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 LAST UPDATED ORIGINAL DATE 2/11/25 SHORT TITLE Criminal Competency & Treatment BILL NUMBER House Bill 8 ANALYST Sanchez ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT* (dollars in thousands) Agency/Program FY25 FY26 FY27 3 Year Total Cost Recurring or Nonrecurring Fund Affected Any and All Agencies Solicited for Analysis Indeterminate but possibly substantial Indeterminate but possibly substantial Indeterminate but possibly substantial Indeterminate but possibly substantial Recurring General Fund Parentheses ( ) indicate expenditure decreases. *Amounts reflect most recent analysis of this legislation. Relates to House Bill 4 Sources of Information LFC Files Agency Analysis was Solicited but Not Received From Children, Youth and Families Department (CYFD) Administrative Office of the Courts (AOC) Council of State Governments (CoGs) New Mexico Municipal League (NMML) Office of the Attorney General (NMAG) Administrative Office of the District Attorneys (AODA) Law Offices of the Public Defender (LOPD) Sentencing Commission (NMSC) Healthcare Authority (HCA) Department of Health (DOH) Because of the short timeframe between the introduction of this bill and its first hearing, LFC has yet to receive analysis from state, education, or judicial agencies. This analysis could be updated if that analysis is received. SUMMARY Synopsis of House Bill 8 House Bill 8 (HB8) proposes changes to the legal framework governing competency evaluations, involuntary commitment, and assisted outpatient treatment for criminal defendants found incompetent to stand trial. The bill requires competency evaluation reports to include a professional opinion, not only on whether a defendant is competent but also, if determined House Bill 8 – Page 2 incompetent, an assessment of whether the individual meets the criteria for involuntary commitment or assisted outpatient treatment. This provision provides courts and prosecutors with additional information regarding potential legal and treatment options. The bill establishes provisions for community-based competency restoration for non-dangerous defendants. Courts would have the option to order outpatient competency restoration programs instead of institutionalization in certain cases. Additionally, the bill expands the list of offenses that may result in criminal commitment to include aggravated arson, human trafficking, firearm- related offenses, and others. If a defendant remains incompetent and is determined to meet specific legal criteria, the court may order commitment to a secure facility. HB8 also allows for the use of competency evaluation reports in involuntary commitment and assisted outpatient treatment proceedings. It permits district attorneys and the Department of Health (DOH) to access these reports for use in related legal processes. The bill also extends the timeframe for filing petitions for assisted outpatient treatment, allowing prosecutors or the Attorney General to submit petitions up to 30 days after a qualified professional has examined a defendant. The bill modifies existing legal procedures by incorporating additional considerations for competency determinations and treatment options. It introduces new guidelines for evaluating and managing cases involving defendants found incompetent to stand trial, with an emphasis on both legal and medical assessments. 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 The Legislative Finance Committee has not yet received analysis from state, education, or judicial agencies regarding its fiscal impact. If agency analysis becomes available, this assessment may be updated. In the meantime, several potential fiscal implications may warrant consideration. The requirement that competency evaluation reports include additional assessments on involuntary commitment, and assisted outpatient treatment could increase workloads for forensic evaluators, court personnel, and district attorneys. Legislators may want to examine whether current resources within the judicial system and behavioral health agencies are sufficient to meet this requirement or whether additional funding may be needed for personnel or training. The provision allowing community-based competency restoration for non-dangerous defendants could shift costs from institutional settings to outpatient treatment programs. The financial impact of this change will depend on the availability and capacity of community-based providers and the extent to which courts opt for this alternative. Legislators may want to consider whether funding mechanisms exist to support expanded outpatient services and whether there are cost differences between institutional and community-based restoration programs. Expanding the list of offenses that may result in criminal commitment could affect the number of individuals placed in secure treatment facilities. If more defendants become eligible for commitment, demand for space and services in secure psychiatric facilities may increase, potentially requiring additional funding for facility expansion, staffing, or contract services. House Bill 8 – Page 3 Allowing district attorneys and the DOH to use competency evaluation reports in involuntary commitment and assisted outpatient treatment proceedings may require adjustments in agency workflows and data-sharing procedures. Legislators may want to assess whether any administrative costs are associated with implementing these provisions, such as increased staffing needs or technology upgrades for information sharing. Extending the timeframe for filing petitions for assisted outpatient treatment to 30 days after a competency evaluation may affect the workload of prosecutors, public defenders, and mental health service providers. The fiscal impact will depend on how often this provision is utilized and whether it leads to an increase in legal proceedings or treatment referrals that require state funding. Given the potential for these provisions to impact agency operations, legislators and the public may want to consider whether HB8 would require additional appropriations or whether agencies could absorb any costs within existing budgets. Future analysis from relevant agencies may provide further clarity on these fiscal considerations. SIGNIFICANT ISSUES One area for consideration is the bill’s requirement that competency evaluation reports include an assessment of whether an individual meets the criteria for involuntary commitment or assisted outpatient treatment. This provision could affect how courts and prosecutors approach cases involving defendants found incompetent to stand trial. Legislators may want to examine how this requirement aligns with existing mental health evaluation procedures and whether it has implications for due process, defendant rights, and treatment accessibility. Another issue is the introduction of community-based competency restoration for non-dangerous defendants. The bill provides courts with an option to order outpatient competency restoration in certain cases. Legislators may want to assess the capacity of community-based programs to meet potential demand and how these programs compare to traditional institutional settings in terms of cost, effectiveness, and public safety considerations. The bill also expands the list of offenses that may result in criminal commitment. This change could impact the number of defendants eligible for commitment and the resources needed to manage those cases. Lawmakers may want to review how these changes intersect with existing policies on mental health treatment and criminal justice procedures. Additionally, the bill permits district attorneys and DOH to use competency evaluation reports in involuntary commitment and assisted outpatient treatment proceedings. Legislators may want to consider the potential effects of this provision on confidentiality, legal processes, and coordination between the criminal justice and mental health systems. Finally, the bill extends the timeframe for filing petitions for assisted outpatient treatment to 30 days after a qualified professional has examined a defendant. This change may affect how cases progress through the legal system and how treatment plans are initiated. Legislators may want to evaluate whether this timeline aligns with current practices and the needs of defendants, courts, and mental health providers. SS/rl/hg/sgs