[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3427 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3427

   To provide for the availability of self-employment assistance to 
 individuals receiving extended compensation or emergency unemployment 
                             compensation.


_______________________________________________________________________


                    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Startup Technical Assistance for 
Reemployment Training and Unemployment Prevention Act'' or the 
``STARTUP Act''.

SEC. 2. STATE ADMINISTRATION OF SELF-EMPLOYMENT ASSISTANCE PROGRAMS.

    (a) 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

    ``Sec. 208.  (a)(1) 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.
    ``(2) 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.
    ``(3)(A) 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').
    ``(B) 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.
    ``(b) 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:
            ``(1) 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';
            ``(2) paragraph (3)(B) shall not apply;
            ``(3) clause (i) of paragraph (3)(C) shall be deemed to 
        state as follows:
                            ```(i) 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';
            ``(4) the reference to `5 percent' in paragraph (4) shall 
        be deemed to refer instead to `1 percent'; and
            ``(5) paragraph (5) shall not apply.
    ``(c) 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.
    ``(d)(1) 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.
    ``(2) 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).''.
    (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:
    ``(h) Authority To Conduct Self-Employment Assistance Program.--
            ``(1) In general.--
                    ``(A) 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).
                    ``(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.
                    ``(C) Limitation on self-employment assistance for 
                individuals receiving extended compensation and 
                emergency unemployment compensation.--
                            ``(i) 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').
                            ``(ii) 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.
            ``(2) 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:
                    ``(A) 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';
                    ``(B) paragraph (3)(B) shall not apply;
                    ``(C) clause (i) of paragraph (3)(C) shall be 
                deemed to state as follows:
                            ```(i) 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';
                    ``(D) the reference to `5 percent' in paragraph (4) 
                shall be deemed to refer instead to `1 percent'; and
                    ``(E) paragraph (5) shall not apply.
            ``(3) 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.
            ``(4) Participant option to terminate participation in 
        self-employment assistance program.--
                    ``(A) 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.
                    ``(B) 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.''.

SEC. 3. GRANTS FOR SELF-EMPLOYMENT ASSISTANCE PROGRAMS.

    (a) In General.--
            (1) Establishment or improved administration.--Subject to 
        the requirements established under subsection (b), the 
        Secretary shall award grants to States for the purposes of--
                    (A) 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;
                    (B) 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
                    (C) 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.
            (2) 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.
    (b) Application and Disbursal.--
            (1) 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.
            (2) 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).
            (3) 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.
    (c) 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.
    (d) 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.

SEC. 4. ASSISTANCE AND GUIDANCE IN IMPLEMENTING SELF-EMPLOYMENT 
              ASSISTANCE PROGRAMS.

    (a) Model Language and Guidance.--For purposes of assisting States 
in establishing, improving, and administering self-employment 
assistance programs, the Secretary shall--
            (1) develop model language that may be used by States in 
        enacting such programs, as well as periodically review and 
        revise such model language; and
            (2) provide technical assistance and guidance in 
        establishing, improving, and administering such programs.
    (b) Reporting and Evaluation.--
            (1) Reporting.--The Secretary shall establish reporting 
        requirements for States that have established self-employment 
        assistance programs, which shall include reporting on--
                    (A) the total number of individuals who received 
                unemployment compensation and--
                            (i) were referred to a self-employment 
                        assistance program;
                            (ii) participated in such program; and
                            (iii) received an allowance under such 
                        program;
                    (B) the total amount of allowances provided to 
                individuals participating in a self-employment 
                assistance program;
                    (C) 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
                    (D) any additional information, as determined 
                appropriate by the Secretary.
            (2) 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--
                    (A) an analysis of the implementation and operation 
                of self-employment assistance programs by States;
                    (B) 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
                    (C) an evaluation of the state of the businesses 
                started by individuals who participated in a self-
                employment assistance program, including information 
                regarding--
                            (i) the type of businesses established;
                            (ii) the sustainability of the businesses;
                            (iii) the total income collected by the 
                        businesses;
                            (iv) the total number of individuals 
                        employed through such businesses; and
                            (v) the estimated Federal and State tax 
                        revenue collected from such businesses and 
                        their employees.
    (c) Flexibility and Accountability.--The model language, guidance, 
and reporting requirements developed by the Secretary under subsections 
(a) and (b) shall--
            (1) allow sufficient flexibility for States and 
        participating individuals; and
            (2) ensure accountability and program integrity.
    (d) 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.
    (e) 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.
    (f) 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.

SEC. 5. PROGRAMS OF THE SMALL BUSINESS ADMINISTRATION.

    (a) Repeal of Authority for the Program for Investment in 
Microentrepreneurs.--
            (1) 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.
            (2) 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.
    (b) Loan Modernization and Accounting System; Special Purpose 
Counseling Grants.--
            (1) 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''--
                    (A) not more than $7,100,000 may be expended for 
                the Loan Modernization and Accounting System; and
                    (B) $5,100,000 is rescinded.
            (2) 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).

SEC. 6. DEFINITIONS.

    In this Act:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) 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).
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