2021 -- H 6250

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LC002418

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY --

BENEFITS

     Introduced By: Representatives Cortvriend, McEntee, Caldwell, Carson, Speakman,
Donovan, and Cassar

     Date Introduced: April 16, 2021

     Referred To: House Finance

     (General Treasurer)

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 28-44 of the General Laws entitled "Employment Security -

Benefits" is hereby amended by adding thereto the following section:

     28-44-70.1. Self-employment assistance program.

     (a) Definitions. As used in this section, unless the context clearly requires otherwise:

     (1) "Full-time basis" means that the individual is devoting such amount of time as is

customary to establish a business which will serve as a full-time occupation for that individual, but

in no case less than thirty-five (35) hours per week.

     (2) "Regular benefits" means benefits, including dependents' allowances, payable to an

individual under chapters 42 through 44 of this title, or under any other state law, including benefits

payable to federal civilian employees and to ex-service persons pursuant to 5 U.S.C. § 8501 et seq.,

other than additional and extended benefits.

     (3) "Self-employment assistance activities" means activities, including entrepreneurial

training, business counseling, and technical assistance, 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 become self-employed.

     (4) "Self-employment assistance allowance" means an allowance payable in lieu of regular

benefits from the fund to an individual participating in employment assistance activities who meets

the requirements of this section.

     (5) "Self-employment assistance program" means a program administered by the director

under which an eligible individual may receive employment assistance allowances pursuant to the

provisions of this section.

     (b) There shall be in the department of labor and training, a self-employment assistance

program. Participants in the self-employment assistance program shall receive an allowance in lieu

of regular benefits as long as participants meet the conditions established by this section.

     (c) An individual may receive a self-employment assistance allowance if that individual:

     (1) Is eligible to receive regular benefits or would be eligible to receive regular benefits

except as provided in subsection (d) of this section;

     (2) Is identified by a worker profiling system as an individual likely to exhaust regular

benefits;

     (3) Has filed an application for participation in a self-employment assistance program

within forty-five (45) days of filing an initial application for regular benefits and has provided such

information as the director may prescribe;

     (4) Has, at the time the application is filed, a balance of regular benefits equal to at least

eighteen (18) times the individual's weekly benefit amount and at least eighteen (18) weeks

remaining in the individual's benefit year;

     (5) Has been accepted into a program approved by the director that will provide self-

employment assistance activities;

     (6) Is participating in self-employment assistance activities;

     (7) Is actively engaged on a full-time basis in activities, which may include training, related

to establishing a business and become self-employed; and

     (8) Has filed a weekly claim for the self-employment assistance allowance and provided

the information the director prescribes.

     (c) Amount of self-employment assistance allowance. The weekly allowance payable

under this section to an individual shall be an amount equal to the weekly benefit amount, including

dependents' allowances, payable to the individual for a week of total unemployment during the

benefit year pursuant to § 28-44-6.

     (1) For those individuals participating in the self-employment assistance program while

collecting regular benefits under chapters 42 through 44 of this title, the sum of the allowance paid

under this section and regular benefits paid under chapters 42 through 44 of this title to an individual

with respect to any benefit year shall not exceed the maximum potential regular benefits, including

dependents' allowances, payable to that individual under chapters 42 through 44 of this title with

respect to the benefit year.

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     (d) Unemployment assistance shall be payable to participants in the self-employment

assistance program at the same interval, on the same terms, and subject to the same conditions as

regular benefits except that:

     (1) The requirements of this chapter relating to availability for work and active search for

work shall not be applicable to the participant.

     (2) The requirements of this chapter relating to refusal to accept work shall not be

applicable to the participant.

     (3) The requirements of this chapter relating to disqualifying income shall not be applicable

to income earned from self-employment by the participant.

     (4) A participant who meets the requirements of this section shall be considered

unemployed for the purposes of this chapter.

     (5) A participant who fails to participate in self-employment assistance activities or who

fails to actively engage on a full-time basis in activities for three (3) or more weeks, which may

include training related to establishing a business and becoming self-employed, may be denied

benefits for the week the failure occurs or terminated from the program by the director. Individuals

who are terminated from or voluntarily leave the self-employment assistance program may receive,

if otherwise eligible, regular benefits with respect to the benefit year; provided, that the total amount

of regular benefits and self-employment assistance allowances paid to the individual shall not

exceed the maximum potential regular benefits, including dependents' allowances, payable to that

individual under chapters 42 through 44 of this title with respect to the benefit year.

     (e) Financing costs of self-employment assistance allowances. Notwithstanding any

inconsistent provisions of chapters 42 through 44 of this title, self-employment assistance

allowances paid pursuant to this section shall be paid with money drawn from the fund and the

allowances shall be charged in the same manner as provided for regular benefits paid under chapters

42 through 44 of this title. Allowances attributable to federal military or federal civilian service

shall be charged to the appropriate federal account.

     (f) Coordination with enhanced federal unemployment benefits. Whenever the federal

government provides enhanced federal unemployment benefits to individuals collecting regular

benefits under chapters 42 through 44 of this title, the director shall implement any rules and

regulations necessary to assure that individuals participating in the self-employment assistance

program and eligible to receive those enhanced benefits.

     (g) The director shall promulgate rules and regulations necessary to implement this section,

including, but not limited to:

     (1) Procedures for application to the self-employment assistance program.

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     (2) The definition of self-employment activities and self-employment assistance activities.

     (3) Procedures for filing weekly claims for assistance while participating in the self-

employment assistance program.

     (4) Any other matters that may require rules and regulations under the provisions of this

section.

     SECTION 2. This act shall take effect on September 1, 2021.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY --

BENEFITS

***

     This act would create a self-employment assistance program in the department of labor and

training (DLT) that would allow an eligible individual to receive allowances in lieu of regular

unemployment benefits while attending self-employment assistance activities for the purpose of

establishing a business and becoming self-employed.

     This act would take effect on September 1, 2021.

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