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 Cates
/Little
LAST UPDATED
ORIGINAL DATE 1/29/25
SHORT TITLE Possession Of Weapon Conversion Device
BILL
NUMBER House Bill 38
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
Agency Analysis Received From
Administrative Office of the Courts (AOC) Administrative Office of the District Attorneys (AODA)
Law Office of the Public Defender (LOPD)
Office of the Attorney General (NMAG)
Sentencing Commission (NMSC)
Department of Health (DOH)
Adult Parole Board (APB)
Department of Public Safety (DPS)
SUMMARY
Synopsis of House Bill 38
House Bill 38 (HB38) creates the crime of unlawful possession of a weapon conversion device
that can convert a semiautomatic weapon into a fully automatic weapon. The bill defines the
offense as knowingly possessing or transporting such a device and establishes that each device
found in violation constitutes a separate offense. The legislation aims to regulate and penalize the
possession of firearm modification devices.
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 38 – Page 2
FISCAL IMPLICATIONS
The fiscal impacts of HB38 vary across state agencies, primarily depending on enforcement
levels, legal challenges, and potential incarceration costs. The Administrative Office of the
Courts (AOC) anticipates minimal administrative costs for updating statewide documentation,
but the actual impact depends on how often the law is enforced. New criminal statutes typically
result in increased case filings, which could lead to a higher caseload for judges, clerks, and
court staff. AOC did not provide a specific cost estimate, but similar laws have historically
resulted in additional resource demands. If enforcement is aggressive, the courts could require
additional funding to handle the influx of cases. However, since the judiciary already manages a
broad array of felony cases, any impact is likely to be proportional to the number of prosecutions
initiated under HB38.
The Administrative Office of the District Attorneys (AODA) expects enforcement of HB38 to
increase prosecution costs, particularly if cases go to trial. The cost of prosecuting a third-degree
felony varies but can reach thousands of dollars per case, especially if expert testimony or
forensic analysis is required. AODA also highlights potential constitutional challenges based on
the U.S. Supreme Court’s recent ruling in Garland v. Cargill, which struck down the federal ban
on bump stocks. If similar legal challenges arise, the state could face additional litigation costs,
which are difficult to quantify but could include substantial legal fees for appeals and
constitutional defenses.
The Law Offices of the Public Defender (LOPD) warns that HB38 could result in a wave of new
felony cases if individuals are unaware of the change in law. Hundreds of weapon conversion
devices are likely already in circulation in New Mexico, and without a grace period or public
awareness campaign, many law-abiding residents could unknowingly violate the law. LOPD
notes that complex felony cases require more experienced attorneys, and an increase in third-
degree felony prosecutions may require additional staffing. Each felony case can cost the
department thousands of dollars, particularly if it goes to trial rather than being resolved through
plea bargaining. If a significant number of cases arise, LOPD may need additional funding to
hire more felony-qualified public defenders.
The New Mexico Sentencing Commission (NMSC) suggests the new felony offense could
contribute to a higher prison population. The average sentence length for a third-degree felony
involving a firearm is approximately 2.8 years. With an average incarceration cost of $155.63
per day per inmate, a single conviction under HB38 could cost the state approximately $159
thousand over the course of a full sentence. The actual fiscal impact depends on how frequently
the law is enforced and how many individuals receive prison time rather than probation. If
dozens of new felony cases result in incarceration, the cumulative cost to the Corrections
Department could be in the millions over time.
The overall financial impact on the New Mexico 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 House Bill 38 – Page 3
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.
The Department of Public Safety (DPS) supports HB38, citing concerns that New Mexico lacks
a state law addressing weapon conversion devices, making enforcement inconsistent with federal
regulations. DPS argues a state-level statute would allow for more uniform enforcement and
provide a clear legal basis for prosecuting individuals who modify firearms for automatic fire.
While DPS does not anticipate significant administrative costs from enforcing the new law, its
passage could lead to increased training needs for officers and forensic analysts to identify and
document conversion devices in criminal cases properly.
The Department of Health (DOH) does not anticipate a direct fiscal impact from HB38 but
provides context on firearm-related deaths in New Mexico. The agency reports that firearm-
related homicides in the state have increased by 29 percent since 2019, and New Mexico now
has the third-highest gun death rate in the nation. While HB38 is unlikely to significantly alter
public health expenditures, DOH data supports the argument that stronger firearm regulations
could help reduce violent crime. If HB38 leads to a measurable reduction in gun violence, the
state could see long-term savings in emergency medical care and law enforcement costs.
SIGNIFICANT ISSUES
When considering HB38, the Legislature should evaluate whether state-level enforcement is
necessary given existing federal laws banning weapon conversion devices. The U.S. Bureau of
Alcohol, Tobacco, Firearms and Explosives (ATF) already classifies these devices as machine
guns under the National Firearms Act, making possession illegal nationwide. However, federal
enforcement is inconsistent, and DPS has expressed concern that without a state law, individuals
found in possession of these devices may evade prosecution if federal authorities decline to take
action. The question, then, is whether a state law would meaningfully enhance enforcement or if
it would largely duplicate existing federal restrictions.
Another significant issue is the potential for legal challenges based on recent Second
Amendment jurisprudence. AODA and other agencies note the U.S. Supreme Court's decision in
Garland v. Cargill struck down the federal prohibition on bump stocks, finding they do not meet
the statutory definition of a machine gun. While HB38 applies to a broader category of weapon
conversion devices, the ruling signals increased judicial scrutiny of firearm regulations. If HB38
is challenged, the state could face protracted litigation over its constitutionality, and the
Legislature may want to consider whether the law is crafted in a way that can withstand judicial
review.
DOH reports firearm-related homicides in New Mexico have risen significantly in recent years,
and DPS argues weapon conversion devices contribute to the lethality of shootings. However, it
is unclear how often these devices are used in violent crimes in New Mexico. The Legislature
may want to examine crime data to determine whether these devices are frequently recovered in
criminal investigations and whether additional restrictions would have a measurable impact on
public safety. If data on conversion device use is lacking, lawmakers may consider requiring law
enforcement agencies to track and report their prevalence. House Bill 38 – Page 4
The bill's implementation may also present challenges, particularly regarding public awareness
and compliance. LOPD has noted many individuals may unknowingly possess weapon
conversion devices, and without a clear process for voluntary relinquishment or amnesty,
otherwise law-abiding citizens could face felony prosecution. Other states that have enacted
similar bans have included provisions for public education campaigns or buyback programs to
encourage compliance. The Legislature may want to consider whether additional measures are
needed to ensure enforcement efforts are focused on criminal misuse rather than unintentional
violations.
Finally, the Legislature may want to consider the broader implications of criminalizing
possession rather than use. Many firearm-related statutes focus on enhanced penalties for using
modified weapons in the commission of a crime rather than criminalizing possession alone. If the
goal of HB38 is to prevent firearm modifications from being used in violent crime, the
Legislature may wish to examine whether targeting possession is the most effective deterrent or
if enhanced penalties for criminal use would be a more focused approach.
SS/hg/sgs