Bill Text: CA AB2030 | 2009-2010 | Regular Session | Amended
Bill Title: Unemployment: Self-Employment Assistance Program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-05-28 - In committee: Set, second hearing. Held under submission. [AB2030 Detail]
Download: California-2009-AB2030-Amended.html
BILL NUMBER: AB 2030 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 12, 2010
AMENDED IN ASSEMBLY MARCH 22, 2010
INTRODUCED BY Assembly Member Yamada
FEBRUARY 17, 2010
An act to add and repeal Article 2.2 (commencing with Section
1301) of Chapter 5 of Part 1 of Division 1 of the Unemployment
Insurance Code, relating to unemployment insurance, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2030, as amended, Yamada. Unemployment: Self-Employment
Assistance Program.
Existing law provides for the payment of unemployment compensation
benefits during the period that a person is unemployed. Existing law
imposes various requirements on the payments of benefits, including
work search requirements. Existing law also establishes retraining
programs for unemployed workers. Prior law, enacted in 1994 and
repealed in 2005, established the Self-Employment Assistance Program
for displaced workers.
This bill would reestablish the Self-Employment Assistance
Program, to be administered by the Director of the Employment
Development Department. The bill would provide for a weekly allowance
for participants equal to regular unemployment benefits, subject to
various limits, and would waive requirements relating to job search
and self-employment, as specified. The bill would impose various
eligibility requirements upon participants and would require the
director to review the implementation of the program and
provide a summary of submit information summarizing
its operation and effectiveness at an informational
public hearing before the Legislature to the Assembly
Insurance Committee and the Senate Labor and Industrial Relations
Committee. The bill would remain effective until January 1,
2017.
Since the benefits would be payable from the continuously
appropriated Unemployment Fund, the bill would make an appropriation.
The self-employment program provisions of the bill would apply to
weeks beginning after approval of the United States Department of
Labor.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 2.2 (commencing with Section 1301) is added to
Chapter 5 of Part 1 of Division 1 of the Unemployment Insurance Code,
to read:
Article 2.2. Self Employment Assistance Program
1301. As used in this article:
(a) "Full-time basis" means 40 hours each week.
(b) "Regular benefits" means benefits payable to an individual
under this part, including benefits payable to federal civilian
employees and to ex-service members pursuant to Chapter 85
(commencing with Section 8501) of Title 5 of the United States Code,
other than additional and extended benefits.
(c) "Self-employment assistance activities" means activities
approved by the director in which an individual, identified through a
worker profiling system as likely to exhaust regular benefits,
participates for the purpose of establishing a business and becoming
self-employed. These may shall include,
but are not limited to, entrepreneurial training, business
counseling, and technical assistance.
(d) "Self-employment assistance allowance" means an allowance
payable in lieu of regular benefits and from the Unemployment Fund
established under Section 1521 to an individual participating in
self-employment assistance activities who meets the requirements of
this article.
(e) "Self-Employment Assistance Program" means the program that
enables an unemployed individual approved under this article to
engage in self-employment assistance activities on a
full-time basis that will lead to establishing a business and
becoming self-employed.
1302. The weekly allowance payable under this article to an
individual shall be equal to the weekly benefit amount for regular
benefits otherwise payable under Article 2 (commencing with Section
1275). The sum of the allowance payable under this section and the
regular benefits paid under this part with respect to any benefit
year shall not exceed the maximum benefit amount as established by
Section 1281 with respect to that benefit year.
1303. The allowance described in Section 1302 shall be payable to
an individual at the same interval, on the same terms, and subject
to the same conditions as regular benefits under this part, except as
follows:
(a) The requirements relating to availability for work, active
search for work, and refusal to accept work shall not apply to any
week that the individual is in training or engaged in self-employment
activities as approved by this article.
(b) Income earned by an individual while engaged in
self-employment activities as approved under this article shall not
be construed to be wages or compensation for personal services under
this division, and benefits payable under this division shall not be
denied or reduced because of those payments.
(c) An individual who fails to participate in self-employment
assistance activities or who fails to actively engage on a full-time
basis in activities, which may include training, relating to the
establishment of a business and becoming self-employed shall be
disqualified for the week the failure occurs.
1304. An individual is eligible to be paid a self-employment
assistance allowance if he or she meets all of the following
conditions:
(a) Is eligible to receive regular unemployment compensation under
state law.
(b) Has been identified pursuant to an automated profiling system
as likely to exhaust regular unemployment compensation.
(c) Has been approved for participation in the Self-Employment
Assistance Program by the director.
(d) Is engaged on a full-time basis in activities, which
may include training, self-employment assistance
activities, which may include, but not be limited to, entrepreneurial
training, business counseling, and technical assistance
related to establishing a business and becoming self-employed.
1305. The aggregate number of individuals receiving the allowance
under this article at any time shall not exceed 5 percent of the
number of individuals receiving regular benefits. The director shall,
through regulations, prescribe those actions necessary to ensure the
requirements of this section are met.
1306. Self-employment assistance allowances paid under this
section shall be charged to employers as provided under provisions of
this part relating to the charging of regular benefits. Costs of
administering the self-employment assistance allowances are payable
from grants received by the department for the administration of
California's unemployment insurance law under Title III of the
federal Social Security Act. Costs of providing self-employment
assistance activities, such as business training, business
counseling, and technical assistance are payable from federal
Workforce Investment Act funds and other federal grants.
1307. An individual is prohibited from participating in the
Self-Employment Assistance Program if his or her prior employer is
the primary user of the new business services. No employer shall
coerce an employee into participating in the Self-Employment
Assistance Program.
1308. The provisions of this article shall apply to weeks
beginning after the effective date of this article or weeks beginning
after any plan required by the United States Department of Labor is
approved by the United States Department of Labor, whichever date is
later. Immediately upon enactment of this article, the director shall
develop such a plan and seek approval from the United States
Department of Labor.
1309. On or after January 1, 2015, and before January 1, 2017,
the director shall review the implementation of this article, and
shall provide a summary of its operation and effectiveness
at an informational public hearing before the Legislature.
shall submit information summarizing its operation and
effectiveness to the Assembly Insurance Committee and the Senate
Labor and Industrial Relations Committee.
1310. This article shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.
