Bill seeks use of job training fund for internships

The Business and Labor Committee heard testimony Jan. 31 on a bill that would allow certain companies to apply for job training grants to hire college students for paid internships.

Under LB386, introduced by Elk Creek Sen. Lavon Heidemann at the request of the governor, a company eligible to apply for benefits as a tier three project of the Nebraska Advantage Act could 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.

“Internships allow students to develop valuable professional experience,” he said. “We must take advantage of the talent we have in the state.”

Department of Economic Development director Richard Baier testified in support of the bill, saying it fits well with Nebraska’s statewide economic development plan. The state needs to address a lack of highly skilled workers, he said, adding that the bill would generate an estimated 500-700 new internships per year.

Caleb Pollard, executive director of Valley County Economic Development, also supported the bill, saying it could help businesses find quality workers to replace retiring baby boomers in the coming years.

“We have businesses that are willing to expand and hire,” he said, “but they cannot find talented workers. This [bill] can help both rural and urban communities address their employment issues.”

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 and five job training grants in any 12-month period. 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.

No opposition testimony was given and the committee took no immediate action on the bill.