State of South Dakota
LEGISLATIVE ASSEMBLY, 2012
SENATE BILL NO. 185
Introduced by: Senators Buhl, Adelstein, Frerichs, Hundstad, Nygaard, Sutton, and Tieszen
and Representatives Killer, Blake, Fargen, Hawley, Jones, and Lucas
FOR AN ACT ENTITLED, An Act to provide an exception from the statutory requirements for
persons taking steps towards self-employment and to allow them to collect unemployment
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 61-6 be amended by adding thereto a NEW SECTION to read as
Notwithstanding any other provisions in this chapter, no otherwise eligible person may be
denied benefits for any week because the person is taking steps towards self-employment as a
participant of the self-employment assistance program by reason of the application of § 61-6-2
relating to availability of work, or the provisions of § 61-6-15 relating to failure to apply for, or
to accept suitable work.
Section 2. That chapter 61-6 be amended by adding thereto a NEW SECTION to read as
The department shall develop and implement a self-employment assistance program to allow
unemployed individuals likely to exhaust regular unemployment benefits to collect a self-
employment assistance allowance while taking steps toward self employment. The self-employment assistance allowance shall be paid at the same rate and shall be payable to an
individual at the same intervals and on the same conditions and terms as regular unemployment
benefits except that participants in the program are not subject to the provisions in §§ 61-6-2
and 61-6-15 relating to the failure to apply for or accept suitable work.
Section 3. That chapter 61-6 be amended by adding thereto a NEW SECTION to read as
A person participating in the self-employment assistance program is considered unemployed
for purposes of unemployment benefits.
Section 4. That chapter 61-6 be amended by adding thereto a NEW SECTION to read as
To be eligible for participation in the self-employment assistance program, a person shall:
(1) Be otherwise eligible for unemployment benefits under chapter 61-6;
(2) Be likely to exhaust regular unemployment benefits;
(3) Submit a business plan, including a financial plan, to the department within thirty
days of being accepted into the program; and
(4) Actively participate in self-employment assistance activities or engage in activities
establishing a business on a full-time basis and report progress to the department as
Section 5. That chapter 61-6 be amended by adding thereto a NEW SECTION to read as
The department shall promulgate rules pursuant to chapter 1-26 related to the
implementation and administration of the provisions of this Act including approved self-employment activities, business and financial plan requirements, and progress reports. The rules
the department promulgates shall comply with rules and policies of the United States
Department of Labor.
Section 6. That chapter 61-6 be amended by adding thereto a NEW SECTION to read as
The provisions of this Act are repealed the Saturday preceding the date when federal law no
longer authorizes the provisions of this Act.