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 overpayment of unemployment benefits. It modifies the definitions of "claimant" and "debt" to include these unemployment overpayments, ensuring they are treated similarly to other debts collected through the setoff process. The legislation also establishes a secure electronic collection system to facilitate the identification and collection of these debts, while outlining a notification process for obligors regarding their debts and the opportunity to contest claims.

Furthermore, the bill amends Section 48-665 of the Reissue Revised Statutes of Nebraska, removing the three-year limitation on recouping erroneous unemployment benefits from future benefits and adding provisions for offsetting against state income tax refunds and gambling winnings. It also details the process for recovering unemployment compensation debts through setoff against federal income tax refunds, requiring the commissioner to notify debtors and allowing them sixty days to contest the debt's enforceability. The bill ensures that recovered amounts, after administrative fees, will be credited to the debt owed and repeals several outdated sections of the Revised Statutes Cumulative Supplement, 2024.

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