Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Little
LAST UPDATED
ORIGINAL DATE 2/6/25
SHORT TITLE Fentanyl Trafficking Sentences
BILL
NUMBER House Bill 16
ANALYST Sanchez
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected NMCD No fiscal impact At least $28.2 At least $28.2 At least $56.4 Recurring General Fund
Cost to Counties No fiscal impact At least $19.2 At least $19.2 At least $38.4 Recurring General Fund
Total No fiscal impact At least $47.4 At least $47.4 At least $94.8 Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Because of the short timeframe between the introduction of this bill and its first hearing, LFC has
yet to receive analysis from state, education, or judicial agencies. This analysis could be updated
if that analysis is received.
Agency Analysis was Solicited but Not Received From
Corrections Department (NMCD) Administrative Office of the Courts (AOC) Administrative Office of the District Attorneys (AODA)
Law Offices of the Public Defender (LOPD)
New Mexico Sentencing Commission (NMSC)
Office of the Attorney General (NMAG)
SUMMARY
Synopsis of House Bill 16
House Bill 16 (HB16) proposes amendments to the Criminal Sentencing Act to enhance
penalties for trafficking fentanyl in New Mexico. The bill mandates increased sentencing for
individuals convicted of trafficking controlled substances under Section 30-31-20 NMSA 1978
when the offense involves fentanyl. If a court or jury determines that fentanyl was possessed in
connection with the trafficking crime, the offender's basic sentence of imprisonment, as
prescribed in Section 31-18-15 NMSA 1978, may be increased by up to three years.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025. House Bill 16 – Page 2
FISCAL IMPLICATIONS
The overall financial impact on the Corrections Department (NMCD) will depend on the number
of new cases resulting from this legislation. Still, even a modest increase in convictions could
lead to significant expenditures over time. The creation of any new crime, increase of felony
degree, or increase of sentencing penalties will likely increase the population of New Mexico’s
prisons and jails, consequently increasing long-term costs to state and county general funds. In
addition to the potential for new crimes to send more individuals to prison and jail, longer
sentences could result in fewer releases relative to admissions, driving up overall populations.
NMCD reports the average cost to incarcerate a single inmate in FY24 was $59.3 thousand;
however, due to the high fixed costs of the state’s prison facilities and administrative overhead,
LFC estimates a marginal cost (the cost per each additional inmate) of $28.2 thousand per year
across all facilities. LFC staff estimate the cost to counties to hold an individual in jail prior to
incarceration is $19.2 thousand per year.
Additionally, the increased prosecution and adjudication of enhanced sentencing cases may
require additional resources for district attorneys, public defenders, and the judiciary, potentially
leading to higher operational costs for the criminal justice system. Conversely, the bill could
have a deterrent effect on fentanyl trafficking, potentially reducing future law enforcement and
public health expenditures associated with drug-related crimes and overdoses. However, without
investments in prevention, treatment, and harm reduction programs, the long-term fiscal impact
may lean more toward increased incarceration costs rather than reduced crime rates.
SIGNIFICANT ISSUES
HB16 proposes sentencing enhancements for fentanyl trafficking to reflect growing concerns
about the public health and safety risks associated with the drug’s potency and its role in the
state's overdose crisis. However, increasing mandatory sentences could contribute to higher
incarceration rates, raising questions about the long-term effectiveness of punitive measures
versus treatment-focused approaches to addressing substance abuse. Additionally, the bill’s
implementation could have implications for judicial discretion because judges may have less
flexibility in sentencing individuals based on the circumstances of their cases. Law enforcement
and prosecutorial resources could also be impacted because cases involving fentanyl may require
more extensive investigations and court proceedings. Finally, the potential for unintended
consequences, such as an increase in plea bargains to avoid enhanced sentencing or shifting
trafficking patterns, should be considered in the broader discussion of drug policy and criminal
justice in New Mexico.
SS/hj/hg/sgs