Youngstown Daily Legal News

Grants, not tax credits, now proposed for companies hiring high school interns

TIFFANY L. PARKS
Special to the Legal News
Published: October 31, 2013

A Westlake lawmaker’s bill to establish a tax credit for companies that employ high schoolers in career exploration internships has been revamped into a grant-based venture.

The revision to House Bill 107, sponsored by Rep. Nan Baker, was accepted last week by the House Ways and Means committee.

“The focus of House Bill 107 has not changed. The difference ... is that it offers a grant instead of a tax credit,” Baker, R-Westlake, said.

“The intent is to bring high school students and businesses together to explore a mutual interest in career opportunities.”

The proposed legislation would authorize the Development Services Agency to issue grants to participating companies that equal 50 percent of the wages paid to a student intern, up to $5,000.

“It encourages students to seek places of employment that match their career interest and businesses to employ high school students to allow them to explore those interests,” Baker said.

When a business applies to the DSA to participate in the program, the applicable student intern must be eligible to attend school in Ohio, be between 16 and 18 years of age or enrolled in grade 11 or 12 and have a cumulative grade-point average of at least 2.5 out of 4.0.

Businesses would have to employ interns for at least 20 weeks and for at least 200 hours of paid work and instruction.

Work hours and pay would be negotiated by the business and student employee.

In applying for the grant program, Baker said companies would have to submit a signed statement by the student intern briefly describing the student’s aspirations and how the intern believes the career exploration internship may help achieve those aspirations.

Companies would also have to have a signed statement by a principal or guidance counselor at the intern’s school or, in the case of a home schooled student, an individual responsible for administering instruction to the student intern, acknowledging that the employment opportunity qualifies as a career exploration internship.

“This is the only responsibility of the educator,” Baker said. “If a student thinks he or she has a desire to be a veterinarian, an architect, a financial advisor, accountant, an entrepreneur, work in the building trade or high-tech manufacturing this bill gives them an opportunity to explore those fields.”

With regard to the grants, Baker pointed to the creation of a fund used by the Ohio Board of Regents to receive casino license fee revenues, as provided in the state constitution.

“To date, the fund has received all of the $200 million in license fees ($50 million from each casino),” she said.

“As specifically stated in the legislation ... “’The upfront license fee shall be used to fund state economic development programs which support regional job training efforts to equip Ohio’s workforce with additional skills to grow the economy.’”

According to data from a budget analyst with the Ohio Legislative Service Commission, Baker said, as of this month, $13 million of the fund is still available for appropriation.

In pushing for the pilot program to be established, Baker said the venture would not exceed $1 million.

“If we are to be serious about raising the expectations to teach our students about the possible chosen field they have an interest in, then we must reward our business community for taking the time to teach them their career choice,” she said.

“The business owner will give more back opening their work environment and in instruction than the student at age 16 can contribute. If after working in a career field the student is disillusioned with their career choice, that is a win for the student to find out early and can choose a different career and apply again for another internship exploration.”

John Sobolewski, West Shore Chambers of Commerce executive director, offered proponent testimony for the bill when it was being pitched as a tax credit.

He echoed Baker’s sentiments that business owners would pour more into students than they would get in return.

“When businesses open their place of work for students to participate they are giving more than they receive from a student intern,” he said.

“If successful, a student intern will acquire an education, instruction and experience relevant to the student intern’s career aspirations. Offering a tax credit would be a modest ‘thank you’ to the business owner for taking the time to hire the student that has shown a possible interest in that field of work.”

The bill has been scheduled for a fourth committee hearing.

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