PUBLIC LAW 103-182—DEC. 8, 1993 107 STAT. 2153 SEC. 507. TREATMENT OF SELF-EMPLOYMENT ASSISTANCE PRO- GRABIS. (a) GENERAL RULE.— Section 3306 of the Internal Revenue Code of 1986 is amended by adding at the end the following new sub- 26 USC 3306. section:
- (t) SELF-EMPLOYMENT ASSISTANCE PROGRAM. —For the purposes of this chapter, the term 'self-employment assistance program'
means a program under which— (1) individuals who meet the requirements described in paragraph (3) are eligible to receive an allowance in lieu of regular imemployment compensation under the State law for the purpose of assisting such individuals in establishing a business and becoming self-employed; "(2) the allowance payable to individuals pursuant to paragraph (1) is payable in the same amount, at the same interval, on the same terms, and subject to the same conditions, as regular imemployment compensation under the State law, except that— "(A) State requirements relating to availability for work, active search for work, and reniscd to accept work are not applicable to such individuals; "(B) State requirements relating to disqualifying income are not applicable to income earned from self- employment by such individuals; and "(C) such individuals are considered to be unemployed for the purposes of Federal and State laws applicable to unemployment compensation, as long as such individuals meet the requirements applicable under this subsection; "(3) individuals ma^ receive the allowance described in paragraph (1) if such individuals— "(A) are eligible to receive regular unemployment compensation under the State law, or would be eligible to receive such compensation except for the requirements described in subparagraph (A) or (B) of paragraph (2); "(B) are identified pursuant to a State worker profiling system as individuals likely to exhaust regular unemploy- ment compensation; and "(C) are participating in self-employment assistance activities which— "(i) include entrepreneurial training, business counseling, and technical assistcuice; and "(ii) are approved by the State agency; and "(D) are actively engaged on a full-time basis in activities (which may include training) relating to the establishment of a business and becoming self-employed; "(4) the aggregate number of individuals receiving the allowance under the program does not at any time exceed 5 percent of the number of individuals receiving regular unemployment compensation under the State law at such time; "(5) the program does not result in any cost to the Unemployment TYust Fund (established by section 904(a) of the Social Security Act) in excess of the cost that would be incurred by such State and charged to such Fund if the State had not participated iin such program; and "(6) the program meets such other requirements as the Secretary of Labor determines to be appropriate.".