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SELF-EMPLOYMENT ASSISTANCE AND
ENTREPRENEURIAL TRAINING ACT

Section effective July 8, 1996

This act shall also be known as the "Self-Employment Assistance and Entrepreneurial Training Act."

L.1995, c.394 1, eff. July 8, 1996.

Historical and Statutory Notes Title of Act: An Act providing self-employment assistance and entrepreneurial training, amending P.L.1992, c. 43, P.L.1992, c. 46, and amending and supplementing chapter 21 of Title 43 of the Revised Statutes, L.1995, c. 394.

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43:21-68. Legislative findings and declaration Section effective July 8, 1996.

The Legislature finds and declares that a significant percentage of new jobs in this country are created by small businesses and that approximately 12 percent of the persons employed in the United States are self-employed, mostly in small businesses. In the wake of recent corporate downsizing, it is imperative that ways are found to help unemployed individuals, including professional and technical employees, to re-enter the labor force. Experience in numerous other states and in certain urban areas of New Jersey has shown that "micro-lending," or carefully targeting small loans to individuals with well-developed, realistic business plans, has been successful in helping those individuals to establish small businesses and become self-employed entrepreneurs. This approach is particularly successful where the loan recipients are part of a peer group that provides support, advice and assistance, and helps to ensure loan repayments. L. 1995, c. 394, 2, eff. July 8, 1996.

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43:21-69. Definitions

Section effective July 8, 1996.

As used in P.L. 1995, c. 394 (C. 43:21-67 et al.):
"Division" means the Division of Unemployment and Temporary Disability Insurance of the Department of Labor.

"Full-time basis" with respect to the amount of time spent participating in self-employment assistance activities shall have the meaning contained in regulations adopted by the Commissioner of Labor.

"Peer group" means a group of not more than twenty participating individuals who provide mutual assistance and support for each other's efforts to establish businesses and become self-employed entrepreneurs.

"Reemployment services" means job search assistance and job placement services, including counseling, testing, assessment, job search workshops, job clubs, referrals to employers and providing occupational and labor market information.

"Regular benefits" means benefits payable to an individual under the "unemployment compensation law" (R.S. 43:21-1 et seq.), including benefits payable to federal civilian employees and to ex-service members pursuant to 5 U.S.C. chapter 85, but not including additional benefits provided pursuant to P.L.1992, c. 47 (C. 43:21-57 et seq.) or extended benefits.

"Self-employment assistance activities" means activities, approved by the division, in which an individual participates for the purpose of establishing a business and becoming self-employed, including: activities in which the individual participates in connection with self-employment assistance services; and other activities in which the individual engages to establish the business, which may, at the discretion of the division, include participation in a peer group.

"Self-employment assistance allowance" means an allowance, payable in lieu of regular benefits and from the unemployment compensation fund, to an individual participating in self-employment assistance activities who meets the requirements of P.L.1995, c. 394 (C. 43:21-67 et al.).

"Self-employment assistance services" means services provided to an individual, including entrepreneurial training, business counseling, and technical assistance, to help the individual to develop a business plan, establish a business and become self-employed, including entrepreneurial training and technical assistance supported by training grants provided pursuant to subsection b. of section 6 of P.L.1992, c. 43 (C. 34:15D4).

"Worker profiling system" means the worker profiling system established pursuant to section 2 of P.L.1992, c. 46 (C. 43:21-4.1).

"Workforce Development Partnership Program" means the program created pursuant to P.L.1992, c. 43 (C. 34:15D-1 et seq.).

L. 1995, c. 394, 3, eff. July 8, 1996.

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43:21-71 43:21-70. Application for self-employment assistance allowance; provision of services; monitoring of recipients; amount of allowance

Section effective July 8, 1996.

a. Any unemployed individual who qualifies for regular benefits and is identified through the worker profiling system as likely to exhaust regular benefits may apply to the division for a self-employment assistance allowance. If the individual is selected to receive a self-employment assistance allowance, the Department of Labor may also provide the individual with any available self-employment assistance services it deems appropriate, including services available from the Workforce Development Partnership Program, or the department may refer the individual to any other private or public entity it deems appropriate to provide the services. The department shall provide the individual with appropriate information available to the department regarding possible sources of financing for entrepreneurial activities, including information obtained from the Department of Banking and information regarding suitable "micro-lending" programs.

b. The weekly self-employment assistance allowance payable pursuant to this section to an individual shall be equal to the weekly benefit amount for regular benefits. In no instance shall a self-employment assistance allowance and regular benefits be paid to an individual with respect to the same period. The sum of the allowance and regular benefits paid under P.L.1995, c. 394 (C. 43:21-7 et al.) with respect to any benefit year, shall not exceed the maximum benefit amount established for regular benefits alone with respect to that benefit year. The allowance shall not be paid for any 'week in which the individual does not participate, on a full-time basis, in self-employment assistance activities authorized by the division.

c. A self-employment assistance allowance shall be payable to an individual at the same interval, on the same terms, and subject to the same conditions as regular benefits, except as otherwise provided in P.L.1995, c. 394 (C. 43:21-67 et al.).

d. The aggregate number of individuals receiving self-employment assistance allowances at any time shall not exceed one percent of the numbers of individuals receiving regular benefits. The Commissioner of Labor shall adopt regulations consistent with the provisions of P.L.1995, c. 394 (C. 43:21-67 et al.) to establish eligibility requirements and procedures for the selection of individuals to receive assistance allowances and self-employment assistance services.

e. Self-employment assistance allowances shall be charged to employees in the same manner as provided for the charging of regular benefits.

f. The provisions of this section shall apply to weeks beginning after the effective date of P.L.1995, c. 394 (C. 43:21@7 et al.) and after any plan required by the United States Department of Labor is approved by that department. The authority provided by this section shall terminate as of the end of the week preceding the date when federal law no longer authorizes the provisions of this section, unless that date is a Saturday in which case the authority shall terminate as of that date.
L. 1995, c. 394, 4, eff. July 8, 1996.

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43:21-71. Rules and regulations

Section effective July 8, 1996.

The Department of Labor shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c. 410 (C. 52:14B-1 et seq.), any, rules and regulations necessary to effectuate the purpose, of P.L.1995, c. 394,(C.43:21-67 et al.)

L.1995, c.394, 5, eff. July 8, 1996.

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