text: SECTION 1. PRIORITY OF CLAIMS FOR RETIREE HEALTH BENEFITS.
  
      (a) Definition.--Section 101 of title 11, United States Code, is 
  amended--
              (1) by redesignating paragraphs (4) through (12A) as 
          paragraphs (3) through (12), respectively,
              (2) by redesignating paragraphs (48) through (55) as 
          paragraphs (53) through (68), respectively,
              (3) by inserting after paragraph (47) the following:
              ``(52) `retiree health benefits' means payments to any 
          entity or person for the purpose of providing or reimbursing 
          payments for retired employees and their spouses and 
          dependents, for medical, surgical, or hospital care benefits 
          under any plan, fund, or program (through the purchase of 
          insurance or otherwise) maintained or established in whole or 
          in part by the debtor prior to filing a petition commencing a 
          case under this title;'', and
              (4) by redesignating paragraphs (21A) through (47) as 
          paragraphs (22) through (51), respectively,
      (b) Priority Under Chapter 7.--(1) Section 726(a)(1) of title 11, 
  United States Code, is amended to read as follows:
              ``(1) first--
                      ``(A) except as provided in subparagraph (B), in 
                  payment of claims of the kind specified in, and in the 
                  order specified in section 507 of this title, proof of 
                  which is timely filed under section 501 of this title 
                  or tardily filed before the date on which the trustee 
                  commences distribution under this section; and
                      ``(B) immediately after payment of claims of the 
                  kind specified in section 507(a)(4), in payment of 
                  allowed unsecured claims for retiree health benefits, 
                  but only to the extent of the aggregate amount that 
                  represents $10,000 multiplied by the number of former 
                  employees with respect to whom a retiree health benefit 
                  accrues;''.
      (2) Section 724(b)(2) of title 11, United States Code, is amended 
  by inserting ``, and to holders of claims for retiree health benefits 
  payable under section 726(a)(1)(B) of this title,'' after ``this 
  title''.
      (c) Priority Under Chapter 11.--Section 1129(a) of title 11, United 
  States Code, is amended--
              (1) in paragraph (9)--
                      (A) in subparagraph (B)--
                              (i) by inserting ``subject to subparagraph 
                          (D)'' after ``receive'', and
                              (ii) by striking ``and'' at the end,
                      (B) in subparagraph (C) by striking the period at 
                  the end and inserting ``; and'', and
                      (C) by adding at the end the following:
                      ``(D) if liquidation is proposed in the plan, with 
                  respect to a class of claims for retiree health 
                  benefits, such class will receive immediately after 
                  payment of claims of the kinds specified in paragraphs 
                  (1), (2), (3), and (4) of section 507(a) of this 
                  title--
                              ``(i) if such class has accepted the plan, 
                          deferred cash payments of a value, as of the 
                          effective date of the plan; or
                              ``(ii) if such class has not accepted the 
                          plan, cash on the effective date of the plan;
                  equal to the allowed aggregate amount of such claims, 
                  but only to the extent of the aggregate amount that 
                  represents $10,000 multiplied by the number of former 
                  employees with respect to whom a retiree health benefit 
                  accrues.'', and
              (2) by amending paragraph (13) to read as follows:
              ``(13) The plan provides--
                      ``(A) except as provided in subparagraph (B), for 
                  the continuation after its effective date of payment of 
                  all retiree benefits (as defined in section 1114 of 
                  this title) at the level established pursuant to 
                  subsection (e)(1)(B) or (g) of section 1114 of this 
                  title, at any time prior to confirmation of the plan, 
                  for the duration of the period the debtor has obligated 
                  itself to provide such benefits; and
                      ``(B) if the plan provides for liquidation, for the 
                  payment of allowed unsecured claims for retiree health 
                  benefits, but only to the extent of the aggregate 
                  amount that represents $10,000 multiplied by the number 
                  of former employees with respect to whom a retiree 
                  health benefit accrues.''.
  
  SEC. 2. RULE OF CONSTRUCTION.
  
      The amendments made by this Act shall not be construed to limit any 
  priority to which claims for retiree health benefits are entitled under 
  the provisions of title 11 of the United States Code that are not 
  amended by this Act.
  
  SEC. 3. EFFECTIVE DATES; APPLICATION OF AMENDMENTS.
  
      (a) Effective Date.--Except as provided in subsection (b), this Act 
  and the amendments made by section 1 shall take effect on the date of 
  the enactment of this Act.
      (b) Application of Amendments.--(1) Except as provided in paragraph 
  (2), the amendments made by section 1 shall apply only with respect to 
  cases commenced under title 11, United States Code, after the date of 
  the enactment of this Act.
      (2) The amendments made by section 1 shall apply with respect to--
              (A) cases commenced under chapter 11 of title 11, United 
          States Code, on or after March 1, 1989; and
              (B) cases converted from chapter 11 of title 11, United 
          States Code, to chapter 7 of such Code on or after September 1, 
          1991.
target: Amends Federal bankruptcy law to establish a payment priority for retiree health benefit claims, with an aggregate limitation of $10,000 multiplied by the relevant number of former employees.
feat_title: To amend title 11 of the United States Code to establish a priority for the payment of claims for retiree health benefits in liquidation cases under chapters 7 and 11.