AN ACT RELATING TO WORKERS' COMPENSATION; AMENDING A CERTAIN DEFINITION; AMENDING THE RESIDUAL PHYSICAL CAPACITY TABLE; PROVIDING FOR

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1 AN AT RELATING TO WORKERS' OMENSATION; AMENDING A ERTAIN DEFINITION; AMENDING TE RESIDUAL YSIAL AAITY TALE; ROVIDING FOR INREASES IN ATTORNEY FEES AND ADVANED DISOVERY OSTS. E IT ENATED Y TE LEGISLATURE OF TE STATE OF NEW MEXIO: Sction. Sction 2--2 NMSA 978 (bin Lws 987 hptr 2 Sction s mndd) is mndd to rd: "2--2. ERMANENT TOTAL DISAILITY.-- A. As usd in th Workrs' ompnstion Act "prmnnt totl disbility" mns: () th prmnnt nd totl loss or loss of us of both hnds or both rms or both ft or both ls or both ys or ny two of thm; or (2) brin injury rsultin from sinl trumtic work-rltd injury tht cuss xclusiv of th contribution to th impirmnt rtin risin from ny othr impirmnt to ny othr body prt or ny prxistin impirmnts of ny kind prmnnt impirmnt of thirty prcnt or mor s dtrmind by th currnt Amricn mdicl ssocition uid to th vlution of prmnnt impirmnt.. In considrin clim for totl disbility workrs' compnstion jud shll not rciv or considr th tstimony of voctionl rhbilittion providr offrd for th purpos of dtrminin th xistnc or xtnt of disbility." Sction 2. Sction NMSA 978 (bin Lws 99 (2nd S.S.) hptr 2 Sction ) is mndd to rd: " ARTIAL DISAILITY DETERMINATION--YSIAL AAITY

2 MODIFIATION.-- A. Th rn of th physicl cpcity modifiction is on to iht.. Th wrd of points to workr shll b bsd upon th diffrnc btwn th physicl cpcity ncssry to prform th workr's usul nd customry work nd th workr's rsidul physicl cpcity. Th wrd of points shll b bsd upon th followin tbl: RESIDUAL YSIAL AAITY S L M RE-INURY S YSIAL AAITY L (USUAL AND M USTOMARY WORK) 8.. For th purposs of this sction: () "" or "hvy" mns th bility to lift ovr fifty pounds 2 occsionlly or up to fifty pounds frquntly; (2) "M" or "mdium" mns th bility to lift up to fifty pounds occsionlly or up to twnty-fiv pounds frquntly; () "L" or "liht" mns th bility to lift up to twnty pounds occsionlly or up to tn pounds frquntly. Evn thouh th wiht liftd my b only nliibl mount job is in this ctory whn it rquirs wlkin or stndin to sinificnt dr or whn it involvs sittin most of th tim with dr of pushin nd pullin of rm or l controls or both; nd (4) "S" or "sdntry" mns th bility to lift up to tn pounds occsionlly or up to fiv pounds frquntly. Althouh sdntry job is dfind s

3 on tht involvs sittin crtin mount of wlkin nd stndin is oftn ncssry in crryin out job dutis. obs r sdntry if wlkin nd stndin r rquird only occsionlly nd othr sdntry critri r mt. D. Th dtrmintion of workr's rsidul physicl cpcity shll b md by hlth cr providr dfind in Subsction E or G of Sction 2-4- NMSA 978. If th workr or mployr disrs on who shll mk this dtrmintion th disput shll b rsolvd in ccordnc with th provisions st forth in Sction 2-- NMSA 978." Sction. Sction 2--4 NMSA 978 (bin Lws 987 hptr 2 Sction 24 s mndd) is mndd to rd: "2--4. FEE RESTRITIONS--AOINTMENT OF ATTORNEYS Y TE DIRETOR OR WORKERS' OMENSATION UDGE--DISOVERY OSTS--OFFER OF UDGMENT--ENALTY FOR VIOLATIONS.-- A. It is unlwful for ny prson to rciv or r to rciv ny fs or pymnt dirctly or indirctly in connction with ny clim for compnstion undr th Workrs' ompnstion Act xcpt s providd in this sction.. In ll css whr th jurisdiction of th workrs' compnstion dministrtion is invokd to pprov sttlmnt of compnstion clim undr th Workrs' ompnstion Act th dirctor or workrs' compnstion jud unlss th climnt is rprsntd by n ttorny my in his discrtion ppoint n ttorny to id th workrs' compnstion jud in dtrminin whthr th sttlmnt should b pprovd nd in th vnt of n ppointmnt rsonbl f for th srvics of th ttorny shll b fixd by th workrs' compnstion jud subjct to th limittion of Subsction I of this sction.

4 . In ll css whr th jurisdiction of th workrs' compnstion dministrtion is invokd to pprov sttlmnt of compnstion clim undr th Workrs' ompnstion Act nd th climnt is rprsntd by n ttorny th totl mount pid or to b pid by th mployr in sttlmnt of th clim shll b sttd in th sttlmnt pprs. Th workrs' compnstion jud shll dtrmin nd fix rsonbl f for th climnt's ttorny tkin into ccount ny sum prviously pid nd th f fixd by th workrs' compnstion jud shll b th limit of th f rcivd or to b rcivd by th ttorny in connction with th clim subjct to th limittion of Subsction I of this sction. D. Th cost of discovry shll b born by th prty who rqusts it. If howvr th climnt rqusts ny discovry th mployr shll dvnc th cost of pyin for discovry up to limit of thr thousnd dollrs ($). If th climnt substntilly prvils on th clim s dtrmind by workrs' compnstion jud ny discovry cost dvncd by th mployr shll b pid by tht mployr. If th 4 climnt dos not substntilly prvil on th clim s dtrmind by workrs' compnstion jud th mployr shll b rimbursd for discovry costs dvncd ccordin to schdul for rimbursmnt pprovd by workrs' compnstion jud. E. In ll css whr compnstion to which ny prson is ntitld undr th provisions of th Workrs' ompnstion Act is rfusd nd th climnt thrftr collcts compnstion throuh procdins bfor th workrs' compnstion dministrtion or courts in n mount in xcss of th mount offrd in writin by n mployr fiv businss dys or mor prior to th informl hrin bfor th dministrtion th compnstion to b pid th ttorny for th climnt shll b

5 fixd by th workrs' compnstion jud hrin th clim or th courts upon ppl in th mount th workrs' compnstion jud or courts dm rsonbl nd propr subjct to th limittion of Subsction I of this sction. In dtrminin nd fixin rsonbl f th workrs' compnstion jud or courts shll tk into considrtion: () th sum if ny offrd by th mployr: () bfor th workr's ttorny ws mployd; (b) ftr th ttorny's mploymnt but bfor procdins wr commncd; nd (c) in writin fiv businss dys or mor prior to th informl hrin; nd (2) th prsnt vlu of th wrd md in th workr's fvor; () ny filur of prty to prticipt in ood-fith mnnr in informl clim rsolution mthods doptd by th dirctor. F. Aftr rcommndd rsolution hs bn issud nd rjctd but mor thn tn dys bfor tril bins th mployr or climnt my srv upon th opposin prty n offr to llow compnstion ordr to b tkn inst him for th mony or proprty or to th ffct spcifid in his offr with costs thn ccrud subjct to th followin: () if within tn dys ftr th srvic of th offr th opposin prty srvs writtn notic tht th offr is ccptd ithr prty my thn fil th offr nd notic of ccptnc tothr with proof of srvic throf nd thrupon tht compnstion ordr my b ntrd s th workrs' compnstion jud my dirct.

6 An offr not ccptd shll b dmd withdrwn nd vidnc throf is not dmissibl xcpt in procdin to dtrmin costs. If th compnstion ordr finlly obtind by th prty is not mor fvorbl thn th offr tht prty shll py th costs incurrd by th opposin prty ftr th mkin of th offr. Th fct tht n offr hs bn md but not ccptd dos not prclud subsqunt offr; (2) whn th libility of on prty to nothr hs bn dtrmind by compnstion ordr but th mount or xtnt of th libility rmins to b dtrmind by furthr procdins th prty djudd libl my mk n offr which shll hv th sm ffct s n offr md bfor tril if it is srvd within rsonbl tim not lss thn tn dys prior to th commncmnt of hrins to dtrmin th mount or xtnt of libility; () if th mployr's offr ws rtr thn th mount wrdd by th compnstion ordr th mployr shll not b libl for his fifty prcnt shr of th ttorny fs to b pid th workr's ttorny nd th workr shll py on hundrd prcnt of th ttorny fs du to th workr's ttorny; nd (4) if th workr's offr ws lss thn th mount wrdd by th compnstion ordr th mployr shll py on hundrd prcnt of th ttorny fs to b pid th workr's ttorny nd th workr shll b rlivd from ny rsponsibility for pyin ny portion of th workr's ttorny fs. G. In ll ctions risin undr th provisions of Sction 2-- NMSA 978 whr th jurisdiction of th workrs' compnstion dministrtion is invokd to dtrmin th qustion whthr th climnt's disbility hs incrsd or diminishd nd th climnt is rprsntd by n ttorny th workrs' compnstion jud or courts upon ppl shll dtrmin nd fix rsonbl f for th srvics of th

7 climnt's ttorny only if th climnt is succssful in stblishin tht his disbility hs incrsd or if th mployr is unsuccssful in stblishin tht th climnt's disbility hs diminishd. Th f whn fixd by th workrs' compnstion jud or courts upon ppl shll b th limit of th f rcivd or to b rcivd by th ttorny for srvics in th ction subjct to th limittion of Subsction I of this sction.. In dtrminin rsonbl ttorny fs for climnt th workrs' compnstion jud shll considr only thos bnfits to th workr tht th ttorny is rsponsibl for scurin. Th vlu of futur mdicl bnfits shll not b considrd in dtrminin ttorny fs. I. Attorny fs includin but not limitd to th costs of prll srvics ll clrk srvics nd ny othr rltd ll srvics costs on bhlf of climnt or n mployr for sinl ccidntl injury clim includin rprsnttion bfor th workrs' compnstion dministrtion nd th courts on ppl shll not 7 xcd sixtn thousnd fiv hundrd dollrs ($). This limittion pplis whthr th climnt or mployr hs on or mor ttornys rprsntin him nd pplis s cumultiv limittion on compnstion for ll ll srvics rndrd in ll procdins nd othr mttrs dirctly rltd to sinl ccidntl injury to climnt. Th workrs' compnstion jud my xcd th mximum mount sttd in this subsction in wrdin rsonbl ttorny f if h finds tht climnt n insurr or n mployr ctd in bd fith with rrd to hndlin th injurd workr's clim nd th injurd workr or mployr hs suffrd conomic loss s rsult. owvr in no cs shll this dditionl mount xcd two thousnd fiv hundrd dollrs ($2). As usd in this subsction "bd fith" mns conduct by th

8 climnt insurr or mployr in th hndlin of clim tht mounts to frud mlic opprssion or willful wnton or rcklss disrrd of th rihts of th workr or mployr. Any dtrmintion of bd fith shll b md by th workrs' compnstion jud throuh sprt fct-findin procdin.. Excpt s providd for in rrphs () nd (4) of Subsction F of this sction th pymnt of climnt's ttorny fs dtrmind undr this sction shll b shrd qully by th workr nd th mployr. K. It is unlwful for ny prson xcpt licnsd ttorny to rciv or r to rciv ny f or pymnt for ll srvics in connction with ny clim for compnstion undr th Workrs' ompnstion Act. L. Nothin in this sction pplis to nts xcludin ttornys rprsntin mployrs insurnc crrirs or th subsqunt injury fund in ny mttr risin from clim undr th Workrs' ompnstion Act. M. No ttorny fs shll b pid until th clim hs bn sttld or 8 djudd. N. Evry prson violtin th provisions of this sction is uilty of misdmnor nd upon conviction shll b find not lss thn fifty dollrs ($.) or mor thn fiv hundrd dollrs ($) to which my b ddd imprisonmnt in th county jil for trm not xcdin ninty dys. O. Nothin in this sction shll rstrict climnt from bin rprsntd bfor th workrs' compnstion dministrtion by nonttorny s lon s tht nonttorny rcivs no compnstion for tht rprsnttion from th climnt." Sction 4. ALIAILITY.--Th provisions of this ct r ffctiv for ll

9 injuris in which th workr rchs mximum mdicl improvmnt on or ftr uly 2. 9