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 Woods
LAST UPDATED
ORIGINAL DATE 3/10/2025
SHORT TITLE
Medical Malpractice Damage
Determination
BILL
NUMBER Senate Bill 444
ANALYST Hernandez
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
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Department of Health (DOH)
Administrative Office of the Courts (AOC)
New Mexico Hospital Association (NMHA)
SUMMARY
Synopsis of Senate Bill 444
Senate Bill 444 (SB444) amends medical malpractice statute to say that “the amount of punitive
damages against a health care provider awarded to a plaintiff shall be determined by a judge.”
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
SB444 would have no fiscal impact as the patient’s compensation fund does not make payments
for punitive damages.
SIGNIFICANT ISSUES
The National Conference of State Legislatures (NCSL) recently released a brief highlighting that
numerous states require judicial review of punitive damage awards. This can include imposing a
cap or determining whether punitive damages are excessive as a matter of law.
Senate Bill 444 – Page 2
The Administrative Office of the Courts notes:
There may be a question as to the constitutionality of requiring a judge to determine the
amount of punitive damages to be awarded against a health care provider rather than the
jury, under both the New Mexico and United States Constitutions. New Mexico courts
have held that the MMA’s nonmedical, nonpunitive cap does not invade upon the
province of the jury in violation of NM Constitution, Art. II, Sec. 12. See Siebert v.
Okun, 2021-NMSC-016, overruling in part Salopek v. Friedman, 2013-NMCA-087, 308
P.3d 139. Additionally, the NM Supreme Court has ruled that a defendant has a right to a
jury determination of the facts. See State v. King, 2007-NMCA-130, 142 N.M. 699, 168
P.3d 1123, cert. quashed, 2007-NMCERT-001, 143 N.M. 157, 173 P.3d 764. See also
Section 45-1-306 NMSA 1978 and N.M. R. Civ. P. Dist. Ct. 1-038. The U.S. Supreme
Court, in Cooper Industries Inc. v. Leatherman Tool Group Inc., 532 U.S. 424, at 437,
440, 443 (2001), concluded that the determination as to the amount of punitive damages
is “not a finding of fact.
Finally, the New Mexico Hospital Association supports SB444, as introduced.
AEH/hj/SL2