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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 864
Introduced by Prokop, 27.
Read first time January 08, 2026
Committee: Business and Labor
A BILL FOR AN ACT relating to the Department of Labor; to amend sections1
81-1210.01, 81-1210.02, and 81-1210.03, Reissue Revised Statutes of2
Nebraska, and sections 81-1201.21 and 81-1210.04, Revised Statutes3
Supplement, 2025; to provide for student internships to be4
administered by the Department of Labor as prescribed; to harmonize5
provisions; to provide a duty for the Revisor of Statutes; and to6
repeal the original sections. 7
Be it enacted by the people of the State of Nebraska,8
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Section 1. Section 81-1201.21, Revised Statutes Supplement, 2025, is1
amended to read: 2
81-1201.21 (1) There is hereby created the Job Training Cash Fund.3
The fund shall be under the direction of the Department of Economic4
Development. Money may be transferred to the fund pursuant to subdivision5
(1)(b)(iii) of section 48-621 and from the Cash Reserve Fund at the6
direction of the Legislature. The department shall establish a subaccount7
for all money transferred from the Cash Reserve Fund to the Job Training8
Cash Fund on or after July 1, 2005. 9
(2) The money in the Job Training Cash Fund or the subaccount10
established in subsection (1) of this section shall be used (a) to11
provide reimbursements for job training activities, including employee12
assessment, preemployment training, on-the-job training, training13
equipment costs, and other reasonable costs related to helping industry14
and business locate or expand in Nebraska, (b) to provide upgrade skills15
training of the existing labor force necessary to adapt to new technology16
or the introduction of new product lines, or (c) as provided in section17
79-2308. The department shall give a preference to job training18
activities carried out in whole or in part within an enterprise zone19
designated pursuant to the Enterprise Zone Act or an opportunity zone20
designated pursuant to the federal Tax Cuts and Jobs Act, Public Law21
115-97. 22
(3) The department shall establish a subaccount within the fund to23
provide training grants for training employees and potential employees of24
businesses that (a) employ twenty-five or fewer employees on the25
application date, (b) employ, or train for potential employment,26
residents of rural areas of Nebraska, or (c) are located in or employ, or27
train for potential employment, residents of high-poverty areas as28
defined in section 81-1203. The department shall calculate the amount of29
prior year investment income earnings accruing to the fund and allocate30
such amount to the subaccount for training grants under this subsection.31
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The subaccount shall also be used as provided in the Teleworker Job1
Creation Act. The department shall give a preference to training grants2
for businesses located in whole or in part within an enterprise zone3
designated pursuant to the Enterprise Zone Act. 4
(4) On April 5, 2018, any funds that were dedicated to carrying out5
sections 2 to 4 of this act 81-1210.01 to 81-1210.03 but were not yet6
expended shall be transferred to the Intern Nebraska Cash Fund.7
(5) Transfers may be made from the Job Training Cash Fund to the8
General Fund at the direction of the Legislature. Any money in the Job9
Training Cash Fund available for investment shall be invested by the10
state investment officer pursuant to the Nebraska Capital Expansion Act11
and the Nebraska State Funds Investment Act. 12
Sec. 2. Section 81-1210.01, Reissue Revised Statutes of Nebraska, is13
amended to read: 14
81-1210.01 For purposes of sections 2 to 4 of this act 81-1210.01 to15
81-1210.03: 16
(1) Department means the Department of Labor Economic Development;17
(2) Internship means employment of a student in a professional or18
technical position for a limited period of time, by a business in19
Nebraska, in which the student: 20
(a) Gains valuable applied work experiences; 21
(b) Increases knowledge and develops connections that assist with22
career decisionmaking; 23
(c) Has the opportunity to match with an employer seeking talent to24
evaluate, develop, and retain; or 25
(d) Receives credited or certified training for skilled positions26
that will help resolve skilled workforce shortages and create talent27
pipelines for Nebraska industries; and 28
(3) Student means any person who: 29
(a) Is in eleventh or twelfth grade in a public or private high30
school or a school which elects pursuant to section 79-1601 not to meet31
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accreditation or approval requirements in Nebraska;1
(b) Is enrolled in a college, a university, a certified training2
institution, or some other institution of higher education; or3
(c) Applies for an internship within twelve months following4
graduation from a public or private secondary school, a school that5
elects pursuant to section 79-1601 not to meet accreditation or approval6
requirements in Nebraska, or a college, a university, a certified7
training institution, or some other institution of higher education.8
Sec. 3. Section 81-1210.02, Reissue Revised Statutes of Nebraska, is9
amended to read: 10
81-1210.02 (1) The intent of sections 2 to 4 of this act 81-1210.0111
to 81-1210.03 is to provide students with valuable internship12
opportunities in order to retain such students in the State of Nebraska13
at institutions of higher education, convert students to full-time14
employment in Nebraska, and attract workers to Nebraska by assisting15
Nebraska businesses willing to provide paid internships.16
(2) A business may apply to the department for a grant to assist in17
providing a student an internship if: 18
(a) The business certifies that the internship meets the definition19
of internship in section 2 of this act 81-1210.01;20
(b) The business will pay the student at least the state minimum21
hourly wage for the internship; 22
(c) The internship will be completed within the State of Nebraska;23
(d) The internship will be completed within a period of no more than24
twenty-four months; and 25
(e) The internship will be for a duration sufficient to allow the26
student to gain significant valuable work experience and knowledge.27
(3)(a) The department may provide grants for internships to28
reimburse the cost of wages paid to businesses with less than one hundred29
fifty full-time-equivalent employees. 30
(b) The department may also provide grants for internships to any31
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business to reimburse the costs for any of the following:1
(i) Tuition reimbursement for courses at institutions of higher2
education; 3
(ii) Internship housing; 4
(iii) Transportation expenses relating to internships; and5
(iv) Internship administrative or recruitment costs.6
(c) The maximum grant award per internship is seven thousand five7
hundred dollars. 8
(4) A business may apply for no more than two grants for the same9
student and shall not be awarded more than one hundred grants total in10
any twelve-month period. 11
(5) A business may allow a student to telecommute if the business is12
located in Nebraska and the college, university, or other institution of13
higher education in which the student is enrolled is in Nebraska.14
(6) The department shall, to the extent possible, assure that the15
distribution of grants under sections 2 to 4 of this act 81-1210.01 to16
81-1210.03 provides equitable access to the grants by all geographic17
areas of the state. 18
(7) The department shall, to the extent possible, assure that the19
grants awarded pursuant to sections 2 to 4 of this act 81-1210.01 to20
81-1210.03 are for internships which provide valuable learning21
opportunities for students who will be seeking employment in a22
professional or technical field. 23
(8) The department shall not allocate more than one million five24
hundred thousand dollars in any one fiscal year from the Job Training25
Cash Fund or its subaccounts for purposes of this section. The department26
may receive funds from public, private, or other sources for purposes of27
this section. 28
(9) The department shall develop a qualified action plan by January29
1 of each even-numbered year. The plan shall, at a minimum, set forth the30
department's priorities and selection criteria for awarding grants for31
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internships. In order to encourage students from across Nebraska to1
pursue internships, the plan shall also include strategies for2
affirmatively marketing internships to Nebraska students in high schools,3
colleges, universities, and other institutions of higher education in4
Nebraska. Such strategies shall place an emphasis on marketing to5
underserved student populations as defined by the department in the plan.6
The department shall submit the plan to the Governor for approval.7
(10) The department shall execute a memorandum of understanding with8
the Department of Labor before December 31, 2022, to ensure the exchange9
of available Department of Labor data throughout the continuum from10
prekindergarten to postsecondary education to the workforce. The11
department may utilize data and agreements under sections 79-776, 85-110,12
85-309, and 85-1511. 13
(11) The department shall submit an annual report to the Governor14
and the Legislature on or before July 1 of each year which includes, but15
is not limited to, a description of the demand for internship grants and16
programs under sections 2 to 4 of this act 81-1210.01 to 81-1210.03 from17
all geographic regions in Nebraska, a listing of the recipients and18
amounts of internship grants awarded in the previous fiscal year, the19
impact of the internship grants, and an evaluation of the internship20
grants and programs under sections 2 to 4 of this act 81-1210.01 to21
81-1210.03 based on the documented goals of the recipients. The report22
submitted to the Legislature shall be submitted electronically. The23
department may require recipients to provide periodic performance reports24
to enable the department to fulfill the requirements of this subsection.25
The report shall contain no information that is protected by state or26
federal confidentiality laws. 27
(12) The department may enter into a contract with a Nebraska-based28
nonprofit entity for the purposes of carrying out any or all of the29
provisions of sections 2 to 4 of this act 81-1210.01 to 81-1210.03.30
Sec. 4. Section 81-1210.03, Reissue Revised Statutes of Nebraska, is31
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amended to read: 1
81-1210.03 The department may adopt and promulgate rules and2
regulations to govern the award and disbursement of grants pursuant to3
sections 2 to 4 of this act 81-1210.01 to 81-1210.03.4
Sec. 5. Section 81-1210.04, Revised Statutes Supplement, 2025, is5
amended to read: 6
81-1210.04 (1) The Intern Nebraska Cash Fund is created. The fund7
shall be used to carry out sections 2 to 4 of this act 81-1210.01 to8
81-1210.03. The fund shall consist of money transferred to the fund by9
the Legislature and money donated as gifts, bequests, or other10
contributions from public or private entities. Transfers may be made from11
the fund to the General Fund at the direction of the Legislature. Any12
money in the Intern Nebraska Cash Fund available for investment shall be13
invested by the state investment officer pursuant to the Nebraska Capital14
Expansion Act and the Nebraska State Funds Investment Act.15
(2) The Department of Labor Economic Development, or any entity with16
which the department contracts for such purpose, may use up to five17
percent of any appropriation to carry out sections 2 to 4 of this act18
81-1210.01 to 81-1210.03 for administrative services.19
Sec. 6. The Revisor of Statutes shall assign sections 2 to 5 of20
this act to Chapter 81, article 4. 21
Sec. 7. Original sections 81-1210.01, 81-1210.02, and 81-1210.03,22
Reissue Revised Statutes of Nebraska, and sections 81-1201.21 and23
81-1210.04, Revised Statutes Supplement, 2025, are repealed.24
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