Text: SSB00038 Text: SSB00040 Text: SSB00000 - SSB00099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 96.3A SELF-EMPLOYMENT ASSISTANCE 1 2 PROGRAM. 1 3 1. DEFINITIONS. As used in this section, unless the 1 4 context otherwise requires: 1 5 a. "Self-employment assistance activities" means 1 6 activities approved by the director in which an individual 1 7 participates for the purpose of establishing a business and 1 8 becoming self-employed. "Self-employment assistance 1 9 activities" includes, but is not limited to, entrepreneurial 1 10 training, business counseling, and technical assistance. 1 11 b. "Self-employment assistance allowance" means an 1 12 allowance payable, in lieu of regular benefits, from the 1 13 unemployment compensation fund established in section 96.9 to 1 14 an individual who meets the requirements of this section. 1 15 2. AMOUNT OF SELF-EMPLOYMENT ASSISTANCE ALLOWANCE. The 1 16 weekly allowance payable under this section to an individual 1 17 shall be equal to the weekly benefit amount for regular 1 18 benefits otherwise payable pursuant to section 96.3. The 1 19 maximum total amount of regular benefits and self-employment 1 20 assistance allowances payable to an eligible individual during 1 21 a benefit year shall, notwithstanding the maximum benefits as 1 22 established by section 96.3, subsection 5, not exceed the 1 23 lesser of the total of the wage credits accrued in the 1 24 individual's account during the base period or twenty times 1 25 the individual's weekly benefit amount. 1 26 3. ELIGIBILITY. The following eligibility requirements 1 27 apply to the payment of a self-employment assistance allowance 1 28 under this section. 1 29 a. An individual may receive a self-employment assistance 1 30 allowance if the following requirements are met: 1 31 (1) The individual is eligible to receive regular benefits 1 32 or would be eligible to receive regular benefits except for 1 33 the requirements described in paragraph "b". 1 34 (2) The individual is identified by a worker profiling 1 35 system as an individual likely to exhaust regular benefits. 2 1 (3) The individual has filed an application for 2 2 participation in the self-employment assistance program within 2 3 sixty days of filing an initial application for regular 2 4 benefits and has provided the information the director may 2 5 prescribe. 2 6 (4) The individual is still eligible for, at the time the 2 7 application is filed, regular benefits equal to at least 2 8 eighteen times the individual's weekly benefits amount and at 2 9 least eighteen weeks remain in the individual's benefit year. 2 10 (5) The individual has been accepted into and is 2 11 participating full-time in self-employment assistance 2 12 activities. 2 13 (6) The individual has filed a weekly claim for the self- 2 14 employment assistance allowance and provides the information 2 15 the director prescribes, including a log of self-employment 2 16 activities. 2 17 (7) The individual has not previously participated in a 2 18 self-employment assistance program. 2 19 (8) The individual seeks to become self-employed through 2 20 participation in the self-employment assistance program and 2 21 receipt of the self-employment assistance allowance under this 2 22 section in an occupation or business for which the director 2 23 has determined there is a demand in the market. 2 24 (9) The individual seeks to become self-employed through 2 25 participation in the self-employment assistance program and 2 26 receipt of the self-employment assistance allowance under this 2 27 section in an occupation or business that does not compete 2 28 with any business or service offered to the public by either 2 29 the employer who most recently employed the individual prior 2 30 to the individual filing the application for participation in 2 31 the self-employment assistance program or any employer from 2 32 whom the individual received wage credits in the individual's 2 33 base period. 2 34 b. A self-employment assistance allowance is payable to an 2 35 individual at the same interval, on the same terms, and 3 1 subject to the same conditions as regular benefits except for 3 2 the following: 3 3 (1) The requirements of this chapter relating to 3 4 availability for work and active search for work are not 3 5 applicable to the individual. 3 6 (2) The requirements of this chapter relating to refusal 3 7 to accept work are not applicable to the individual. 3 8 (3) The requirements of this chapter relating to self- 3 9 employment income are not applicable to the individual. 3 10 (4) An individual who meets the requirements of this 3 11 section shall be considered to be totally unemployed. 3 12 (5) An individual who fails to participate in self- 3 13 employment assistance activities or who fails to actively 3 14 engage on a full-time basis in activities, which may include 3 15 training, related to establishing a business and becoming 3 16 self-employed shall be disqualified for the week the failure 3 17 occurs. If an individual is disqualified under this 3 18 subparagraph for two consecutive weeks or for any three weeks 3 19 while participating in the self-employment assistance program, 3 20 the individual shall be removed from the program and 3 21 disqualified from receiving any benefits under this chapter 3 22 until the individual has requalified as provided in this 3 23 section. 3 24 c. An individual who has received a self-employment 3 25 assistance allowance under this section shall be disqualified 3 26 for benefits under this chapter once the individual has left 3 27 or been removed from the self-employment assistance program, 3 28 including the situation when an individual has left the 3 29 program upon receiving the maximum total of payments under 3 30 subsection 2, until the individual has worked in and been paid 3 31 wages for insured work equal to ten times the individual's 3 32 weekly benefit amount after having left or been removed from 3 33 the program, and provided the individual is otherwise 3 34 eligible. 3 35 4. LIMITATION ON NUMBER OF INDIVIDUALS RECEIVING A SELF- 4 1 EMPLOYMENT ASSISTANCE ALLOWANCE. The number of individuals 4 2 receiving a self-employment assistance allowance at any time 4 3 shall not exceed five per cent of the number of individuals 4 4 receiving regular benefits at that time. 4 5 5. FINANCING. Self-employment assistance allowances paid 4 6 pursuant to this section shall be charged to employers as 4 7 provided under section 96.7 relating to the charging of 4 8 regular benefits. 4 9 6. EFFECTIVE DATE AND TERMINATION DATE. This section is 4 10 effective for the weeks beginning on or after the effective 4 11 date of this Act or beginning on or after the date any plan 4 12 providing for a self-employment assistance program required by 4 13 the United States department of labor is approved, whichever 4 14 date is later. This section is void as of the end of the week 4 15 preceding the date when federal law no longer authorizes the 4 16 provision of a self-employment assistance program, unless the 4 17 date is a Saturday, in which case this section is void as of 4 18 that date, or July 1, 1999, whichever occurs first. 4 19 Sec. 2. Section 96.6, subsection 2, Code 1997, is amended 4 20 to read as follows: 4 21 2. INITIAL DETERMINATION. A representative designated by 4 22 the director shall promptly notify all interested parties, 4 23 including all employers identified in section 96.3A, 4 24 subsection 3, paragraph "a", subparagraph (9), to the claim of 4 25 its filing, and the parties have ten days from the date of 4 26 mailing the notice of the filing of the claim by ordinary mail 4 27 to the last known address to protest payment of benefits to 4 28 the claimant. The representative shall promptly examine the 4 29 claim and any protest, take the initiative to ascertain 4 30 relevant information concerning the claim, and, on the basis 4 31 of the facts found by the representative, shall determine 4 32 whether or not the claim is valid, the week with respect to 4 33 which benefits shall commence, the weekly benefit amount 4 34 payable and its maximum duration, and whether any 4 35 disqualification shall be imposed. The claimant has the 5 1 burden of proving that the claimant meets the basic 5 2 eligibility conditions of section 96.3A or 96.4. The employer 5 3 has the burden of proving that the claimant is disqualified 5 4 for benefits pursuant to section 96.3A or 96.5. However, the 5 5 claimant has the initial burden to produce evidence showing 5 6 that the claimant is not disqualified for benefits in cases 5 7 involving section 96.3A, subsection 3, paragraphs "b" and "c", 5 8 and section 96.5, subsection 1, paragraphs "a" through "h", 5 9 and subsection 10. Unless the claimant or other interested 5 10 party, after notification or within ten calendar days after 5 11 notification was mailed to the claimant's last known address, 5 12 files an appeal from the decision, the decision is final and 5 13 benefits shall be paid or denied in accordance with the 5 14 decision. If an administrative law judge affirms a decision 5 15 of the representative, or the appeal board affirms a decision 5 16 of the administrative law judge allowing benefits, the 5 17 benefits shall be paid regardless of any appeal which is 5 18 thereafter taken, but if the decision is finally reversed, no 5 19 employer's account shall be charged with benefits so paid and 5 20 this relief from charges shall apply to both contributory and 5 21 reimbursable employers, notwithstanding section 96.8, 5 22 subsection 5. 5 23 EXPLANATION 5 24 This bill establishes a self-employment assistance program 5 25 which essentially provides unemployment compensation benefits 5 26 to individuals seeking to be self-employed. Authority to 5 27 establish a program is provided by federal law at 26 U.S.C. } 5 28 3306(t). 5 29 The bill defines self-employment assistance activities and 5 30 self-employment assistance allowance. The bill provides that 5 31 the weekly self-employment assistance allowance payable to an 5 32 individual is equal to the weekly benefit amount for regular 5 33 unemployment benefits and the maximum yearly allowance is the 5 34 lesser of the total of wage credits accrued in the 5 35 individual's account or 20 times the individual's weekly 6 1 benefit amount. Charges to employers are made in the same 6 2 manner as charges to employers for regular unemployment 6 3 benefits. 6 4 The bill establishes eligibility requirements for an 6 5 individual's acceptance into the self-employment assistance 6 6 program. The bill provides that the requirements to receive 6 7 regular unemployment benefits relating to availability for 6 8 work, active search for work, refusal to accept work, and 6 9 self-employment income do not apply to an individual otherwise 6 10 eligible to receive a self-employment assistance allowance. 6 11 The bill provides that the maximum number of individuals 6 12 eligible for the program at any one time is equal to 5 percent 6 13 of the individuals receiving regular unemployment benefits. 6 14 The bill provides that the bill is effective on the 6 15 effective date of the bill, or the date the United States 6 16 department of labor approves Iowa's plan, and that the bill is 6 17 void if federal authorization for the program ends or July 1, 6 18 1999, whichever occurs first. 6 19 LSB 1257SC 77 6 20 ec/cf/24
Text: SSB00038 Text: SSB00040 Text: SSB00000 - SSB00099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
© 1997 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Tue Jan 28 03:40:39 CST 1997
URL: /DOCS/GA/77GA/Legislation/SSB/00000/SSB00039/970127.html
jhf