H.R. 6431: New Opportunities for Business Ownership and Self-Sufficiency Act

This bill, titled the New Opportunities for Business Ownership and Self-Sufficiency Act, seeks to change how self-employment assistance programs are managed by U.S. states under the Internal Revenue Code.

Key Provisions

• Removal of Unemployment Requirement: The bill removes the existing requirement that participants in self-employment assistance programs must be likely to exhaust their regular unemployment compensation. This change aims to broaden eligibility for these programs.
• Self-Employment Activities Modification: The bill modifies the criteria for participating in self-employment assistance activities. Now, participants must engage in state-approved activities that either involve:
  • Entrepreneurial training, business counseling, and technical assistance, or
  • Activities based on an approved business plan and market feasibility study.
• Weekly Certification Requirement: The bill establishes a requirement for participants to certify their engagement in self-employment activities on a weekly basis to a designated state agency.
• Increase in Participation Limit: The limit on the number of individuals that can participate in these self-employment assistance programs is increased from 5 to 10.
• Implementation Timeline: The changes proposed in this bill would take effect two years after it is enacted, although states would have the option to amend their laws before the two-year period ends.
• Regulatory Oversight: The bill requires the Secretary of Labor to create regulations to implement these changes, following public notice and comment, and with approval from the Office of Management and Budget.

Effect on States

States will have the flexibility to modify their self-employment assistance programs to align with the new federal guidelines. This could lead to increased support for entrepreneurship and self-sufficiency within communities, as more individuals may qualified for these programs without the previous limitations.

Potential Impact on Individuals

The changes are designed to facilitate access to self-employment resources for a broader range of individuals, including those who may not be on unemployment but are seeking to start their own businesses. This could provide more opportunities for training and support as they launch their ventures.

Relevant Companies

None found