Business and Labor Committee
April 3, 2025
Committee Chair: Sen. Kathleen Kauth | Bills Heard: 5 | Full Transcript (PDF)
LB532: E-Verify mandate for all Nebraska employers
Introduced by: Sen. Kathleen Kauth | Testimony: 5 proponents, 4 opponents, 2 neutral | Read bill text (PDF)
Sen. Kauth pushes E-Verify mandate to level playing field for Nebraska businesses and workers. The bill would require all employers to use the federal E-Verify system to confirm work authorization, aiming to reduce illegal employment and protect legal workers from wage depression. Kauth argued the system is free, simple, and has worked in other states like Florida and Tennessee.
Why it matters: Nebraska faces a severe workforce shortage with only 39 available workers per 100 open jobs. Proponents say E-Verify eliminates unfair competition from illegal workers and boosts wages for legal workers, particularly those reentering society after incarceration. Opponents worry the system has unacceptable error rates and could trigger discrimination based on ethnicity or national origin.
What they're saying: - Proponents: "States with mandatory E-Verify saw 40-50% drops in illegal alien populations" (Doug Kagan, Nebraska Taxpayers for Freedom). Illegal workers depress wages and take jobs from citizens and legal residents. - Opponents: E-Verify falsely flagged 40,167 people as unauthorized in FY2024 who were later confirmed as work-authorized. Mississippi's mandate since 2011 has only 41% compliance. The system encourages discrimination against job applicants with Hispanic or Arabic names.
By the numbers: Harvard study cited by proponents shows illegal immigration reduces native-born worker wages by $99-118 billion annually. E-Verify error rate: 1.67% of checks result in mismatch. FY2024 unresolved cases: 211,446.
What's next: No vote was taken. Committee heard testimony from five proponents, four opponents, and two neutral testifiers. Sen. Kauth indicated willingness to work with stakeholders on amendments, particularly regarding triggers for Department of Labor investigation beyond E-Verify verification alone.
Committee sentiment: Skeptical: Sen. Jane Raybould, Sen. Dan McKinney Unclear: Sen. Dan McKeon
Sentiment estimated from questions and comments — not stated positions.
LB423: Eliminate Intern Nebraska grant program funding
Introduced by: Sen. Christy Armendariz | Testimony: 0 proponents, 4 opponents, 1 neutral | Read bill text (PDF)
Intern Nebraska program defunded before bill hearing; Sen. Armendariz leaves LB423 in committee. The bill would have eliminated the Intern Nebraska grant program from statute, but the Appropriations Committee already removed funding in the preliminary budget. The $20 million will revert to the General Fund to address budget shortfall, though some funds remain obligated for existing commitments.
Why it matters: Intern Nebraska is Nebraska's primary tool for combating brain drain, with nearly 1,500 internships created since January 2024. Students who complete paid internships in Nebraska are significantly more likely to stay in the state—a critical issue as 3,000-4,000 college graduates leave annually. The program was the #1 priority in Blueprint Nebraska 2019.
What they're saying: - Opponents: "This isn't simply cutting a line item. It's severing a vital pipeline that keeps talent flowing into our workforce" (Livia Ziskey, UNL student). Bryan Slone (Nebraska Chamber) warned defunding forces return to individual business-school relationships, reducing scale needed to compete with other states. - Armendariz: Program had "cumbersome" administration and "excess and unused funds." Governor's Office agreed to leave program in statute rather than eliminate it, but will not fund it.
By the numbers: Nearly 1,500 internships awarded since January 2024. Program cost: $20 million over two years. U.S. Chamber data cited: only 39 available workers per 100 jobs in Nebraska. Brain drain: 3,000-4,000 college graduates ages 22-34 leave annually.
What's next: No vote taken. Bill will remain in committee. Opponents indicated they will work with Appropriations Committee to restore funding. Sen. Raybould urged stakeholders to engage with Appropriations and other senators on the program's importance.
Committee sentiment: Supportive: Sen. Jane Raybould Unclear: Sen. Dan McKinney
Sentiment estimated from questions and comments — not stated positions.
LB537: Expand workforce development grant eligibility
Introduced by: Sen. Tony Sorrentino (presented by Glenda Ward) | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Sen. Sorrentino's LB537 expands workforce development grants to support recovery and reentry programs. The bill would allocate $1.5 million to expand eligibility for workforce development grants to include job skills, money management, communication, job preparation, and placement. Grants require 1-to-1 private fund matching and are distributed evenly among Nebraska's three Congressional districts.
Why it matters: Programs like Fresh Start at Heart Ministry Center help individuals facing addiction, homelessness, and incarceration rebuild their lives and return to work. When participants become employed taxpayers, the state reduces social costs and increases tax revenue. The bill leverages public-private partnerships rather than creating new state-run programs.
What they're saying: - Damany Rahn, Heart Ministry CEO: Fresh Start costs $800,000 annually and has graduated 150 participants over ten years, with 1,000 total individuals served. Program provides 15-20 week intensive training including mental/physical health, financial literacy, soft skills, and job placement. - Crystal Seefus, program graduate: "If it wasn't for that program, I wouldn't be where I am today and I wouldn't have my kids." Went from 10-year addiction and homelessness to employed facilitator and homeowner.
By the numbers: Fresh Start program cost: $800,000/year. Graduates: 150 over ten years. Total served: 1,000. Program duration: 15-20 weeks. Grant allocation: $1.5 million total, distributed evenly among three Congressional districts.
What's next: No vote taken. Committee heard two proponents and zero opponents. All testimony was supportive. Bill received five letters of support for the record.
Committee sentiment: Supportive: Sen. Jane Raybould, Sen. Dan McKinney, Sen. Dan McKeon, Sen. Kathleen Kauth
Sentiment estimated from questions and comments — not stated positions.
LB544: Close unemployment insurance ghosting loophole
Introduced by: Sen. Robert Dover | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Sen. Dover targets unemployment 'ghosting' with two-day response requirement for job interviews. LB544 would require unemployment insurance claimants to respond to job offers within two business days or notify employers if they cannot attend scheduled interviews. Claimants who fail to comply would lose benefits for that week. The bill uses an existing Department of Labor portal for employer reporting.
Why it matters: Nebraska faces severe workforce shortage with only 39 available workers per 100 open jobs. Dover argues some UI claimants game the system by submitting applications to satisfy work search requirements, then ghosting employers at interview stage. This wastes employer time and resources while UI benefits—funded entirely by business taxes—go to people not genuinely seeking work.
What they're saying: - Andrew Wiens, FGA Action: "Employers are penalized when individuals abuse the UI program by sending them applications and appearing to search for work, while having no intention of following through." Cited Indeed study showing 78% of job seekers nationally ghosted prospective employers. - Sen. McKinney (skeptical): "I don't really think this solves the problem, because if somebody reports or replies to a job offer that meets the requirement, if somebody just calls and say, hey, I can't make it, I have a flat tire that meets your requirement." Asked for actual data on scope of problem.
By the numbers: Nebraska unemployment rate: approximately 2.1-2.8%. Workforce shortage: 39 available workers per 100 open jobs. UI claimants in Nebraska: 29,972. Voter support (February 2025 poll): 72% support temporarily suspending benefits for repeated no-shows.
What's next: No vote taken. Committee heard two proponents and zero opponents. Sen. Dover indicated willingness to add emergency exception language. Committee members requested data from Department of Labor and outcomes from other states that implemented similar reforms.
Committee sentiment: Skeptical: Sen. Dan McKinney, Sen. Jane Raybould
Sentiment estimated from questions and comments — not stated positions.
LB435: Update Conveyance Safety Act terminology and procedures
Introduced by: Sen. Wordekemper (presented by Kaden Robison) | Testimony: 1 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
LB435 streamlines Conveyance Safety Act with technical updates and terminology clarifications. The bill updates Nebraska's elevator and conveyance safety statutes to align with current industry practices and improve State Fire Marshal administrative efficiency. Changes include removing outdated implementation dates, clarifying mechanic vs. contractor licensing, updating inspection company references, and allowing organizational reporting structure changes.
Why it matters: The bill modernizes outdated statutory language without reducing safety standards. It clarifies that third-party inspection companies—not insurance companies—conduct elevator inspections, reflecting actual industry practice. The changes enhance administrative efficiency and provide clarity to the public and industry.
What they're saying: - Doug Hohbein, Interim State Fire Marshal: "This legislation does not reduce safety standards or oversight. Rather, it enhances administrative efficiency and updates terminology to reflect current industry practices." Equivalency process allows alternative construction methods that achieve same safety compliance as code requirements.
By the numbers: No fiscal impact. No safety standard reductions.
What's next: No vote taken. Committee heard one proponent (State Fire Marshal) and zero opponents. One neutral comment submitted for record. Amendment pending to read 'equivalency or variance' per Elevator Industry Work Preservation Fund request.
Session Notes
Committee Chair Sen. Kauth opened hearing with procedural instructions. Committee members present: Sen. Jane Raybould (LD 28), Sen. Dan McKeon (LD 41), Sen. Teresa Ibach (LD 44), and Sen. Tony Sorrentino (LD 39, Vice Chair). Pages: Emma Jones (UNL political science junior) and Lauren Nittler (UNL agricultural economics sophomore from Aurora, Colorado). Committee took a five-minute break at 3:15 p.m. Sen. Kauth temporarily left to sign in at another hearing; Sen. Sorrentino assumed chair duties. Sen. Dover did not stay for closing on LB544 due to Appropriations Committee meeting. All bills heard without votes taken.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.