HB106

SECTION 1. The purpose of this Act is to create a self-employment assistance program to provide unemployed individuals assistance in starting their own businesses. Participation in the self-employment assistance program shall be voluntary, as an alternative to receiving regular unemployment insurance benefits. The self-employment assistance program will allow eligible unemployed individuals to receive weekly unemployment insurance benefits while working full-time towards starting their own businesses, rather than seeking employment.

SECTION 2. Chapter 383, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . self-employment assistance program

§383-A Definitions. As used in this part:

"Full-time basis" means devoting the specified amount of time, as prescribed by the department, necessary for an individual to establish a business and become self-employed.

"Regular benefits" means benefits payable to an individual under this chapter, including benefits payable to federal civilian employees and to former members of the United States armed forces pursuant to the Title 5 U.S.C. Chapter 85, other than additional benefits, extended benefits, and extended benefits for dislocated workers.

"Self-employment assistance activities" means activities approved by the director in which an individual participates for the purpose of establishing a business and becoming self-employed, including but not limited to:

(1) Entrepreneurial training;

(2) Business counseling; and

(3) Technical assistance.

"Self-employment assistance allowance" means an allowance payable, in lieu of regular benefits, funded by the unemployment compensation fund to an individual who meets the requirements of this part.

§383-B Self-employment assistance program. The department shall establish a self-employment assistance program in accordance with this part. Information on the self-employment assistance program shall be made available to potential program participants.

§383-C Self-employment assistance allowance; weekly amount; maximum. (a) The weekly amount of the self-employment assistance allowance payable to an individual shall be equal to the weekly benefit amount for regular benefits otherwise payable under section 383-22. The self-employment assistance allowance shall also be payable to an individual at the same intervals and on the same terms and conditions as regular benefits, except as follows:

(1) The requirements of section 383-29(a), regarding being available for work, actively seeking week, and refusing to accept suitable work shall not be applicable to the individual;

(2) The requirements of section 383-23 regarding remuneration for services performed shall not be applicable to income earned from self-employment by the individual;

(3) The individual is considered unemployed for purposes of section 383-29; and

(4) If the individual fails to participate in self-employment assistance activities or fails to actively engage on a full-time basis in establishing a business and becoming self-employed the individual is ineligible to receive the self-employment assistance allowance for each week in which the failure occurs.

(b) The sum of the self-employment assistance allowances paid under this part and regular benefits paid under this chapter shall not exceed the maximum amount of benefits established under section 383-24.

§383-D Eligibility. (a) An individual shall be eligible to receive a self-employment assistance allowance if the individual:

(1) Is eligible to receive regular benefits or would be eligible to receive regular benefits except for the requirements described in section 383-C(a);

(2) Is identified under section 383-92.5 as an individual likely to exhaust regular benefits;

(3) Has filed an application for participation in the self-employment assistance program within sixty days of filing an initial claim for regular benefits and furnished the department with any other information the director may prescribe;

(4) Has, at the time the application is filed, a balance of regular benefits equal to at least eighteen times the individual's weekly benefits amount and at least eighteen 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 establishing a business and becoming self-employed;

(8) Has not previously participated in a self-employment assistance program; and

(9) Has filed a weekly claim for the self-employment assistance allowance and provided any information the director prescribes, including a log of self-employment assistance activities.

(b) An individual who has received a self-employment assistance allowance under this part and is terminated or voluntarily leaves a self-employed assistance program may receive, if otherwise eligible, regular benefits with respect to the benefit year; provided that the sum of regular benefits paid and self-employment assistance allowances paid with respect to the benefit year shall not exceed the maximum amount payable for the benefit year under section 383-24.

§383-E Limitation. The total number of individuals receiving a self-employment assistance allowance at any time shall not exceed five per cent of the total number of individuals receiving regular benefits at that time.

§383-F Costs. Any self-employment assistance allowance paid under this part shall be charged to employers as regular benefits in accordance with section 383-61.

§383-G Rules. The director may adopt rules in accordance with chapter 91 to carry out the purposes of this Act.

§383-H Reports. The department shall report annually to the legislature on the self-employment assistance program at least twenty days prior to the convening of each regular session. The reports shall include the following:

(1) The number of individuals participating in the self-employment assistance program and the number of businesses developed thereunder;

(2) The cost of operating the program, compliance with program requirements, and data related to business income;

(3) The number of employees and wages paid in the new businesses;

(4) The incidence and duration of unemployment after business start-up; and

(5) Any recommendations, including proposed legislation, on changes to the program.

§383-I Applicability. This part shall be effective for the weeks beginning after the date of enactment or after any plan required by the United States Department of Labor is approved, whichever date is later. This part shall terminate as of the effective date of the withdrawal of approval of any plan required by the United States Department of Labor or as of the week containing the date when federal law no longer authorizes self-employment assistance programs."

SECTION 3. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	106
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII