BILL ANALYSIS C.S.S.B. 215 By: Truan Economic Development 02-08-95 Committee Report (Substituted) BACKGROUND NAFTA, which was recently passed by Congress, includes a Self-Employment Assistance Program in its legislation. The program is part of a series of administration innovations in the unemployment system and authorizes states to create self-employment assistance programs as part of their state unemployment compensation systems. PURPOSE As proposed, C.S.S.B. 215 provides for the establishment of a self-employment assistance program. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the Texas Employment Commission under SECTION 1 (Sections 303.005(b) and 303.007(a), Labor Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 4B, Labor Code, by adding Chapter 303, as follows: CHAPTER 303. SELF-EMPLOYMENT ASSISTANCE PROGRAM Sec. 303.001. DEFINITIONS. Defines "commission," "regular benefits," "self-employment assistance activities," and "self-employment assistance allowance." Sec. 303.002. ELIGIBILITY FOR SELF-EMPLOYMENT ASSISTANCE ALLOWANCE. (a) Sets forth guidelines under which an individual is eligible to receive a self-employment assistance allowance (allowance). (b) Sets forth eligibility criteria for individuals to whom the Texas Employment Commission (commission) is required to pay an allowance. (c) Provides that an allowance is payable to an individual at the same interval and is subject to the same terms and conditions as regular benefits. (d) Provides that income from self-employment earned by an individual is not required to be reported and may not be considered by the commission for the purposes of Section 207.003. (e) Provides that an individual who meets the requirements of this section is unemployed for purposes of Subtitle A. Sec. 303.003. DISQUALIFICATION. Provides that an individual who fails to participate in self-employment assistance activities or to engage on a full-time basis in activities related to establishing a business and becoming self-employed is disqualified from the allowance. Sec. 303.004. AMOUNT OF SELF-EMPLOYMENT ASSISTANCE ALLOWANCE. (a) Provides that the weekly amount payable to an eligible individual is equal to the weekly benefit amount otherwise payable for regular benefits. (b) Prohibits the total of the allowance and regular benefits paid under Subtitle A with respect to an individual's benefit year from exceeding a certain amount. Sec. 303.005. LIMITATION ON SCOPE OF PROGRAM. (a) Prohibits the number of individuals who receive an allowance from exceeding five percent of the total number of individuals receiving regular benefits. (b) Requires the commission to adopt rules as necessary to enforce this section. Sec. 303.006. PROGRAM FINANCING. Requires allowances paid to be charged to employers in the same manner as the charging of regular benefits. Sec. 303.007. RULES; COMMISSION DUTIES. (a) Sets forth rules the commission is authorized to adopt to implement this chapter. (b) Requires the commission to develop a profiling system to identify individuals likely to exhaust regular benefits who may be eligible to participate in a program of self-employment assistance activities. Sec. 303.008. PROGRAM APPROVAL. Requires the commission, in approving a program that provides self-employment assistance activities, to attempt to identify and give priority treatment to existing training programs. SECTION 2. (a) Effective date: September 1, 1995. Makes application of this Act prospective. (b) Provides that this Act expires at the end of the week preceding the date federal law no longer authorizes a self-employment assistance program. SECTION 3. Emergency clause.