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SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Invest in Energy Security Act''.

SEC. 2. STRATEGIC PETROLEUM RESERVE.

    (a) Petroleum Acquisition for the Strategic Petroleum Reserve.--
Section 301(e)(1) of the Energy Policy Act of 2005 (42 U.S.C. 6240 
note) is amended to read as follows:
            ``(1) In general.--The Secretary shall, as expeditiously as 
        practical, without incurring excessive cost or appreciably 
        affecting the price of petroleum products to consumers, acquire 
        petroleum in quantities sufficient to fill the available 
        capacity of the Strategic Petroleum Reserve, subject to the 
        following limitations:
                    ``(A) Suspension of royalty-in-kind transfers to 
                the strategic petroleum reserve.--No later than 
                September 30, 2008, the Secretary shall sell 13,000,000 
                barrels of petroleum received under the royalty-in-kind 
                program. Beginning October 1, 2008, the Secretary shall 
                suspend acquisition of petroleum for the Strategic 
                Petroleum Reserve under the Royalty-In-Kind program, 
                subject to resumption as provided in subparagraph (B).
                    ``(B) Resumption of petroleum acquisition for the 
                strategic petroleum reserve.--The Secretary may resume 
                acquisition of petroleum for the Strategic Petroleum 
                Reserve 30 days after notification to Congress that--
                            ``(i)(I) the Secretary projects that the 
                        United States will fall short of its 
                        commitments under the International Energy 
                        Program within a period of 24 months from the 
                        date of the projection; or
                            ``(II) the weighted average price of 
                        petroleum for the most recent 90 day period is 
                        at least 25 percent less than the 24-month 
                        historical average price; and
                            ``(ii) that resumption of Strategic 
                        Petroleum Reserve fill will not have an 
                        appreciable effect on the price of petroleum 
                        products to consumers within the following 12-
                        month period after the resumption of 
                        acquisition.
                    ``(C) Future suspension of strategic petroleum 
                reserve petroleum acquisition.--During any period in 
                which the Secretary is acquiring petroleum for the 
                Strategic Petroleum Reserve, the Secretary shall 
                suspend acquisition activities if--
                            ``(i) the monthly weighted average price of 
                        petroleum increases by more than 20 percent 
                        over any period of 6 months or less; or
                            ``(ii) the Secretary determines that 
                        continued Strategic Petroleum Reserve fill may 
                        have an appreciable impact on prices of 
                        petroleum products in future months.''.
    (b) Revised Procedures.--No later than 60 days after the date of 
the enactment of this section, the Secretary shall publish revised 
procedures under section 301(e)(2) of the Energy Policy Act of 2005 
consistent with the provisions contained in the amendment made by 
subsection (a).

SEC. 3. ENERGY INDEPENDENCE AND SECURITY FUND.

    (a) Establishment.--There is hereby established in the Treasury of 
the United States the ``Energy Independence and Security Fund'' 
(hereinafter in this section referred to as ``the Fund'').
    (b) Administration.--The Secretary of Energy shall be responsible 
for administering the Fund for the purpose of carrying out this 
section.
    (c) Deposits.--All proceeds from sales of petroleum from the 
Strategic Petroleum Reserve, as authorized in section 301(e)(1) of the 
Energy Policy Act of 2005 (as amended by section 2 of this Act), after 
deduction of the direct administrative costs associated with such 
sales, shall be deposited in the Fund.
    (d) Distribution of Funds.--The Secretary shall make available for 
obligation, without further appropriation and without fiscal year 
limitation, the following amounts from the Fund:
            (1) Advanced research projects agency--energy.--For fiscal 
        year 2008, the Secretary shall transfer $100,000,000 to the 
        ``Energy Transformation Acceleration Fund'', as authorized in 
        section 5012(m) of the America COMPETES Act (42 U.S.C. 
        16538(m)), to remain available until expended. Of the funds 
        transferred, the Secretary shall further allocate the amounts 
        made available for obligation as follows:
                    (A) $50,000,000 shall be available for university-
                based research projects.
                    (B) $10,000,000 shall be available for program 
                direction expenses.
            (2) Rural wind energy.--For fiscal year 2008, the Secretary 
        shall transfer $15,000,000 to the account ``Energy Efficiency 
        and Renewable Energy'', to remain available until expended, for 
        necessary expenses for a program to support the development of 
        infrastructure necessary for deployment of wind energy systems 
        in rural areas, as authorized in section 931(f)(1) of the 
        Energy Policy Act of 2005 (42 U.S.C. 16231(f)(1)).
            (3) Solar energy research and development.--For fiscal year 
        2008, the Secretary shall transfer $30,000,000 to the account 
        ``Energy Efficiency and Renewable Energy'', to remain available 
        until expended, for necessary expenses for a program to 
        accelerate the research, development, demonstration, and 
        deployment of solar energy technologies, as authorized by 
        section 931(a)(2)(A) of the Energy Policy Act of 2005 (42 
        U.S.C. 16231(a)(2)(A)).
            (4) Low income weatherization.--For fiscal year 2008, the 
        Secretary shall transfer $100,000,000 to the account 
        ``Weatherization Assistance Program'', to remain available 
        until expended, for necessary expenses for a program to 
        weatherize low income housing, as authorized by section 411 of 
        the Energy Independence and Security Act of 2007 (Public Law 
        110-140).
            (5) Marine and hydrokinetic renewable electric energy.--For 
        fiscal year 2008, the Secretary shall transfer $30,000,000 to 
        the account ``Energy Efficiency and Renewable Energy'', to 
        remain available until expended, for necessary expenses for a 
        program to accelerate the research, development, demonstration, 
        and deployment of ocean and wave energy, including hydrokinetic 
        renewable energy, as authorized by section 931 of the Energy 
        Policy Act of 2005 (42 U.S.C. 16231) and section 636 of the 
        Energy Independence and Security Act of 2007 (Public Law 110-
        140).
            (6) Industrial energy efficiency research and 
        development.--For fiscal year 2008, the Secretary shall 
        transfer $110,000,000 to the account ``Energy Efficiency and 
        Renewable Energy'', to remain available until expended, for 
        necessary expenses for a program to accelerate the research, 
        development, demonstration, and deployment of new technologies 
        to improve the energy efficiency and reduce greenhouse gas 
        emissions from industrial processes, as authorized in section 
        911(a)(2)(C) of the Energy Policy Act of 2005 (42 U.S.C. 
        16191(a)(2)(C)) and in section 452 of the Energy Independence 
        and Security Act of 2007 (Public Law 110-140).
            (7) Building energy efficiency research and development.--
        For fiscal year 2008, the Secretary shall transfer $70,000,000 
        to the account ``Energy Efficiency and Renewable Energy'', to 
        remain available until expended, for necessary expenses for a 
        program to accelerate the research, development, demonstration, 
        and deployment of new technologies to improve the energy 
        efficiency and reduce greenhouse gas emissions from buildings, 
        as authorized in section 422 of the Energy Independence and 
        Security Act of 2007 (Public Law 110-140).
            (8) Energy storage for transportation and electric power 
        applications.--For fiscal year 2008, the Secretary shall 
        transfer $30,000,000 to the account ``Energy Efficiency and 
        Renewable Energy'', to remain available until expended, for 
        necessary expenses for a program to accelerate the research, 
        development, demonstration, and deployment of new materials for 
        improving the energy efficiency of transportation, electric 
        power and other technologies, as authorized by section 641 of 
        the Energy Independence and Security Act of 2007 (Public Law 
        110-140).
            (9) Geothermal energy development.--(A) For fiscal year 
        2008, the Secretary shall transfer $30,000,000 to the account 
        ``Energy Efficiency and Renewable Energy'', to remain available 
        until expended, for necessary expenses for a program for 
        geothermal research and development activities to be managed by 
        the National Renewable Energy Laboratory, as authorized by 
        section 931(a)(2)(C) of the Energy Policy Act of 2005 (42 
        U.S.C. 16231(a)(2)(C)); and
            (B) For fiscal year 2008, the Secretary shall transfer 
        $30,000,000 to the account ``Fossil Energy Research and 
        Development'', to remain available until expended, for 
        necessary expenses for a program of advanced geothermal 
        drilling and resource characterization to be managed by the 
        National Energy Technology Laboratory.
            (10) Carbon capture and storage.--For fiscal year 2008, the 
        Secretary shall transfer $385,000,000 to the account ``Fossil 
        Energy Research and Development'', to remain available until 
        expended, for necessary expenses for a program of demonstration 
        projects of carbon capture and storage, as authorized by 
        sections 702 and 703 of the Energy Independence and Security 
        Act of 2007 (Public Law 110-140). Notwithstanding any other 
        provision of law, one of the demonstration projects shall be a 
        component of the FutureGen project.
            (11) Nonconventional domestic natural gas and petroleum 
        production and environmental research.--
                    (A) For fiscal year 2008, the Secretary shall 
                transfer $50,000,000 to the ``Ultra-Deepwater and 
                Unconventional Natural Gas and Other Petroleum Research 
                Fund'', to remain available until expended, as 
                authorized by section 999H(e) of the Energy Policy Act 
                of 2005 (42 U.S.C. 16378(e)).
                    (B) For fiscal year 2008, the Secretary shall 
                transfer $15,000,000 to the account ``Fossil Energy 
                Research and Development'', to remain available until 
                expended, for necessary expenses for a program of 
                environmental research in support of small producers of 
                domestic petroleum and natural gas, for regulatory 
                analysis and for support for the stripper well 
                consortium.
            (12) Hydrogen research and development.--For fiscal year 
        2008, the Secretary shall transfer $5,000,000 to the account 
        ``Energy Efficiency and Renewable Energy'', to remain available 
        until expended, for necessary expenses for the Department's H-
        Prize Program, as authorized by section 654 of the Energy 
        Independence and Security Act of 2007 (Public Law 110-140).
    (e) Amendments.--(1) Section 999F of the Energy Policy Act of 2005 
(42 U.S.C. 16376) is amended by striking ``2014'' and inserting 
``2017''.
    (2) Section 999B(e) of that Act (42 U.S.C.16372(e)) is amended by 
striking paragraph (3) and inserting the following:
            ``(3) Publication.--The Secretary shall publish in the 
        Federal Register the annual plan, along with any written 
        comments received under paragraph (2)(A) and (B).''.
    (3) Section 999H(b) of that Act (42 U.S.C.16378(b)) is amended by 
inserting ``, and shall be exempt from subchapter II of chapter 15 of 
title 31, United States Code'' after ``available until expended''.
    (f) Transfer Procedures.--The Secretary shall make an initial 
transfer from the Fund no later than 30 days after the initial deposit 
of monies into the Fund. The Secretary shall make additional transfers 
no later than 30 days after subsequent deposits, until the full amounts 
authorized for fiscal 2008 have been transferred. To the extent that 
any transfer in fiscal 2008 is less than the authorized total, the 
transfers shall be made on a pro rata basis.
    (g) Management and Oversight.--
            (1) Additionality of fiscal year 2008 transfers.--All 
        amounts transferred under subsection (d)(1) shall be in 
        addition to, and shall not be substituted for, any funds 
        appropriated for the same or similar purposes in the 
        Consolidated Appropriations Act, 2008.
            (2) Program plans and performance measures.--The Secretary 
        shall prepare and publish in the Federal Register a plan for 
        the proposed use of all funds authorized in subsection (d). The 
        plan also shall identify how the use of these funds will be 
        additive to, and not displace annual appropriations. The plans 
        also shall identify performance measures to assess the 
        additional benefits that may be realized from the application 
        of the additional funding provided under this section. The 
        initial plan shall be published in the Federal Register within 
        90 days from enactment of this section, and shall be updated 
        annually and submitted to Congress together with the 
        President's budget.
            (3) Congressional oversight and review.--Nothing in this 
        section shall limit or restrict the review and oversight of 
        program plans by the appropriate committees of Congress. 
        Nothing in this section shall limit or restrict the authority 
        of Congress to set alternative spending limitations in annual 
        appropriations Acts.
            (4) Apportionment.--All transactions of the Fund shall be 
        exempt from apportionment under the provisions of subchapter II 
        of chapter 15 of title 31, United States Code.
            (5) Use of other transactions authority.--(A) Any 
        solicitation for research, development, or demonstration 
        project proposals to be funded under this section shall provide 
        for and encourage the use of Other Transactions Authority, 
        including Technology Investment Agreements as authorized by 
        section 646(g) of the Department of Energy Organization Act (42 
        U.S.C. 7256) and Part 603 of the Department of Energy 
        Acquisition Regulation.
            (B) Any solicitation for a commercial demonstration project 
        under this section shall require the use of Other Transactions 
        Authority, including Technology Investment Agreements, as 
        authorized by section 646(g) of the Department of Energy 
        Organization Act (42 U.S.C. 7256) and Part 603 of the 
        Department of Energy Acquisition Regulation.
Invest in Energy Security Act - Amends the Energy Policy Act of 2005 governing petroleum acquisition for the Strategic Petroleum Reserve (SPR) to direct the Secretary of Energy to: (1) sell specified quantities of petroleum received under the royalty-in-kind program; and (2) suspend petroleum acquisition for the SPR under such program.

Authorizes the Secretary to resume such acquisition upon notifying Congress that specified circumstances exist, and to suspend acquisition again if certain other circumstances arise.



Establishes the Energy Independence and Security Fund to receive all proceeds from sales of SPR petroleum.

Allocates amounts from such Fund for: (1) the Energy Transformation Acceleration Fund for university-based research projects and program direction expenses; (2) Energy Efficiency and Renewable Energy account for rural wind energy systems; (3) solar energy technologies; (4) weatherization assistance for low-income housing; (5) ocean and wave energy, including hydrokinetic renewable energy; (6) technologies to improve the energy efficiency and reduce greenhouse gas emissions from industrial processes and from buildings; (7) improvements to the energy efficiency of transportation and electric power; (8) geothermal research and development managed by the National Renewable Energy Laboratory; (9) advanced geothermal drilling and resource characterization managed by National Energy Technology Laboratory; (10) carbon capture and storage; (11) Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Research Fund; (12) environmental research in support of small producers of domestic petroleum and natural gas, for regulatory analysis and for support for the stripper well consortium; and (13) the H-Prize Program of the Department of Energy.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicare Spending Transparency Act 
of 2011''.

SEC. 2. PUBLIC AVAILABILITY OF AGGREGATE DATA ON MEDICARE PROVIDERS OF 
              SERVICES AND SUPPLIERS.

    (a) Purpose.--The purpose of this section is to make aggregate 
information about providers of services and suppliers under the 
Medicare program under title XVIII of the Social Security Act (42 
U.S.C. 1395 et seq.) publicly available and to provide a new level of 
transparency in such program.
    (b) Public Availability.--Section 1128J of the Social Security Act 
(42 U.S.C. 1320a-7k) is amended by adding at the end the following new 
subsection:
    ``(f) Public Availability of Certain Medicare Data.--
            ``(1) In general.--The Secretary shall, to the extent 
        consistent with applicable information, privacy, security, and 
        disclosure laws, including the regulations promulgated under 
        the Health Insurance Portability and Accountability Act of 1996 
        and section 552a of title 5, United States Code, make available 
        to the public on the Internet website of the Centers for 
        Medicare & Medicaid Services the following data with respect to 
        title XVIII:
                    ``(A) A complete list of the providers of services 
                and suppliers participating in the program under such 
                title, including the business address of such providers 
                of services and suppliers.
                    ``(B) Aggregate information about each such 
                provider of services and supplier, including--
                            ``(i) the total number of individuals 
                        furnished items or services by the provider of 
                        services or supplier for which payment was made 
                        under such title during the preceding year;
                            ``(ii) the number of unique patient 
                        encounters conducted by the provider of 
                        services or supplier for which payment was made 
                        under such title during the preceding year;
                            ``(iii) the average number of codes billed 
                        under such title by the provider of services of 
                        supplier per patient encounter during the 
                        preceding year;
                            ``(iv) the total amount paid to such 
                        provider of services or supplier under such 
                        title during the preceding year;
                            ``(v) the top 50 billing codes on claims 
                        paid under such title to the provider of 
                        services or supplier during the preceding year, 
                        as determined by volume, including a 
                        description of such codes;
                            ``(vi) the top 50 billing codes on such 
                        claims paid during such year, as determined by 
                        dollar amount, including a description of such 
                        codes; and
                            ``(vii) the top 50 diagnosis and procedure 
                        code pairs on such claims paid during such 
                        year, as determined by volume, including a 
                        description of such codes.
            ``(2) Implementation.--Not later than 1 year after the date 
        of enactment of the Medicare Spending Transparency Act of 2011, 
        the Secretary shall promulgate regulations to carry out this 
        subsection.''.

SEC. 3. ACCESS TO MEDICARE CLAIMS AND PAYMENT DATA BY QUALIFIED 
              INDIVIDUALS AND GROUPS.

    (a) Purpose.--The purpose of this section is to allow qualified 
individuals and groups access to information on claims and payment data 
under the Medicare program for purposes of conducting health research 
and detecting fraud under such program.
    (b) Access to Medicare Claims and Payment Data by Qualified 
Individuals and Groups.--Section 1128J of the Social Security Act (42 
U.S.C. 1320a-7k), as amended by section 2, is amended by adding at the 
end the following new subsection:
    ``(g) Access to Medicare Claims and Payment Data by Qualified 
Individuals and Groups.--
            ``(1) In general.--For purposes of conducting health 
        research and detecting fraud under title XVIII, and to the 
        extent consistent with applicable information, privacy, 
        security, and disclosure laws, including the regulations 
        promulgated under the Health Insurance Portability and 
        Accountability Act of 1996 and section 552a of title 5, United 
        States Code, and subject to any information systems security 
        requirements under such laws or otherwise required by the 
        Secretary, a qualified individual or group shall have access to 
        claims and payment data of the Department of Health and Human 
        Services and its contractors related to title XVIII. 
        Notwithstanding any other provision of law, such data shall 
        include the identity of individual providers of services and 
        suppliers under such title.
            ``(2) Definition of qualified individual or group.--
                    ``(A) In general.--In this subsection, the term 
                `qualified individual or group' means an individual or 
                entity that the Secretary has determined, in accordance 
                with subparagraph (B), has relevant experience, 
                knowledge, and technical expertise in medicine, 
                statistics, health care billing, practice patterns, 
                health care fraud detection, and analysis to use data 
                provided to the individual or the entity under this 
                subsection in an appropriate, responsible, and ethical 
                manner and for the purposes described in paragraph (1).
                    ``(B) Procedures.--The Secretary shall establish 
                procedures for determining, in a timely manner, whether 
                an individual or entity is a qualified individual or 
                group.
            ``(3) Procedures.--The Secretary shall establish procedures 
        for the storage and use of data provided to a qualified 
        individual or group under this subsection. Such procedures 
        shall ensure that, in the case where the qualified individual 
        or group publishes an analysis of such data (or any analysis 
        using such data), the qualified individual or group discloses 
        the following information (in a form and manner, and at a time, 
        specified by the Secretary):
                    ``(A) The name of the qualified individual or 
                group.
                    ``(B) The sources of any funding for the qualified 
                individual or group.
                    ``(C) Any employer or other relevant affiliations 
                of the qualified individual or group.
                    ``(D) The data analysis methods used by the 
                qualified individual or group in the analysis 
                involved.''.
Medicare Spending Transparency Act of 2011 - Amends title XI of the Social Security Act (SSA) to direct the Secretary of Health and Human Services (HHS), consistent with applicable information, privacy, security, and disclosure laws, to make public on the Internet website of the Centers for Medicare and Medicaid Services the following data with respect to SSA title XVIII (Medicare): (1) a complete list of service providers and suppliers participating in the Medicare program, including their business addresses; and (2) certain aggregate information about each provider and supplier.

Entitles a qualified individual or group, for health research and fraud detection purposes, to access to Medicare claims and payment data of both HHS and its contractors. Directs the Secretary to establish procedures for the storage and use of data provided to such an individual or group.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Independent Contractor Tax 
Simplification Act of 1995''.

SEC. 2. FINDINGS.

    The Congress finds that:
            (1) Simplifying the tax rules with respect to independent 
        contractors was the top vote-getter at the 1995 White House 
        Conference on Small Business. Conference delegates recommended 
        that Congress ``should recognize the legitimacy of an 
        independent contractor''. The Conference found that the current 
        common law is ``too subjective'' and called upon the Congress 
        to establish ``realistic and consistent guidelines''.
            (2) It is in the best interests of taxpayers and the 
        Federal Government to have fair and objective rules for 
        determining who is an employee and who is an independent 
        contractor.

SEC. 3. STANDARDS FOR DETERMINING WHETHER INDIVIDUALS ARE NOT 
              EMPLOYEES.

    (a) In General.--Chapter 25 of the Internal Revenue Code of 1986 
(general provisions relating to employment taxes) is amended by adding 
after section 3510 the following new section:

``SEC. 3511. STANDARDS FOR DETERMINING WHETHER INDIVIDUALS ARE NOT 
              EMPLOYEES.

    ``(a) General Rule.--For purposes of this subtitle, and 
notwithstanding any provision of this subtitle to the contrary, if the 
requirements of subsections (b), (c), and (d) are met with respect to 
any service performed by any individual, then with respect to such 
service--
            ``(1) the service provider shall not be treated as an 
        employee,
            ``(2) the service recipient shall not be treated as an 
        employer, and
            ``(3) the payor shall not be treated as an employer.
    ``(b) Service Provider Requirements With Regard to Service 
Recipient.--For the purposes of subsection (a), the requirements of 
this subsection are met if the service provider, in connection with 
performing the service--
            ``(1) has a significant investment in assets and/or 
        training,
            ``(2) incurs significant unreimbursed expenses,
            ``(3) agrees to perform the service for a particular amount 
        of time or to complete a specific result and is liable for 
        damages for early termination without cause,
            ``(4) is paid primarily on a commissioned basis, or
            ``(5) purchases products for resale.
    ``(c) Additional Service Provider Requirements With Regard to 
Others.--For the purposes of subsection (a), the requirements of this 
subsection are met if--
            ``(1) the service provider--
                    ``(A) has a principal place of business,
                    ``(B) does not primarily provide the service in the 
                service recipient's place of business, or
                    ``(C) pays a fair market rent for use of the 
                service recipient's place of business; or
            ``(2) the service provider--
                    ``(A) is not required to perform service 
                exclusively for the service recipient, and
                    ``(B) in the year involved, or in the preceding or 
                subsequent year--
                            ``(i) has performed a significant amount of 
                        service for other persons,
                            ``(ii) has offered to perform service for 
                        other persons through--
                                    ``(I) advertising,
                                    ``(II) individual written or oral 
                                solicitations,
                                    ``(III) listing with registries, 
                                agencies, brokers, and other persons in 
                                the business of providing referrals to 
                                other service recipients, or
                                    ``(IV) other similar activities, or
                            ``(iii) provides service under a business 
                        name which is registered with (or for which a 
                        license has been obtained from) a State, a 
                        political subdivision of a State, or any agency 
                        or instrumentality of 1 or more States or 
                        political subdivisions.
    ``(d) Written Document Requirements.--For purposes of subsection 
(a), the requirements of this subsection are met if the services 
performed by the individual are performed pursuant to a written 
contract between such individual and the person for whom the services 
are performed, or the payor, and such contract provides that the 
individual will not be treated as an employee with respect to such 
services for purposes of this subtitle.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) If for any taxable year any service recipient or 
        payor fails to meet the applicable reporting requirements of 
        sections 6041(a), 6041A(a), or 6051 with respect to a service 
        provider, then, unless such failure is due to reasonable cause 
        and not willful neglect, this section shall not apply in 
        determining whether such service provider shall not be treated 
        as an employee of such service recipient or payor for such 
        year.
            ``(2) If the service provider is performing services 
        through an entity owned in whole or in part by such service 
        provider, then the references to `service provider' in 
        subsections (b) through (d) may include such entity, provided 
        that the written contract referred to in paragraph (1) of 
        subsection (d) may be with either the service provider or such 
        entity and need not be with both.
    ``(f) Definitions.--For the purposes of this section--
            ``(1) Service provider.--The term `service provider' means 
        any individual who performs service for another person.
            ``(2) Service recipient.--Except as provided in paragraph 
        (5), the term `service recipient' means the person for whom the 
        service provider performs such service.
            ``(3) Payor.--Except as provided in paragraph (5), the term 
        `payor' means the person who pays the service provider for the 
        performance of such service in the event that the service 
        recipients do not pay the service provider.
            ``(4) In connection with performing the service.--The term 
        `in connection with performing the service' means in connection 
        or related to--
                    ``(A) the actual service performed by the service 
                provider for the service recipients or for other 
                persons for whom the service provider has performed 
                similar service, or
                    ``(B) the operation of the service provider's trade 
                or business.
            ``(5) Exceptions.--The terms `service recipient' and 
        `payor' do not include any entity which is owned in whole or in 
        part by the service provider.''
    (b) Clerical Amendment.--The table of sections for chapter 25 of 
such Code is amended by adding at the end the following new item:

                              ``Sec. 3511. Standards for determining 
                                        whether individuals are not 
                                        employees.''
    (c) Effective Date.--The amendments made by this Act shall apply to 
services performed after December 31, 1995.

Independent Contractor Tax Simplification Act of 1995 - Amends the Internal Revenue Code to provide that, for purposes of determining the employment status of individuals as employees, a service provider shall not be treated as an employee, a service recipient shall not be treated as an employer, and a payor shall not be treated as an employer if:  (1) a service provider has a significant investment in assets and training, incurs significant unreimbursed expenses, agrees to perform the service for a specified amount of time or to complete a specific result and is responsible for damages for early termination without cause, receives payment primarily on a commission basis, or has purchased resale products; (2) the service provider has a principal place of business, does not primarily provide service in the service recipient's place of business, or pays a fair market rent for use of the recipient's place of business or does not have to perform service only for the service recipient and, in the current year or in the proceeding or subsequent years, has performed or has offered to perform a significant amount of service for other persons; and (3) the services by an individual are performed according to a written contract between the service recipient or payor which provides that the individual will not be treated as an employee.