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 a reimbursement schedule will apply if the claimant does not prevail. It also emphasizes that attorney fees should be reasonable and based on the benefits secured for the claimant, with provisions for additional fees in cases of bad faith, capped at $5,000.

Furthermore, the bill establishes a framework for attorney fees related to claims under the New Mexico Occupational Disease Disablement Law, setting a maximum limit of $30,000 for 2025, increasing to $32,000 in 2027 and $34,000 in 2029. This limit applies cumulatively for all legal services related to a single occupational disease claim, regardless of the number of attorneys involved. The bill mandates that attorney fees be shared equally 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 the maximum allowable attorney fees and discovery cost limits by May 1, 2029, with recommendations to the legislature by November 1, 2029. Violations of this section are classified as misdemeanors, with penalties including fines and possible jail time.

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