Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Harden
DATE TYPED 02/28/05 HB
SHORT TITLE Support President’s Legal Reform
SB SM 24
ANALYST Ford
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates HM 7
SOURCES OF INFORMATION
LFC Files
Response Received From
Attorney General (AGO)
SUMMARY
Synopsis of Bill
Senate Memorial 24 makes findings related to the impact of class action litigation and medical
malpractice litigation and calls upon the New Mexico congressional delegation to “support the
President’s call for meaningful class action reform and medical malpractice liability reform.”
Significant Issues
On February 18, 2005, the President signed S. 5, known as the “Class-Action Fairness Act of
2005.” The new law changes where class-action cases are heard, diverting more cases to federal
courts. The law also limits attorney fees in settlements where plaintiffs get discounts on products
instead of financial settlements. The fees will be linked to the coupon’s redemption rate or the
actual hours spent working on the case.
The memorial also calls upon the New Mexico congressional delegation to support the Presi-
dent’s medical malpractice liability reform proposals. Currently, Congress is considering H.R.
534, which would limit non-economic damages in medical malpractice cases to $250 thousand.