HR6431-119

What This Bill Does

The New Opportunities for Business Ownership and Self-Sufficiency Act amends the Internal Revenue Code rules that define state self-employment assistance programs for unemployment insurance purposes. It removes an existing subparagraph and rewrites the participation requirement so eligible individuals may participate in state-approved self-employment assistance activities that either include entrepreneurial training, business counseling, and technical assistance, or are performed under a business plan and market feasibility study submitted by the individual and approved by the state or a state-designated agency.

The bill also requires participants to certify those activities at least weekly to an agency designated by the state. It raises the statutory figure in section 3306(t)(4) from 5 to 10, expanding the allowable scale of self-employment assistance participation. The amendments generally apply two years after enactment, but states may amend their laws before then. The Secretary of Labor must issue regulations after public notice and comment.

Who Benefits and How

Unemployed workers pursuing self-employment benefit because more state-approved entrepreneurial training, counseling, technical assistance, business plans, and feasibility studies can qualify. Small-business startup founders using unemployment self-employment assistance benefit from a clearer path to satisfy program activity requirements. Entrepreneurial training providers benefit if states approve more participants for training-based self-employment assistance. Business counseling organizations benefit from increased demand from participants. State workforce agencies benefit from clearer statutory options for approving participation activities. State unemployment insurance programs benefit from the increased participation cap if they choose to expand the program.

Who Bears the Burden and How

State unemployment insurance agencies must approve activities, business plans, feasibility studies, and weekly certification processes. Participating claimants must certify self-employment assistance activities at least weekly. Labor Department rulemaking staff must issue regulations after notice and comment. State legislatures and workforce departments must update laws or policies if they want to adopt the changes before the two-year default date. State-designated agencies must review business plans and market feasibility studies when states use that route.

Key Provisions

• Modifies state self-employment assistance participation rules under Internal Revenue Code section 3306(t).
• Allows approved entrepreneurial training, business counseling, and technical assistance to satisfy participation requirements.
• Allows participation under an approved business plan and market feasibility study.
• Requires participants to certify self-employment assistance activities at least weekly.
• Raises the statutory participation figure from 5 to 10.
• Provides a two-year effective date while allowing earlier state law changes.
• Requires Labor Department regulations after public notice and comment.