2012 -- H 7563

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LC01421

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

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

BENEFITS

     Introduced By: Representatives Cimini, Hull, and Bennett

     Date Introduced: February 15, 2012

     Referred To: House Labor

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 28-44-70 of the General Laws in Chapter 28-44 entitled

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"Employment Security - Benefits" is hereby amended to read as follows:

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     28-44-70. Entrepreneurial training assistance program. -- (a) Definitions. - As used in

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this section, unless the context clearly requires otherwise:

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      (1) "Entrepreneurial training assistance program" means a program administered by the

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director under which an eligible individual may receive employment assistance allowances

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pursuant to the provisions of this section.

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      (2) "Employment assistance activities" means activities, including entrepreneurial

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training, business counseling, and technical assistance, approved by the director in which an

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individual identified through a worker profiling system as likely to exhaust regular benefits

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participates for the purpose of establishing a business and become self-employed.

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      (3) "Employment assistance allowance" means an allowance payable in lieu of regular

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benefits from the fund or an allowance payable in lieu of emergency unemployment

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compensation benefits to an individual participating in employment assistance activities who

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meets the requirements of this section.

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

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

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

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

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

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payable to federal civilian employees and to ex-service persons pursuant to 5 U.S.C. section 8501

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et seq., other than additional and extended benefits.

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     (6) “Emergency unemployment compensation” means benefits, including dependents’

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allowances, payable to an individual as authorized by the unemployment compensation extension

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act of 2008 and in accordance with regulations established by the secretary of labor.

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      (b) Eligibility requirements for employment assistance allowances. - Employment

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assistance allowances shall be payable to an individual at the same interval, on the same terms,

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and subject to the same conditions as regular benefits under chapters 42 -- 44 of this title, except

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that:

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      (1) The requirements of sections 28-44-12 and 28-44-20 relating to availability for work,

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active search for work, and refusal to accept suitable work are not applicable to the individual;

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      (2) The requirements of sections 28-42-3(25), 28-42-3(27) and 28-44-7 relating to

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income are not applicable to income earned from self-employment by the individual;

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      (3) An individual who meets the requirements of this section shall be considered to be

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totally unemployed pursuant to section 28-42-3(27); and

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      (4) An individual who fails to participate in employment assistance activities or who

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fails to actively engage on a full-time basis in activities, which may include training, relating to

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the establishment of a business and becoming self-employed or who fails to provide information

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that the director requires shall be disqualified for the week the failure occurs and for each

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subsequent week until the individual shows to the satisfaction of the director that the individual

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meets the requirements of this section.

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

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

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

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benefit year pursuant to section 28-44-6. The

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     (1) For those individuals participating in the entrepreneurial training assistance program

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while collecting regular benefits under chapter 42-44 of this title, the sum of the allowance paid

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

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

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including dependents' allowances, payable to that individual under chapters 42 -- 44 of this title

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with respect to the benefit year.

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     (2) For those individuals participating in the entrepreneurial training assistance program

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while collecting emergency unemployment compensation benefits under the unemployment

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compensation extension act of 2008, the allowance paid under this section to an individual, with

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respect to any benefit year, shall not exceed an amount equal to twenty-six (26) times the

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individual’s regular weekly benefit amount, including dependents’ allowances, payable to that

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individual under chapter 42-44 of this title, with respect to the benefit year. Any individual who

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chooses to terminate his or her participation in the entrepreneurial training assistance program, or

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who has completed participation in the program, and who continues to meet the emergency

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unemployment compensation eligibility requirements, shall be permitted to receive his or her

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emergency unemployment compensation benefits with respect to subsequent weeks of

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unemployment.

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      (d) Termination from the entrepreneurial training assistance program. - The director may

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terminate any individual from the entrepreneurial training assistance program who fails to meet

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requirements of the program for three (3) or more weeks. Individuals who are terminated from or

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voluntarily leave the entrepreneurial training assistance program may receive, if otherwise

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

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regular benefits and employment assistance allowances paid to the individual shall not exceed the

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

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

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      (e) Limitation on receipt of employment assistance allowances. – (1) The aggregate

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number of individuals receiving employment assistance allowances under this section and under

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the regular benefits program under chapter 42-44 of this title for any week shall not exceed five

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percent (5.0%) of the total number of individuals receiving regular benefits under chapters 42 --

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44 of this title for that week. The director shall, through regulations, prescribe any actions that are

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necessary to assure the requirements of this subsection are met.

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     (2) The aggregate number of individuals receiving employment assistance allowances

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under this section and under the emergency unemployment compensation program for any week

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shall not exceed one percent (1.0%) of the total number of individuals receiving emergency

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unemployment compensation benefits.

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     (3) The director shall, through regulations, prescribe any actions that are necessary to

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assure the requirements of this subdivision are met.

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

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inconsistent provisions of chapters 42 -- 44 of this title, employment assistance allowances paid

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

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charged in the same manner as provided for regular benefits paid under chapters 42 -- 44 of this

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title. Allowances attributable to federal military or federal civilian service or paid under the

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unemployment compensation extension act of 2008 shall be charged to the appropriate federal

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account.

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      (g) Effective date and termination date. - The provisions of this section shall apply to

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weeks beginning after June 22, 1994, or to weeks beginning after any plan required by the United

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States Department of Labor is approved by the department, whichever date is later; provided, that

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nothing contained in this section shall be construed to require the director to operate an

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entrepreneurial training assistance program as allowed under this section. The authority provided

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by this section shall terminate:

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      (1) As of the effective date of the withdrawal of approval of any plan required by the

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United States Department of Labor; or

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      (2) As of the week containing the date when federal law no longer authorizes the

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provisions of this section.

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     SECTION 2. This act shall take effect upon passage.

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LC01421

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

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

BENEFITS

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     This act would allow individuals to participate in the entrepreneurial training assistance

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program while receiving federal emergency unemployment compensation benefits. Currently,

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individuals can only receive regular benefits while participating in the program.

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     This act would take effect upon passage.

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LC01421

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