Bill > LB402

This bill expands the Gambling Winnings Setoff for Outstanding Debt Act to include unemployment benefit overpayment collections, allowing the Department of Labor to recover debts from gambling winnings. Specifically, the bill modifies existing law to enable the Department of Labor to submit certified unemployment benefit overpayment debts of $25 or more to a secure electronic collection system, which can then intercept gambling winnings to repay those debts. The bill also adds provisions to the Employment Security Law that allow for recovering unemployment benefit overpayments through various methods, including setoff against gambling winnings, state income tax refunds, and federal income tax refunds. The changes create a new mechanism for recovering unemployment insurance funds that were improperly paid out, giving the Department of Labor additional tools to collect outstanding debts. Importantly, the bill maintains existing protections for individuals, such as the requirement to notify the debtor and provide an opportunity to contest the debt, and ensures that the process follows established legal procedures for debt collection.

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https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59118