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

This section modifies requirements for state-administered self-employment assistance programs under IRC §3306(t), which allow eligible unemployment insurance claimants to receive benefits while pursuing self-employment activities rather than traditional job search, effective 2 years after enactment (with states permitted to conform their laws earlier). Specifically, it (1) eliminates the requirement that participants be likely to exhaust regular unemployment compensation; (2) revises the self-employment activities requirement to approved activities that either include entrepreneurial training, business counseling, and technical assistance or are performed pursuant to an approved business plan and market feasibility study; (3) requires participants to certify such activities at least weekly to a state-designated agency; and (4) increases the maximum number of program participants to 10% (from 5%) of the state's average monthly number of individuals receiving regular unemployment compensation. The section further directs the Secretary of Labor to issue implementing regulations after public notice and comment (subject to OMB approval) and to provide states with guidance, including a model list of qualifying activities and best practices for verification.