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 Herndon
LAST UPDATED
ORIGINAL DATE 2/12/2025
SHORT TITLE Victim Recovery for Incarcerated
BILL
NUMBER House Bill 406
ANALYST Valdez
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
CVRC
Indeterminate
but minimal
At least $1.4 At least $1.4 At least $2.8 Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
New Mexico Corrections Department (NMCD) Crime Victims Reparation Commission (CVRC) Agency Analysis was Solicited but Not Received From
Department of Finance and Administration (DFA)
Agency Declined to Respond
Administrative Office of the Courts (AOC)
SUMMARY
Synopsis of House Bill 406
House Bill 406 (HB406) would amend Section 31-22-11 NMSA 1978 to allow victims of crimes
who were incarcerated at the time they were victimized to apply for compensation through the
Crime Victims Reparation Act upon their release. This reverses the meaning of this section of
law, which currently prohibits incarcerated victims from receiving any award under the provision
of the Crime Victims Reparation Act.
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 406 – Page 2
FISCAL IMPLICATIONS
HB406 will increase the potential number of victims receiving awards under the Crime Victims
Reparation Act. However, the Crime Victims Reparation Commission (CVRC) cites similar
legislation in Iowa that resulted in no significant financial burden for any service provider.
Minimal impact is anticipated due to a relatively small number of claims that will be made
possible by HB406. This legislation targets a relatively small population, with only a fraction of
those being released in any year, severely limiting the number of people who could benefit from
the Crime Victims Reparation Act. The state released 2.5 thousand offenders from correctional
facilities in FY22 and 2.2 thousand in FY23. A meta-study shared by CVRC estimates that 18
percent of offenders experience physical violence during incarceration, and 12 percent
experience sexual violence. This subset of those released would be eligible to apply for benefits
under HB406. Without any further data on how many of those released in New Mexico would
apply and receive benefits under this legislation, this analysis assumes at least one victim per
year will be paid by CVRC.
SIGNIFICANT ISSUES
CVRC highlights the percentage of incarcerated individuals who are themselves victimized
while in custody. They note that this population experiences higher rates of substance abuse and
other criminal behavior upon release in response to the trauma of becoming victims themselves.
CVRC notes that the reparations proposed by this legislation could pay for “carceral counseling,”
which would help moderate these consequences and benefit not only the victim but also the
communities in which they live.
JV/SL2