Bill seeks use of job training fund for internships

A bill that would allow certain companies to apply for job training grants to hire college students for paid internships received first-round approval April 21.

As introduced by Elk Creek Sen. Lavon Heidemann at the request of the governor, LB386 would allow a company eligible for benefits as a tier three project under the Nebraska Advantage Act to apply to the state Department of Economic Development for job training grants to assist in hiring interns for newly created positions.

Heidemann said the bill would encourage Nebraska college students to remain in the state upon graduation by connecting them with targeted industries such as manufacturing, information technology and development companies.

“With this bill, we will show them … that there are opportunities here,” he said. “This is about keeping young people in the state.”

Under the bill, an intern would be required to work at least 200 hours in a 12-week period but not more than 1,000 hours in a 50-week period and would be paid at least the federal minimum wage. An intern also would have to be enrolled full time in a two- or four-year Nebraska college, or a four-year college or university in another state if he or she has Nebraska residency.

A job-training grant would be limited to the lesser of 40 percent of the cost of the internship or $3,500. Training grants in distressed areas would be limited to the lesser of 60 percent of the cost of the internship or $5,000. An eligible company would be limited to two grants per intern.

The department could allocate no more than $1.5 million in fiscal years 2011-12 and 2012-13 from the Job Training Cash Fund to the internship program.

Heidemann offered an amendment, adopted 30-2, which would allow all businesses eligible for benefits under the Nebraska Advantage Act to apply for internship grants under the bill. The amendment also would increase from five to 10 the maximum number of internships an eligible company could grant in any 12-month period. A company would be limited to five job-training grants per year at any one location.

A Business and Labor Committee amendment, adopted 30-0, would clarify that a distressed area includes counties with fewer than 100,000 inhabitants.

The amendment further clarified that interns attending two-year colleges must have completed at least half of the credit hours required to complete an associate degree and that Nebraska interns attending an out-of-state institution must have achieved at least junior level status to qualify.

Omaha Sen. Gwen Howard questioned why internships should be limited to private business, suggesting that students could benefit from exploring opportunities at state agencies as well.

“There are many jobs that interns would like to do in the ombudsman’s office or at the vet’s center,” she said.

Kearney Sen. Galen Hadley supported the measure, saying it would encourage college students to explore opportunities rather than leave the state.

“This is a chance for students to look at companies and companies to look at students,” he said. “We want our best and brightest to stay in Nebraska.”

Senators advanced the bill to select file on a 35-1 vote.