1-1 By: Truan, West S.B. No. 215 1-2 (In the Senate - Filed January 12, 1995; January 18, 1995, 1-3 read first time and referred to Committee on Economic Development; 1-4 February 8, 1995, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 8, Nays 0; 1-6 February 8, 1995, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 215 By: Ellis 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the establishment of a self-employment assistance 1-11 program. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subtitle B, Title 4, Labor Code, is amended by 1-14 adding Chapter 303 to read as follows: 1-15 CHAPTER 303. SELF-EMPLOYMENT ASSISTANCE PROGRAM 1-16 Sec. 303.001. DEFINITIONS. In this chapter: 1-17 (1) "Commission" means the Texas Employment 1-18 Commission. 1-19 (2) "Regular benefits" means benefits payable under 1-20 Subtitle A and benefits payable to federal civilian employees and 1-21 former members of the United States Armed Forces under 5 U.S.C. 1-22 Chapter 85. The term does not include additional or extended 1-23 benefits. 1-24 (3) "Self-employment assistance activities" means 1-25 activities approved by the commission, including entrepreneurial 1-26 training, business counseling, and technical assistance, in which 1-27 an individual identified under this chapter participates for the 1-28 purpose of establishing a business and becoming self-employed. 1-29 (4) "Self-employment assistance allowance" means an 1-30 allowance payable under this chapter to an individual participating 1-31 in self-employment assistance activities. 1-32 Sec. 303.002. ELIGIBILITY FOR SELF-EMPLOYMENT ASSISTANCE 1-33 ALLOWANCE. (a) An individual is eligible to receive a 1-34 self-employment assistance allowance if the individual: 1-35 (1) is eligible to receive regular benefits or would 1-36 be eligible to receive regular benefits but for a disqualification 1-37 otherwise applicable under Section 207.021(a)(4) or Section 1-38 207.047(a); 1-39 (2) is identified by a profiling system established by 1-40 the commission as an individual likely to exhaust regular benefits; 1-41 (3) applies to participate in a program of 1-42 self-employment assistance activities not later than the 60th day 1-43 after the date the individual initially applied for regular 1-44 benefits and provides the information required by the commission 1-45 for that participation; and 1-46 (4) has, on the date of application under Subdivision 1-47 (3): 1-48 (A) a balance of regular benefits equal to not 1-49 less than 18 times the individual's weekly benefit amount; and 1-50 (B) not less than 18 weeks remaining in the 1-51 individual's benefit year. 1-52 (b) The commission shall pay a self-employment assistance 1-53 allowance, subject to the limitation imposed under Section 303.005, 1-54 to an eligible individual who: 1-55 (1) has been accepted into a program approved by the 1-56 commission that provides self-employment assistance activities; 1-57 (2) is participating in self-employment assistance 1-58 activities; 1-59 (3) is actively engaged on a full-time basis in 1-60 activities, which may include training, related to establishing a 1-61 business and becoming self-employed; 1-62 (4) files a weekly claim with the commission for the 1-63 self-employment assistance allowance; and 1-64 (5) provides information required by the commission, 1-65 including a log of self-employment activities in which the 1-66 individual has participated. 1-67 (c) Except as otherwise provided by this section, a 1-68 self-employment assistance allowance is payable to an individual at 2-1 the same interval and is subject to the same terms and conditions 2-2 as regular benefits. 2-3 (d) Income from self-employment earned by an individual is 2-4 not required to be reported and may not be considered by the 2-5 commission for the purposes of Section 207.003. 2-6 (e) An individual who meets the requirements of this section 2-7 is unemployed for the purposes of Subtitle A. 2-8 Sec. 303.003. DISQUALIFICATION. An individual who fails to 2-9 participate in self-employment assistance activities or who fails 2-10 to actively engage on a full-time basis in activities, including 2-11 training, related to establishing a business and becoming 2-12 self-employed is disqualified from the self-employment assistance 2-13 allowance for the benefit period during which the disqualification 2-14 occurs. 2-15 Sec. 303.004. AMOUNT OF SELF-EMPLOYMENT ASSISTANCE 2-16 ALLOWANCE. (a) The weekly amount payable under this chapter to an 2-17 eligible individual is equal to the weekly benefit amount for 2-18 regular benefits otherwise payable to the individual under Section 2-19 207.002. 2-20 (b) The total of the allowance paid under this section and 2-21 the regular benefits paid under Subtitle A with respect to an 2-22 individual's benefit year may not exceed the maximum amount 2-23 established under Section 207.005. 2-24 Sec. 303.005. LIMITATION ON SCOPE OF PROGRAM. (a) The 2-25 number of individuals who receive a self-employment assistance 2-26 allowance under this chapter at any time may not exceed five 2-27 percent of the total number of individuals receiving regular 2-28 benefits under Subtitle A. 2-29 (b) The commission shall adopt rules as necessary to enforce 2-30 this section. 2-31 Sec. 303.006. PROGRAM FINANCING. Self-employment assistance 2-32 allowances paid under this chapter shall be charged to employers in 2-33 the same manner provided under Subtitle A for the charging of 2-34 regular benefits. 2-35 Sec. 303.007. RULES; COMMISSION DUTIES. (a) The commission 2-36 may adopt rules to implement this chapter, including rules relating 2-37 to: 2-38 (1) criteria for the approval of programs that provide 2-39 self-employment assistance activities; 2-40 (2) eligibility for acceptance in and standards for 2-41 participation in a program; and 2-42 (3) the review and appeal process for a determination 2-43 of individual eligibility for a self-employment assistance 2-44 allowance. 2-45 (b) The commission shall develop a profiling system to 2-46 identify individuals likely to exhaust regular benefits who may be 2-47 eligible to participate in a program of self-employment assistance 2-48 activities under this chapter. 2-49 Sec. 303.008. PROGRAM APPROVAL. In approving a program that 2-50 provides self-employment assistance activities, the commission 2-51 shall attempt to identify and give priority treatment to existing 2-52 training programs. 2-53 SECTION 2. (a) This Act takes effect September 1, 1995, and 2-54 applies only to weeks beginning after that date or weeks beginning 2-55 after the date the United States Department of Labor approves a 2-56 plan required by that department, whichever date is later. 2-57 (b) This Act expires at the end of the week preceding the 2-58 date federal law no longer authorizes a self-employment assistance 2-59 program, unless that date is a Saturday, in which case this Act 2-60 expires on that date. 2-61 SECTION 3. The importance of this legislation and the 2-62 crowded condition of the calendars in both houses create an 2-63 emergency and an imperative public necessity that the 2-64 constitutional rule requiring bills to be read on three several 2-65 days in each house be suspended, and this rule is hereby suspended. 2-66 * * * * *