II 

115TH CONGRESS 

2D SESSION S. 2287 

To repeal the medical device excise tax, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 10, 2018 

Mr. MARKEY (for himself and Ms. WARREN) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To repeal the medical device excise tax, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘No Taxation on Device 

5 Innovation Act’’. 

6 SEC. 2. REPEAL OF THE MEDICAL DEVICE EXCISE TAX. 

7 (a) IN GENERAL.—Chapter 32 of the Internal Rev8 enue Code of 1986 is amended by striking subchapter E. 

9 (b) CONFORMING AMENDMENTS.— 

10 (1) Subsection (a) of section 4221 of such Code 

11 is amended by striking the last sentence. 


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1 (2) Paragraph (2) of section 6416(b) of such 

2 Code is amended by striking the last sentence. 

3 (c) CLERICAL AMENDMENT.—The table of sub4 chapters for chapter 32 of such Code is amended by strik5 ing the item related to subchapter E. 

6 (d) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to sales after December 31, 2017. 

8 SEC. 3. PROHIBITION ON USING LAST-IN, FIRST-OUT AC9 COUNTING FOR MAJOR INTEGRATED OIL 

10 COMPANIES. 

11 (a) IN GENERAL.—Section 472 of the Internal Rev12 enue Code of 1986 is amended by adding at the end the 

13 following new subsection: 

14 ‘‘(h) MAJOR INTEGRATED OIL COMPANIES.—Not15 withstanding any other provision of this section, a major 

16 integrated oil company (as defined in section 167(h)) may 

17 not use the method provided in subsection (b) in 

18 inventorying of any goods.’’. 

19 (b) EFFECTIVE DATE AND SPECIAL RULE.— 

20 (1) IN GENERAL.—The amendment made by 

21 subsection (a) shall apply to taxable years beginning 

22 after December 31, 2017. 

23 (2) CHANGE IN METHOD OF ACCOUNTING.—In 

24 the case of any taxpayer required by the amendment 

25 made by this section to change its method of acVerDate Sep 11 2014 03:17 Jan 11, 2018 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2287.IS S2287

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1 counting for its first taxable year beginning after the 

2 date of the enactment of this Act— 

3 (A) such change shall be treated as initi4 ated by the taxpayer; 

5 (B) such change shall be treated as made 

6 with the consent of the Secretary of the Treas7 ury; and 

8 (C) the net amount of the adjustments re9 quired to be taken into account by the taxpayer 

10 under section 481 of the Internal Revenue Code 

11 of 1986 shall be taken into account ratably over 

12 a period (not greater than 8 taxable years) be13 ginning with such first taxable year. 

14 SEC. 4. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER 

15 OF LEASES. 

16 (a) DEFINITIONS.—In this section: 

17 (1) COVERED LEASE.—The term ‘‘covered 

18 lease’’ means a lease for oil or gas production in the 

19 Gulf of Mexico that is— 

20 (A) in existence on the date of enactment 

21 of this Act; 

22 (B) issued by the Department of the Inte23 rior under section 304 of the Outer Continental 

24 Shelf Deep Water Royalty Relief Act (43 

25 U.S.C. 1337 note; Public Law 104–58); and 


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1 (C) not subject to limitations on royalty re2 lief based on market price that are equal to or 

3 less than the price thresholds described in 

4 clauses (v) through (vii) of section 8(a)(3)(C) of 

5 the Outer Continental Shelf Lands Act (43 

6 U.S.C. 1337(a)(3)(C)). 

7 (2) LESSEE.—The term ‘‘lessee’’ includes any 

8 person or other entity that controls, is controlled by, 

9 or is in or under common control with, a lessee. 

10 (3) SECRETARY.—The term ‘‘Secretary’’ means 

11 the Secretary of the Interior. 

12 (b) ISSUANCE OF NEW LEASES.— 

13 (1) IN GENERAL.—The Secretary shall not 

14 issue any new lease that authorizes the production 

15 of oil or natural gas under the Outer Continental 

16 Shelf Lands Act (43 U.S.C. 1331 et seq.) to a per17 son described in paragraph (2) unless the person has 

18 renegotiated each covered lease with respect to which 

19 the person is a lessee to modify the payment respon20 sibilities of the person to require the payment of roy21 alties if the price of oil and natural gas is greater 

22 than or equal to the price thresholds described in 

23 clauses (v) through (vii) of section 8(a)(3)(C) of the 

24 Outer Continental Shelf Lands Act (43 U.S.C. 

25 1337(a)(3)(C)). 


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1 (2) PERSONS DESCRIBED.—A person referred 

2 to in paragraph (1) is a person that— 

3 (A) is a lessee that— 

4 (i) holds a covered lease on the date 

5 on which the Secretary considers the 

6 issuance of the new lease; or 

7 (ii) was issued a covered lease before 

8 the date of enactment of this Act, but 

9 transferred the covered lease to another 

10 person or entity (including a subsidiary or 

11 affiliate of the lessee) after the date of en12 actment of this Act; or 

13 (B) any other person that has any direct 

14 or indirect interest in, or that derives any ben15 efit from, a covered lease. 

16 (3) MULTIPLE LESSEES.— 

17 (A) IN GENERAL.—For purposes of para18 graph (1), if there are multiple lessees that own 

19 a share of a covered lease, the Secretary may 

20 implement separate agreements with any lessee 

21 with a share of the covered lease that modifies 

22 the payment responsibilities with respect to the 

23 share of the lessee to include price thresholds 

24 that are equal to or less than the price thresh25 olds described in clauses (v) through (vii) of 


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1 section 8(a)(3)(C) of the Outer Continental 

2 Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). 

3 (B) TREATMENT OF SHARE AS COVERED

4 LEASE.—Beginning on the effective date of an 

5 agreement under subparagraph (A), any share 

6 subject to the agreement shall not constitute a 

7 covered lease with respect to any lessees that 

8 entered into the agreement. 

9 (c) TRANSFERS.—A lessee or any other person who 

10 has any direct or indirect interest in, or who derives a 

11 benefit from, a lease shall not be eligible to obtain by sale 

12 or other transfer (including through a swap, spinoff, serv13 icing, or other agreement) any covered lease, the economic 

14 benefit of any covered lease, or any other lease for the 

15 production of oil or natural gas in the Gulf of Mexico 

16 under the Outer Continental Shelf Lands Act (43 U.S.C. 

17 1331 et seq.), unless the lessee or other person has— 

18 (1) renegotiated each covered lease with respect 

19 to which the lessee or person is a lessee, to modify 

20 the payment responsibilities of the lessee or person 

21 to include price thresholds that are equal to or less 

22 than the price thresholds described in clauses (v) 

23 through (vii) of section 8(a)(3)(C) of the Outer Con24 tinental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); 

25 or 


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1 (2) entered into an agreement with the Sec2 retary to modify the terms of all covered leases of 

3 the lessee or other person to include limitations on 

4 royalty relief based on market prices that are equal 

5 to or less than the price thresholds described in 

6 clauses (v) through (vii) of section 8(a)(3)(C) of the 

7 Outer Continental Shelf Lands Act (43 U.S.C. 

8 1337(a)(3)(C)). 

9 (d) PRICE THRESHOLDS FOR ROYALTY SUSPENSION

10 PROVISIONS.— 

11 (1) IN GENERAL.—The Secretary shall agree to 

12 a request by any lessee to amend any lease issued 

13 for any Central and Western Gulf of Mexico tract 

14 during the period of January 1, 1996, through No15 vember 28, 2000, to incorporate price thresholds ap16 plicable to royalty suspension provisions, that are 

17 equal to or less than the price thresholds described 

18 in clauses (v) through (vii) of section 8(a)(3)(C) of 

19 the Outer Continental Shelf Lands Act (43 U.S.C. 

20 1337(a)(3)(C)). 

21 (2) REQUIREMENT.— 

22 (A) IN GENERAL.—A lease amended under 

23 paragraph (1) shall impose the new or revised 

24 price thresholds effective January 1, 2018. 


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1 (B) EXISTING LEASE PROVISIONS.—Exist2 ing lease provisions for a lease amended under 

3 paragraph (1) shall prevail through December 

4 31, 2017. 

Æ 


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