SENATE AMENDED PRIOR PRINTER'S NOS. 1750, 1814, 1917 PRINTER'S NO. 2286
No. 1475 Session of 1997
INTRODUCED BY ROSS, GLADECK, SATHER, GORDNER, WAUGH, PIPPY, OLASZ, MASLAND, CHADWICK, McNAUGHTON, BAKER, STABACK, CLARK, JOSEPHS, RUBLEY, MANDERINO, ARMSTRONG, BARRAR, WOGAN, SCHRODER, TIGUE, ITKIN, BENNINGHOFF, SERAFINI, HENNESSEY, D. W. SNYDER, GEIST, WILT, VANCE, TRELLO, FEESE, McILHATTAN, NICKOL, LYNCH, E. Z. TAYLOR, FLICK, MAJOR, STERN, WOJNAROSKI, BROWNE, YOUNGBLOOD, RAYMOND, SEYFERT, RAMOS, CAPPABIANCA, BELFANTI, ADOLPH, STEELMAN, COLAFELLA, C. WILLIAMS, WASHINGTON AND L. I. COHEN, MAY 6, 1997
SENATOR ARMSTRONG, LABOR AND INDUSTRY, IN SENATE, AS AMENDED, SEPTEMBER 30, 1997
AN ACT 1 Providing for self-employment assistance, for eligibility, for 2 costs and for limitation. 3 The General Assembly of the Commonwealth of Pennsylvania 4 hereby enacts as follows: 5 Section 1. Short title. 6 This act shall be known and may be cited as the Self- 7 Employment Assistance Program Act. 8 Section 2. Definitions. 9 The following words and phrases when used in this act shall 10 have the meanings given to them in this section unless the 11 context clearly indicates otherwise: 12 "Department." The Department of Labor and Industry of the 13 Commonwealth.
1 "Full-time basis." The devoting of such amount of time as is 2 prescribed by the Department of Labor and Industry, on its own 3 or in consultation with its designated service provider, to be 4 necessary for a program participant to establish a business and 5 become self-employed. 6 "Program." The Self-Employment Assistance Program 7 established in section 3. 8 "Program participant." An individual: 9 (1) who is selected for participation in the program, at 10 the discretion of the Department of Labor and Industry, from 11 among individuals who are eligible for regular benefits and 12 are identified through a worker profiling system as likely to 13 exhaust regular benefits; 14 (2) who is eligible for funding for participation in the 15 program; 16 (3) for whom funding for participation in the program is 17 available; and 18 (4) who has not been terminated from or voluntarily left 19 the program. 20 "Regular benefits." Benefits payable to an individual under 21 the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), 22 known as the Unemployment Compensation Law, or unemployment 23 compensation benefits payable to Federal civilian employees and 24 to ex-servicemembers pursuant to Federal law, other than 25 additional and extended benefits. 26 "Self-employment assistance activities." Activities, 27 including, but not limited to, entrepreneurial training, 28 business counseling and technical assistance, approved by the 29 Department of Labor and Industry, on its own or in consultation 30 with its designated service provider, for the program 19970H1475B2286 - 2 -
1 participant. These activities may be provided by either the 2 Department of Labor and Industry or its designated service 3 provider. 4 "Self-employment assistance allowance." An allowance in lieu 5 of regular benefits and funded in the same manner as regular 6 benefits, payable to a program participant who meets the 7 requirements of this act. 8 "Unemployment Compensation Law." The act of December 5, 1936 9 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment 10 Compensation Law. 11 Section 3. Program. 12 The department shall establish a self-employment assistance 13 program in accordance with the provisions of this act, subject 14 to the availability of all funds necessary for the program. The 15 department may implement the program on a pilot basis. 16 Information about the program shall be made available to 17 potential program participants. 18 Section 4. Self-employment assistance allowance. 19 Subject to the provisions of section 5, the weekly self- 20 employment assistance allowance payable under this act to a 21 program participant shall be equal to the weekly benefit amount 22 for regular benefits otherwise payable. The sum of the 23 allowances paid under this act and regular benefits paid with 24 respect to any benefit year shall not exceed the maximum amount 25 payable for the benefit year under section 404 of the 26 Unemployment Compensation Law. 27 Section 5. Eligibility. 28 (a) General rule.--The self-employment assistance allowance 29 described in section 4 shall be payable to a program participant 30 who participates in self-employment assistance activities and is 19970H1475B2286 - 3 -
1 actively engaged on a full-time basis in efforts to establish a 2 business and become self-employed. The self-employment 3 assistance allowance shall be payable at the same interval, on 4 the same terms and subject to the same conditions as regular 5 benefits, with the following exceptions: 6 (1) The requirements of sections 401(d)(1) and 402(a) of 7 the Unemployment Compensation Law are not applicable to such 8 program participant. 9 (2) The requirements of sections 402(h) and 404(d)(1) of 10 the Unemployment Compensation Law are not applicable to 11 income earned from self-employment by such program 12 participant. 13 (3) Such program participant shall be considered to be 14 unemployed under sections 401 and 402 of the Unemployment 15 Compensation Law. 16 (b) Ineligibility.--A program participant who fails to 17 participate in self-employment assistance activities or who 18 fails to actively engage on a full-time basis in efforts to 19 establish a business and become self-employed shall be 20 ineligible for a self-employment assistance allowance for a week 21 in which such failure occurs. 22 Section 6. Termination. 23 A program participant may be terminated from the program by 24 the department if the individual fails to participate in self- 25 employment assistance activities or fails to actively engage on 26 a full-time basis in efforts to establish a business and become 27 self-employed. Individuals who are terminated from or 28 voluntarily leave the program may receive, if otherwise 29 eligible, regular benefits with respect to the benefit year, 30 provided that the sum of regular benefits paid and self- 19970H1475B2286 - 4 -
1 employment assistance allowances paid with respect to the 2 benefit year shall not exceed the maximum amount payable for the 3 benefit year under section 404 of the Unemployment Compensation 4 Law. 5 Section 7. Limitation. 6 For a specific time period, the number of program 7 participants receiving a self-employment assistance allowance 8 under this act shall not exceed 5% of the number of individuals 9 receiving regular benefits during that time period. 10 Section 8. Costs. 11 Self-employment assistance allowances paid under this act 12 shall be charged to employers as regular benefits are charged 13 under the Unemployment Compensation Law. 14 Section 9. Applicability of Unemployment Compensation Law. 15 (a) General.--Except where inconsistent with this act, all 16 terms and conditions of Federal law and the Unemployment 17 Compensation Law applicable to regular benefits shall be 18 applicable to self-employment assistance allowances under this 19 act. 20 (b) Specific.--Article V of the act of December 5, 1936 (2nd 21 Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment 22 Compensation Law, shall apply to determinations under this act. 23 Section 10. Rules and regulations. 24 The department may promulgate regulations to carry out the 25 purposes of this act. 26 Section 11. Report to General Assembly. 27 (a) General rule.--Annually by the first day of March, the 28 department shall make a report of the program provided for in 29 this act to the Labor and Industry Committee of the Senate and 30 the Labor Relations Committee of the House of Representatives. 19970H1475B2286 - 5 -
1 (b) Content.--This report shall include annual data on the
2 number of program participants and the number of businesses
3 developed under the program, business survival data, the cost of
4 operating the program, compliance with program requirements and
5 data related to business income, the number of employees and
6 wages paid in the new businesses and the incidence and duration
7 of unemployment after business start-up. The report may also
8 include any recommended changes in the program.
9 Section 12. Applicability.
10 (a) Commencement.--The provisions of this act shall apply to
11 those weeks commencing after the following, whichever is later:
12 (1) ninety days after the enactment of this act; or
13 (2) the date of notice published in the Pennsylvania
14 Bulletin that this act and the department's implementation
15 plan have been approved by the United States Department of
16 Labor.
17 (b) Termination.--The application of this act shall
18 terminate as of the end of the week preceding the date that
19 Federal law no longer authorizes the provisions of this act.
20 Section 13. Effective date.
21 This act shall take effect in 90 days IMMEDIATELY. <--
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