Page:United States Statutes at Large Volume 120.djvu/3053

 120 STAT. 3022

26 USC 9711.

VerDate 14-DEC-2004

09:16 Jul 13, 2007

PUBLIC LAW 109–432—DEC. 20, 2006

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).’’. (b) INDIVIDUAL EMPLOYER PLANS.—Section 9711(c) of the Internal Revenue Code of 1986 (relating to joint and several liability) is amended to read as follows: ‘‘(c) JOINT AND SEVERAL LIABILITY OF RELATED PERSONS.— ‘‘(1) IN GENERAL.—Except as provided in 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 section 9704(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

Jkt 059194

PO 00003

Frm 00501

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL003.109

APPS06

PsN: PUBL003

�