Nebraska committee hears bill to authorize payment of state settlement claims totaling about $4.43 million

Kathleen Kauth, the introducer, told the Nebraska Legislature’s Business and Labor Committee on the hearing record that AM 491 to LB 534 would update LB 534 to include payment of claims that had been settled or approved after the bill’s original filing. "AM 491 updates LB 534 to include payment of claims against the state that were either settled by the attorney general's office or approved by the claims board after LB 534 was originally introduced," Kauth said.

Phoebe Lures, an assistant attorney general and legal adviser to the state claims board, described the specific additions AM 491 would place before the Legislature and asked the committee to approve them. "This amendment becomes the bill and adds 11 new claims for review and appropriation," Lures said, and then outlined the claims by section and type.

Why it matters: LB 534 (as amended by AM 491) is the annual vehicle by which the Legislature reviews and appropriates money to pay claims against the state that exceed thresholds requiring legislative approval. Approval affects the state's fiscal plan for the fiscal year identified in the bill.

Lures said section 1 adds three claims: two line-of-duty death claims (Claim 2025-00607, $280,932.50; and Claim 2024-00109, $250,000) and one miscellaneous claim filed by Johnson County under Nebraska Revised Statute 81-8,236 for prosecution costs ($182,058.97). Section 2 adds an indemnification settlement tied to an in-custody death (8:23-CV-485) with $395,000 placed into AM 491 after $50,000 was already paid toward the total $445,000 settlement.

Section 3 contains six workers' compensation settlements, all described as previously approved by the Nebraska Workers' Compensation Court. Lures provided the totals and how much had already been paid under statutory rules that allow partial payment without prior legislative approval: Reginald Borzakovsky — $125,000 total, $25,000 remaining in the bill; Zachary Kalum — $170,000 total, $70,000 remaining; Jeffrey Pawlowski — $150,000 total, $50,000 remaining; Bobby Green — $250,000 total, $150,000 remaining; Jean Ann Duke (formerly Jelinek) — $150,000 total, $50,000 remaining; Maureen Scanlon — $350,000 total, $250,000 remaining.

Finally, section 4 adds a tort claim filed by Trailon Ross for injuries from a motor vehicle accident; Lures said the state claims board approved $70,000 for Ross and that three other related tort claims had already been paid in the aggregate for $29,826.83. Because all four claims arise from the same accident, the total required legislative presentation exceeded $50,000; as a result, $49,826.83 remained in AM 491 for Ross.

Lures summarized the total AM 491 would present to the Legislature: $4,434,645.87. She also explained several procedural and administrative details in response to senators' questions: workers' compensation settlements sometimes leave "future medicals" open pending approval of Medicare set‑aside arrangements or other case‑specific issues, the Nebraska Workers' Compensation Court had approved the settlements listed, and workers' compensation payouts are handled from a revolving fund funded by agency assessments rather than the general fund.

Committee members asked clarifying questions about the practice of leaving future medical expenses open, caps or duration of those obligations, Medicare set‑aside accounts and the timing of settlement finalization. Lures said cases resolved by the compensation court and approved by the Legislature are effectively closed for the purpose of those claims; parties can refile if a dispute later arises, and third‑party administrators manage benefits while cases remain administratively open.

The hearing record closed after testimony; the transcript includes a notation that there were no letters for the record and that testimony concluded. The transcript does not record a committee vote on AM 491 to LB 534 during this session.

Ending: The committee heard testimony and asked technical questions; the bill and amendment remain before the Legislature for further consideration and appropriation decisions as part of the budget process.