The bill amends various sections of Chapter 48, Article 8 of the New Mexico Statutes to impose restrictions on liens asserted by service providers for personal injury damages. It broadens the definition of "service provider" to include any entity licensed to provide care to injured patients, rather than just hospitals. The bill stipulates that service providers are entitled to assert a lien on the judgment or settlement amount received by the patient, after deducting attorney fees and necessary expenses. Additionally, it establishes that service providers must share in the attorney fees incurred in securing the judgment, and outlines the requirements for filing and notifying relevant parties about the lien.

Furthermore, the bill introduces new provisions regarding subrogation rights in the context of uninsured motorist coverage under the Motor Vehicle Code. It allows insurers to recover proceeds against third parties in subrogation, provided that certain conditions are met, such as including insured parties as named plaintiffs in any action. The bill also specifies that claims against third parties must be proven by a preponderance of the evidence and establishes that the fact of payment from uninsured motorist coverage cannot be introduced in related actions. The provisions of this act will apply to lien enforcement actions filed on or after July 1, 2025, with an effective date of the same.

Statutes affected:
introduced version: 48-8-1, 48-8-2, 48-8-3, 48-8-4, 48-8-5, 48-8-7, 66-5-301