BP BHEAD INT S

AN ACT Relating to self-employment assistance; adding a new section to chapter 50.20 RCW; adding a new section to chapter 50.16 RCW; creating new sections; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature recognizes that the passage of the North American Free Trade Agreement offers substantial opportunities for Washington workers and economic growth for the state. To assist individuals in taking advantage of these opportunities, the federal government has authorized states to establish a self-employment assistance program as part of the state's unemployment insurance program. The legislature finds that the establishment of a self-employment assistance program would create new businesses and business partnerships in Washington state. To carry out the purposes of this act, the state of Washington intends this act to be liberally construed to take full advantage of the authority granted to states by the federal government.

NEW SECTION. Sec. 2. A new section is added to chapter 50.20 RCW to read as follows:

(1) An unemployed individual is eligible to participate in a self-employment assistance program if it has been determined that he or she:

(a) Is otherwise eligible for unemployment compensation;

(b) Has been identified as likely to exhaust regular unemployment compensation under the profiling criteria contained in the unemployment compensation amendments of 1993 (P.L. 103-152);

(d) Is actively engaged on a full-time basis in activities relating to the establishment of a business or a business partnership with other program participants and becoming self-employed.

A self-employment assistance program, as used in this section, must include entrepreneurial training, business counseling, and technical assistance, and must be approved by the commissioner.

(2) Individuals participating in a self-employment assistance program approved by the commissioner are eligible to receive unemployment compensation payable in the same amount, at the same interval, on the same terms, and subject to the same conditions as regular unemployment compensation, except that:

(a) No otherwise eligible individual shall be denied benefits for any week because the individual is in a self-employment assistance program with the approval of the commissioner, nor shall such individual be denied benefits with respect to any week in which the individual is actively engaged full-time in a self-employment assistance program with the approval of the commissioner by reason of the application of RCW 50.20.010(3), 50.20.015, 50.20.080, or 50.22.010(1) relating to availability for work, active search for work, or failure to apply for or refusal to accept suitable work.

(b) Income earned from self-employment shall not be considered remuneration and shall not be deductible from the weekly benefit amount by reason of the application of RCW 50.20.130 for an individual in a self-employment assistance program with the approval of the commissioner.

(d) Individuals may be paid the total amount of unemployment insurance benefits for which they are eligible in a lump sum payment under subsection (3) of this section

(3)(a) At the time of the individual's initial application with the department to participate in a self-employment assistance program, an individual may apply for a lump sum payment of the total amount of unemployment insurance benefits for which the individual is eligible.

(b) The department shall determine the percentage of employer contributions needed to fund lump sum payments to eligible program participants, and shall direct that, for the years concurrent with the time of the self-employment assistance program, employer contributions to the unemployment insurance trust fund be reduced by such percentage with an amount equal to the reduction to be deposited by the employer into the self-employment assistance trust fund created in section 3 of this act. The amount of wages subject to tax shall be determined under RCW 50.24.010.

NEW SECTION. Sec. 3. A new section is added to chapter 50.16 RCW to read as follows:

There is hereby established the self-employment assistance trust fund. All moneys in this fund are irrevocably vested for the administration of this title. The self-employment assistance trust fund shall consist of all moneys from self-employment assistance trust fund contributions as established in section 2(3) of this act. The treasurer of the employment security department shall deposit, administer, and disburse all moneys in the fund under rules adopted by the commissioner, and RCW 43.01.050 and 43.84.092 are not applicable to this fund. The treasurer of the employment security department shall be the treasurer of the self-employment assistance trust fund as described in RCW 50.16.020 and shall give a bond conditioned upon the faithful performance of his or her duties in connection with the fund. All sums recovered on the official bond for losses sustained by the self-employment assistance trust fund must be deposited in the fund. Notwithstanding any provision of this section, all moneys received and deposited in the fund under section 2(3) of this act, remain part of the self-employment assistance trust fund and may be used solely for the purpose of making lump sum payments to individuals participating in a self-employment assistance program authorized by section 2 of this act.

NEW SECTION. Sec. 4. 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, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION. Sec. 5. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 6. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.