ATTACHMENT II TO UIPL 19-88

 

 

TEXT OF SECTION 9152
PUBLIC LAW 100-203

 

SEC. 9152.  DBMONSTRATION PROGRAM TO PROVIDE SBLF-EMPLOYMBNT ALLOWANCES FOR ELIGIBLE INDIVIDUALS.

 


    (a) IN GENERAL.-- The Secretary of Labor (hereinafter in this section referred to as the "Secretary") shall carry out a demonstration program under this section for the purpose of making available self-employment allowances to eligible individuals.  To carry out such program, the Secretary shall enter into agreements with three States that --
        (1) apply to participate in such program, and
        (2) demonstrate to the Secretary that they are capable of implementing the provisions of the agreement.
    (b) SELECTION OF STATES. -- (1) In determining whether to enter into an agreement with a State under this section, the Secretary shall take into consideration at least --
        (A) the availability and quality of technical assistance currently provided by agencies of the State to the self-employed;
        (B) existing local market conditions and the business climate for new, small business enterprises in the State;
        (C) the adequacy of State resources to carry out a regular unemployment compensation program and a program under this section;
        (D) the range and extent of specialized services to be provided by the State to individuals covered by such an agreement;
        (E) the design of the evaluation to be applied by the State to the program; and
        (F) the standards which are to be utilized by the State for the purpose of assuring that individuals who will receive self-employment assistance under this section will have sufficient experience (or training) and ability to be self-employed.
    (2) The Secretary may not enter into an agreement with any State under this section unless the Secretary makes a determination that the State's unemployment compensation program has adequate reserves.
    (c) PROVISIONS OF AGREEMENTS.-- Any agreement entered into with a State under this section shall provide that --
        (1) each individual who is an eligible individual with respect to any benefit year beginning during the three-year period commencing on the date on which such agreement is entered into shall receive a self-employment allowance;
        (2) self-employment allowances made to any individual under this section shall be made in the same amount, on the same terms, and subject to the same conditions as regular or extended unemployment compensation, as the case may be, paid by such State; except that --
            (A) State and Federal requirements relating to availability for work, active search for work, or refusal to accept suitable work shall not apply to such individual; and
            (B) such individual shall be considered to be unemployed for purposes of the State and Federal laws applicable to unemployment compensation,
as long as the individual meets the requirements applicable under this section to such individual;
        (3) to the extent that such allowances are made to an individual under this section, an amount equal to the amount of such allowances shall be charged against the amount that may be paid to such individual under State law for regular or extended unemployment compensation, as the case may be;
        (4) the total amount paid to an individual with respect to any benefit year under this section may not exceed the total amount that could be paid to such individual for regular or extended unemployment compensation, as the case may be, with respect to such benefit year under State law;
        (5) the State shall implement a program that --
            (A) is approved by the Secretary;
            (B) will not result in any cost to the Unemployment Trust Fund established by section 904(a) of the Social Security Act in excess of the cost which would have been incurred by such State and charged to such Fund if the State had not participated in the demonstration program under this section;
            (C) is designed to select and assist individuals for self-employment allowances, monitor the individual's self-employment, and provide, as described in subsection (d), to the Secretary a complete evaluation of the use of such allowances; and
            (D) otherwise meets the requirements of this section; and
        (6) the State, from its general revenue funds, shall --
            (A) repay to the Unemployment Trust Fund any cost incurred by the State and charged to the Fund which exceeds the cost which would have been incurred by such State and charged to such Fund if the State had not participated in the demonstration
program under this section; and
            (B) in any case in which any excess cost described in subparagraph (A) is not repaid in the fiscal year in which it was charged to the Fund, pay to the Fund an amount of interest, on the outstanding balance of such excess cost, which is sufficient (when combined with any repayment by the State described in subparagrph (A)) to reimburse the Fund for any loss which would not have been incurred if such excess cost had not been incurred.
    (d) EVALUATION.-- (1) Each State that enters into an agreement under this section shall carry out an evaluation of its activities under this section.  Such evaluation shall be based on an experimental design with random assignment between a treatment group and a control group with not more than one-half of the individuals receiving assistance at any one time being assigned to the treatment group.
    (2) The Secretary shall use the data provided from such evaluation to analyze the benefits and the costs of the program carried out under this section, to formulate the reports under subsection (g), and to estimate any excess costs described to subsection (c)(6)(A).
    (e) FINANCING -- (1) Notwithstanding section 303(a)(5) of the Social Security Act and section 3304(a)(4) of the Internal Revenue Code of 1986, amounts in the unemployment fund of a State may be used by a State to make payments (exclusive of expenses of administration) for self-employment allowances made under this section to an individual who is receiving them in lieu of regular unemployment compensation.
    (2) In any case in which a self-employment allowance is made under this section to an individual in lieu of extended unemployment compensation under the Federal-State Extended Unemployment Compensation Act of 1970, payments made under this section for self-employment allowances shall be considered to be compensation described in section 204(a)(1) of such Act and paid under State law.
    (f) LIMITATION. -- No funds made available to a State under title III of the Social Security Act or any other Federal law may be used for the purpose of administering the program carried out by such State under this section.
    (g) REPORT TO CONGRESS --     (1) Not later than two years after the date of the enactment of this Act, the Secretary shall submit an interim report to the Congress on the effectiveness of the demonstration program carried out under this section.  Such report shall include --
        (A) information on the extent to which this section has been utilized;
        (B) an analysis of any barriers to such utilization; and
        (C) an analysis of the feasibility of extending the provisions of this section to individuals not covered by State unemployment compensation laws.
    (2) Not later than four years after the date of the enactment of this Act, the Secretary shall submit a final report to the Congress on such program.
    (h) FRAUD AND OVERPAYMENTS.-- (1) If an individual knowingly has made, or caused to be made by another, a false statement or representation of a material fact, or knowingly has failed, or caused another to fail, to disclose a material fact, and as a result of such false statement or representation or of such nondisclosure such individual has received payment under this section to which he was not entitled, such individual shall be --
        (A) ineligible for further assistance under this section; and
        (B) subject to prosecution under section 1001 of title 18, United States Code.
    (2)(A) If any person received any payment under this section to which such person was not entitled, the State is authorized to require such person to repay such assistance; except that the State agency may waive such repayment if it determines that --
        (i) the providing of such assistance or making of such payment was without fault on the part of such person; and
        (ii) such repayment would be contrary to equity and good conscience.
    (B) No repayment shall be required under subparagraph (A) until a determination has been made, notice thereof and an opportunity for a fair hearing has been given to the person, and the determination has become final.  Any determination under such subparagraph shall be subject to review in the same manner and to the same extent as determinations under the State unemployment compcnsation law, and only in that manner and to that extent.
    (i) DEFINITIONS. -- For purposes of this section --
        (1) the term "eligible individual" means, with respect to any benefit year, an individual who --
            (A) is eligible to receive regular or extended compensation under the State law during such benefit year;
            (B) is likely to receive unemployment compensation for the maximum number of weeks that such compensation is made available under the State law during such benefit year;
            (C) submits an application to the State agency for a self-employment allowance under this section; and
            (D) meets applicable State requirements,
except that not more than (i) 3  percent of the number of individuals eligible to receive regular compensation in a State at the beginning of a fiscal year, or (ii) the number of persons who exhausted their unemployment compensation benefits in the fiscal year ending before such fiscal year, whichever is lesser, may be considered as eligible individuals for such State for purposes of this section during such fiscal year;
        (2) the term "self-employment allowance" means compensation paid under this section for the purpose of assisting an eligible individual with such individual's self-employment; and
        (3) the terms "compensation"; "extended compensation", "regular compensation", "benefit year", "State", and "State Law", have the respective meanings given to such terms by section 205 of the Federal-State Extended Unemployment Compensation Act of 1970.