HB5603 97TH GENERAL ASSEMBLY

LRB097 20340 JLS 65808 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5603

Introduced 2/15/2012, by Rep. Carol A. Sente

SYNOPSIS AS INTRODUCED:

820 ILCS 405/502 new

Amends the Unemployment Insurance Act. Authorizes the Department of Employment Security to implement a pilot program to participate in the federal Self-Employment Assistance Program. Defines terms. Provides exceptions to the requirements relating to registering for work and reporting to an employment office. Effective immediately.

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Unemployment Insurance Act is amended by adding Section 502 as follows:

(820 ILCS 405/502 new)

Sec. 502. Self-Employment Assistance Program.

(a) The Department of Employment Security may implement a pilot program to participate in the federal Self-Employment Assistance Program. If the Department chooses to apply for federal approval to participate in the Self-Employment Assistance Program, the Department shall promulgate rules to implement this Section.

(b) As used in this Section:

"Full-time basis" means that the individual is devoting the amount of time as is determined by the Department to be necessary to establish a business that will serve as a full-time occupation for that individual.

"Self-employment assistance activities" means activities (including entrepreneurial training, business counseling, and technical assistance) approved by the Department 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.

"Self-employment assistance allowance" means an allowance, payable in lieu of regular benefits and from the State's account in the unemployment trust fund to an individual participating in self-employment assistance activities who meets the requirements of this Section.

(c) The weekly allowance payable under this Section to an individual is equal to the weekly benefit amount for regular benefits. The sum of (1) the allowance paid under this Section and (2) regular benefits paid with respect to any benefit year may not exceed the maximum benefit amount with respect to such benefit year.

(d) The allowance described in subsection (b) of this Section is payable to an individual at the same interval, on the same terms, and subject to the same conditions as regular benefits under this Act, except that:

(1) the requirements relating to availability for work, active search for work, and refusal to accept work are not applicable to the individual;

(2) the reduction in benefits relating to wages paid is not applicable to income earned from self-employment by the individual;

(3) an individual who meets the requirements of this Section is considered to be unemployed; and

(4) 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 is disqualified for the week the failure occurs.

(e) The aggregate number of individuals receiving the self-employment assistance allowance under this Section at any time may not exceed 5% of the number of individuals receiving regular benefits for the week. The Department shall prescribe actions that are necessary to ensure the requirements of this Section are met.

(f) Self-employment assistance allowances paid under this Section shall be charged to employers as provided under the provisions of this Act relating to the charging of regular benefits.

(g) The provisions of this Section apply to weeks beginning after the effective date of this amendatory Act of the 97th General Assembly or weeks beginning after any plan required by the U.S. Department of Labor is approved by that Department, whichever date is later. The authority provided by this Section terminates as of the end of the week preceding the date when federal law no longer authorizes the provisions of this Section, unless that date is a Saturday in which case the authority terminates as of that date.

Section 99. Effective date. This Act takes effect upon becoming law.