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 Stewart/Nava/Wirth
LAST UPDATED
ORIGINAL DATE 03/05/2025
SHORT TITLE Healthcare Privacy Protections
BILL
NUMBER Senate Bill 404
ANALYST Chilton
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
DOH No fiscal impact
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring General Fund
RHCA No fiscal impact
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Retiree Health Care Authority (RHCA) Public School Insurance Authority (PSIA)
Department of Health (DOH)
Agency Analysis was Solicited but Not Received From
Health Care Authority (HCA) Office of the Superintendent of Insurance (OSI)
SUMMARY
Synopsis of Senate Bill 404
Senate Bill 404 renames the Electronic Medical Records Act, Section 24-14B NMSA 1978 as
the Patient Records Privacy Act. Its main purpose is to provide for the segregation of certain
sensitive data, largely reproductive health care data, information regarding an individual’s
alcohol or other substance use, and gender-affirming care, from medical records that would be
available without further authorization from the individual.
Throughout the bill, the term “medical record” is replaced by the term “patient record.” Section 3
of the bill adds to definitions, newly defining “electronic patient record system,” “gender-
affirming health care,” “health care service plan,” and “reproductive health care;” these would all
appear to be standard definitions. It modifies several definitions to include contractors to
employees of record locator services as being subject to the provisions of the act.
Section 4 amends Section 24-14B-6, which deals with the use and disclosure of electronic health Senate Bill 404 – Page 2
care records, adding subsections dealing with the segregation of data regarding reproductive
health care, gender-affirming care, substance use treatment, and other aspects of health care
service specified by the Health Care Authority. The segregated material is to be kept away from
any potential user not authorized in advance by the individual to obtain the material. Specifically,
individuals can authorize holders of their data to refuse to allow individuals in other states access
to the segregated material. Holders of the segregated material must notify the individual of
attempts to access their segregated data at least 30 days before the information is released.
Subsection 4H states that patient records referring to abortions or gender-affirming care are not
to be produced in response to subpoenas or requests from states that restrict access to these
services.
Section 8 enacts a new section of the Patient Records Privacy Act, which establishes penalties
for health information exchanges or electronic medical record systems that are in violation of the
act.
Section 9 repeals current Section 24-14-18 NMSA 1978, which currently requires institutions
and individual providers which perform abortions to report that to the state registrar within five
days.
The effective date of this bill is July 1, 2025.
FISCAL IMPLICATIONS
There is no appropriation in Senate Bill 404. The Department of Health (DOH) and Retiree
Health Care Authority (RHCA) state that those agencies need to be certain that their databases
could segregate the sensitive data mentioned but they do not indicate that this would be costly to
do.
SIGNIFICANT ISSUES
DOH makes important points regarding the impact of this legislation:
SB404 would bring the Electronic Medical Records Act into conformity with the
Reproductive and Gender-Affirming Health Care Freedom Act, NMSA 24-3-1 et seq.
Given new restrictions on medication and procedural abortion both at the federal level
and in many states neighboring New Mexico, utilization of abortion services has greatly
increased in the state. The Dobbs decision in June 2022, which reversed Roe v. Wade,
had a tremendous impact on the state. Providing additional protections for individuals’
health records, particularly in relation to reproductive health services, could improve
patient safety and access to care and provider protections.
LAC/hj/SL2