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 Dixon
LAST UPDATED
ORIGINAL DATE 2/28/25
SHORT TITLE Second Degree Homicide by Vehicle
BILL
NUMBER House Bill 525
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
Corrections Department (NMCD)
Parole Board (APB)
Administrative Office of District Attorneys (AODA)
Sentencing Commission (NMSC)
Agency Analysis was Solicited but Not Received From Administrative Office of the Courts (AOC)
SUMMARY
Synopsis of House Bill 525
House Bill 525 (HB525) proposes an amendment to Section 33-2-34 NMSA 1978 to modify the classification of offenses eligible for earned meritorious deductions in correctional facilities.
Specifically, the bill allows sentencing judges to classify second-degree homicide by vehicle as a
discretionary serious violent offense. Under existing law, individuals convicted of serious violent
offenses may earn a maximum of four days per month in meritorious deductions, whereas those
convicted of nonviolent offenses may earn up to thirty days per month.
By adding second-degree homicide by vehicle to the list of offenses eligible for discretionary
classification as a serious violent offense, the bill affects the calculation of time served for
individuals convicted under this statute. It also makes conforming amendments to related
statutory provisions governing parole revocation and earned deductions to maintain consistency
in sentencing administration.
House Bill 525 – 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
Incarceration costs drive expenditures in the criminal justice system, and any changes affecting
the number of incarcerated individuals or the length of time they serve could have fiscal impacts.
HB525 could result in longer periods of incarceration for affected individuals due to reduced
eligibility for earned meritorious deductions.
The New Mexico Corrections Department (NMCD) reports that the average cost to incarcerate
an inmate in FY24 was $59.3 thousand annually. However, because of the high fixed costs
associated with correctional facilities, LFC estimates the marginal cost—the cost per additional
inmate—at $28.2 thousand per year across all state facilities. For county jails, LFC estimates a
marginal cost of $19.2 thousand per year per inmate, based on incarceration costs at the
Metropolitan Detention Center.
If sentencing judges designate a significant number of second-degree homicide by vehicle
convictions as serious violent offenses, the reduction in earned meritorious deductions could
extend incarceration periods, increasing costs to the corrections system. The precise fiscal impact
would depend on judicial discretion and the number of cases affected.
Additionally, HB525 may impact the judicial system. Defendants facing longer potential
sentences may be more likely to proceed to trial rather than accept plea agreements, which could
increase workloads for public defenders, prosecutors, and courts. The Law Offices of the Public
Defender (LOPD) anticipates an increase in trials and appeals could require additional attorney
resources, particularly for cases requiring more experienced trial counsel. The extent of these
impacts is uncertain and would depend on case volume and judicial discretion in applying the
serious violent offense designation.
Because HB525 modifies eligibility for earned meritorious deductions rather than creating a new
offense, its impact on incarceration rates is expected to occur gradually as new cases enter the
system. The long-term fiscal effects on NMCD and other agencies would require continued
evaluation based on sentencing patterns and judicial application of the discretionary
classification.
SIGNIFICANT ISSUES
HB525 modifies eligibility for earned meritorious deductions by allowing sentencing judges to
classify second-degree homicide by vehicle as a discretionary serious violent offense. Currently,
individuals convicted of this offense may earn up to 30 days per month in meritorious
deductions. If designated as a serious violent offense, that eligibility would be reduced to a
maximum of four days per month. This change affects how time served is calculated but does not
alter the underlying sentencing structure for the offense.
New Mexico law distinguishes between offenses that are automatically classified as serious
violent offenses and those where judicial discretion applies. HB525 does not mandate the
classification of second-degree homicide by vehicle as a serious violent offense but provides
courts with discretion to do so based on case-specific circumstances. This approach is consistent
with other offenses listed under the discretionary category in Section 33-2-34, NMSA 1978. House Bill 525 – Page 3
The bill aligns the treatment of second-degree homicide by vehicle with legislative changes
made in 2016, when the offense was reclassified from a third-degree felony to a second-degree
felony with an increased basic sentence. At that time, the statute governing earned meritorious
deductions was not updated, resulting in different earned deduction eligibility for second-degree
and third-degree homicide by vehicle. HB525 seeks to address this inconsistency by granting
courts the authority to apply a more restrictive earned deduction rate for the higher-degree
offense.
Earned meritorious deductions serve multiple functions in the correctional system, including
incentivizing participation in rehabilitation programs and promoting institutional compliance.
Reducing eligibility for earned deductions may affect these incentives. However, discretionary
classification allows judges to determine, on a case-by-case basis, whether an offense warrants a
more restrictive deduction rate. The overall impact of this change would depend on judicial
determinations and the number of cases in which the discretionary classification is applied.
SS/hj/SL2