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.