97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3427

 

Introduced 2/7/2012, by Sen. Linda Holmes

 

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.


LRB097 19003 JLS 64242 b

 

 

A BILL FOR

 

SB3427LRB097 19003 JLS 64242 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5adding Section 502 as follows:
 
6    (820 ILCS 405/502 new)
7    Sec. 502. Self-Employment Assistance Program.
8    (a) The Department of Employment Security may implement a
9pilot program to participate in the federal Self-Employment
10Assistance Program. If the Department chooses to apply for
11federal approval to participate in the Self-Employment
12Assistance Program, the Department shall promulgate rules to
13implement this Section.
14    (b) As used in this Section:
15        "Full-time basis" means that the individual is
16    devoting the amount of time as is determined by the
17    Department to be necessary to establish a business that
18    will serve as a full-time occupation for that individual.
19        "Self-employment assistance activities" means
20    activities (including entrepreneurial training, business
21    counseling, and technical assistance) approved by the
22    Department in which an individual identified through a
23    worker profiling system as likely to exhaust regular

 

 

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1    benefits participates for the purpose of establishing a
2    business and becoming self-employed.
3        "Self-employment assistance allowance" means an
4    allowance, payable in lieu of regular benefits and from the
5    State's account in the unemployment trust fund to an
6    individual participating in self-employment assistance
7    activities who meets the requirements of this Section.
8    (c) The weekly allowance payable under this Section to an
9individual is equal to the weekly benefit amount for regular
10benefits. The sum of (1) the allowance paid under this Section
11and (2) regular benefits paid with respect to any benefit year
12may not exceed the maximum benefit amount with respect to such
13benefit year.
14    (d) The allowance described in subsection (b) of this
15Section is payable to an individual at the same interval, on
16the same terms, and subject to the same conditions as regular
17benefits under this Act, except that:
18        (1) the requirements relating to availability for
19    work, active search for work, and refusal to accept work
20    are not applicable to the individual;
21        (2) the reduction in benefits relating to wages paid is
22    not applicable to income earned from self-employment by the
23    individual;
24        (3) an individual who meets the requirements of this
25    Section is considered to be unemployed; and
26        (4) an individual who fails to participate in

 

 

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1    self-employment assistance activities or who fails to
2    actively engage on a full-time basis in activities (which
3    may include training) relating to the establishment of a
4    business and becoming self-employed is disqualified for
5    the week the failure occurs.
6    (e) The aggregate number of individuals receiving the
7self-employment assistance allowance under this Section at any
8time may not exceed 5% of the number of individuals receiving
9regular benefits for the week. The Department shall prescribe
10actions that are necessary to ensure the requirements of this
11Section are met.
12    (f) Self-employment assistance allowances paid under this
13Section shall be charged to employers as provided under the
14provisions of this Act relating to the charging of regular
15benefits.
16    (g) The provisions of this Section apply to weeks beginning
17after the effective date of this amendatory Act of the 97th
18General Assembly or weeks beginning after any plan required by
19the U.S. Department of Labor is approved by that Department,
20whichever date is later. The authority provided by this Section
21terminates as of the end of the week preceding the date when
22federal law no longer authorizes the provisions of this
23Section, unless that date is a Saturday in which case the
24authority terminates as of that date.
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.