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:

{ADD 28-44-70. Entrepreneurial Training Assistance Program. -- ADD} {ADD (a) Definition. -- As used in this section, unless the context clearly requires otherwise:

(1) "Entrepreneurial Training Assistance Program" means a program administered by the director under which an eligible individual may received employment assistance allowances pursuant to the provisions of this section.

(2) "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 becoming self-employed.

(3) "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.

(4) "Regular benefits" means benefits, including dependents' allowances, payable to an individual under chapters 42 -- 44, inclusive, 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. chapter 85) other than additional and extended benefits.

(5) "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.

(b) Eligibility Requirements for Employment Assistance Allowances. -- Employment assistance allowances shall be payable to an individual at the same interval, on the same terms, and subject to the same conditions as regular benefits under chapters 42 -- 44, inclusive, of this title, except that:

(1) the requirements of sections 28-44-12 and 28-44-20 relating to availability for work, active search for work, and refusal to accept suitable work are not applicable to such individual;

(2) the requirements of sections 28-42-3(13), 28-42-3(15) and 28-44-7 relating to income are not applicable to income earned from self-employment by such individual;

(3) an individual who meets the requirements of this section shall be considered to be totally unemployed pursuant to section 28-42-3(15); and

(4) an individual who fails to participate in 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 or who fails to provided such information as the director shall require shall be disqualified for the week such failure occurs and for each week thereafter until the individual shows to the satisfaction of the director that such individual meets the requirements of this section.

(c) Amount of 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 section 28-44-6; provided, however, that the sum of the allowance paid under this section and regular benefits paid under chapters 42 -- 44, inclusive, 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 -- 44, inclusive, of this title, with respect to such benefit year.

(d) Termination from the Entrepreneurial Training Assistance Program. -- The director may terminate any individual from the Entrepreneurial Training Assistance Program who fails to meet requirements of the program for three (3) or more weeks. Individuals who are terminated from or voluntarily leave the Entrepreneurial Training Assistance Program may receive, if otherwise eligible, regular benefits with respect to the benefit year; provided, however, that the total amount of regular benefits and 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 -- 44, inclusive, of this title, with respect to such benefit year.

(e) Limitation on Receipt of Employment Assistance Allowances. -- The aggregate number of individuals receiving employment assistance allowances under this section for any week shall not exceed five percent (5.0%) of the total number of individuals receiving regular benefits under chapter 42 -- 44, inclusive, of this title, for such week. The director shall, through regulations, prescribe such actions as are necessary to assure the requirements of this subsection are met.

(g) Financing Costs of Employment Assistance Allowances. -- Notwithstanding any inconsistent provisions of chapters 42 -- 44, both inclusive, of this title, employment assistance allowances paid pursuant to this section shall be paid with moneys drawn from the fund and such allowances shall be charged in the same manner as provided for regular benefits paid under chapters 42 -- 44, inclusive, of this title. Allowances attributable to federal military or federal civilian service shall be charged to the appropriate federal account.

(h) Effective Date and Termination Date. -- The provisions of this section shall apply two weeks beginning after the date of enactment or two weeks beginning after any play required by the United States Department of Labor is approved by such department, whichever date is later; provided, however, that nothing herein contained shall be construed to require the director to operate an Entrepreneurial Training Assistance Program as allowed under this section. The authority provided by this section shall terminate:

(1) as of the effective date of the withdrawal of approval of any plan required by the United States Department of Labor, or

(2) as of the week containing the date when federal law no longer authorizes the provisions of this section. ADD}

SECTION 2. This act shall take effect upon passage.