This legislative bill proposes significant reforms to Nebraska's labor laws, particularly in the areas of unemployment insurance and workforce development. It aims to eliminate the State Unemployment Insurance Trust Fund and transfer its assets to the newly established Workforce Development Program Cash Fund, effective July 1, 2025. The bill also seeks to amend various sections of the Reissue Revised Statutes of Nebraska and the Revised Statutes Cumulative Supplement, 2024, to update references to funds and adjust the state unemployment insurance tax rate. Key changes include reallocating state unemployment insurance tax collections to the new fund, repealing the Nebraska Worker Training Board, and establishing a streamlined approach to workforce support.

Additionally, the bill introduces the Workforce Development Program Cash Fund while replacing references to the State Unemployment Insurance Trust Fund. It specifies that the Sector Partnership Program Fund will terminate on July 1, 2025, with remaining funds transferred to the new fund. The bill outlines the responsibilities of the Department of Labor in administering the new fund, which will support various workforce development initiatives, including grants and studies related to labor availability and skills gaps. It also mandates that contracts awarded by the State of Nebraska include provisions for contractors to pay unemployment taxes to the Workforce Development Program Cash Fund, emphasizing support for job training activities and grants for small businesses, particularly in rural or high-poverty areas.

Statutes affected:
Introduced: 48-602, 48-622.01, 48-622.02, 48-648, 48-649.01, 48-649.03, 48-657, 48-3405, 81-407, 81-1201.21