Section 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, 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
  section five hundred twenty-three 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, but excluding additional and extended 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  support  centers  established  pursuant to section two
  hundred twelve 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;
    (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, 2011