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.