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 Chandle
r/Anaya
LAST UPDATED 1/28/25
ORIGINAL DATE 1/27/25
SHORT TITLE Criminal Competency & Treatment
BILL
NUMBER House Bill 4
ANALYST Sanchez
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
HCA/BHSD No fiscal impact $3,243.4 $3,24 3.4 $6,486.8 Recurring General Fund
NMCD No fiscal impact $2,363.2 $2,363. 2 $4,726.4 Recurring General Fund
DOH No fiscal impact
At Least
$16,370.0
At Least
$16,370.0
At Least
$32,740.0
Recurring General Fund
AOC No fiscal impact
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring General Fund
AODA No fiscal impact
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring General Fund
Total No fiscal impact
At least
$21,976.6
At least
$21,976.6
At least
$43,953.2
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)
New Mexico Sentencing Commission (NMSC)
Corrections Department (NMCD)
Department of Health (DOH)
Healthcare Authority (HCA)
Department of Public Safety (DPS)
University of New Mexico (UNM)
Because of the short timeframe between the introduction of this bill and its first hearing, LFC has
yet to receive analysis from several state, education, or judicial agencies. If that analysis is
received, this analysis could be updated.
SUMMARY
Synopsis of House Bill 4
House Bill 4 (HB4) seeks to reform New Mexico’s approach to criminal competency and mental
health within the judicial system. The bill amends Sections 31-9-1 through 31-9-3 NMSA 1978 House Bill 4 – Page 2
(determination of competency) to enhance competency evaluation processes and expand the
options available for handling defendants with mental health issues. Specifically, HB4 requires
competency evaluation reports to include a professional opinion on whether the defendant can
stand trial and, if not, whether they meet the criteria for involuntary commitment under the
Mental Health and Developmental Disabilities Code (Sections 43-1-1 to 43-1-25 NMSA 1978)
or for assisted outpatient treatment under the Assisted Outpatient Treatment Act (Section 43-1B-
1 NMSA 1978).
HB4 makes changes to the dangerousness standards to refine and expand how the legal system
evaluates and addresses defendants deemed incompetent to stand trial. These updates modify the
list of qualifying offenses and adjust the procedural requirements for determining whether
defendants present a danger to public safety, particularly for those charged with serious crimes.
The bill broadens the definition of dangerousness by expanding the list of crimes that trigger
mandatory criminal commitment hearings and eligibility for involuntary commitment under the
Mental Health and Developmental Disabilities Code (MHDDC) or the Assisted Outpatient
Treatment Act. The updated list includes child abuse, sexual exploitation of children, human
trafficking, felonies involving great bodily harm or the use of a firearm, and aggravated arson.
Previously, dangerousness assessments focused on a narrower range of crimes. Additionally,
first-degree murder and arson have been removed from certain sections, potentially streamlining
focus on broader categories of offenses.
Procedurally, the bill attempts to clarify language for courts to assess dangerousness standards by
specifying that these evaluations must align with stricter timelines and more defined reporting
criteria. For example, competency evaluators must include opinions on whether defendants meet
the criteria for civil commitment or outpatient treatment, further integrating dangerousness
assessments into the competency determination process. For cases dismissed due to
incompetency, the bill directs courts to recommend prosecutors consider initiating proceedings
for involuntary commitment or assisted outpatient treatment, using the competency evaluation
report as a basis for further action.
The bill adds requirements that restoration to competency must occur within nine months and
would require hearings related to competency to be referred to as “criminal commitment
hearings,” with updated language to create consistency across the affected statutes. Additionally,
it makes the list of significant changes to a defendant’s condition exhaustive. It allows the
Department of Health (DOH) or district attorneys to initiate involuntary commitment
proceedings under the MHDDC or the Assisted Outpatient Treatment Act, with detention limited
to seven days to facilitate such proceedings.
Finally, the bill allows district attorneys and the attorney general to file petitions for assisted
outpatient treatment and extends the timeline for pre-petition professional examinations from 10
to 30 days.
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.
FISCAL IMPLICATIONS
HB4 would have substantial fiscal impacts across multiple agencies. Although the bill includes
no appropriations, the reforms included within HB4 are expected to increase costs for agencies House Bill 4 – Page 3
involved in competency evaluations, treatment programs, and criminal justice processes. These
costs primarily stem from expanded evaluation and reporting requirements, community-based
competency restoration programs, and the broadened definitions of dangerousness and qualifying
crimes for criminal commitment. Of note, the Legislative Finance Committee (LFC) program
evaluation unit’s 2024 Bernalillo Country Criminal Justice System Update found that
approximately 2 percent of felony cases statewide are dismissed due to competency issues. At
the Bernalillo County Metropolitan Court, this equates to 512 out of 25,000 felony cases
annually involving 294 individuals, or 1.6 percent of all individuals charged. While this
represents a small percentage of cases, it reflects a high-need population that requires specialized
behavioral health services, which are constrained by a shortage of qualified providers.
There is very little data available on the costs associated with conducting a criminal competency
evaluation, which can vary based on factors such as the evaluator's expertise, location, and the
evaluation's complexity. Rates for forensic psychologists typically range from $300 per hour for
evaluations to $350 per hour for expert witness testimony, with additional charges for travel and
expenses. The Journal of the American Medical Association estimated the cost to be around $5
thousand per evaluation. Data from the Administrative Office of the Courts (AOC) indicates
there were an average of 3,274 cases per year in New Mexico involving competency, meaning
the cost for evaluation alone could run to at least $16.4 million, which would be absorbed by
DOH and other entities responsible for covering the costs of evaluation.
1
DOH anticipates increased referrals to forensic and psychiatric facilities, including the New
Mexico Behavioral Health Institute (NMBHI), due to the bill's expanded scope for civil
commitment evaluations and the inclusion of community-based restoration. Current forensic
infrastructure may need to grow to accommodate more individuals requiring competency
restoration or treatment. DOH projects additional administrative costs, as staff would need to
manage new reporting duties and oversee outpatient programs. However, the lack of precise data
on future referrals makes it difficult to estimate the scale of the fiscal impact.
The Corrections Department (NMCD) foresees significant new costs if the number of diagnostic
and evaluation (D&E) commitments increases. Under current law, there are approximately 200
D&E cases annually, but the department anticipates this number could double. The daily cost of
housing an individual at the Central New Mexico Correctional Facility (where D&Es take place)
is $182.77, translating to over $2.2 million annually for an additional 200 individuals. NMCD
also projects the need for additional behavioral health staff to address increased caseloads at an
annual cost of $170 thousand.
AOC and the Law Offices of the Public Defender (LOPD) highlight the potential for increased
litigation and administrative costs. Courts will see additional hearings related to competency
determinations, restoration progress, and community-based program compliance. LOPD
anticipates higher workloads stemming from expanded dangerousness definitions and new
opportunities for outpatient restoration, requiring additional resources to support expert
testimony and litigation of competency issues. These increased workloads, combined with the
need for trained evaluators and program infrastructure, indicate long-term fiscal pressures on the
1
Morris, N. P., McNiel, D. E., & Binder, R. L. (2021). Estimating annual numbers of competency to stand trial
evaluations across the United States. Journal of the American Academy of Psychiatry and the Law Online, 49(3).
https://doi.org/10.29158/JAAPL.200129-20 House Bill 4 – Page 4
judicial system and treatment providers.
The Health Care Authority’s Behavioral Health Services Division (HCA BHSD) projects a
significant fiscal impact from HB4 due to expanded requirements for competency evaluations
and behavioral health services. The bill does not include specific funding to support the
additional inpatient and outpatient behavioral health services required. HCA BHSD currently
oversees court-ordered competency evaluations for indigent defendants and funds behavioral
health services primarily through Medicaid, which covers over 90 percent of such services
statewide.
To accommodate the additional time required for contracted evaluators to meet the bill’s new
requirements, HCA BHSD estimates a budget increase of $3.1 million based on 1,537
evaluations conducted in FY24. This estimate reflects an average cost of $200 per hour for 10
additional hours per evaluation. Additionally, HCA BHSD states they will need 1.5 FTE to
administer and support the forensic evaluation process at an annual cost of $170 thousand. Still,
this estimate does not account for an expected increase in the number of evaluations resulting
from the bill’s implementation. Further costs are anticipated to expand forensic evaluator scopes
of work, including meeting new timelines and providing competency restoration services for
uninsured individuals. In addition, HCA BHSD may need to raise the current $1,250 per
evaluation payment to retain and recruit evaluators. HCA also reports that in calendar year 2025,
the projected per-member-per-month Medicaid costs for individuals with substance use disorders
or serious mental illness are $1.6 million and $2.6 million, respectively. However, these
projections do not specifically account for individuals involved in the criminal justice system.
SIGNIFICANT ISSUES
The bill proposes major reforms to New Mexico’s competency statutes, including community-
based restoration programs, expanded eligibility for civil commitment and Assisted Outpatient
Treatment (AOT), and broader definitions of dangerousness. These changes are expected to
require considerable investment in capacity, resources, and administrative processes to comply
with the bill’s mandates.
A key challenge highlighted by DOH is the state’s lack of adequate forensic and psychiatric
infrastructure to meet the anticipated increase in competency restoration and treatment demands.
Under HB4, defendants who are not dangerous can be referred to community-based competency
restoration programs, but many communities lack the necessary facilities and providers to
implement this provision effectively. Similarly, expanded pathways for civil commitment and
AOT will likely increase referrals to facilities such as the New Mexico Behavioral Health
Institute (NMBHI) and other psychiatric hospitals. Without corresponding investments to expand
capacity, agencies may struggle to meet statutory timelines and provide required services.
Administrative and staffing demands are also expected to increase under HB4. DOH anticipates
the need for additional staff to conduct expanded evaluations, oversee competency restoration
programs, and manage new reporting requirements. AOC will face additional workloads from
the bill’s requirements for competency hearings, review hearings, and monitoring compliance
with community-based restoration programs. LOPD expects higher caseloads and increased
litigation stemming from the expanded definitions of dangerousness, additional expert testimony
requirements, and new options for outpatient treatment. These administrative burdens may
require agencies to reevaluate staffing levels and operational processes to meet demand. House Bill 4 – Page 5
The changes proposed by HB4 will also require robust interagency coordination to ensure
efficient implementation. The bill creates new responsibilities for courts, prosecutors, and DOH
in referring defendants to treatment programs or civil commitment proceedings. However,
agencies may face challenges in aligning communication and reporting systems, potentially
leading to delays or inconsistencies in implementation. For example, DOH notes that removing
requirements for pre-admission documentation could disrupt care continuity for defendants
entering inpatient competency restoration programs, further complicating coordination efforts.
Legal and policy concerns also arise from the bill’s expanded definitions and requirements.
HB4’s mandate for competency evaluators to provide opinions on civil commitment and AOT
eligibility, in addition to standard competency determinations, may exceed the current scope of
forensic evaluations and raise due process concerns. The broader definition of dangerousness,
which now includes crimes such as human trafficking and aggravated arson, could lead to
increased criminal commitments and further strain the state’s correctional and judicial systems.
Additionally, questions remain about how the state will handle defendants who fail to comply
with community-based restoration program requirements or whose competency cannot be
restored.
Finally, while the bill includes no direct appropriation, the fiscal impacts on state agencies could
be significant. DOH, AOC, LOPD, HCA BHSD, and NMCD all anticipate increased operational
costs, including expanded staffing, new program infrastructure, and additional litigation. For
instance, NMCD projects that the number of diagnostic and evaluation (D&E) commitments
could double, potentially adding $2.1 million annually to housing costs alone, in addition to the
cost of new behavioral health staff. However, the lack of data on the number of individuals who
may qualify for expanded restoration or treatment complicates efforts to forecast long-term fiscal
impacts.
Addressing these significant issues will require strategic investments in staffing and
infrastructure, careful planning to manage expanded workloads, and clear communication among
agencies to align processes. Without these measures, the state may face challenges in meeting the
bill’s statutory mandates and ensuring equitable implementation of the proposed reforms.
PERFORMANCE IMPLICATIONS
If HB4 is adopted, agencies involved in competency evaluations, restoration, and treatment could
experience significant performance implications related to increased caseloads, expanded
program responsibilities, and operational efficiency. AOC highlights potential impacts on
judicial performance measures, including the percentage of cases disposed of compared to cases
filed and the average time to disposition. The additional hearings required for competency
evaluations, restoration progress, and dismissal or referral proceedings could strain court
resources and extend case timelines, potentially affecting the judiciary's ability to meet
performance benchmarks.
DOH and LOPD also foresee challenges in meeting the increased demand for competency
evaluations and restoration services. DOH may need to significantly expand its capacity to
provide timely evaluations and maintain compliance with reporting and review timelines
mandated by HB4. LOPD anticipates increased litigation associated with expanded
dangerousness definitions and additional expert testimony requirements could lengthen case House Bill 4 – Page 6
resolution times and require greater attorney involvement. Additionally, agencies responsible for
community-based restoration programs may face difficulty maintaining consistent program
outcomes due to limited statewide treatment infrastructure and the need to scale services quickly.
The introduction of community-based restoration programs for non-dangerous defendants could
further strain performance metrics. These programs require robust monitoring and reporting to
track defendant compliance and progress toward competency restoration. However, gaps in
infrastructure and resource availability could lead to inconsistent implementation and outcomes.
As agencies adapt to these expanded responsibilities, they may need to redefine performance
metrics to reflect the complexity of the new processes and measure effectiveness in balancing
public safety with humane treatment options.
ADMINISTRATIVE IMPLICATIONS
The University of New Mexico’s (UNM) analysis of HB4 notes that it proposes broadening the
definition of evaluators to include "qualified mental health professionals" as determined by the
court rather than limiting it to psychiatrists or psychologists. However, UNM raises concerns
about whether district courts have the expertise to make these determinations and points out that
nationally recognized training programs in forensic evaluations exist only for psychologists and
psychiatrists. Additionally, HB4 introduces new reporting requirements, including
dangerousness and amenability assessments, which will increase the workload for evaluators and
may delay the reporting process without appropriate funding and support.
UNM also emphasizes that the current behavioral health system does not have funding for the
extensive evaluations and services HB4 requires, such as community-based and hospital-based
competency restoration. The analysis suggests doubling the evaluation budget and recommends
clarifying procedural steps to streamline competency evaluations without overburdening
evaluators. Concerns about civil rights and due process are also noted, particularly in relation to
involuntary commitment procedures and evidentiary standards during dangerousness hearings.
UNM proposes alternative approaches, including convening a workgroup to address these issues
within existing statutes, as well as considering funding for jail-based restoration programs.
The analysis provided by DOH states: “The bill will add administrative costs to DOH facilities.
In addition, DOH will be tasked with additional legal duties related to commitments which may
require the hiring of additional staff and DOH may need to update administrative rules.”
Analysis from the Department of Public Safety states:
The Law Enforcement Records Bureau (LERB) of DPS serves as the Criminal Justice
Information Services (CJIS) System Agency (CSA) for the state and does not act as a law
enforcement agency or engage in enforcement actions. However, LERB remains
committed to supporting law enforcement agencies by providing guidance, research, and
assistance in facilitating communication with the FBI and other stakeholders. This
legislation is directed at law enforcement agencies and officers, ensuring they have the
tools to address firearm-related risks effectively.
The Federal Bureau of Investigations (FBI) National Crime Information Center (NCIC)
Operation Policy Unit (NOPU) requires that all [extreme risk protection orders (ERPOs)]
are filed in the dedicated NCIC Extreme Risk Protection Order (ERPO) File effective House Bill 4 – Page 7
August 2, 2022. The ERPOs are now entered into a specialized system that enhances
officer safety by allowing better tracking and distinction of these orders, which focus
solely on firearm restrictions and differ from traditional protection orders. As the CJIS
System Agency (CSA), the LERB facilitates access to DOJ/FBI resources; however, the
responsibility for entering and managing ERPO data rests with the appropriate petitioning
entities, typically within the law enforcement community. This responsibility lies with
the petitioner, typically a certified law enforcement officer, reinforcing the role of law
enforcement in this critical process. The specialized ERPO File underscores the
importance of maintaining clear, distinct procedures to address public safety while
supporting lawful firearm possession restrictions.”
TECHNICAL ISSUES
According to the New Mexico Attorney General (NMAG):
“The proposed language in Section 31-9-1.1(C), which requires a qualified professional
to include additional opinions in their report when they believe a defendant is not
competent to stand trial, could pose a conflict with Rule 5-602.1(B)(2) NMRA, which
states that a competency evaluation is “limited to determining whether the defendant is
competent to stand trial.” HB4’s expanded definition of dangerousness could conflict
with Rule 5-602.2(D) NMRA, which provides that “[a] determination of the defendant’s
dangerousness shall take into account only evidence relevant to whether the defendant
presents a serious threat of inflicting great bodily harm on another or of violating Section
30-9-11 or Section 30-9-13.”
OTHER SUBSTANT IVE ISSUES
Analysis provided by DOH notes:
“The changes in this bill would add additional opportunities for civil commitment
evaluations to be conducted. It should be noted that treatment providers are required to
obtain consent prior to providing services and many of the clients sent to outpatient
treatment pursuant to this bill may lack capacity. Inpatient programs may often be better
suited to deal with this circumstance, as it usually requires an application to the courts for
the appointment of a legal guardian. Outpatient clinics that may be providing community-
based services may find it difficult to obtain a legal guardian for the clients they are
tasked to serve.
The civil commitment process as practiced currently may place all defendants on court
orders in NMBHI’s civil units. Representative Chandler has discussed this concern, and
DOH anticipates language in future drafts to ensure that all licensed psychiatric hospitals
are options for people recommended for civil commitment.
In another section of the response from DOH, the agency noted specific concerns about possible
disparities, stating:
“Individuals in rural and tribal areas of New Mexico may face barriers to accessing
qualified mental health professionals… Transportation challenges, healthcare provider
shortages, and limited local resources may delay diagnosis and treatment, exacerbating
disparities…Some individuals may face challenges related to costs associated with
transportation, medications, or other out-of-pocket expenses not covered by public House Bill 4 – Page 8
funding…Attention should be paid to defendants from low-income backgrounds who
may struggle with access to adequate legal representation and mental health
services…The bill mandates court-ordered evaluations, some defendants may face
barriers in navigating the legal and healthcare systems effectively…Attention should be
paid to non-English speakers may face challenges in understanding the competency
process and treatment options…A shortage of qualified mental health professionals in
rural areas of the state could lead to delays in competency evaluations and treatment,
disproportionately affecting those in high-demand regions.”
SS/rl/hg/sgs