N.Y. Labor Law § 591-a: Self-employment assistance program

* § 591-a. Self-employment assistance program. 1. The department is

hereby authorized and empowered to establish and operate a

self-employment assistance program as authorized pursuant to subsection

(t) of section 3306 of the internal revenue code.

2. For the purposes of this section, the term "self-employment

assistance program" means a program under which:

(a) individuals who meet the requirements described in paragraph (c)

of this subdivision are eligible to receive an allowance in lieu of

regular unemployment benefits for the purpose of assisting such

individuals in establishing a business and becoming self-employed;

(b) the allowance payable to individuals pursuant to paragraph (a) of

this subdivision is payable in the same amount, at the same interval, on

the same terms, and subject to the same conditions, as regular

unemployment benefits and the sum of any allowance paid under this

section and regular benefits, as defined in this section, paid for any

benefit year shall not exceed the maximum amount of benefits payable

under this article, except:

(i) requirements relating to total unemployment, as defined in section

five hundred twenty-two of this article, availability for work and

search for work, as set forth in subdivision two of section five hundred

ninety-one of this title and refusal to accept work, as set forth in

subdivision two of section five hundred ninety-three of this title, are

not applicable to such individuals;

(ii) requirements relating to disqualifying income, as set forth in

sections five hundred twenty-five and five hundred ninety of this

article, are not applicable to income earned from self-employment

entered into by such individuals as a result of their participation in

self-employment assistance programs as defined in this section; and

(iii) such individuals are considered to be unemployed for the

purposes of laws applicable to unemployment benefits, as long as such

individuals meet the requirements applicable under this subdivision;

(c) individuals may receive the allowance described in paragraph (a)

of this subdivision if such individuals:

(i) are eligible to receive regular unemployment benefits or would be

eligible to receive such benefits except for the requirements set forth

in subparagraphs (i) and (ii) of paragraph (b) of this subdivision. For

purposes of this section, regular unemployment benefits means benefits

payable under this article, including benefits payable to federal

civilian employees and to ex-servicemen and servicewomen pursuant to 5

USC Chapter 85, and benefits authorized to be used for the

self-employment assistance program pursuant to the Federal-State

Extended Unemployment Compensation Act of 1970 but excluding additional

benefits;

(ii) are identified pursuant to a worker profiling system as

individuals likely to exhaust regular unemployment benefits;

(iii) are participating in self-employment assistance activities

approved by the department and by the department of economic development

which include but need not be limited to entrepreneurial training,

business counseling, and technical assistance, including financing

assistance for qualified individuals as appropriate, offered by

entrepreneurship assistance centers established pursuant to section two

hundred eleven of the economic development law, state university of New

York small business development centers, programs offered by

community-based organizations, local development corporations, and

boards of cooperative educational services (BOCES) as established

pursuant to section one thousand nine hundred fifty of the education

law; and, unless otherwise required by federal law or regulation, no

individual shall be prohibited from or disqualified from eligibility for

the program if prior to applying for the program, an individual has

printed business cards or has a website that is designed but not active,

and neither are being used to solicit or conduct business;

(iv) are actively engaged on a full-time basis in activities, which

may include training, relating to the establishment of a business and

becoming self-employed;

(v) are not individuals who have previously participated in

self-employment assistance programs pursuant to this section; and

(d) the aggregate number of individuals receiving the allowance under

the program does not at any time exceed five percent of the number of

individuals receiving regular unemployment benefits at such time.

3. Each self-employment assistance program applicant shall provide at

a minimum, in such form and at such time as the commissioner may

prescribe, the following information:

(a) a description of the proposed self-employment;

(b) a description of such applicant's knowledge of experience in

self-employment or such applicant's knowledge of and experience with the

particular product to be manufactured, produced, processed, distributed

or sold or service to be provided;

(c) the names and addresses of such applicant's previous employers

during the two years immediately preceding the date of applying for

regular unemployment insurance benefits; and a

(d) a description of each applicant's work activity and the

applicant's previous employer's activity at the work locations to which

the applicant was assigned during said two year period.

4. Among individuals seeking participation in a self-employment

assistance program, the department shall give preference to those

individuals who propose businesses not likely to compete directly with

the business of any base period employer of the individual.

* NB Repealed December 7, 2027