We numerically explore an alternative discretization of continuum SU(N-c) Yang-Mills theory on a Euclidean spacetime lattice, originally introduced by Budzcies and Zirnbauer for gauge group U(N-c). This discretization can be reformulated such that the self-interactions of the gauge field are induced by a path integral over N-b auxiliary bosonic fields, which couple linearly to the gauge field. In the first paper of the series we have shown that the theory reproduces continuum SU(N-c) Yang-Mills theory in d = 2 dimensions if N-b is larger than N-c - and conjectured, following the argument of Budzcies and Zirnbauer, that this remains true for d > 2. In the present paper, we test this conjecture by performing lattice simulations of the simplest nontrivial case, i.e., gauge group SU(2) in three dimensions. We show that observables computed in the induced theory, such as the static qq potential and the deconfinement transition temperature, agree with the same observables computed from the ordinary plaquette action up to lattice artifacts. We also find evidence that the bound for N-b can be relaxed to N-c - as conjectured in our earlier paper. Studies of how the new discretization can be used to change the order of integration in the path integral to arrive at dual formulations of QCD are left for future work.