II 

114TH CONGRESS 

1ST SESSION S. 844 

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

IN THE SENATE OF THE UNITED STATES 

MARCH 24, 2015 

Mr. MARKEY 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. REPEAL OF THE MEDICAL DEVICE EXCISE TAX. 

4 (a) IN GENERAL.—Chapter 32 of the Internal Rev5 enue Code of 1986 is amended by striking subchapter E. 

6 (b) CONFORMING AMENDMENTS.— 

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

8 is amended by striking the last sentence. 

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

10 Code is amended by striking the last sentence. 


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1 (c) CLERICAL AMENDMENT.—The table of sub2 chapters for chapter 32 of such Code is amended by strik3 ing the item related to subchapter E. 

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

5 this section shall apply to sales after December 31, 2014. 

6 SEC. 2. PROHIBITION ON USING LAST-IN, FIRST-OUT AC7 COUNTING FOR MAJOR INTEGRATED OIL 

8 COMPANIES. 

9 (a) IN GENERAL.—Section 472 of the Internal Rev10 enue Code of 1986 is amended by adding at the end the 

11 following new subsection: 

12 ‘‘(h) MAJOR INTEGRATED OIL COMPANIES.—Not13 withstanding any other provision of this section, a major 

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

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

16 inventorying of any goods.’’. 

17 (b) EFFECTIVE DATE AND SPECIAL RULE.— 

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

19 subsection (a) shall apply to taxable years beginning 

20 after December 31, 2014. 

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

22 the case of any taxpayer required by the amendment 

23 made by this section to change its method of ac24 counting for its first taxable year beginning after the 

25 date of the enactment of this Act— 


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1 (A) such change shall be treated as initi2 ated by the taxpayer, 

3 (B) such change shall be treated as made 

4 with the consent of the Secretary of the Treas5 ury, and 

6 (C) the net amount of the adjustments re7 quired to be taken into account by the taxpayer 

8 under section 481 of the Internal Revenue Code 

9 of 1986 shall be taken into account ratably over 

10 a period (not greater than 8 taxable years) be11 ginning with such first taxable year. 

12 SEC. 3. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER 

13 OF LEASES. 

14 (a) DEFINITIONS.—In this section: 

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

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

17 Gulf of Mexico that is— 

18 (A) in existence on the date of enactment 

19 of this Act; 

20 (B) issued by the Department of the Inte21 rior under section 304 of the Outer Continental 

22 Shelf Deep Water Royalty Relief Act (43 

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

24 (C) not subject to limitations on royalty re25 lief based on market price that are equal to or 


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1 less than the price thresholds described in 

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

3 the Outer Continental Shelf Lands Act (43 

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

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

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

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

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

9 the Secretary of the Interior. 

10 (b) ISSUANCE OF NEW LEASES.— 

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

12 issue any new lease that authorizes the production 

13 of oil or natural gas under the Outer Continental 

14 Shelf Lands Act (43 U.S.C. 1331 et seq.) to a per15 son described in paragraph (2) unless the person has 

16 renegotiated each covered lease with respect to which 

17 the person is a lessee to modify the payment respon18 sibilities of the person to require the payment of roy19 alties if the price of oil and natural gas is greater 

20 than or equal to the price thresholds described in 

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

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

23 1337(a)(3)(C)). 

24 (2) PERSONS DESCRIBED.—A person referred 

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


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1 (A) is a lessee that— 

2 (i) holds a covered lease on the date 

3 on which the Secretary considers the 

4 issuance of the new lease; or 

5 (ii) was issued a covered lease before 

6 the date of enactment of this Act, but 

7 transferred the covered lease to another 

8 person or entity (including a subsidiary or 

9 affiliate of the lessee) after the date of en10 actment of this Act; or 

11 (B) any other person that has any direct 

12 or indirect interest in, or that derives any ben13 efit from, a covered lease. 

14 (3) MULTIPLE LESSEES.— 

15 (A) IN GENERAL.—For purposes of para16 graph (1), if there are multiple lessees that own 

17 a share of a covered lease, the Secretary may 

18 implement separate agreements with any lessee 

19 with a share of the covered lease that modifies 

20 the payment responsibilities with respect to the 

21 share of the lessee to include price thresholds 

22 that are equal to or less than the price thresh23 olds described in clauses (v) through (vii) of 

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

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


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1 (B) TREATMENT OF SHARE AS COVERED

2 LEASE.—Beginning on the effective date of an 

3 agreement under subparagraph (A), any share 

4 subject to the agreement shall not constitute a 

5 covered lease with respect to any lessees that 

6 entered into the agreement. 

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

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

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

10 or other transfer (including through a swap, spinoff, serv11 icing, or other agreement) any covered lease, the economic 

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

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

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

15 1331 et seq.), unless the lessee or other person has— 

16 (1) renegotiated each covered lease with respect 

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

18 the payment responsibilities of the lessee or person 

19 to include price thresholds that are equal to or less 

20 than the price thresholds described in clauses (v) 

21 through (vii) of section 8(a)(3)(C) of the Outer Con22 tinental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); 

23 or 

24 (2) entered into an agreement with the Sec25 retary to modify the terms of all covered leases of 


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1 the lessee or other person to include limitations on 

2 royalty relief based on market prices that are equal 

3 to or less than the price thresholds described in 

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

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

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

7 (d) PRICE THRESHOLDS FOR ROYALTY SUSPENSION

8 PROVISIONS.— 

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

10 a request by any lessee to amend any lease issued 

11 for any Central and Western Gulf of Mexico tract 

12 during the period of January 1, 1996, through No13 vember 28, 2000, to incorporate price thresholds ap14 plicable to royalty suspension provisions, that are 

15 equal to or less than the price thresholds described 

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

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

18 1337(a)(3)(C)). 

19 (2) REQUIREMENT.— 

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

21 paragraph (1) shall impose the new or revised 

22 price thresholds effective January 1, 2015. 

23 (B) EXISTING LEASE PROVISIONS.—Exist24 ing lease provisions for a lease amended under 


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1 paragraph (1) shall prevail through December 

2 31, 2014. 

Æ 


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