Bill Text: MI SB0141 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Employment security; funds; self-employment assistance program; implement in lieu of regular unemployment compensation. Amends 1936 (Ex Sess) PA 1 (MCL 421.1 - 421.75) by adding sec. 27d.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Introduced - Dead) 2013-02-05 - Referred To Committee On Reforms, Restructuring And Reinventing [SB0141 Detail]

Download: Michigan-2013-SB0141-Introduced.html

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SENATE BILL No. 141

 

 

February 5, 2013, Introduced by Senators GREGORY, SMITH, BIEDA, JOHNSON, HOPGOOD, ANDERSON, YOUNG and HUNTER and referred to the Committee on Reforms, Restructuring and Reinventing.

 

 

     A bill to amend 1936 (Ex Sess) PA 1, entitled

 

"Michigan employment security act,"

 

(MCL 421.1 to 421.75) by adding section 27d.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 27d. (1) As used in this section:

 

     (a) "Self-employment assistance activities" means activities

 

that are approved by the unemployment agency, including

 

entrepreneurial training, business counseling, and technical

 

assistance, in which an individual identified through a worker

 

profiling system as likely to exhaust regular unemployment

 

compensation participates for the purpose of establishing a

 

business and becoming self-employed.

 

     (b) "Self-employment assistance allowance" means an allowance,

 

payable in lieu of regular unemployment compensation and from the

 

unemployment compensation fund established under section 26 to an

 

individual participating in self-employment assistance activities

 

who meets the requirements of this section.

 

     (c) "Regular unemployment compensation" means benefits payable

 

to an individual under this act, including benefits payable to

 

federal civilian employees and to ex-servicemembers pursuant to 5

 

USC 8501 to 8525, other than additional and extended benefits.

 

     (d) "Full-time basis" means the hours of employment

 

established for full-time employment in regulations promulgated by

 

the unemployment agency pursuant to the administrative procedures

 

act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (2) The weekly self-employment assistance allowance payable

 

under this section is equal to the weekly benefit amount for

 

regular unemployment compensation otherwise payable under section

 

27. The total of the allowance paid under this section plus the

 

regular unemployment compensation paid under this act with respect

 

to any benefit year shall not exceed the maximum benefit amount as

 

established under section 27 with respect to that benefit year.

 

     (3) The self-employment assistance allowance is payable at the

 

same interval, on the same terms, and subject to the same

 

conditions as regular unemployment compensation under this act,

 

except for all of the following:

 

     (a) The requirements of section 28(1)(c) relating to

 

availability for work, section 28(1)(a) relating to active search

 

for work, and section 29(1)(e) relating to refusal to accept work

 

are not applicable to the individual.

 

     (b) The requirements of section 27(c)(2) relating to earned

 

income do not apply to income earned from self-employment by the

 

individual.

 

     (c) An individual who meets the requirements of this section

 

is considered to be unemployed under section 48.

 

     (d) An individual who fails to participate in self-employment

 

assistance activities or who fails to actively engage on a full-

 

time basis in activities, including training, relating to the

 

establishment of a business and becoming self-employed is

 

disqualified from receiving an allowance under this section for the

 

week the failure occurs.

 

     (4) The aggregate number of individuals receiving the

 

allowance under this section at any time shall not exceed 5% of the

 

number of individuals receiving regular unemployment compensation.

 

The unemployment agency shall prescribe guidelines for actions that

 

are necessary to assure the requirements of this subsection are

 

met.

 

     (5) Allowances paid under this section shall be charged to

 

employers as provided under this act for charging regular

 

unemployment compensation.

 

     (6) The self-employment assistance program shall not result in

 

any cost to the unemployment trust fund in excess of the cost that

 

would be incurred by this state and charged to the fund if the

 

program had not been operated.

 

     (7) Self-employment assistance allowances paid under this

 

section shall be paid in accordance with any additional program

 

requirements established by the secretary of labor pursuant to 26

 

USC 3306(t).

 

     (8) This section applies to benefit weeks beginning after

 

January 4, 2014.