This bill amends the New Mexico Workers' Compensation Act and the New Mexico Occupational Disease Disablement Law to enhance financial support for discovery costs and attorney fees in workers' compensation cases. It raises the limit on employer-advanced discovery costs from $3,500 to $4,000 starting January 1, 2027, and to $4,500 by January 1, 2029. Additionally, the maximum allowable attorney fees will increase from $30,000 in 2025 to $32,000 in 2027, and $34,000 in 2029. The bill stipulates that if a claimant prevails, the employer must cover the advanced discovery costs, while reimbursement is required if the claimant does not prevail. It also introduces a framework for determining reasonable attorney fees based on benefits secured for the claimant, excluding future medical benefits.

Moreover, the bill establishes a maximum limit on attorney fees for a single disablement claim at $30,000 for 2025, with increases to $32,000 in 2027 and $34,000 in 2029, applicable cumulatively for all legal services related to a single occupational disease. It allows a workers' compensation judge to exceed the maximum fee by up to $5,000 if bad faith is found in the claim's handling. The bill mandates equal sharing of attorney fees between the employee and employer, prohibits non-attorneys from receiving fees for legal services, and requires that no attorney fees be paid until the claim is settled or adjudicated. It also calls for a review of attorney fees and discovery cost limits by an advisory council by May 1, 2029, with recommendations due by November 1, 2029, and classifies violations as misdemeanors with specified penalties.

Statutes affected:
introduced version: 52-1-54
JC substitute: 52-1-54, 52-3-47
JU substitute: 52-1-54, 52-3-47
Final Version: 52-1-54, 52-3-47