This bill amends Nebraska's statutes to enhance the Gambling Winnings Setoff for Outstanding Debt Act by allowing the Department of Labor to collect debts related to overpayments of unemployment benefits through setoffs against obligors' gambling winnings. It modifies definitions and procedures for debt collection, enabling the Department of Labor to submit certified debts to the collection system, similar to existing practices for the Department of Health and Human Services and the Department of Revenue. The bill also updates the statute of limitations for recovering unemployment overpayment debts and establishes a framework for notifying obligors about their debts and the process for contesting claims.

Specifically, the bill amends Section 48-665 of the Reissue Revised Statutes of Nebraska, which addresses the repayment of erroneous unemployment benefits. It removes the three-year limitation on recouping these benefits and introduces provisions for offsetting against gambling winnings. Additionally, the bill outlines the process for recovering unemployment compensation debts through setoff against federal income tax refunds, requiring the commissioner to notify debtors of the intent to recover the debt and allowing them sixty days to contest its enforceability. Several original sections are repealed as part of this legislative update to streamline the collection process and improve efficiency in recovering debts related to both child support and unemployment benefits.

Statutes affected:
Introduced: 9-1302, 9-1303, 9-1304, 9-1306, 9-1307, 9-1308, 9-1313, 48-665