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 advances for 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 also stipulates that if a claimant prevails, the employer must cover the advanced discovery costs, while unsuccessful claimants will need to reimburse the employer based on a schedule set by a workers' compensation judge.

Furthermore, the legislation 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, with increases in subsequent years. It allows a workers' compensation judge to exceed this maximum by up to $5,000 in cases of bad faith, defined as conduct demonstrating fraud, malice, or reckless disregard for rights. The bill prohibits non-attorneys from receiving fees for legal services and mandates that attorney fees be paid only after a claim is settled or adjudicated. It also requires a review by the advisory council on workers' compensation and occupational disease disablement 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