I
112th CONGRESS
1st Session
H. R. 3427
IN THE HOUSE OF REPRESENTATIVES
November 15, 2011
Mr. Doggett (for himself, Mr. Peters, Mr. Stark, Mr. Blumenauer, and Mr. Rangel) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, Small Business, and Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To provide for the availability of self-employment assistance to individuals receiving extended compensation or emergency unemployment compensation.
Short title
This Act may be cited as the
Startup Technical Assistance for
Reemployment Training and Unemployment Prevention Act
or
the STARTUP
Act
.
State administration of self-employment assistance programs
Availability for individuals receiving extended compensation
Title II of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended by inserting at the end the following new section:
Authority to conduct self-employment assistance programs
At the option of a State, for any weeks of unemployment beginning after the date of enactment of this section, the State agency of the State may establish a self-employment assistance program, as described in subsection (b), to provide for the payment of extended compensation as self-employment assistance allowances to individuals who would otherwise satisfy the eligibility criteria under this title.
Subject to paragraph (3), the self-employment assistance allowance described in paragraph (1) shall be paid to an eligible individual from such individual’s extended compensation account, as described in section 202(b), and the amount in such account shall be reduced accordingly.
Subject to subparagraph
(B), for purposes of self-employment assistance programs established under this
section and section 4001(h) of the Supplemental Appropriations Act, 2008, an
individual shall be provided with self-employment assistance allowances under
such programs for a total of not greater than 26 weeks (referred to in this
section as the combined eligibility limit
).
For purposes of an individual who is participating in a self-employment assistance program established under this section and has not reached the combined eligibility limit as of the date on which such individual exhausts all rights to extended compensation under this title, the individual shall be eligible to receive self-employment assistance allowances under a self-employment assistance program established under section 4001(h) of the Supplemental Appropriations Act, 2008, until such individual has reached the combined eligibility limit, provided that the individual otherwise satisfies the eligibility criteria described under title IV of such Act.
For the purposes
of this section, the term self-employment assistance program
means a program as defined under section 3306(t) of the Internal Revenue Code
of 1986, except as follows:
all references to
regular unemployment compensation under the State law
shall be
deemed to refer instead to extended compensation under title II of the
Federal-State Extended Unemployment Compensation Act of 1970
;
paragraph (3)(B) shall not apply;
clause (i) of paragraph (3)(C) shall be deemed to state as follows:
include any entrepreneurial training that the State or non-profit organizations may provide in coordination with programs of training offered by the Small Business Administration, which may include business counseling, mentorship for participants, access to small business development resources, and technical assistance; and
;
the reference to
5 percent
in paragraph (4) shall be deemed to refer instead to
1 percent
; and
paragraph (5) shall not apply.
In the case of an individual who is eligible to receive extended compensation under this title, such individual shall not receive self-employment assistance allowances under this section unless the State agency has a reasonable expectation that such individual will be entitled to at least 13 times the individual’s average weekly benefit amount of extended compensation and emergency unemployment compensation.
An individual who is participating in a self-employment assistance program established under this section may elect to discontinue participation in such program at any time.
For purposes of an individual whose participation in a self-employment assistance program established under this section is terminated pursuant to subsection (a)(3) or who has discontinued participation in such program, if the individual continues to satisfy the eligibility requirements for extended compensation under this title, the individual shall receive extended compensation payments with respect to subsequent weeks of unemployment, to the extent that amounts remain in the account established for such individual under section 202(b).
.
Availability for individuals receiving emergency unemployment compensation
Section 4001 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended by inserting at the end the following new subsection:
Authority To conduct self-Employment assistance program
In general
Establishment
Any agreement under subsection (a) may provide that the State agency of the State shall establish a self-employment assistance program, as described in paragraph (2), to provide for the payment of emergency unemployment compensation as self-employment assistance allowances to individuals who would otherwise satisfy the eligibility criteria specified in subsection (b).
Payment of allowances
Subject to subparagraph (C), the self-employment assistance allowance described in subparagraph (A) shall be paid to an eligible individual from such individual’s emergency unemployment compensation account, as described in section 4002, and the amount in such account shall be reduced accordingly.
Limitation on self-employment assistance for individuals receiving extended compensation and emergency unemployment compensation
Combined eligibility limit
Subject to clause (ii), for purposes of
self-employment assistance programs established under this subsection and
section 208 of the Federal-State Extended Unemployment Compensation Act of
1970, an individual shall be provided with self-employment assistance
allowances under such programs for a total of not greater than 26 weeks
(referred to in this subsection as the combined eligibility
limit
).
Carryover rule
For purposes of an individual who is participating in a self-employment assistance program established under this subsection and has not reached the combined eligibility limit as of the date on which such individual exhausts all rights to extended compensation under this title, the individual shall be eligible to receive self-employment assistance allowances under a self-employment assistance program established under section 208 of the Federal-State Extended Unemployment Compensation Act of 1970 until such individual has reached the combined eligibility limit, provided that the individual otherwise satisfies the eligibility criteria described under title II of such Act.
Definition of
self-employment assistance program
For the
purposes of this section, the term self-employment assistance
program
means a program as defined under section 3306(t) of the
Internal Revenue Code of 1986, except as follows:
all references to
regular unemployment compensation under the State law
shall be
deemed to refer instead to emergency unemployment compensation under
title IV of the Supplemental Appropriations Act, 2008
;
paragraph (3)(B) shall not apply;
clause (i) of paragraph (3)(C) shall be deemed to state as follows:
include any entrepreneurial training that the State or non-profit organizations may provide in coordination with programs of training offered by the Small Business Administration, which may include business counseling, mentorship for participants, access to small business development resources, and technical assistance; and
;
the reference to
5 percent
in paragraph (4) shall be deemed to refer instead to
1 percent
; and
paragraph (5) shall not apply.
Availability of self-employment assistance allowances
In the case of an individual who is eligible to receive emergency unemployment compensation payment under this title, such individual shall not receive self-employment assistance allowances under this subsection unless the State agency has a reasonable expectation that such individual will be entitled to at least 13 times the individual’s average weekly benefit amount of extended compensation and emergency unemployment compensation.
Participant option to terminate participation in self-employment assistance program
Termination
An individual who is participating in a self-employment assistance program established under this subsection may elect to discontinue participation in such program at any time.
Continued eligibility for emergency unemployment compensation
For purposes of an individual whose participation in the self-employment assistance program established under this subsection is terminated pursuant to paragraph (1)(C) or who has discontinued participation in such program, if the individual continues to satisfy the eligibility requirements for emergency unemployment compensation under this title, the individual shall receive emergency unemployment compensation payments with respect to subsequent weeks of unemployment, to the extent that amounts remain in the account established for such individual under section 4002(b) or to the extent that such individual commences receiving the amounts described in subsections (c), (d), or (e) of such section, respectively.
.
Grants for self-employment assistance programs
In general
Establishment or improved administration
Subject to the requirements established under subsection (b), the Secretary shall award grants to States for the purposes of—
improved administration of self-employment assistance programs that have been established, prior to the date of enactment of this Act, pursuant to section 3306(t) of the Internal Revenue Code of 1986 (26 U.S.C. 3306(t)), for individuals who are eligible to receive regular unemployment compensation;
development, implementation, and administration of self-employment assistance programs that are established, subsequent to the date of enactment of this Act, pursuant to section 3306(t) of the Internal Revenue Code of 1986, for individuals who are eligible to receive regular unemployment compensation; and
development, implementation, and administration of self-employment assistance programs that are established pursuant to section 208 of the Federal-State Extended Unemployment Compensation Act of 1970 or section 4001(h) of the Supplemental Appropriations Act, 2008, for individuals who are eligible to receive extended compensation or emergency unemployment compensation.
Promotion and enrollment
Subject to the requirements established under subsection (b), the Secretary shall award additional grants to States that submit approved applications for a grant under paragraph (1) for such States to promote self-employment assistance programs and enroll unemployed individuals in such programs.
Application and disbursal
Application
Any State seeking a grant under paragraph (1) or (2) of subsection (a) shall submit an application to the Secretary at such time, in such manner, and containing such information as is determined appropriate by the Secretary. In no case shall the Secretary award a grant under this section with respect to an application that is submitted after December 31, 2013.
Notice
Not later than 30 days after receiving an application described in paragraph (1) from a State, the Secretary shall notify the State agency as to whether a grant has been approved for such State for the purposes described in subsection (a).
Certification
If the Secretary determines that a State has met the requirements for a grant under subsection (a), the Secretary shall make a certification to that effect to the Secretary of the Treasury, as well as a certification as to the amount of the grant payment to be transferred to the State account in the Unemployment Trust Fund under section 904 of the Social Security Act (42 U.S.C. 1104). The Secretary of the Treasury shall make the appropriate transfer to the State account not later than 7 days after receiving such certification.
Allotment factors
For purposes of allotting the funds available under subsection (d) to States that have met the requirements for a grant under this section, the amount of the grant provided to each State shall be determined based upon the percentage of unemployed individuals in the State relative to the percentage of unemployed individuals in all States.
Authorization
For purposes of carrying out the grant program under this section, there is authorized to be appropriated $35,000,000 for each of fiscal years 2012 through 2014.
Assistance and guidance in implementing self-employment assistance programs
Model language and guidance
For purposes of assisting States in establishing, improving, and administering self-employment assistance programs, the Secretary shall—
develop model language that may be used by States in enacting such programs, as well as periodically review and revise such model language; and
provide technical assistance and guidance in establishing, improving, and administering such programs.
Reporting and Evaluation
Reporting
The Secretary shall establish reporting requirements for States that have established self-employment assistance programs, which shall include reporting on—
the total number of individuals who received unemployment compensation and—
were referred to a self-employment assistance program;
participated in such program; and
received an allowance under such program;
the total amount of allowances provided to individuals participating in a self-employment assistance program;
the total income (as determined by survey or other appropriate method) for businesses that have been established by individuals participating in a self-employment assistance program, as well as the total number of individuals employed through such businesses; and
any additional information, as determined appropriate by the Secretary.
Evaluation
Not later than 5 years after the date of enactment of this Act, the Secretary shall submit to Congress a report that evaluates the effectiveness of self-employment assistance programs established by States, including—
an analysis of the implementation and operation of self-employment assistance programs by States;
an evaluation of the economic outcomes for individuals who participated in a self-employment assistance program as compared to individuals who received unemployment compensation and did not participate in a self-employment assistance program, including a comparison as to employment status, income, and duration of receipt of unemployment compensation or self-employment assistance allowances; and
an evaluation of the state of the businesses started by individuals who participated in a self-employment assistance program, including information regarding—
the type of businesses established;
the sustainability of the businesses;
the total income collected by the businesses;
the total number of individuals employed through such businesses; and
the estimated Federal and State tax revenue collected from such businesses and their employees.
Flexibility and accountability
The model language, guidance, and reporting requirements developed by the Secretary under subsections (a) and (b) shall—
allow sufficient flexibility for States and participating individuals; and
ensure accountability and program integrity.
Consultation
For purposes of developing the model language, guidance, and reporting requirements described under subsections (a) and (b), the Secretary shall consult with employers, labor organizations, State agencies, and other relevant program experts.
Entrepreneurial training programs
The Secretary shall utilize resources available through the Department of Labor and coordinate with the Administrator of the Small Business Administration to ensure that adequate funding is reserved and made available for the provision of entrepreneurial training to individuals participating in self-employment assistance programs.
Self-Employment assistance program
For purposes of this section, the term self-employment assistance program means a program established pursuant to section 3306(t) of the Internal Revenue Code of 1986 (26 U.S.C. 3306(t)), section 208 of the Federal-State Extended Unemployment Compensation Act of 1970, or section 4001(h) of the Supplemental Appropriations Act, 2008, for individuals who are eligible to receive regular unemployment compensation, extended compensation, or emergency unemployment compensation.
Programs of the Small Business Administration
Repeal of authority for the Program for Investment in Microentrepreneurs
Repeal
Subtitle C of title I of the Riegle Community Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6901 et seq.) is repealed.
Rule of construction
Nothing in this subsection shall affect any grant or assistance provided under subtitle C of title I of the Riegle Community Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6901 et seq.) before the date of enactment of this Act, and any such grant or assistance shall be subject to such subtitle C, as in effect on the day before the date of enactment of this Act.
Loan Modernization and Accounting System; Special Purpose Counseling Grants
Funding
Of
the amounts made available under the Continuing Appropriations Act, 2012, for
the appropriations account appropriated under the heading
Salaries
and Expenses
under the heading Small Business
Administration
—
not more than $7,100,000 may be expended for the Loan Modernization and Accounting System; and
$5,100,000 is rescinded.
Termination of program
The Administrator of the Small Business Administration shall terminate the Special Purpose Counseling Grant program under section 21 of the Small Business Act (15 U.S.C. 648).
Definitions
In this Act:
Secretary
The term Secretary means the Secretary of Labor.
State; State agency
The terms State and State agency have the meanings given such terms under section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).