§ 7137. Self-Employment; Scope of Services Provided for a Self-Employment Setting.

(a) The services provided by the Department to assist the eligible individual to achieve employment in an appropriate self-employment setting include assessment, technical assistance, and training to assist the individual in preparing for work in a self-employment setting, and certain initial one-time costs to establish the proposed small business.

(b) The one-time, initial costs of establishing the small business are limited to such costs that are consistent with Section 7149 of these regulations, are appropriate and necessary to assist the individual to achieve employment in a self-employment setting, and are consistent with the usual and customary initial costs typically required for establishing similar small businesses, including:

(1) Payment of occupational license fees, pursuant to Section 7149(p);

(2) Purchase or lease of tools or other equipment, in quantities consistent with the initial cost of establishing similar small businesses, pursuant to Section 7149(p);

(3) Purchase of initial stock and supplies necessary for a period not to exceed six months, pursuant to Section 7149(p); and

(4) Payment of initial deposits required for rental agreements or utility service, consistent with Section 7149(g).

(c) The Department shall consider and utilize the most cost-effective means appropriate to provide the initial costs, including use of leased rather than purchased equipment, for a lease period not to exceed six months, and acquiring initial stock on a consignment basis.

(d) Initial costs, for purposes of a self-employment setting, do not include the following costs:

(1) Costs associated with expansion of a small business;

(2) Lease or purchase of real property;

(3) Construction or remodeling of real property;

(4) Payment of taxes or tax liens;

(5) Payment of patent fees or for product development;

(6) Refinancing or repayment of debt;

(7) Reimbursement or payment of any losses incurred in connection with the small business;

(8) Purchase of an existing business or of a business franchise;

(9) Purchase or lease of a vehicle for use in operating a small business;

(10) Employee wages and benefits; and

(11) Funding for ongoing operating expenses, as specified in Section 7136.8(g) of these regulations.

HISTORY

1. New section filed 2-28-2008; operative 3-29-2008 (Register 2008, No. 9).

Note

Note: Authority cited: Sections 19006 and 19016, Welfare and Institutions Code. Reference: 29 USC Sections 705(11), 720(a)(2) and 723(a); 34 CFR Sections 361.1, 361.5(b)(11), 361.5(b)(15), 361.5(b)(16), 361.48 and 361.50; and Section 19011, Welfare and Institutions Code.