New Opportunities for Business Ownership and Self-Sufficiency Act
Summary
The "New Opportunities for Business Ownership and Self-Sufficiency Act" aims to amend the Internal Revenue Code of 1986, specifically targeting the rules governing state administration of self-employment assistance programs. The bill seeks to eliminate the requirement that participants are likely to exhaust regular unemployment compensation. It also modifies participation requirements and adjusts the limitation on the number of individuals participating in these programs.
Furthermore, the Act mandates weekly certification of activities and requires the Secretary of Labor to issue regulations and guidance for state workforce agencies. These changes are intended to take effect two years after enactment, with a provision allowing states to amend their laws sooner.
The bill was reported with an amendment and committed to the Committee of the Whole House on the State of the Union, indicating progress in the legislative process.
Expected Effects
This act will likely increase participation in self-employment assistance programs by removing barriers and expanding eligibility. States will have more flexibility in designing and implementing these programs.
The changes could lead to more individuals starting their own businesses and becoming self-sufficient. The requirement for weekly certification may increase administrative burden but also improve accountability.
Potential Benefits
- Increased access to self-employment assistance programs for individuals who may not have qualified under the previous rules.
- Greater flexibility for states in designing and implementing self-employment assistance programs, allowing them to tailor programs to local needs.
- Potential for increased entrepreneurship and small business creation, leading to economic growth.
- Enhanced support for individuals pursuing self-employment through entrepreneurial training, business counseling, and technical assistance.
- Clearer guidelines and best practices for verifying completion of self-employment assistance activities, ensuring program effectiveness.
Potential Disadvantages
- Potential for increased costs to states for administering the expanded self-employment assistance programs.
- The weekly certification requirement could create an administrative burden for both participants and state agencies.
- There is a risk that some participants may not be adequately prepared for self-employment, leading to business failures.
- The two-year delay in the effective date may slow down the implementation of the program changes.
- The effectiveness of the program will depend on the quality of the regulations and guidance issued by the Secretary of Labor.
Constitutional Alignment
The bill appears to align with the spirit of promoting the general welfare, as stated in the Preamble of the US Constitution. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States, according to Article I, Section 8, Clause 1.
The bill amends the Internal Revenue Code, which falls under Congress's power to tax and spend for the general welfare. The specific modifications to self-employment assistance programs do not appear to infringe upon any specific constitutional rights or limitations.
However, the delegation of regulatory authority to the Secretary of Labor must be done with sufficient guidelines to avoid violating the non-delegation doctrine. The requirement for public notice and comment helps ensure transparency and accountability in the regulatory process.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).