SENATE BILL 282

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Joseph Cervantes

 

 

 

 

 

AN ACT

RELATING TO THE COURTS; AMENDING THE STRUCTURED SETTLEMENT PROTECTION ACT; REQUIRING APPOINTMENT OF A GUARDIAN AD LITEM IN ALL STRUCTURED SETTLEMENT TRANSFERS.

 

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

     SECTION 1. Section 39-1A-1 NMSA 1978 (being Laws 2005, Chapter 135, Section 1) is amended to read:

     "39-1A-1. SHORT TITLE.--[This act] Chapter 39, Article 1A NMSA 1978 may be cited as the "Structured Settlement Protection Act"."

     SECTION 2. Section 39-1A-6 NMSA 1978 (being Laws 2005, Chapter 135, Section 6) is amended to read:

     "39-1A-6. PROCEDURE FOR APPROVAL OF TRANSFERS.--

          A. An application under the Structured Settlement Protection Act for approval of a transfer of structured settlement payment rights shall be made by the transferee and shall be brought in court.

          B. At least twenty days before the date of the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under Section [4 of the Structured Settlement Protection Act] 39-1A-4 NMSA 1978, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for authorization, including with the notice:

                (1) a copy of the transferee's application;

                (2) a copy of the transfer agreement;

                (3) a copy of the disclosure statement required under Section [3 of the Structured Settlement Protection Act] 39-1A-3 NMSA 1978;

                (4) a listing of each of the payee's dependents, together with each dependent's age;

                (5) notice that any interested party is entitled to support, oppose or otherwise respond to the transferee's application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing; and

                (6) notice of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed to be considered by the court.

          C. Written responses to the application under Paragraph (6) of Subsection B of this section shall be filed on or before the fifteenth day after the date the transferee's notice is served.

          D. Upon the filing of an application for the transfer of structured settlement payment rights, the court shall appoint a guardian ad litem for the payee to make an independent assessment and to advise the court whether the proposed transfer is in the best interests of the payee. In advising the court, the guardian ad litem shall consider:

                (1) the reasonable preference of the payee, in light of the payee's age, mental capacity, maturity level, understanding of the terms of the agreement and stated purpose for the transfer;

                (2) if the periodic payments are intended to cover future income or losses or future medical expenses, whether the payee has means of support aside from the structured settlement to meet these obligations;

                (3) whether the payee can meet the financial needs of, and obligations to, the payee's dependents if the transfer is allowed to proceed, including child support and spousal maintenance;

                (4) whether the payee completed previous transactions involving the payee's structured settlement payment rights and the timing, amount, stated purpose and actual use of the proceeds;

                (5) the impact of the proposed transfer on current or future eligibility of the payee or the payee's dependents for public benefits; and

                (6) any other factors or facts that the court or the guardian ad litem determines to be relevant.

          E. The guardian ad litem may consult with a certified public accountant, an actuary or other licensed professional for independent professional advice. All costs and reasonable fees for the guardian ad litem shall be borne by the transferee in an amount determined by the court.

          F. The guardian ad litem shall file an interim report with the court no later than ten days prior to the date of the scheduled hearing.

          G. Written responses to the interim report of the guardian ad litem shall be filed with the court no later than five days before the scheduled hearing.

          H. The guardian ad litem shall file a final report with the court no later than two days before the date of the scheduled hearing."

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