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 mandates 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.

The legislation also 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. It allows a workers' compensation judge to exceed the maximum fee 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 related to these claims and requires that no attorney fees be paid until the claim is settled or adjudicated. An advisory council is tasked with reviewing the maximum allowable attorney fees and discovery cost limits by May 1, 2029, with recommendations due by November 1, 2029. Violations of these provisions are classified 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