Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Independent Contractor Proper
Classification Act of 2007''.

SEC. 2. REFORMATION OF SAFE HARBOR TO CLOSE ITS USE AS A TAX LOOPHOLE.

(a) Allowance of Prospective Reclassifications.--
(1) In general.--Section 530(a) of the Revenue Act of 1978,
as amended by section 269(c)(1) of the Tax Equity and Fiscal
Responsibility Act of 1982, is amended by adding at the end the
following new paragraph:
''(5) Allowance of reclassifications.--Paragraph (1) shall
not apply with respect to the treatment by a taxpayer of any
individual for employment tax purposes for any period beginning
after a determination by the Secretary of the Treasury that the
individual should be treated as an employee of the taxpayer.''.
(2) Effective date.--The amendment made by this subsection
shall apply to determinations made after the date of the
enactment of this Act.
(b) Elimination of Ban on IRS Issuing Regulations or Revenue
Rulings on Employee/independent Contractor Status.--
(1) In general.--Section 530 of the Revenue Act of 1978, as
amended by section 269(c)(2) of the Tax Equity and Fiscal
Responsibility Act of 1982, section 1706(a) of the Tax Reform
Act of 1986, section 1122(a) of the Small Business Job
Protection Act of 1996, and section 864(a) of the Pension
Protection Act of 2006, is amended by striking subsection (b)
and by redesignating subsections (c), (d), (e), and (f) as
subsections (b), (c), (d), and (e), respectively.
(2) Effective date.--The amendments made by this subsection
shall take effect on the date of the enactment of this Act.
(c) Elimination of Ability of Employers To Rely on Industry
Practice as a Basis for Claiming Safe Harbor.--
(1) In general.--Section 530(a)(2) of the Revenue Act of
1978 is amended--
(A) by striking the semicolon at the end of
subparagraph (A) and inserting ''; or'',
(B) by striking the semicolon at the end of
subparagraph (B) and inserting a period, and
(C) by striking subparagraph (C).
(2) Conforming amendments.--
(A) Section 530(d)(2) of the Revenue Act of 1978,
as redesignated by subsection (b)(1), is amended--
(i) by striking the comma at the end of
subparagraph (A) and inserting a period,
(ii) by striking subparagraphs (B) and (C),
and
(iii) by striking ''subsection (a)(2)'' in
the matter preceding subparagraph (A) and all
that follows through ''a taxpayer'' and
inserting ''subsection (a)(2), a taxpayer''.
(B) Section 530(d)(4)(B) of such Act (as so
redesignated) is amended by striking ''subparagraph
(A), (B), or (C)'' and inserting ''subparagraph (A) or
(B)''.
(3) Effective date.--The amendments made by this subsection
shall apply to periods beginning after the date which is 60
days after the date of the enactment of this Act.

SEC. 3. REVIEW OF CLASSIFICATION STATUS.

(a) In General.--Section 530 of the Revenue Act of 1978, as amended
by section 2(b)(1), is amended by adding at the end the following new
subsections:
''(f) Petitions for Review of Status.--
''(1) In general.--Under procedures established by the
Secretary of the Treasury not later than 90 days after the date
of the enactment of this subsection, any individual who
performs services for a taxpayer may petition (either
personally or through a designated representative or attorney)
for a determination of the individual's status for employment
tax purposes.
''(2) Administrative procedures.--The procedures
established under paragraph (1) shall provide for--
''(A) a determination of status not later than 90
days after the filing of the petition with respect to
employment in any industry (such as the construction
industry) in which employment is transient, casual, or
seasonal,
''(B) an administrative appeal of any determination
that an individual is not an employee of the taxpayer,
''(C) the award of expenses, including expert
witness fees and reasonable attorneys' fees for the
individual against the taxpayer in any case in which
the individual achieves reclassification, and
''(D) the assessment of such expenses against the
taxpayer by the Secretary of the Treasury on behalf of
such individual.
''(3) Prohibition against retaliation.--
''(A) In general.--No taxpayer may discharge an
individual, refuse to contract with an individual, or
otherwise discriminate against an individual with
respect to compensation, terms, conditions, or
privileges of the services provided by the individual
because the individual (or any designated
representative or attorney on behalf of such
individual) filed a petition under paragraph (1).
''(B) Enforcement action.--An individual who
alleges discharge or other discrimination by any
taxpayer in violation of subparagraph (A) may seek
relief under the procedures and remedies established
under section 42121 of title 49, United States Code.
''(C) Rights retained by individual.--Nothing in
this paragraph shall be deemed to diminish the rights,
privileges, or remedies of any individual under any
Federal or State law, or under any collective
bargaining agreement.
''(g) Results of Misclassification Determinations.--In any case in
which the Secretary of the Treasury determines that a taxpayer has
misclassified an individual as not an employee for employment tax
purposes, the Secretary of the Treasury shall--
''(1) if necessary, perform an employment tax audit of such
taxpayer,
''(2) inform the Department of Labor about such
misclassification,
''(3) notify the individual of any eligibility for the
refund of self-employment taxes under chapter 2 of the Internal
Revenue Code of 1986, and
''(4) apply the provisions of section 3509 of the Internal
Revenue Code of 1986 and direct the taxpayer to take
affirmative action to abate the violation.''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.

SEC. 4. COORDINATION, ENFORCEMENT, AND COMPLIANCE.

(a) Annual Reports.--The Secretary of the Treasury and the
Secretary of Labor shall each issue annual reports on worker
misclassification, including--
(1) information on the number and type of enforcement
actions against, and audits of, employers who have
misclassified workers,
(2) relief obtained as a result of such actions against,
and audits of, employers who have misclassified workers,
(3) an overall estimate of the number of employers
misclassifying workers, the number of workers affected, and the
industries involved,
(4) the impact of such misclassification on the Federal tax
system, and
(5) the aggregate number of worker misclassification cases
with respect to which each Secretary has provided information
to the other Secretary and the outcome of actions taken, if
any, by each Secretary in each worker misclassification case
with respect to which the Secretary has received such
information.
As part of the annual report, the Secretary of the Treasury shall
include information on the outcomes of the petitions filed under
section 530(f) of the Revenue Act of 1978 and the Secretary of Labor
shall include information on the outcomes of the complaints and actions
described in subsection (b)(1)(A) and the investigations required in
subsection (b)(1)(B).
(b) Enforcement Activities.--
(1) Department of labor.--
(A) Wage and hour enforcement.--The Secretary of
Labor shall identify and track complaints and
enforcement actions involving misclassification of
independent contractors for the purposes of the laws
enforced by the Wage and Hour Division of the
Department of Labor.
(B) Investigations of industries with worker
misclassifications.--The Secretary of Labor shall
conduct investigations of industries in which worker
misclassification is present as determined by
information (other than return information (as defined
in section 6103(b)(2)) received from the Secretary of
the Treasury and any other relevant information,
including reports from other Federal agencies and State
workforce, labor, and revenue agencies.
(2) Authorization of appropriations.--There is authorized
such sums as are necessary for the Department of the Treasury
and the Department of Labor to carry out the purposes of the
provisions of, and amendments made by, this Act.
(3) Information sharing.--The Secretary of the Treasury and
the Secretary of Labor shall exchange information on worker
misclassification cases and shall provide such information with
relevant State agencies. Upon receipt of such information, the
Secretary of the Treasury and the Secretary of Labor shall
determine whether further investigation is warranted in each
case.

SEC. 5. NOTICE TO EMPLOYEES AND INDEPENDENT CONTRACTORS AND MAINTENANCE
OF INFORMATION REGARDING INDEPENDENT CONTRACTORS.

(a) Notice of Right To Challenge Classification.--The Secretary of
Labor shall provide for the placement of information on any poster
required under the Fair Labor Standards Act informing workers of their
right to seek a status determination from the Internal Revenue Service.
(b) Employer Notices to Independent Contractors.--Each employer
shall notify any individual who is hired by the employer as an
independent contractor within the scope of the employer's trade or
business, at the time of hire, of the Federal tax obligations of an
independent contractor, the labor and employment law protections that
do not apply to independent contractors, and the right of such
independent contractor to seek a status determination from the Internal
Revenue Service. The Secretary of the Treasury and the Secretary of
Labor shall develop model materials for providing such notice.
(c) Maintenance of Information Regarding Independent Contractors.--
Each employer shall maintain for 3 years a list of the independent
contractors retained by the employer, including name, address, Social
Security number and Federal tax identification number, and shall make
the records available for inspection during investigations.
Output:
Independent Contractor Proper Classification Act of 2007 - Amends the Revenue Act of 1978 to: (1) require employers to treat workers misclassified as independent contractors as employees for employment tax purposes upon a determination of misclassification by the Secretary of the Treasury; (2) repeal the ban on Treasury regulations or revenue rulings on employee/independent contractor classifications; and (3) eliminate the defense of industry practice as a justification for misclassifying workers as independent contractors.

Requires the Secretary to establish a procedure for workers to petition for a determination of their status as employees or independent contractors. Prohibits employers from retaliating against workers filing a petition. Requires the Secretary to take certain actions upon determining that an employee has been misclassified as an independent contractor, including informing the Department of Labor of such misclassification.

Requires the Secretaries of the Treasury and Labor to issue annual reports and exchange information on worker misclassification cases. Directs the Secretary of Labor to: (1) identify and track complaints involving worker misclassification for purposes of enforcing wage and hour laws; and (2) investigate industries identified by the Internal Revenue Service (IRS) as misclassifying workers.

Directs the Secretary of Labor to include on workplace posters required by the Fair Labor Standards Act a notice informing workers of their right to seek a status determination (i.e., whether they are employees or independent contractors) from the IRS.

Requires employers to: (1) notify their independent contractors of their federal tax obligations, the labor and employment protections inapplicable to independent contractors, and their right to seek a status determination from the IRS; and (2) maintain for three years a list of their independent contractors, including names and tax identification numbers.