SECTION 1. SHORT TITLE.

    This Act may be cited as the ``H-1B Visa Program Modernization Act 
of 2007''.

SEC. 2. MARKET-BASED LIMITS FOR H-1B VISAS.

    Section 214(g) of the Immigration and Nationality Act (8 U.S.C. 
1184(g)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``(beginning with fiscal year 1992)''; and
                    (B) in subparagraph (A)--
                            (i) in clause (vi) by striking ``and'';
                            (ii) in clause (vii), by striking ``each 
                        succeeding fiscal year; or'' and inserting 
                        ``each of fiscal years 2004, 2005, 2006, and 
                        2007;''; and
                            (iii) by adding after clause (vii) the 
                        following:
                            ``(viii) 150,000 for fiscal year 2008; and
                            ``(ix) the number calculated under 
                        paragraph (9) for each fiscal year after fiscal 
                        year 2008; or'';
            (2) by redesignating paragraphs (9), (10), and (11) as 
        paragraphs (10), (11), and (12), respectively; and
            (3) by inserting after paragraph (8) the following:
    ``(9) If the numerical limitation in paragraph (1)(A)--
            ``(A) is reached during the previous fiscal year, the 
        numerical limitation under paragraph (1)(A)(ix) for the 
        subsequent fiscal year shall be equal to 120 percent of the 
        numerical limitation of the previous fiscal year; or
            ``(B) is not reached during the previous fiscal year, the 
        numerical limitation under paragraph (1)(A)(ix) for the 
        subsequent fiscal year shall be equal to the numerical 
        limitation of the previous fiscal year.''.

SEC. 3. H-1B VISA PROGRAM IMPROVEMENTS.

    (a) Safeguards Against Fraud and Misrepresentation in Application 
Review Process.--Section 212(n)(1)(G) of the Immigration and 
Nationality Act (8 U.S.C. 1182(n)(1)(G)) is amended--
            (1) by inserting ``, clear indicators of fraud or 
        misrepresentation of material fact,'' after ``completeness'';
            (2) by striking ``or obviously inaccurate'' and inserting 
        ``, presents clear indicators of fraud or misrepresentation of 
        material fact, or is obviously inaccurate''; and
            (3) by adding at the end the following: ``If the 
        Secretary's review of an application identifies clear 
        indicators of fraud or misrepresentation of material fact, the 
        Secretary may conduct an investigation and hearing under 
        paragraph (2).''.
    (b) H-1B Nonimmigrants Not Admitted for Jobs Advertised or Offered 
Only to H-1B Nonimmigrants.--Section 212(n)(1) of such Act, as amended 
by this section, is further amended by inserting after subparagraph (G) 
the following:
            ``(H)(i) The employer has not advertised the available jobs 
        specified in the application in an advertisement that states or 
        indicates that--
                    ``(I) the job or jobs are only available to persons 
                who are or who may become H-1B nonimmigrants; or
                    ``(II) persons who are or who may become H-1B 
                nonimmigrants shall receive priority or a preference in 
                the hiring process.
            ``(ii) The employer has not only recruited persons who are, 
        or who may become, H-1B nonimmigrants to fill the job or 
        jobs.''.
    (c) Limit on Percentage of H-1B Employees.--Section 212(n)(1) of 
such Act, as amended by this section, is further amended by inserting 
after subparagraph (H), as added by subsection (b), the following:
            ``(I) If the employer employs not less than 50 employees in 
        the United States, not more than 50 percent of such employees 
        are H-1B nonimmigrants.''.
    (d) Penalties.--Section 212(n)(2)(C) of such Act is amended--
            (1) in clause (i)(I), by striking ``$1,000'' and inserting 
        ``$2,000'';
            (2) in clause (ii)(I), by striking ``$5,000'' and inserting 
        ``$10,000''; and
            (3) in clause (vi)(III), by striking ``$1,000'' and 
        inserting ``$2,000''.
    (e) Investigations by Department of Labor.--Section 212(n)(2) of 
such Act, as amended by this section, is further amended--
            (1) in subparagraph (A), by striking ``12 months'' and 
        inserting ``24 months''; and
            (2) in subparagraph (G)--
                    (A) in clause (i), by striking the second sentence;
                    (B) in clause (iii), by striking the last sentence;
                    (C) by striking clauses (iv) and (v);
                    (D) by redesignating clauses (vi), (vii), and 
                (viii) as clauses (iv), (v), and (vi), respectively;
                    (E) in clause (iv), as redesignated--
                            (i) by striking ``clause (viii)'' and 
                        inserting ``clause (vi)''; and
                            (ii) by striking ``12 months'' and 
                        inserting ``24 months''; and
                    (F) by adding at the end the following:
    ``(vii) If the Secretary of Labor, after a hearing, finds a 
reasonable basis to believe that the employer has violated the 
requirements under this subsection, the Secretary may impose a penalty 
under subparagraph (C).''.
    (f) Information Sharing Between Department of Labor and Department 
of Homeland Security.--Section 212(n)(2) of such Act, as amended by 
this section, is further amended--
            (1) by redesignating subparagraph (I) as subparagraph (J); 
        and
            (2) by inserting after subparagraph (H) the following:
    ``(I) The Director of United States Citizenship and Immigration 
Services shall provide the Secretary of Labor with any information 
contained in the materials submitted by H-1B employers as part of the 
adjudication process that indicates that the employer is not complying 
with H-1B visa program requirements. The Secretary may initiate and 
conduct an investigation and hearing under this paragraph after 
receiving information of noncompliance under this subparagraph.''.
    (g) Information Provided to H-1B Nonimmigrants Upon Visa 
Issuance.--
            (1) In general.--Section 212(n) of such Act, as amended by 
        this section, is further amended--
                    (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively; and
                    (B) by inserting after paragraph (2) the following:
    ``(3)(A) Upon issuing an H-1B visa to an applicant outside the 
United States, the issuing office shall provide the applicant with--
            ``(i) a brochure outlining the employer's obligations and 
        the employee's rights under Federal law, including labor and 
        wage protections;
            ``(ii) the contact information for Federal agencies that 
        can offer more information or assistance in clarifying employer 
        obligations and workers' rights; and
            ``(iii) a copy of the employer's H-1B application for the 
        position that the H-1B nonimmigrant has been issued the visa to 
        fill.
    ``(B) Upon the issuance of an H-1B visa to an alien inside the 
United States, the officer of the Department of Homeland Security shall 
provide the applicant with--
            ``(i) a brochure outlining the employer's obligations and 
        the employee's rights under Federal law, including labor and 
        wage protections;
            ``(ii) the contact information for Federal agencies that 
        can offer more information or assistance in clarifying 
        employer's obligations and workers' rights; and
            ``(iii) a copy of the employer's H-1B application for the 
        position that the H-1B nonimmigrant has been issued the visa to 
        fill.''.
            (2) Conforming amendments.--Section 212(n) of such Act, as 
        amended by this section, is further amended--
                    (A) in paragraph (1)(E)--
                            (i) in clause (i), by striking ``(4)'' and 
                        inserting ``(5)''; and
                            (ii) in clause (ii)--
                                    (I) by striking ``(3)'' and 
                                inserting ``(4)''; and
                                    (II) by striking ``(5)'' and 
                                inserting ``(6)''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``(5)(A)'' and inserting ``(6)(A)''; and
                            (ii) in subparagraph (F), by striking 
                        ``(5)'' and inserting ``(6)''.
    (h) Effective Date.--The amendments made by subsections (b) and (c) 
shall only apply to applications filed after the date of enactment of 
this Act.
H-1B Visa Program Modernization Act of 2007 - Amends the Immigration and Nationality Act to increase the annual H-1B nonimmigrant visa (specialty occupation) cap, with a 20% increase for the following year if the previous year's quota is reached.

Revises H-1B provisions with respect to: (1) application fraud and misrepresentation; (2) employer penalties; (3) Department of Labor investigations; (4) Department of Labor and Department of Homeland Security (DHS) information sharing; (5) information provided to an H-1B nonimmigrant upon visa issuance; (6) employment advertising; and (7) prohibiting an employer of fewer than 50 employees in the United States from having more than 50% H-1B nonimmigrant employees.
A bill to amend the Immigration and Nationality Act to improve the competitiveness of the United States in the global economy and to protect against potential visa fraud and abuse.