AN ACT Relating to self-employment assistance; and adding a new chapter to Title 50 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. Under federal law, the legislature may establish a self-employment assistance program as part of its unemployment insurance program. The legislature finds that the establishment of a self‑employment assistance program would assist unemployed individuals and create new businesses and job opportunities in Washington state.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Self‑employment assistance activities" means activities that are approved by the commissioner, in which an individual, who is 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 activities include entrepreneurial training, business counseling, and technical assistance.

(2) "Self‑employment assistance allowance" means an allowance, payable in lieu of regular benefits and from the unemployment compensation fund established under RCW 50.16.010, to an individual participating in self‑employment assistance activities who meets the requirements of this chapter.

(3) "Regular benefits" means benefits payable to an individual under this title (including benefits payable to federal civilian employees and to ex-service members pursuant to 5 U.S.C. chapter 85) other than additional and extended benefits.

(4) "Full-time basis" has the meaning contained in regulations prescribed by the commissioner.

NEW SECTION. Sec. 3. The weekly allowance payable under this chapter to an individual will be equal to the weekly benefit amount for

regular benefits otherwise payable under this title. The sum of the allowance paid under this chapter, and regular benefits paid under this title, with respect to any benefit year, shall not exceed the maximum benefit amount as established by RCW 50.20.120 with respect to the benefit year.

NEW SECTION. Sec. 4. In every week that an individual is paid a self-employment assistance allowance, the individual must participate in either entrepreneurial training or business counseling. In any week that an individual fails to participate in either entrepreneurial training or business counseling, the individual shall be disqualified for the week the failure occurs and the individual shall not receive either a self-employment assistance allowance or regular benefits for the week the failure occurs.

NEW SECTION. Sec. 5. The allowance described in this chapter is payable to an individual at the same interval, on the same terms, and subject to the same conditions as regular benefits under this title, except that:

(1) The requirements of RCW 50.20.010 and 50.20.080 relating to availability for work, active search for work, and refusal to accept work are not applicable to the individual;

(2) An individual who meets the requirements of this chapter is considered to be unemployed under RCW 50.04.310 and 50.20.010; and

(3) 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 shall be disqualified for the week the failure occurs.

NEW SECTION. Sec. 6. The aggregate number of individuals receiving the allowance under this chapter at any time may not exceed two percent of the number of individuals receiving regular benefits.

NEW SECTION. Sec. 7. Allowances paid under this chapter are charged to employers as provided under the provisions of this title that relate to the charging of regular benefits.

NEW SECTION. Sec. 8. This chapter applies after the effective date of this act or after any plan required by the United States department of labor is approved by the United States department of labor, whichever date is later.

NEW SECTION. Sec. 9. The commissioner shall take all steps necessary in carrying out this chapter to assure collaborative involvement of interested parties in program development, and to ensure that the self‑employment assistance program meets all federal criteria for withdrawal from the unemployment compensation fund. The commissioner may include, as part of the self‑employment assistance program, existing entrepreneurial training programs available through community colleges, private industry councils, or other organizations, and is not obligated by this chapter to expend any departmental funds for the operation of entrepreneurial training programs, unless specific funding is provided to the department for that purpose through federal or state appropriations.

NEW SECTION. Sec. 10. The commissioner may adopt rules as necessary to implement this chapter.

NEW SECTION. Sec. 11. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this act. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

NEW SECTION. Sec. 12. Sections 1 through 11 of this act constitute a new chapter in Title 50 RCW.