Bill Text: IA SF2041 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act establishing a self-employment assistance program for recipients of unemployment compensation benefits and providing a termination date. (See SF 2255.)
Spectrum: Partisan Bill (Democrat 23-0)
Status: (Introduced - Dead) 2012-01-23 - Subcommittee, Hatch, Bacon, and Bowman. S.J. 103. [SF2041 Detail]
Download: Iowa-2011-SF2041-Introduced.html
Senate
File
2041
-
Introduced
SENATE
FILE
2041
BY
HATCH
,
BOLKCOM
,
DEARDEN
,
HORN
,
FRAISE
,
COURTNEY
,
KIBBIE
,
McCOY
,
QUIRMBACH
,
BEALL
,
MATHIS
,
DANIELSON
,
DVORSKY
,
DOTZLER
,
RIELLY
,
JOCHUM
,
HANCOCK
,
SCHOENJAHN
,
SENG
,
BOWMAN
,
HOGG
,
BLACK
,
and
SODDERS
A
BILL
FOR
An
Act
establishing
a
self-employment
assistance
program
1
for
recipients
of
unemployment
compensation
benefits
and
2
providing
a
termination
date.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
NEW
SECTION
.
96.45
Self-employment
assistance
1
program.
2
1.
Definitions.
As
used
in
this
section,
unless
the
context
3
otherwise
requires:
4
a.
“Self-employment
assistance
activities”
means
activities
5
approved
by
the
director
in
which
an
individual
participates
6
for
the
purpose
of
establishing
a
business
and
becoming
7
self-employed.
Self-employment
assistance
activities
include
8
but
are
not
limited
to
entrepreneurial
training,
business
9
counseling,
and
technical
assistance.
10
b.
“Self-employment
assistance
allowance”
means
an
amount
11
payable
in
lieu
of
regular
benefits
under
this
chapter
to
12
an
individual
participating
in
self-employment
assistance
13
activities
in
accordance
with
this
section.
Self-employment
14
assistance
allowance
amounts
shall
be
paid
from
the
15
unemployment
compensation
fund.
16
2.
Self-employment
assistance
allowance
——
amount.
The
17
weekly
amount
of
the
self-employment
assistance
allowance
18
payable
to
an
individual
is
equal
to
the
weekly
regular
benefit
19
amount.
The
sum
of
the
self-employment
assistance
allowance
20
paid
under
this
section
and
the
regular
benefits
paid
under
21
this
chapter
with
respect
to
any
benefit
year
shall
not
22
exceed
the
maximum
benefit
amount
payable
under
section
96.3,
23
subsection
5,
with
respect
to
that
benefit
year.
24
3.
Eligibility
requirements.
The
following
eligibility
25
requirements
apply
to
the
payment
of
a
self-employment
26
assistance
allowance
under
this
section.
27
a.
An
individual
may
receive
a
self-employment
assistance
28
allowance
if
the
following
requirements
are
met:
29
(1)
The
individual
is
eligible
to
receive
regular
benefits
30
or
would
be
eligible
to
receive
regular
benefits
except
for
the
31
requirements
described
in
paragraph
“b”
,
subparagraphs
(1)
and
32
(2).
33
(2)
The
individual
is
identified
by
a
worker
profiling
34
system
as
an
individual
likely
to
exhaust
regular
benefits.
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(3)
The
individual
has
submitted
an
application
form
and
an
1
initial
business
plan
as
prescribed
by
the
director.
2
(4)
The
individual’s
initial
business
plan
has
been
3
reviewed
for
feasibility
and
financial
viability
by
the
4
department
in
consultation
with
a
small
business
development
5
center
associated
with
Iowa
state
university
of
science
6
and
technology.
An
individual
shall
not
be
approved
for
a
7
self-employment
assistance
allowance
unless
the
department
8
finds
the
individual’s
initial
business
plan
feasible
and
9
financially
viable.
Upon
request,
the
department
shall
advise
10
an
individual
as
to
resources
available
in
the
state
to
aid
11
in
the
development
of
a
feasible,
financially
viable,
initial
12
business
plan.
13
(5)
The
individual
has
obtained
any
occupational
14
certification
or
license
necessary
to
carry
out
the
15
individual’s
initial
business
plan
prior
to
the
submission
of
16
an
application
form
and
an
initial
business
plan.
17
(6)
The
individual
has
filed
a
weekly
claim
for
the
18
self-employment
assistance
allowance
and
provides
a
log
of
19
self-employment
activities
and
any
other
information
the
20
director
prescribes.
21
b.
The
self-employment
assistance
allowance
shall
be
payable
22
to
an
individual
at
the
same
intervals
and
on
the
same
terms
23
and
conditions
as
regular
benefits
under
this
chapter
except
24
for
the
following:
25
(1)
The
provisions
of
this
chapter
regarding
being
26
available
for
work,
actively
seeking
work,
and
refusing
to
27
accept
suitable
work
are
not
applicable
to
such
an
individual.
28
(2)
The
requirements
of
this
chapter
relating
to
29
disqualifying
income
are
not
applicable
to
income
earned
from
30
self-employment
by
such
an
individual.
31
c.
An
individual
who
meets
the
requirements
of
this
section
32
shall
be
considered
to
be
totally
unemployed
under
section
33
96.19,
subsection
38,
paragraph
“a”
.
34
d.
An
individual
who
fails
to
actively
engage
on
a
full-time
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basis
in
self-employment
assistance
activities
is
ineligible
to
1
receive
the
self-employment
assistance
allowance
for
each
week
2
in
which
such
failure
occurs.
3
4.
Limitation
on
number
of
individuals
receiving
a
4
self-employment
assistance
allowance.
The
number
of
individuals
5
receiving
the
self-employment
assistance
allowance
at
any
time
6
shall
not
exceed
five
percent
of
the
number
of
individuals
7
receiving
regular
benefits.
8
5.
Financing
the
costs
of
the
self-employment
assistance
9
allowance.
The
self-employment
assistance
allowance
shall
be
10
charged
to
employers
in
the
manner
provided
in
this
chapter
for
11
the
charging
of
regular
benefits.
12
6.
Implementation.
The
director
shall
administer
this
13
section
in
consultation
with
the
small
business
development
14
centers
associated
with
Iowa
state
university
of
science
and
15
technology.
In
adopting
rules
to
administer
this
section,
the
16
director,
insofar
as
is
practicable,
shall
comply
with
the
17
rules
and
policies
of
the
United
States
department
of
labor.
18
7.
Termination
date.
The
authority
to
pay
self-employment
19
assistance
allowances
under
this
section
terminates
at
the
20
end
of
the
week
preceding
the
date
when
federal
law
no
longer
21
authorizes
such
payment,
unless
that
date
is
on
a
Saturday
in
22
which
case
the
authority
terminates
on
that
date.
23
EXPLANATION
24
This
bill
establishes
a
self-employment
assistance
25
program
which
provides
unemployment
compensation
benefits
to
26
individuals
seeking
to
be
self-employed.
These
benefits
are
27
paid
instead
of
regular
unemployment
compensation
benefits.
28
Authority
to
establish
the
program
is
provided
by
federal
law
29
at
26
U.S.C.
§
3306(t).
30
The
bill
defines
self-employment
assistance
activities
31
and
self-employment
assistance
allowance.
Self-employment
32
assistance
activities
are
intended
to
enable
an
individual
33
to
establish
a
business
and
become
self-employed
and
34
include
entrepreneurial
training,
business
counseling,
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technical
assistance,
and
any
other
activities
approved
by
1
the
labor
commissioner.
The
bill
provides
that
the
weekly
2
self-employment
assistance
allowance
payable
to
an
individual
3
is
equal
to
the
weekly
benefit
amount
for
regular
unemployment
4
benefits
and
the
maximum
yearly
allowance
is
the
same
as
5
the
maximum
yearly,
regular
unemployment
benefits
currently
6
allowable.
Charges
to
employers
are
made
in
the
same
manner
as
7
charges
to
employers
for
regular
unemployment
benefits.
8
The
bill
establishes
eligibility
requirements
for
an
9
individual’s
acceptance
into
the
self-employment
assistance
10
program.
An
individual
must
be
identified
by
a
worker
11
profiling
system
as
an
individual
likely
to
exhaust
regular
12
unemployment
compensation
benefits.
An
individual
must
13
submit
an
application
form
and
an
initial
business
plan.
14
The
department
of
workforce
development,
in
consultation
15
with
a
small
business
development
center
associated
with
16
Iowa
state
university
of
science
and
technology,
must
review
17
the
individual’s
initial
business
plan
for
feasibility
and
18
financial
viability.
An
individual’s
initial
business
plan
19
must
be
found
feasible
and
financially
viable
in
order
for
the
20
individual
to
be
accepted
into
the
program.
Upon
request,
21
the
department
is
to
advise
an
individual
as
to
resources
22
available
in
the
state
to
aid
in
the
development
of
a
feasible,
23
financially
viable,
initial
business
plan.
An
individual
24
must
have
obtained
any
occupational
certification
or
license
25
necessary
to
carry
out
the
individual’s
initial
business
26
plan
prior
to
applying
for
the
program.
An
individual
must
27
also
file
a
weekly
claim
for
the
self-employment
assistance
28
allowance
and
provide
a
log
of
self-employment
activities
as
29
well
as
any
other
information
required
by
the
director
of
the
30
department
of
workforce
development.
31
The
bill
provides
that
the
requirements
to
receive
regular
32
unemployment
benefits
relating
to
availability
for
work,
active
33
search
for
work,
refusal
to
accept
work,
and
self-employment
34
income
do
not
apply
to
an
individual
otherwise
eligible
to
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receive
a
self-employment
assistance
allowance.
The
bill
1
provides
that
an
individual
who
fails
to
actively
engage
in
2
self-employment
assistance
activities
full-time
is
ineligible
3
to
receive
the
self-employment
assistance
allowance
for
each
4
week
such
a
failure
occurs.
5
The
bill
provides
that
the
maximum
number
of
individuals
6
eligible
for
the
program
at
any
one
time
is
equal
to
5
percent
7
of
the
individuals
receiving
regular
unemployment
benefits.
8
The
bill
directs
the
director
of
the
department
of
workforce
9
development
to
administer
the
bill
in
consultation
with
a
10
small
business
development
center
associated
with
Iowa
state
11
university.
The
bill
also
directs
the
director
to
comply
with
12
the
rules
and
policies
of
the
United
States
department
of
13
labor,
where
practicable,
when
adopting
rules
to
implement
the
14
bill.
15
The
bill
is
void
if
federal
authorization
for
the
program
16
ends.
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