PRINTER'S NO. 2327
No. 1555 Session of 2002
INTRODUCED BY ARMSTRONG, OCTOBER 24, 2002
REFERRED TO LABOR AND INDUSTRY, OCTOBER 24, 2002
AN ACT
1 Amending the act of December 18, 2001 (P.L.949, No.114),
2 entitled "An act establishing a unified workforce investment
3 system; restructuring certain administrative functions,
4 procedures and entities; transferring workforce development
5 functions of Commonwealth agencies; establishing the
6 Pennsylvania Workforce Investment Board; providing for
7 critical job training grants; and authorizing local workforce
8 investment boards," providing assistance to self-employed
9 individuals; and making a repeal.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. The act of December 18, 2001 (P.L.949, No.114),
13 known as the Workforce Development Act, is amended by adding a
14 chapter to read:
15 CHAPTER 15
16 SELF-EMPLOYED ASSISTANCE
17 Section 1501. Definitions.
18 The following words and phrases when used in this chapter
19 shall have the meanings given to them in this section unless the
20 context clearly indicates otherwise:
21 "Department." The Department of Labor and Industry of the
1 Commonwealth.
2 "Full-time basis." The devoting of the amount of time
3 prescribed by the Department of Labor and Industry 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 1502.
8 "Program participant." An individual:
9 (1) who, at the discretion of the Department of Labor
10 and Industry, is selected for participation in the program
11 from among individuals who are eligible for regular benefits
12 and are identified through a worker profiling system as
13 likely to 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-service members pursuant to Federal law, other than
25 additional and extended benefits.
26 "Self-employment assistance activities." Activities,
27 including entrepreneurial training, business counseling and
28 technical assistance, which are approved by the Department of
29 Labor and Industry for the program participant. These activities
30 may be provided by either the Department of Labor and Industry
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1 or its designated service provider.
2 "Self-employment assistance allowance." An allowance which
3 is in lieu of regular benefits and funded in the same manner as
4 regular benefits and which is payable to a program participant
5 who meets the requirements of this chapter.
6 "Unemployment Compensation Law." The act of December 5, 1936
7 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
8 Compensation Law.
9 Section 1502. Program.
10 The department shall establish a self-employment assistance
11 program subject to the availability of funds necessary for the
12 program. The department may implement the program on a pilot
13 basis. Information about the program shall be made available to
14 potential program participants.
15 Section 1503. Self-employment assistance allowance.
16 Subject to the provisions of section 1504, the weekly self-
17 employment assistance allowance payable under this chapter to a
18 program participant shall be equal to the weekly benefit amount
19 for regular benefits otherwise payable. The sum of the
20 allowances paid under this chapter and regular benefits paid
21 with respect to any benefit year shall not exceed the maximum
22 amount payable for the benefit year under section 404 of the
23 Unemployment Compensation Law.
24 Section 1504. Eligibility.
25 (a) General rule.--The self-employment assistance allowance
26 described in section 1503 shall be payable to a program
27 participant who participates in self-employment assistance
28 activities and who is actively engaged on a full-time basis in
29 efforts to establish a business and become self-employed. The
30 self-employment assistance allowance shall be payable at the
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1 same interval, on the same terms and subject to the same
2 conditions as regular benefits, except as follows:
3 (1) The requirements of sections 401(d)(1) and 402(a) of
4 the Unemployment Compensation Law are not applicable to the
5 program participant.
6 (2) The requirements of sections 402(h) and 404(d)(1) of
7 the Unemployment Compensation Law are not applicable to
8 income earned from self-employment by the program
9 participant.
10 (3) The program participant shall be considered to be
11 unemployed under sections 401 and 402 of the Unemployment
12 Compensation Law.
13 (b) Ineligibility.--A program participant who fails to
14 participate in self-employment assistance activities or who
15 fails to actively engage on a full-time basis in efforts to
16 establish a business and become self-employed shall be
17 ineligible for a self-employment assistance allowance for a week
18 in which such failure occurs.
19 Section 1505. Termination.
20 A program participant may be terminated from the program by
21 the department if the individual fails to participate in self-
22 employment assistance activities or fails to actively engage on
23 a full-time basis in efforts to establish a business and become
24 self-employed. Individuals who are terminated from or
25 voluntarily leave the program may receive, if otherwise
26 eligible, regular benefits with respect to the benefit year,
27 provided that the sum of regular benefits paid and self-
28 employment assistance allowances paid with respect to the
29 benefit year shall not exceed the maximum amount payable for the
30 benefit year under section 404 of the Unemployment Compensation
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1 Law.
2 Section 1506. Limitation.
3 For a specific time period, the number of program
4 participants receiving a self-employment assistance allowance
5 under this chapter shall not exceed 5% of the number of
6 individuals receiving regular benefits during that time period.
7 Section 1507. Costs.
8 Self-employment assistance allowances paid under this chapter
9 shall be charged to employers as regular benefits are charged
10 under the Unemployment Compensation Law.
11 Section 1508. Applicability of Unemployment Compensation Law.
12 (a) General.--Except where inconsistent with this chapter,
13 all terms and conditions of Federal law and the Unemployment
14 Compensation Law applicable to regular benefits shall be
15 applicable to self-employment assistance allowances under this
16 chapter.
17 (b) Specific.--Article V of the Unemployment Compensation
18 Law shall apply to determinations under this chapter.
19 Section 1509. Rules and regulations.
20 The department may promulgate regulations to carry out the
21 purposes of this chapter.
22 Section 1510. Report to General Assembly.
23 (a) General rule.--The department shall make a report of the
24 program to the Labor and Industry Committee of the Senate and
25 the Labor Relations Committee of the House of Representatives by
26 March 1 of each year.
27 (b) Content.--The report shall include annual data on the
28 number of program participants and the number of businesses
29 developed under the program, business survival data, the cost of
30 operating the program, compliance with program requirements and
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1 data related to business income, the number of employees and
2 wages paid in the new businesses and the incidence and duration
3 of unemployment after business start-up. The report may also
4 include any recommended changes in the program.
5 Section 1511. Notice.
6 If the Secretary of Labor and Industry determines that
7 Federal Law no longer authorizes the provisions of this chapter,
8 the secretary shall transmit notice of the determination to the
9 Legislative Reference Bureau for publication in the Pennsylvania
10 Bulletin. In the notice the secretary shall specify, as the
11 expiration date of this chapter, the date of the last day of the
12 week preceding the date on which Federal law no longer
13 authorizes the provisions of this chapter.
14 Section 1512. Expiration.
15 This chapter shall expire on the date specified in the notice
16 under section 1511.
17 Section 2. Section 4903 of the act is amended to read:
18 [Section 4903. Expiration.
19 Chapter 7 shall expire December 31, 2002.]
20 Section 3. The act of November 26, 1997 (P.L.504, No.54),
21 known as the Self-Employment Assistance Program Act, is
22 repealed.
23 Section 4. The addition of chapter 15 of the act is a
24 continuation of the act of November 26, 1997 (P.L.504, No.54),
25 known as the Self-Employment Assistance Program Act. The
26 following apply:
27 (1) Except as set forth in paragraph (2), any difference
28 in language between the Self-Employment Assistance Program
29 Act and Chapter 15 of the act is intended only to conform to
30 the style of the act and is not intended to change or affect
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1 the legislative intent, judicial construction or
2 administration and implementation of the Self-Employment
3 Assistance Program Act.
4 (2) Paragraph (1) does not apply to the following
5 provisions of Chapter 15 of the act:
6 (i) The definitions of "full-time basis" and "self-
7 employment assistance activities" in section 1501.
8 (ii) Section 1511.
9 Section 5. This act shall take effect immediately.
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