HB66 makes targeted changes to New Mexico’s workers’ compensation and occupational disease disablement laws. The bill raises the amount an employer must advance for claimant-requested discovery costs from $3,500 to $4,000 in 2027 and $4,500 in 2029, while preserving the rule that the requesting party generally bears discovery costs and that the employer may be reimbursed if the claimant does not substantially prevail. It also increases the cap on attorney fees for a single accidental injury claim or a single occupational disease disablement claim from $30,000 in 2025 to $32,000 in 2027 and $34,000 in 2029, with a possible additional bad-faith award of up to $5,000 in limited circumstances.
The bill also retains and restates existing fee-restriction, offer-of-judgment, and settlement-approval provisions, including rules governing when attorney fees may be awarded, how they are shared between worker and employer, and how future medical benefits are treated in calculating reasonable fees. It applies these changes to both the Workers’ Compensation Act and the New Mexico Occupational Disease Disablement Law, and it directs the advisory council on workers’ compensation and occupational disease disablement to review the fee cap and discovery-cost limits by May 1, 2029 and recommend any needed adjustments by November 1, 2029.
In practical terms, HB66 would increase the financial exposure of employers and insurers in contested claims by requiring larger discovery advances and allowing higher attorney-fee awards. It also preserves existing penalties for unlawful fee arrangements and continues to allow nonattorney representation without compensation from the claimant. The bill affects workers, employers, insurers, attorneys, and the workers’ compensation administration and courts that oversee these claims.
The overall sentiment appears mixed but ultimately favorable enough to pass both chambers. The House approved the bill 36-22 and the Senate approved it 25-14, suggesting meaningful support but also notable opposition. The vote margins indicate that lawmakers generally accepted the need to update fee and discovery-cost limits, while some members likely objected to the higher costs imposed on employers and insurers or to the increased attorney-fee cap.
The main point of contention is the balance between access to representation and cost containment. Supporters likely view the higher discovery advance and attorney-fee limits as necessary to keep workers able to pursue claims and obtain legal help, especially in more complex cases. Opponents likely worry that the bill increases litigation costs, raises employer obligations, and could encourage more expensive claims handling, even though the bill includes reimbursement rules, fee-sharing provisions, and a future review by the advisory council.
HB66 amends Sections 52-1-54 and 52-3-47 of the New Mexico Statutes Annotated, changing the fee and discovery-cost rules in both the Workers’ Compensation Act and the New Mexico Occupational Disease Disablement Law. It raises the employer advance for claimant-requested discovery, increases the maximum cumulative attorney-fee cap for a single claim, and adds scheduled future increases and a 2029 review requirement. The bill also preserves existing mechanisms for settlement approval, offer-of-judgment cost shifting, bad-faith fee enhancements, and misdemeanor penalties for unlawful fee arrangements.
The bill appears to have received enough support to pass both chambers, but not without significant opposition. The House passed it 36-22 and the Senate 25-14, indicating a clear majority in favor but a divided legislature. The vote pattern suggests lawmakers were split between those who supported improving claimants’ access to discovery and legal representation and those concerned about higher costs for employers and insurers.
The central controversy is whether HB66 appropriately balances worker access to justice against the cost burden on employers and insurers. Supporters are likely to argue that higher discovery advances and attorney-fee caps reflect modern claim costs and help ensure injured workers and disabled employees can obtain effective representation. Opponents are likely to focus on the increased financial obligations, the possibility of higher litigation expenses, and the broader impact on claim resolution costs, even though the bill includes reimbursement rules, fee-sharing provisions, and a later advisory-council review.