SENATE BILL 208

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Richard C. Martinez

AN ACT

RELATING TO WORKERS' COMPENSATION; AMENDING A SECTION OF THE WORKERS' COMPENSATION ADMINISTRATION ACT TO PROHIBIT ACCELERATED PAYMENT OF MODIFIERS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 52-5-12 NMSA 1978 (being Laws 1986, Chapter 22, Section 38, as amended) is amended to read:

     "52-5-12. PAYMENT--PERIODIC OR LUMP-SUM.--

          A. It is stated policy for the administration of the Workers' Compensation Act and the New Mexico Occupational Disease Disablement Law that it is in the best interest of the injured worker or disabled employee that [he] the worker or employee receive benefit payments on a periodic basis. Except as provided in Subsections B, C and D of this section, lump-sum payments in exchange for the release of the employer from liability for future payments of compensation or medical benefits shall not be allowed.

          B. With the approval of the workers' compensation judge, a worker may elect to receive compensation benefits to which [he] the worker is entitled in a lump sum if [he] the worker has returned to work for at least six months, earning at least eighty percent of the average weekly wage [he] the worker earned at the time of injury or disablement. If a worker receives [his] the benefit income in a lump sum, [he] the worker is not entitled to any additional benefit income for the compensable injury or disablement and [he] the worker shall only receive that portion of the benefit income that is attributable to the impairment rating as determined in Section 52-1-24 NMSA 1978. In making lump-sum payments, the payment due the worker shall not be discounted at a rate greater than a sum equal to the present value of all future payments of compensation computed at a five-percent discount compounded annually.

          C. After maximum medical improvement and with the approval of the workers' compensation judge, a worker may elect to receive a partial lump-sum payment of workers' [compensation] impairment benefits for the sole purpose of paying debts that may have accumulated during the course of the injured or disabled worker's disability. The worker shall receive only that portion of the benefit income that is attributable to the impairment rating pursuant to Section 52-1-24 NMSA 1978. Benefits attributable to partial disability modification pursuant to Sections 52-1-26.1 through 52-1-26.4 NMSA 1978 shall not be accelerated and shall not be paid as part of a lump-sum payment unless and until the parties agree and the workers' compensation judge approves the agreement.

          D. If an insurer pays a lump-sum payment to an injured or disabled worker without the approval of a workers' compensation judge and if at a later date benefits are due for the injured or disabled worker's claim, the insurer alone shall be liable for that claim and shall not in any manner, including rate determinations and the employer's experience modifier, pass on the cost of the benefits due to the employer.

          E. If the compensation benefit to which a worker is entitled is less than fifty dollars ($50.00) per week, any party may petition the workers' compensation judge to consolidate that payment into quarterly installments.

          F. Periodic compensation payments under the Workers' Compensation Act or the New Mexico Occupational Disease Disablement Law for disability arising from primary mental impairments or secondary mental impairments shall be paid as incurred and shall not be included in any lump-sum payments."

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