New Opportunities for Business Ownership and Self-Sufficiency Act

This bill amends the Internal Revenue Code to change rules for state-run self-employment assistance programs for unemployed individuals. It removes the requirement that participants must be likely to exhaust regular unemployment benefits, allows states to approve self-employment activities based on either entrepreneurial training or a business plan with a market feasibility study, adds a weekly certification requirement for participants, increases the limit on program participants from 5% to 10%, and sets an effective date two years after enactment with regulations to be issued by the Secretary of Labor.

Sec. 2, Modification of rules for state self-employment assistance programs: This section makes several changes to Section 3306(t) of the Internal Revenue Code. It eliminates the requirement that participants are likely to exhaust regular unemployment compensation. It modifies the participation requirement so that individuals must be in state-approved self-employment activities that include entrepreneurial training, business counseling, and technical assistance, or are done under a state-approved business plan and market feasibility study. It adds a requirement that participants certify their activities weekly to a state-designated agency. It increases the limit on the number of individuals who can participate in such programs from 5% to 10%. These changes take effect two years after enactment, but states may amend their laws earlier. The Secretary of Labor must issue regulations after public comment and OMB approval.