, and shall be subject to, collective bargaining, lawful unilateral action, or other applicable law. (f) Eligible beneficiary

For purposes of this section, the term eligible beneficiary means any individual who is eligible for health benefits under a plan described in subsection (a) or (b) by reason of the individuals relationship with the retiree described in such subsection (or to an individual who, based on service and employment history at the time of death, would have been so described but for such death). (g) Rules applicable to this part and part II For purposes of this part and part II (1) Successor The term last signatory operator shall include a successor in interest of such operator. (2) Reassignment upon purchase If a person becomes a successor of a last signatory operator after the enactment date, the last signatory operator may transfer any liability of such operator under this chapter with respect to an eligible beneficiary to such successor, and such successor shall be treated as the last signatory operator with respect to such eligible beneficiary for purposes of this chapter. Notwithstanding the preceding sentence, the last signatory operator transferring such assignment (and any related person) shall remain the guarantor of the benefits provided to the eligible beneficiary under this chapter. A last signatory operator shall notify the trustees of the 1992 UMWA Benefit Plan of any transfer described in this paragraph.

[1] So in original. Probably should be paragraph (3)(C).

PART II1992 UMWA BENEFIT PLAN

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9712. Establishment and coverage of 1992 UMWA Benefit Plan

9712. Establishment and coverage of 1992 UMWA Benefit Plan

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(a) Creation of plan (1) In general As soon as practicable after the enactment date, the settlors shall create a separate private plan which shall be known as the United Mine Workers of America 1992 Benefit Plan. For purposes of this title, the 1992 UMWA Benefit Plan shall be treated as an organization exempt from taxation under section 501 (a). The settlors shall be responsible for designing the structure, administration and terms of the 1992 UMWA Benefit Plan, and for appointment and removal of the members of the board of trustees. The board of trustees shall initially consist of five members and shall thereafter be the number set by the settlors. (2) Treatment of plan The 1992 UMWA Benefit Plan shall be (A) a plan described in section 302(c)(5) of the Labor Management Relations Act, 1947 (29 U.S.C. 186 (c)(5)), (B) an employee welfare benefit plan within the meaning of section 3(1) of the Employee Retirement Income Security Act of 1974 (29U.S.C. 1002 (1)), and (C) a multiemployer plan within the meaning of section 3(37) of such Act (29 U.S.C. 1002 (37)). (3) Transfers under other Federal statutes (A) In general The 1992 UMWA Benefit Plan shall include any amount transferred 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 transferred 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 beneficiary 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 subsections (h) and (i) of the Surface Mining Control and Reclamation Act of 1977 (30U.S.C. 1232). (B) Use of funds Any amount transferred 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 Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232 (h)(2)(C)(i)) to individuals described in section 402(h)(2)(C) of such Act (30 U.S.C. 1232 (h)(2)(C)). (b) Coverage requirement (1) In general The 1992 UMWA Benefit Plan shall only provide health benefits coverage to any eligible beneficiary who is not eligible for benefits under the Combined Fund and shall not provide such coverage to any other individual. (2) Eligible beneficiary For purposes of this section, the term eligible beneficiary means an individual who (A) but for the enactment of this chapter, would be eligible to receive benefits from the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan, based upon age and service earned as of February 1, 1993; or (B) with respect to whom coverage is required to be provided under section 9711, but who does not receive such coverage from the applicable last signatory operator or any related person, and any individual who is eligible for benefits by reason of a relationship to an individual described in subparagraph (A) or (B). In no event shall the 1992 UMWA Benefit Plan provide health benefits coverage to any eligible beneficiary who is a coal industry retiree who retired from the coal industry after September 30, 1994, or any beneficiary of such individual. (c) Health benefits (1) In general The 1992 UMWA Benefit Plan shall provide health care benefits coverage to each eligible beneficiary which is substantially the same as (and subject to all the limitations of) coverage provided under the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of January 1, 1992. (2) Managed care The 1992 UMWA Benefit Plan shall develop managed care and cost containment rules which shall be applicable to the payment of benefits under this subsection. Application of such rules shall not cause the plan to be treated as failing to meet the requirements of this subsection. Such rules shall preserve freedom of choice while reinforcing managed care network use by allowing a point of service decision as to whether a network medical provider will be used. Major elements of such rules may include, but are not limited to, elements described in paragraph (3). (3) Major elements of rules Elements described in this paragraph are (A) implementing formulary for drugs and subjecting the prescription program to a rigorous review of appropriate use, (B) obtaining a unit price discount in exchange for patient volume and preferred provider status with the amount of the potential discount varying by geographic region, (C) limiting benefit payments to physicians to the allowable charge under title XVIII of the Social Security Act, while protecting beneficiaries from balance billing by providers, (D) utilizing, in the claims payment function appropriateness of service protocols under title XVIII of the Social Security Act if more stringent,

(E) creating mandatory utilization review (UR) procedures, but placing the responsibility to follow such procedures on the physician or hospital, not the beneficiaries, (F) selecting the most efficient physicians and state-of-the-art utilization management techniques, including ambulatory care techniques, for medical services delivered by the managed care network, and (G) utilizing a managed care network provider system, as practiced in the health care industry, at the time medical services are needed (point-of-service) in order to receive maximum benefits available under this subsection. (4) Last signatory operators The board of trustees of the 1992 UMWA Benefit Plan shall permit any last signatory operator required to maintain an individual employer plan under section 9711 to utilize the managed care and cost containment rules and programs developed under this subsection if the operator elects to do so. (5) Standards of quality Any managed care system or cost containment adopted by the board of trustees of the 1992 UMWA Benefit Plan or by a last signatory operator may not be implemented unless it is approved by, and meets the standards of quality adopted by, a medical peer review panel, which has been established (A) by the settlors, or (B) by the United Mine Workers of America and a last signatory operator or group of operators. Standards of quality shall include accessibility to medical care, taking into account that accessibility requirements may differ depending on the nature of the medical need. (d) Guarantee of benefits (1) In general All 1988 last signatory operators shall be responsible for financing the benefits described in subsection (c), in accordance with contribution requirements established in the 1992 UMWA Benefit Plan. Such contribution requirements, which shall be applied uniformly to each 1988 last signatory operator, on the basis of the number of eligible and potentially eligible beneficiaries attributable to each operator, shall include: (A) the payment of an annual prefunding premium for all eligible and potentially eligible beneficiaries attributable to a 1988 last signatory operator, (B) the payment of a monthly per beneficiary premium by each 1988 last signatory operator for each eligible beneficiary of such operator who is described in subsection (b)(2) and who is receiving benefits under the 1992 UMWA Benefit Plan, and (C) the provision of security (in the form of a bond, letter of credit or cash escrow) in an amount equal to a portion of the projected 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. If a 1988 last signatory operator is unable to provide the security required, the 1992 UMWA Benefit Plan shall require the operator to pay an annual prefunding premium that is greater than the premium otherwise applicable. (2) Adjustments The 1992 UMWA Benefit Plan shall provide for (A) annual adjustments of the per beneficiary premium to cover changes in the cost of providing benefits to eligible beneficiaries, and (B) adjustments as necessary to the annual prefunding premium to reflect changes in the cost of providing benefits to eligible beneficiaries for whom per beneficiary premiums are not paid. (3) Additional liability Any last signatory operator who is not a 1988 last signatory operator shall pay the monthly per beneficiary premium under paragraph (1)(B) for each eligible beneficiary described in such paragraph attributable to that operator. (4) Joint and several liability A 1988 last signatory operator or last signatory operator described in paragraph (3), and any related person to any such operator, shall be jointly and severally liable with such operator for any amount required to be paid by such operator under this section. The provisions of section9711 (c)(2) shall apply to any last signatory operator described 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 requirements of section 9711 (c)(3) is provided, the common parent described in section 9711 (c)(2)(B) shall be exclusively 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 person. (5) Deductibility Any premium required by this section shall be deductible without regard to any limitation on deductibility based on the prefunding of health benefits. (6) 1988 last signatory operator For purposes of this section, the term 1988 last signatory operator means a last signatory operator which is a 1988 agreement operator.

Subchapter DOther Provisions

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9721. Civil enforcement 9722. Sham transactions

9721. Civil enforcement

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The provisions of section 4301 of the Employee Retirement Income Security Act of 1974 shall apply, in the same manner as any claim arising out of an obligation to pay withdrawal liability under subtitle E of title IV of such Act, to any claim (1) arising out of an obligation to pay any amount required to be paid by this chapter; or (2) arising out of an obligation to pay any amount required by section 402(h)(5)(B)(ii) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C.1232 (h)(5)(B)(ii)).

9722. Sham transactions

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If a principal purpose of any transaction is to evade or avoid liability under this chapter, this chapter shall be applied (and such liability shall be imposed) without regard to such transaction.

CHAPTER 100GROUP HEALTH PLAN REQUIREMENTS

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Subchapter ARequirements Relating to Portability, Access, and Renewability ( 98019806) Subchapter BOther Requirements ( 98119813)

Subchapter CGeneral Provisions ( 98319834)

Subchapter ARequirements Relating to Portability, Access, and Renewability

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9801. Increased portability through limitation on preexisting condition exclusions 9802. Prohibiting discrimination against individual participants and beneficiaries based on health status 9803. Guaranteed renewability in multiemployer plans and certain multiple employer welfare arrangements [ 9804. Renumbered 9831] [ 9805. Renumbered 9832] [ 9806. Renumbered 9833]

9801. Increased portability through limitation on preexisting condition exclusions

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(a) Limitation on preexisting condition exclusion period; crediting for periods of previous coverage Subject to subsection (d), a group health plan may, with respect to a participant or beneficiary, impose a preexisting condition exclusion only if (1) such exclusion relates to a condition (whether physical or mental), regardless of the cause of the condition, for which medical advice, diagnosis, care, or treatment was recommended or received within the 6-month period ending on the enrollment date; (2) such exclusion extends for a period of not more than 12 months (or 18 months in the case of a late enrollee) after the enrollment date; and (3) the period of any such preexisting condition exclusion is reduced by the length of the aggregate of the periods of creditable coverage (if any) applicable to the participant or beneficiary as of the enrollment date. (b) Definitions For purposes of this section (1) Preexisting condition exclusion (A) In general The term preexisting condition exclusion means, with respect to coverage, a limitation or exclusion of benefits relating to a condition based on the fact that the condition was present before the date of enrollment for such coverage, whether or not any medical advice, diagnosis, care, or treatment was recommended or received before such date. (B) Treatment of genetic information For purposes of this section, genetic information shall not be treated as a condition described in subsection (a)(1) in the absence of a diagnosis of the condition related to such information. (2) Enrollment date

The term enrollment date means, with respect to an individual covered under a group health plan, the date of enrollment of the individual in the plan or, if earlier, the first day of the waiting period for such enrollment. (3) Late enrollee The term late enrollee means, with respect to coverage under a group health plan, a participant or beneficiary who enrolls under the plan other than during (A) the first period in which the individual is eligible to enroll under the plan, or (B) a special enrollment period under subsection (f). (4) Waiting period The term waiting period means, with respect to a group health plan and an individual who is a potential participant or beneficiary in the plan, the period that must pass with respect to the individual before the individual is eligible to be covered for benefits under the terms of the plan. (c) Rules relating to crediting previous coverage (1) Creditable coverage defined For purposes of this part, the term creditable coverage means, with respect to an individual, coverage of the individual under any of the following: (A) A group health plan. (B) Health insurance coverage. (C) Part A or part B of title XVIII of the Social Security Act. (D) Title XIX of the Social Security Act, other than coverage consisting solely of benefits under section 1928. (E) Chapter 55 of title 10, United States Code. (F) A medical care program of the Indian Health Service or of a tribal organization. (G) A State health benefits risk pool. (H) A health plan offered under chapter 89 of title 5, United States Code. (I) A public health plan (as defined in regulations). (J) A health benefit plan under section 5(e) of the Peace Corps Act (22 U.S.C. 2504 (e)). Such term does not include coverage consisting solely of coverage of excepted benefits (as defined in section 9832 (c)). (2) Not counting periods before significant breaks in coverage (A) In general A period of creditable coverage shall not be counted, with respect to enrollment of an individual under a group health plan, if, after such period and before the enrollment date, there was a 63-day period during all of which the individual was not covered under any creditable coverage. (B) Waiting period not treated as a break in coverage For purposes of subparagraph (A) and subsection (d)(4), any period that an individual is in a waiting period for any coverage under a group health plan or is in an affiliation period shall not be taken into account in determining the continuous period under subparagraph (A). (C) Affiliation period (i) In general For purposes of this section, the term affiliation period means a period which, under the terms of the health insurance coverage offered by the health maintenance organization, must expire before the health insurance coverage becomes effective. During such an affiliation period, the organization is not required to provide health care services or benefits and no premium shall be charged to the participant or beneficiary. (ii) Beginning Such period shall begin on the enrollment date. (iii) Runs concurrently with waiting periods Any such affiliation period shall run concurrently with any waiting period under the plan. (D) TAA-eligible individuals In the case of plan years beginning before January 1, 2011 (i) TAA pre-certification period rule In the case of a TAA-eligible individual, the period beginning on the date the individual has a TAA-related loss of coverage and ending on the date which is 7 days after the date of the issuance by the Secretary (or by any person or entity designated by the Secretary) of a qualified health insurance costs credit eligibility certificate for such individual for purposes of section 7527 shall not be taken into account in determining the continuous period under subparagraph (A).

(ii) Definitions The terms TAA-eligible individual and TAA-related loss of coverage have the meanings given such terms in section 4980B (f)(5)(C)(iv). (3) Method of crediting coverage (A) Standard method Except as otherwise provided under subparagraph (B), for purposes of applying subsection (a)(3), a group health plan shall count a period of creditable coverage without regard to the specific benefits for which coverage is offered during the period. (B) Election of alternative method A group health plan may elect to apply subsection (a)(3) based on coverage of any benefits within each of several classes or categories of benefits specified in regulations rather than as provided under subparagraph (A). Such election shall be made on a uniform basis for all participants and beneficiaries. Under such election a group health plan shall count a period of creditable coverage with respect to any class or category of benefits if any level of benefits is covered within such class or category. (C) Plan notice In the case of an election with respect to a group health plan under subparagraph (B), the plan shall (i) prominently state in any disclosure statements concerning the plan, and state to each enrollee at the time of enrollment under the plan, that the plan has made such election, and (ii) include in such statements a description of the effect of this election. (4) Establishment of period Periods of creditable coverage with respect to an individual shall be established through presentation of certifications described in subsection (e) or in such other manner as may be specified in regulations. (d) Exceptions (1) Exclusion not applicable to certain newborns Subject to paragraph (4), a group health plan may not impose any preexisting condition exclusion in the case of an individual who, as of the last day of the 30-day period beginning with the date of birth, is covered under creditable coverage. (2) Exclusion not applicable to certain adopted children Subject to paragraph (4), a group health plan may not impose any preexisting condition exclusion in the case of a child who is adopted or placed for adoption before attaining 18 years of age and who, as of the last day of the 30-day period beginning on the date of the adoption or placement for adoption, is covered under creditable coverage. The previous sentence shall not apply to coverage before the date of such adoption or placement for adoption. (3) Exclusion not applicable to pregnancy For purposes of this section, a group health plan may not impose any preexisting condition exclusion relating to pregnancy as a preexisting condition. (4) Loss if break in coverage Paragraphs (1) and (2) shall no longer apply to an individual after the end of the first 63-day period during all of which the individual was not covered under any creditable coverage. (e) Certifications and disclosure of coverage (1) Requirement for certification of period of creditable coverage (A) In general A group health plan shall provide the certification described in subparagraph (B) (i) at the time an individual ceases to be covered under the plan or otherwise becomes covered under a COBRA continuation provision, (ii) in the case of an individual becoming covered under such a provision, at the time the individual ceases to be covered under such provision, and (iii) on the request on behalf of an individual made not later than 24 months after the date of cessation of the coverage described in clause (i) or (ii), whichever is later. The certification under clause (i) may be provided, to the extent practicable, at a time consistent with notices required under any applicable COBRA continuation provision. (B) Certification The certification described in this subparagraph is a written certification of (i) the period of creditable coverage of the individual under such plan and the coverage under such COBRA continuation provision, and

(ii) the waiting period (if any) (and affiliation period, if applicable) imposed with respect to the individual for any coverage under such plan. (C) Issuer compliance To the extent that medical care under a group health plan consists of health insurance coverage offered in connection with the plan, the plan is deemed to have satisfied the certification requirement under this paragraph if the issuer provides for such certification in accordance with this paragraph. (2) Disclosure of information on previous benefits (A) In general In the case of an election described in subsection (c)(3)(B) by a group health plan, if the plan enrolls an individual for coverage under the plan and the individual provides a certification of coverage of the individual under paragraph (1) (i) upon request of such plan, the entity which issued the certification provided by the individual shall promptly disclose to such requesting plan information on coverage of classes and categories of health benefits available under such entitys plan, and (ii) such entity may charge the requesting plan or issuer for the reasonable cost of disclosing such information. (3) Regulations The Secretary shall establish rules to prevent an entitys failure to provide information under paragraph (1) or (2) with respect to previous coverage of an individual from adversely affecting any subsequent coverage of the individual under another group health plan or health insurance coverage. (f) Special enrollment periods (1) Individuals losing other coverage A group health plan shall permit an employee who is eligible, but not enrolled, for coverage under the terms of the plan (or a dependent of such an employee if the dependent is eligible, but not enrolled, for coverage under such terms) to enroll for coverage under the terms of the plan if each of the following conditions is met: (A) The employee or dependent was covered under a group health plan or had health insurance coverage at the time coverage was previously offered to the employee or individual. (B) The employee stated in writing at such time that coverage under a group health plan or health insurance coverage was the reason for declining enrollment, but only if the plan sponsor (or the health insurance issuer offering health insurance coverage in connection with the plan) required such a statement at such time and provided the employee with notice of such requirement (and the consequences of such requirement) at such time. (C) The employees or dependents coverage described in subparagraph (A) (i) was under a COBRA continuation provision and the coverage under such provision was exhausted; or (ii) was not under such a provision and either the coverage was terminated as a result of loss of eligibility for the coverage (including as a result of legal separation, divorce, death, termination of employment, or reduction in the number of hours of employment) or employer contributions toward such coverage were terminated. (D) Under the terms of the plan, the employee requests such enrollment not later than 30 days after the date of exhaustion of coverage described in subparagraph (C)(i) or termination of coverage or employer contribution described in subparagraph (C)(ii). (2) For dependent beneficiaries (A) In general If (i) a group health plan makes coverage available with respect to a dependent of an individual, (ii) the individual is a participant under the plan (or has met any waiting period applicable to becoming a participant under the plan and is eligible to be enrolled under the plan but for a failure to enroll during a previous enrollment period), and (iii) a person becomes such a dependent of the individual through marriage, birth, or adoption or placement for adoption, the group health plan shall provide for a dependent special enrollment period described in subparagraph (B) during which the person (or, if not otherwise enrolled, the individual) may

be enrolled under the plan as a dependent of the individual, and in the case of the birth or adoption of a child, the spouse of the individual may be enrolled as a dependent of the individual if such spouse is otherwise eligible for coverage. (B) Dependent special enrollment period The dependent special enrollment period under this subparagraph shall be a period of not less than 30 days and shall begin on the later of (i) the date dependent coverage is made available, or (ii) the date of the marriage, birth, or adoption or placement for adoption (as the case may be) described in subparagraph (A)(iii). (C) No waiting period If an individual seeks coverage of a dependent during the first 30 days of such a dependent special enrollment period, the coverage of the dependent shall become effective (i) in the case of marriage, not later than the first day of the first month beginning after the date the completed request for enrollment is received; (ii) in the case of a dependents birth, as of the date of such birth; or (iii) in the case of a dependents adoption or placement for adoption, the date of such adoption or placement for adoption. (3) Special rules relating to Medicaid and CHIP (A) In general A group health plan shall permit an employee who is eligible, but not enrolled, for coverage under the terms of the plan (or a dependent of such an employee if the dependent is eligible, but not enrolled, for coverage under such terms) to enroll for coverage under the terms of the plan if either of the following conditions is met: (i) Termination of Medicaid or CHIP coverage The employee or dependent is covered under a Medicaid plan under title XIX of the Social Security Act or under a State child health plan under title XXI of such Act and coverage of the employee or dependent under such a plan is terminated as a result of loss of eligibility for such coverage and the employee requests coverage under the group health plan not later than 60 days after the date of termination of such coverage. (ii) Eligibility for employment assistance under Medicaid or CHIPThe employee or dependent becomes eligible for assistance, with respect to coverage under the group health plan under such Medicaid plan or State child health plan (including under any waiver or demonstration project conducted under or in relation to such a plan), if the employee requests coverage under the group health plan not later than 60 days after the date the employee or dependent is determined to be eligible for such assistance. (B) Employee outreach and disclosure (i) Outreach to employees regarding availability of Medicaid and CHIP coverage (I) In general Each employer that maintains a group health plan in a State that provides medical assistance under a State Medicaid plan under title XIX of the Social Security Act, or child health assistance under a State child health plan under title XXI of such Act, in the form of premium assistance for the purchase of coverage under a group health plan, shall provide to each employee a written notice informing the employee of potential opportunities then currently available in the State in which the employee resides for premium assistance under such plans for health coverage of the employee or the employees dependents. For purposes of compliance with this clause, the employer may use any State-specific model notice developed in accordance with section 701(f)(3)(B)(i)(II) of the Employee Retirement Income Security Act of 1974 (29 U.S.C.1181 (f)(3)(B)(i)(II)). (II) Option to provide concurrent with provision of plan materials to employee An employer may provide the model notice applicable to the State in which an employee resides concurrent with the furnishing of materials notifying the employee of health plan eligibility, concurrent with materials provided to the employee in connection with an open season or election process conducted under the plan, or concurrent with the furnishing of the summary plan description as provided in section 104(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1024). (ii) Disclosure about group health plan benefits to States for Medicaid and CHIP eligible individuals In the case of a participant or beneficiary of a group health plan who is covered under a Medicaid plan of a State under title XIX of the Social Security Act or under a State child health plan under title XXI of such Act, the plan administrator of the group health plan

shall disclose to the State, upon request, information about the benefits available under the group health plan in sufficient specificity, as determined under regulations of the Secretary of Health and Human Services in consultation with the Secretary that require use of the model coverage coordination disclosure form developed under section 311(b)(1)(C) of the Childrens Health Insurance Program Reauthorization Act of 2009, so as to permit the State to make a determination (under paragraph (2)(B), (3), or (10) of section 2105(c) of the Social Security Act or otherwise) concerning the cost-effectiveness of the State providing medical or child health assistance through premium assistance for the purchase of coverage under such group health plan and in order for the State to provide supplemental benefits required under paragraph (10)(E) of such section or other authority.

9802. Prohibiting discrimination against individual participants and beneficiaries based on health status
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(a) In eligibility to enroll (1) In general Subject to paragraph (2), a group health plan may not establish rules for eligibility (including continued eligibility) of any individual to enroll under the terms of the plan based on any of the following factors in relation to the individual or a dependent of the individual: (A) Health status. (B) Medical condition (including both physical and mental illnesses). (C) Claims experience. (D) Receipt of health care. (E) Medical history. (F) Genetic information. (G) Evidence of insurability (including conditions arising out of acts of domestic violence). (H) Disability. (2) No application to benefits or exclusions To the extent consistent with section 9801, paragraph (1) shall not be construed (A) to require a group health plan to provide particular benefits (or benefits with respect to a specific procedure, treatment, or service) other than those provided under the terms of such plan; or (B) to prevent such a plan from establishing limitations or restrictions on the amount, level, extent, or nature of the benefits or coverage for similarly situated individuals enrolled in the plan or coverage. (3) Construction For purposes of paragraph (1), rules for eligibility to enroll under a plan include rules defining any applicable waiting periods for such enrollment. (b) In premium contributions (1) In general A group health plan may not require any individual (as a condition of enrollment or continued enrollment under the plan) to pay a premium or contribution which is greater than such premium or contribution for a similarly situated individual enrolled in the plan on the basis of any factor described in subsection (a)(1) in relation to the individual or to an individual enrolled under the plan as a dependent of the individual. (2) Construction Nothing in paragraph (1) shall be construed (A) to restrict the amount that an employer may be charged for coverage under a group health plan except as provided in paragraph (3); or (B) to prevent a group health plan from establishing premium discounts or rebates or modifying otherwise applicable copayments or deductibles in return for adherence to programs of health promotion and disease prevention. (3) No group-based discrimination on basis of genetic information

(A) In general For purposes of this section, a group health plan may not adjust premium or contribution amounts for the group covered under such plan on the basis of genetic information. (B) Rule of construction Nothing in subparagraph (A) or in paragraphs (1) and (2) of subsection (d) shall be construed to limit the ability of a group health plan to increase the premium for an employer based on the manifestation of a disease or disorder of an individual who is enrolled in the plan. In such case, the manifestation of a disease or disorder in one individual cannot also be used as genetic information about other group members and to further increase the premium for the employer. (c) Genetic testing (1) Limitation on requesting or requiring genetic testing A group health plan may not request or require an individual or a family member of such individual to undergo a genetic test. (2) Rule of construction Paragraph (1) shall not be construed to limit the authority of a health care professional who is providing health care services to an individual to request that such individual undergo a genetic test. (3) Rule of construction regarding payment (A) In general Nothing in paragraph (1) shall be construed to preclude a group health plan from obtaining and using the results of a genetic test in making a determination regarding payment (as such term is defined for the purposes of applying the regulations promulgated by the Secretary of Health and Human Services under part C of title XI of the Social Security Act and section 264 of the Health Insurance Portability and Accountability Act of 1996, as may be revised from time to time) consistent with subsection (a). (B) Limitation For purposes of subparagraph (A), a group health plan may request only the minimum amount of information necessary to accomplish the intended purpose. (4) Research exception Notwithstanding paragraph (1), a group health plan may request, but not require, that a participant or beneficiary undergo a genetic test if each of the following conditions is met: (A) The request is made pursuant to research that complies with part 46 of title 45, Code of Federal Regulations, or equivalent Federal regulations, and any applicable State or local law or regulations for the protection of human subjects in research. (B) The plan clearly indicates to each participant or beneficiary, or in the case of a minor child, to the legal guardian of such beneficiary, to whom the request is made that (i) compliance with the request is voluntary; and (ii) non-compliance will have no effect on enrollment status or premium or contribution amounts. (C) No genetic information collected or acquired under this paragraph shall be used for underwriting purposes. (D) The plan notifies the Secretary in writing that the plan is conducting activities pursuant to the exception provided for under this paragraph, including a description of the activities conducted. (E) The plan complies with such other conditions as the Secretary may by regulation require for activities conducted under this paragraph. (d) Prohibition on collection of genetic information (1) In general A group health plan shall not request, require, or purchase genetic information for underwriting purposes (as defined in section 9832). (2) Prohibition on collection of genetic information prior to enrollment A group health plan shall not request, require, or purchase genetic information with respect to any individual prior to such individuals enrollment under the plan or in connection with such enrollment. (3) Incidental collection If a group health plan obtains genetic information incidental to the requesting, requiring, or purchasing of other information concerning any individual, such request, requirement, or

purchase shall not be considered a violation of paragraph (2) if such request, requirement, or purchase is not in violation of paragraph (1). (e) Application to all plans The provisions of subsections (a)(1)(F), (b)(3), (c), and (d) and subsection (b)(1) and section 9801 with respect to genetic information, shall apply to group health plans without regard to section 9831 (a)(2). (f) 1 Special rules for church plans A church plan (as defined in section 414 (e)) shall not be treated as failing to meet the requirements of this section solely because such plan requires evidence of good health for coverage of (1) both any employee of an employer with 10 or less employees (determined without regard to section 414 (e)(3)(C)) and any self-employed individual, or (2) any individual who enrolls after the first 90 days of initial eligibility under the plan. This subsection shall apply to a plan for any year only if the plan included the provisions described in the preceding sentence on July 15, 1997, and at all times thereafter before the beginning of such year. (f) 1 Genetic information of a fetus or embryo Any reference in this chapter to genetic information concerning an individual or family member of an individual shall (1) with respect to such an individual or family member of an individual who is a pregnant woman, include genetic information of any fetus carried by such pregnant woman; and (2) with respect to an individual or family member utilizing an assisted reproductive technology, include genetic information of any embryo legally held by the individual or family member.

[1] So in original. Two subsecs. (f) have been enacted.

9803. Guaranteed renewability in multiemployer plans and certain multiple employer welfare arrangements
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(a) In general A group health plan which is a multiemployer plan (as defined in section 414(f)) or which is a multiple employer welfare arrangement may not deny an employer continued access to the same or different coverage under such plan, other than (1) for nonpayment of contributions; (2) for fraud or other intentional misrepresentation of material fact by the employer; (3) for noncompliance with material plan provisions; (4) because the plan is ceasing to offer any coverage in a geographic area; (5) in the case of a plan that offers benefits through a network plan, because there is no longer any individual enrolled through the employer who lives, resides, or works in the service area of the network plan and the plan applies this paragraph uniformly without regard to the claims experience of employers or a factor described in section 9802 (a)(1) in relation to such individuals or their dependents; or (6) for failure to meet the terms of an applicable collective bargaining agreement, to renew a collective bargaining or other agreement requiring or authorizing contributions to the plan, or to employ employees covered by such an agreement. (b) Multiple employer welfare arrangement For purposes of subsection (a), the term multiple employer welfare arrangement has the meaning given such term by section 3(40) of the Employee Retirement Income Security Act of 1974, as in effect on the date of the enactment of this section.

 9804. Renumbered 9831]

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9805. Renumbered 9832]

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9806. Renumbered 9833]

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Subchapter BOther Requirements

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9811. Standards relating to benefits for mothers and newborns 9812. Parity in mental health and substance use disorder benefits 9813. Coverage of dependent students on medically necessary leave of absence

9811. Standards relating to benefits for mothers and newborns

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(a) Requirements for minimum hospital stay following birth (1) In general A group health plan may not (A) except as provided in paragraph (2) (i) restrict benefits for any hospital length of stay in connection with childbirth for the mother or newborn child, following a normal vaginal delivery, to less than 48 hours, or (ii) restrict benefits for any hospital length of stay in connection with childbirth for the mother or newborn child, following a caesarean section, to less than 96 hours; or (B) require that a provider obtain authorization from the plan or the issuer for prescribing any length of stay required under subparagraph (A) (without regard to paragraph (2)). (2) Exception Paragraph (1)(A) shall not apply in connection with any group health plan in any case in which the decision to discharge the mother or her newborn child prior to the expiration of the minimum length of stay otherwise required under paragraph (1)(A) is made by an attending provider in consultation with the mother. (b) Prohibitions A group health plan may not (1) deny to the mother or her newborn child eligibility, or continued eligibility, to enroll or to renew coverage under the terms of the plan, solely for the purpose of avoiding the requirements of this section; (2) provide monetary payments or rebates to mothers to encourage such mothers to accept less than the minimum protections available under this section;

(3) penalize or otherwise reduce or limit the reimbursement of an attending provider because such provider provided care to an individual participant or beneficiary in accordance with this section; (4) provide incentives (monetary or otherwise) to an attending provider to induce such provider to provide care to an individual participant or beneficiary in a manner inconsistent with this section; or (5) subject to subsection (c)(3), restrict benefits for any portion of a period within a hospital length of stay required under subsection (a) in a manner which is less favorable than the benefits provided for any preceding portion of such stay. (c) Rules of construction (1) Nothing in this section shall be construed to require a mother who is a participant or beneficiary (A) to give birth in a hospital; or (B) to stay in the hospital for a fixed period of time following the birth of her child. (2) This section shall not apply with respect to any group health plan which does not provide benefits for hospital lengths of stay in connection with childbirth for a mother or her newborn child. (3) Nothing in this section shall be construed as preventing a group health plan from imposing deductibles, coinsurance, or other cost-sharing in relation to benefits for hospital lengths of stay in connection with childbirth for a mother or newborn child under the plan, except that such coinsurance or other cost-sharing for any portion of a period within a hospital length of stay required under subsection (a) may not be greater than such coinsurance or cost-sharing for any preceding portion of such stay. (d) Level and type of reimbursements Nothing in this section shall be construed to prevent a group health plan from negotiating the level and type of reimbursement with a provider for care provided in accordance with this section. (e) Preemption; exception for health insurance coverage in certain States The requirements of this section shall not apply with respect to health insurance coverage if there is a State law (including a decision, rule, regulation, or other State action having the effect of law) for a State that regulates such coverage that is described in any of the following paragraphs: (1) Such State law requires such coverage to provide for at least a 48-hour hospital length of stay following a normal vaginal delivery and at least a 96-hour hospital length of stay following a caesarean section. (2) Such State law requires such coverage to provide for maternity and pediatric care in accordance with guidelines established by the American College of Obstetricians and Gynecologists, the American Academy of Pediatrics, or other established professional medical associations. (3) Such State law requires, in connection with such coverage for maternity care, that the hospital length of stay for such care is left to the decision of (or required to be made by) the attending provider in consultation with the mother.

9812. Parity in mental health and substance use disorder benefits

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(a) In general (1) Aggregate lifetime limits In the case of a group health plan that provides both medical and surgical benefits and mental health or substance use disorder benefits (A) No lifetime limit If the plan does not include an aggregate lifetime limit on substantially all medical and surgical benefits, the plan may not impose any aggregate lifetime limit on mental health or substance use disorder benefits. (B) Lifetime limit

If the plan includes an aggregate lifetime limit on substantially all medical and surgical benefits (in this paragraph referred to as the applicable lifetime limit), the plan shall either (i) apply the applicable lifetime limit both to the medical and surgical benefits to which it otherwise would apply and to mental health and substance use disorder benefits and not distinguish in the application of such limit between such medical and surgical benefits and mental health and substance use disorder benefits; or (ii) not include any aggregate lifetime limit on mental health or substance use disorder benefits that is less than the applicable lifetime limit. (C) Rule in case of different limits In the case of a plan that is not described in subparagraph (A) or (B) and that includes no or different aggregate lifetime limits on different categories of medical and surgical benefits, the Secretary shall establish rules under which subparagraph (B) is applied to such plan with respect to mental health and substance use disorder benefits by substituting for the applicable lifetime limit an average aggregate lifetime limit that is computed taking into account the weighted average of the aggregate lifetime limits applicable to such categories. (2) Annual limits In the case of a group health plan that provides both medical and surgical benefits and mental health or substance use disorder benefits (A) No annual limit If the plan does not include an annual limit on substantially all medical and surgical benefits, the plan may not impose any annual limit on mental health or substance use disorder benefits. (B) Annual limit If the plan includes an annual limit on substantially all medical and surgical benefits (in this paragraph referred to as the applicable annual limit), the plan shall either (i) apply the applicable annual limit both to medical and surgical benefits to which it otherwise would apply and to mental health and substance use disorder benefits and not distinguish in the application of such limit between such medical and surgical benefits and mental health and substance use disorder benefits; or (ii) not include any annual limit on mental health or substance use disorder benefits that is less than the applicable annual limit. (C) Rule in case of different limits In the case of a plan that is not described in subparagraph (A) or (B) and that includes no or different annual limits on different categories of medical and surgical benefits, the Secretary shall establish rules under which subparagraph (B) is applied to such plan with respect to mental health and substance use disorder benefits by substituting for the applicable annual limit an average annual limit that is computed taking into account the weighted average of the annual limits applicable to such categories. (3) Financial requirements and treatment limitations (A) In general In the case of a group health plan that provides both medical and surgical benefits and mental health or substance use disorder benefits, such plan shall ensure that (i) the financial requirements applicable to such mental health or substance use disorder benefits are no more restrictive than the predominant financial requirements applied to substantially all medical and surgical benefits covered by the plan, and there are no separate cost sharing requirements that are applicable only with respect to mental health or substance use disorder benefits; and (ii) the treatment limitations applicable to such mental health or substance use disorder benefits are no more restrictive than the predominant treatment limitations applied to substantially all medical and surgical benefits covered by the plan and there are no separate treatment limitations that are applicable only with respect to mental health or substance use disorder benefits. (B) Definitions In this paragraph: (i) Financial requirement The term financial requirement includes deductibles, copayments, coinsurance, and out-of-pocket expenses, but excludes an aggregate lifetime limit and an annual limit subject to paragraphs (1) and (2),[1]

(ii) Predominant A financial requirement or treatment limit is considered to be predominant if it is the most common or frequent of such type of limit or requirement. (iii) Treatment limitation The term treatment limitation includes limits on the frequency of treatment, number of visits, days of coverage, or other similar limits on the scope or duration of treatment. (4) Availability of plan information The criteria for medical necessity determinations made under the plan with respect to mental health or substance use disorder benefits shall be made available by the plan administrator in accordance with regulations to any current or potential participant, beneficiary, or contracting provider upon request. The reason for any denial under the plan of reimbursement or payment for services with respect to mental health or substance use disorder benefits in the case of any participant or beneficiary shall, on request or as otherwise required, be made available by the plan administrator to the participant or beneficiary in accordance with regulations. (5) Out-of-network providers In the case of a plan that provides both medical and surgical benefits and mental health or substance use disorder benefits, if the plan provides coverage for medical or surgical benefits provided by out-of-network providers, the plan shall provide coverage for mental health or substance use disorder benefits provided by out-of-network providers in a manner that is consistent with the requirements of this section. (b) Construction Nothing in this section shall be construed (1) as requiring a group health plan to provide any mental health or substance use disorder benefits; or (2) in the case of a group health plan that provides mental health or substance use disorder benefits, as affecting the terms and conditions of the plan relating to such benefits under the plan, except as provided in subsection (a). (c) Exemptions (1) Small employer exemption (A) In general This section shall not apply to any group health plan for any plan year of a small employer. (B) Small employer For purposes of subparagraph (A), the term small employer means, with respect to a calendar year and a plan year, an employer who employed an average of at least 2 (or 1 in the case of an employer residing in a State that permits small groups to include a single individual) but not more than 50 employees on business days during the preceding calendar year. For purposes of the preceding sentence, all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as 1 employer and rules similar to rules of subparagraphs (B) and (C) of section 4980D(d)(2) shall apply. (2) Cost exemption (A) In general With respect to a group health plan, if the application of this section to such plan results in an increase for the plan year involved of the actual total costs of coverage with respect to medical and surgical benefits and mental health and substance use disorder benefits under the plan (as determined and certified under subparagraph (C)) by an amount that exceeds the applicable percentage described in subparagraph (B) of the actual total plan costs, the provisions of this section shall not apply to such plan during the following plan year, and such exemption shall apply to the plan for 1 plan year. An employer may elect to continue to apply mental health and substance use disorder parity pursuant to this section with respect to the group health plan involved regardless of any increase in total costs. (B) Applicable percentage With respect to a plan, the applicable percentage described in this subparagraph shall be (i) 2 percent in the case of the first plan year in which this section is applied; and (ii) 1 percent in the case of each subsequent plan year. (C) Determinations by actuaries Determinations as to increases in actual costs under a plan for purposes of this section shall be made and certified by a qualified and licensed actuary who is a member in good standing of the American Academy of Actuaries. All such determinations shall be in a written report

prepared by the actuary. The report, and all underlying documentation relied upon by the actuary, shall be maintained by the group health plan for a period of 6 years following the notification made under subparagraph (E). (D) 6-month determinations If a group health plan seeks an exemption under this paragraph, determinations under subparagraph (A) shall be made after such plan has complied with this section for the first 6 months of the plan year involved. (E) Notification (i) In general A group health plan that, based upon a certification described under subparagraph (C), qualifies for an exemption under this paragraph, and elects to implement the exemption, shall promptly notify the Secretary, the appropriate State agencies, and participants and beneficiaries in the plan of such election. (ii) Requirement A notification to the Secretary under clause (i) shall include (I) a description of the number of covered lives under the plan involved at the time of the notification, and as applicable, at the time of any prior election of the cost-exemption under this paragraph by such plan; (II) for both the plan year upon which a cost exemption is sought and the year prior, a description of the actual total costs of coverage with respect to medical and surgical benefits and mental health and substance use disorder benefits under the plan; and (III) for both the plan year upon which a cost exemption is sought and the year prior, the actual total costs of coverage with respect to mental health and substance use disorder benefits under the plan. (iii) Confidentiality A notification to the Secretary under clause (i) shall be confidential. The Secretary shall make available, upon request and on not more than an annual basis, an anonymous itemization of such notifications, that includes (I) a breakdown of States by the size and type of employers submitting such notification; and (II) a summary of the data received under clause (ii). (F) Audits by appropriate agencies To determine compliance with this paragraph, the Secretary may audit the books and records of a group health plan relating to an exemption, including any actuarial reports prepared pursuant to subparagraph (C), during the 6 year period following the notification of such exemption under subparagraph (E). A State agency receiving a notification under subparagraph (E) may also conduct such an audit with respect to an exemption covered by such notification. (d) Separate application to each option offered In the case of a group health plan that offers a participant or beneficiary two or more benefit package options under the plan, the requirements of this section shall be applied separately with respect to each such option. (e) Definitions For purposes of this section: (1) Aggregate lifetime limit The term aggregate lifetime limit means, with respect to benefits under a group health plan, a dollar limitation on the total amount that may be paid with respect to such benefits under the plan with respect to an individual or other coverage unit. (2) Annual limit The term annual limit means, with respect to benefits under a group health plan, a dollar limitation on the total amount of benefits that may be paid with respect to such benefits in a 12-month period under the plan with respect to an individual or other coverage unit. (3) Medical or surgical benefits The term medical or surgical benefits means benefits with respect to medical or surgical services, as defined under the terms of the plan, but does not include mental health or substance use disorder benefits. (4) Mental health benefits The term mental health benefits means benefits with respect to services for mental health conditions, as defined under the terms of the plan and in accordance with applicable Federal and State law. (5) Substance use disorder benefits

The term substance use disorder benefits means benefits with respect to services for substance use disorders, as defined under the terms of the plan and in accordance with applicable Federal and State law.

[1] So in original. The comma probably should be a period.

9813. Coverage of dependent students on medically necessary leave of absence

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(a) Medically necessary leave of absence In this section, the term medically necessary leave of absence means, with respect to a dependent child described in subsection (b)(2) in connection with a group health plan, a leave of absence of such child from a postsecondary educational institution (including an institution of higher education as defined in section 102 of the Higher Education Act of 1965), or any other change in enrollment of such child at such an institution, that (1) commences while such child is suffering from a serious illness or injury; (2) is medically necessary; and (3) causes such child to lose student status for purposes of coverage under the terms of the plan or coverage. (b) Requirement to continue coverage (1) In general In the case of a dependent child described in paragraph (2), a group health plan shall not terminate coverage of such child under such plan due to a medically necessary leave of absence before the date that is the earlier of (A) the date that is 1 year after the first day of the medically necessary leave of absence; or (B) the date on which such coverage would otherwise terminate under the terms of the plan. (2) Dependent child described A dependent child described in this paragraph is, with respect to a group health plan, a beneficiary under the plan who (A) is a dependent child, under the terms of the plan, of a participant or beneficiary under the plan; and (B) was enrolled in the plan, on the basis of being a student at a postsecondary educational institution (as described in subsection (a)), immediately before the first day of the medically necessary leave of absence involved. (3) Certification by physician Paragraph (1) shall apply to a group health plan only if the plan, or the issuer of health insurance coverage offered in connection with the plan, has received written certification by a treating physician of the dependent child which states that the child is suffering from a serious illness or injury and that the leave of absence (or other change of enrollment) described in subsection (a) is medically necessary. (c) Notice A group health plan shall include, with any notice regarding a requirement for certification of student status for coverage under the plan, a description of the terms of this section for continued coverage during medically necessary leaves of absence. Such description shall be in language which is understandable to the typical plan participant. (d) No change in benefits A dependent child whose benefits are continued under this section shall be entitled to the same benefits as if (during the medically necessary leave of absence) the child continued to be a covered student at the institution of higher education and was not on a medically necessary leave of absence. (e) Continued application in case of changed coverage If

(1) a dependent child of a participant or beneficiary is in a period of coverage under a group health plan, pursuant to a medically necessary leave of absence of the child described in subsection (b); (2) the manner in which the participant or beneficiary is covered under the plan changes, whether through a change in health insurance coverage or health insurance issuer, a change between health insurance coverage and self-insured coverage, or otherwise; and (3) the coverage as so changed continues to provide coverage of beneficiaries as dependent children, this section shall apply to coverage of the child under the changed coverage for the remainder of the period of the medically necessary leave of absence of the dependent child under the plan in the same manner as it would have applied if the changed coverage had been the previous coverage.

Subchapter CGeneral Provisions

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9831. General exceptions 9832. Definitions 9833. Regulations 9834. Enforcement

9831. General exceptions

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(a) Exception for certain plans The requirements of this chapter shall not apply to (1) any governmental plan, and (2) any group health plan for any plan year if, on the first day of such plan year, such plan has less than 2 participants who are current employees. (b) Exception for certain benefits The requirements of this chapter shall not apply to any group health plan in relation to its provision of excepted benefits described in section 9832 (c)(1). (c) Exception for certain benefits if certain conditions met (1) Limited, excepted benefits The requirements of this chapter shall not apply to any group health plan in relation to its provision of excepted benefits described in section 9832(c)(2) if the benefits (A) are provided under a separate policy, certificate, or contract of insurance; or (B) are otherwise not an integral part of the plan. (2) Noncoordinated, excepted benefits The requirements of this chapter shall not apply to any group health plan in relation to its provision of excepted benefits described in section 9832(c)(3) if all of the following conditions are met: (A) The benefits are provided under a separate policy, certificate, or contract of insurance. (B) There is no coordination between the provision of such benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor. (C) Such benefits are paid with respect to an event without regard to whether benefits are provided with respect to such an event under any group health plan maintained by the same plan sponsor. (3) Supplemental excepted benefits

The requirements of this chapter shall not apply to any group health plan in relation to its provision of excepted benefits described in section 9832(c)(4) if the benefits are provided under a separate policy, certificate, or contract of insurance.

9832. Definitions
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(a) Group health plan For purposes of this chapter, the term group health plan has the meaning given to such term by section 5000 (b)(1). (b) Definitions relating to health insurance For purposes of this chapter (1) Health insurance coverage (A) In general Except as provided in subparagraph (B), the term health insurance coverage means benefits consisting of medical care (provided directly, through insurance or reimbursement, or otherwise) under any hospital or medical service policy or certificate, hospital or medical service plan contract, or health maintenance organization contract offered by a health insurance issuer. (B) No application to certain excepted benefits In applying subparagraph (A), excepted benefits described in subsection (c)(1) shall not be treated as benefits consisting of medical care. (2) Health insurance issuer The term health insurance issuer means an insurance company, insurance service, or insurance organization (including a health maintenance organization, as defined in paragraph (3)) which is licensed to engage in the business of insurance in a State and which is subject to State law which regulates insurance (within the meaning of section 514(b)(2) of the Employee Retirement Income Security Act of 1974, as in effect on the date of the enactment of this section). Such term does not include a group health plan. (3) Health maintenance organization The term health maintenance organization means (A) a federally qualified health maintenance organization (as defined in section 1301(a) of the Public Health Service Act (42 U.S.C. 300e(a))), (B) an organization recognized under State law as a health maintenance organization, or (C) a similar organization regulated under State law for solvency in the same manner and to the same extent as such a health maintenance organization. (c) Excepted benefits For purposes of this chapter, the term excepted benefits means benefits under one or more (or any combination thereof) of the following: (1) Benefits not subject to requirements (A) Coverage only for accident, or disability income insurance, or any combination thereof. (B) Coverage issued as a supplement to liability insurance. (C) Liability insurance, including general liability insurance and automobile liability insurance. (D) Workers compensation or similar insurance. (E) Automobile medical payment insurance. (F) Credit-only insurance. (G) Coverage for on-site medical clinics. (H) Other similar insurance coverage, specified in regulations, under which benefits for medical care are secondary or incidental to other insurance benefits. (2) Benefits not subject to requirements if offered separately (A) Limited scope dental or vision benefits. (B) Benefits for long-term care, nursing home care, home health care, community-based care, or any combination thereof. (C) Such other similar, limited benefits as are specified in regulations. (3) Benefits not subject to requirements if offered as independent, noncoordinated benefits (A) Coverage only for a specified disease or illness.

(B) Hospital indemnity or other fixed indemnity insurance. (4) Benefits not subject to requirements if offered as separate insurance policy Medicare supplemental health insurance (as defined under section 1882(g)(1) of the Social Security Act), coverage supplemental to the coverage provided under chapter 55 of title 10, United States Code, and similar supplemental coverage provided to coverage under a group health plan. (d) Other definitions For purposes of this chapter (1) COBRA continuation provision The term COBRA continuation provision means any of the following: (A) Section 4980B, other than subsection (f)(1) thereof insofar as it relates to pediatric vaccines. (B) Part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1161 et seq.), other than section 609 of such Act. (C) Title XXII of the Public Health Service Act. (2) Governmental plan The term governmental plan has the meaning given such term by section 414 (d). (3) Medical care The term medical care has the meaning given such term by section 213(d) determined without regard to (A) paragraph (1)(C) thereof, and (B) so much of paragraph (1)(D) thereof as relates to qualified long-term care insurance. (4) Network plan The term network plan means health insurance coverage of a health insurance issuer under which the financing and delivery of medical care are provided, in whole or in part, through a defined set of providers under contract with the issuer. (5) Placed for adoption defined The term placement, or being placed, for adoption, in connection with any placement for adoption of a child with any person, means the assumption and retention by such person of a legal obligation for total or partial support of such child in anticipation of adoption of such child. The childs placement with such person terminates upon the termination of such legal obligation. (6) Family member The term family member means, with respect to any individual (A) a dependent (as such term is used for purposes of section 9801(f)(2)) of such individual, and (B) any other individual who is a first-degree, second-degree, third-degree, or fourth-degree relative of such individual or of an individual described in subparagraph (A). (7) Genetic information (A) In general The term genetic information means, with respect to any individual, information about (i) such individuals genetic tests, (ii) the genetic tests of family members of such individual, and (iii) the manifestation of a disease or disorder in family members of such individual. (B) Inclusion of genetic services and participation in genetic research Such term includes, with respect to any individual, any request for, or receipt of, genetic services, or participation in clinical research which includes genetic services, by such individual or any family member of such individual. (C) Exclusions The term genetic information shall not include information about the sex or age of any individual. (8) Genetic test (A) In general The term genetic test means an analysis of human DNA, RNA, chromosomes, proteins, or metabolites, that detects genotypes, mutations, or chromosomal changes. (B) Exceptions The term genetic test does not mean

(i) an analysis of proteins or metabolites that does not detect genotypes, mutations, or chromosomal changes, or (ii) an analysis of proteins or metabolites that is directly related to a manifested disease, disorder, or pathological condition that could reasonably be detected by a health care professional with appropriate training and expertise in the field of medicine involved. (9) Genetic services The term genetic services means (A) a genetic test; (B) genetic counseling (including obtaining, interpreting, or assessing genetic information); or (C) genetic education. (10) Underwriting purposes The term underwriting purposes means, with respect to any group health plan, or health insurance coverage offered in connection with a group health plan (A) rules for, or determination of, eligibility (including enrollment and continued eligibility) for benefits under the plan or coverage; (B) the computation of premium or contribution amounts under the plan or coverage; (C) the application of any pre-existing condition exclusion under the plan or coverage; and (D) other activities related to the creation, renewal, or replacement of a contract of health insurance or health benefits.

9833. Regulations
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The Secretary, consistent with section 104 of the Health Care Portability and Accountability Act of 1996, may promulgate such regulations as may be necessary or appropriate to carry out the provisions of this chapter. The Secretary may promulgate any interim final rules as the Secretary determines are appropriate to carry out this chapter.

9834. Enforcement
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For the imposition of tax on any failure of a group health plan to meet the requirements of this chapter, see section 4980D.