SECTIONS 18238-18239 - California Statutes

WELFARE AND INSTITUTIONS CODE

SECTION 18238-18239

18238. For the purposes of this article:
(a) "Microenterprise" means a small business in which a
participant works as his or her own employer.
(b) "Microenterprise assistance provider" means a public agency or
a nonprofit agency meeting the requirements of Section 501(c)(3) of
the federal Internal Revenue Code, that is exempt from taxation under
Section 501(a) of the Internal Revenue Code, and that provides
self-employment training, technical assistance, and access to
microloans to individuals seeking to become self-employed.

18239. (a) With the consent of participating counties, the
department may implement demonstration projects to provide
self-employment training and technical assistance to recipients of
CalWORKs benefits and persons who are at risk of receiving CalWORKs
benefits. Each demonstration project shall operate for three years.
At least one demonstration project shall operate in Los Angeles
County and at least one in a northern California county. The number
of demonstration projects shall be limited to no more than six.
However, if nonstate matching funds become available, the number
shall be limited to no more than 12.
(b) The self-employment training shall include development of a
viable business plan, assisting the recipient to determine if
self-employment is suitable to the recipient's aptitudes and family
dependent care obligations, marketing strategies, business location
analysis, direct technical assistance in the development of a
microenterprise, and other subjects as necessary to achieve
proficiency in basic business skills. The training shall include
periodic assistance or case management, as needed, for up to one year
after the recipient's self-employment has commenced.
(c) To ensure communication and collaboration between county
welfare departments, including CalWORKs programs, and microenterprise
assistance providers, proposals to operate demonstration projects
under this article shall be jointly submitted by local
microenterprise service providers and the county welfare department.
No county matching funds shall be required for the implementation and
evaluation of the demonstration project. Local microenterprise
assistance providers participating in the pilot project shall have at
least two years' experience and demonstrated success in providing
assistance to recipients of CalWORKs benefits and other low-income
individuals to create their own jobs through self-employment.
(d) If pursuant to subdivision (a), the department, with the
consent of participating counties, chooses to implement a
microenterprise demonstration project, the department shall solicit
proposals from microenterprise assistance providers seeking to
administer a demonstration project under this article on a
not-for-profit basis. The department shall seek to encourage
financial participation of private entities for purposes of including
more individuals in these demonstration projects.