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 Dow
LAST UPDATED
ORIGINAL DATE 02/24/2025
SHORT TITLE School Reporting of Gender Incongruence
BILL
NUMBER House Bill 501
ANALYST Chilton
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
No fiscal impact No fiscal impact No fiscal impact
No fiscal
impact
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to House Bills 185, 466, and 543 and Senate Bills 459, 258, 356, and 500.
Sources of Information
LFC Files
Agency Analysis Received From
Regional Educational Cooperatives (RECA) Early Childhood Education and Care Department (ECECD) Health Care Authority (HCA) Agency Analysis was Solicited but Not Received From
Public Education Department (PED) Albuquerque Public Schools (APS)
Department of Health (DOH)
SUMMARY
Synopsis of House Bill 501
House Bill 501 (HB501) would introduce a new section of the School Personnel Act, Section 22-
10A, NMSA 1978 entitled “Students Experiencing Gender Incongruence – Parental Notification
– Response Plans.”
School employees are required to report to a school administrator if a child mentions gender
incongruence, defined as a difference between the child’s biologic sex and the child’s perceived
or desired sex, or transitions to a sex other than their biological sex while at school. The school
administrator must then notify a parent, and with the parent, implement a response plan, which
may include counseling or other support for the student.
House Bill 501 – Page 2
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
There is no appropriation in House Bill 501. No fiscal impact is identified.
SIGNIFICANT ISSUES
The Health Care Authority points out that:
On February 18, 2025, the United States Court of Appeals for the First Circuit issued a
decision that found parents do not have a right to be informed of their child discussing
gender identity issues with teacher and school officials. The court stated, “By cultivating
an environment where students may feel safe in expressing their gender identity, the
protocol endeavors to remove psychological barriers for transgender students and
equalizes educational opportunities.” In addressing the school district’s policy that
protected the privacy of students, the Court opined that the policy “plausibly creates a
space for students to express their identity without worrying about parental backlash...”
Foote v. Ludlow School Committee, Case No. 23-1069.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
This bill relates to the following bills:
House Bill 185/Senate Bill 459, identical bills entitled Protection of Women’s Sports Act,
House Bill 466, Hormone Therapy and Puberty Blocker Protection,
House Bill 543, Parental Consent for Minor’s Health Care,
Senate Bill 258, Human Sexuality Education,
Senate Bill 356, State Diversity Act, and
Senate Bill 500, Detransitioner Protection Act.
TECHNICAL ISSUES
The Early Childhood Education and Care Department points out that, “HB501 does not provide
clarification as to what constitutes requested ‘participation’ in a students’ transition to a gender
different from the student’s biological sex.”
LAC/hj/SL2/rl