HB 111 — WATER LAW VIOLATION MAXIMUM PENALTY

HOUSEAN BILLACT 111RELATING 57THTO LEGISLATURE-WATER; STATE OF NEW MEXICO - SECOND SESSION, 2026 INTRODUCED BY Kristina Ortez and Mimi Stewart and Andrea Romero and Elizabeth "Liz" Stefanics and James G.

Townsend 7 9 AN ACT RELATING TO WATER;

145 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e t 17 "72-2-18.

STATE ENGINEER--ENFORCEMENT--COMPLIANCE w l n d 18 ORDERS--PENALTY.-- = = 19 a l A.

When a person, pursuant to a finding of fact, i a e r 20 violates a requirement or prohibition of Chapter 72 NMSA 1978, a t m m 21 a regulation, code, order or special order adopted by the state d r e 22 engineer pursuant to Section 72-2-8 NMSA 1978, a condition of a c e s k 23 permit or license issued by the state engineer pursuant to law e a n b 24 or an order entered by a court adjudicating a water right, the u [ state engineer may, in addition to any other remedies available .232729.2 under law, issue a compliance order stating with reasonable specificity the nature of the violation and requiring compliance within a specified time period.

A compliance order shall not be effective against [any] a party other than the person against whom the compliance order is issued.

This section shall not be construed to affect or interfere with any jurisdiction of an irrigation district, a conservancy district, a state court, a federal court or an HB 111 Page 1 Indian nation, tribe or pueblo to enforce its orders and decrees pertaining to water rights.

A compliance order may include an order to cease the violation of a requirement or prohibition of 5 Chapter 72 NMSA 1978, a directive issued in accordance with the provisions of Section 72-2-8 NMSA 1978, a condition of a permit or license issued by the state engineer or an order entered by a court adjudicating a water right.

e t 17 D.

The state engineer shall provide an opportunity w l n d 18 for the person named in the compliance order to have a hearing = = 19 a l on the alleged violation pursuant to Section 72-2-16 NMSA 1978.

i a e r 20 A hearing shall be held if a written request is made to the a t m m 21 state engineer within thirty days after receipt of the notice d r e 22 of the compliance order sent by certified mail.

If service by c e s k 23 certified mail is not possible, the state engineer may serve e a n b 24 the compliance order by process server or other effective u [ means.

Notice shall be deemed effective when delivered to the .232729.2 - 2 - address of record of the person named in the compliance order.

Nothing in this section shall prohibit the person named in the order from pursuing an informal resolution of HB 111 Page 2 the matter after a timely request for hearing has been made.

Repayment of water may be up to double the amount of the overdiversion 5 or illegal diversion.

In determining the repayment of water beyond the amount overdiverted or illegally diverted, the state engineer shall take into consideration the seriousness of the violation, any good faith efforts to comply with the applicable e t 17 requirements and any other relevant factors.

Any requirement w l n d 18 to repay water shall not be enforceable until the compliance = = 19 a l order becomes final.

Installation of a measuring device may be i a e r 20 required prior to any future diversion of water.

The state a t m m 21 engineer shall not pursue a civil penalty pursuant to d r e 22 Subsection G of this section for an overdiversion of a water c e s k 23 right.

This subsection shall not be construed to alter or e a n b 24 affect any stream adjudication court orders in place prior to u [ the effective date of this 2026 act.

.232729.2 - 3 - F.

[After] Prior to issuing a compliance order, [becomes final] the state engineer shall issue a written notice of violation.

After issuing a written notice of violation, the state engineer may assess a civil penalty of up to [one hundred dollars ($100)] three thousand four hundred HB 111 Page 3 dollars ($3,400) per day for [violationeach day during any portion of which the complianceviolation order.continues.

AnyIf civilthe penaltywater assessedis sold without a permit to do so, the maximum penalty shall accruebe fromdouble the dateeconomic ofbenefit assessmentto ofthe violator resulting from the penalty]violation each5 dayor duringtwenty-five anydollars portion($25.00) per barrel of whichwater thesold, violationwhichever continues.is greater.

IfIn determining the wateramount isof soldthe withoutcivil apenalty, permit to do so, the maximumstate penaltyengineer shall betake doubleinto consideration the economicseriousness benefitof to the violatorviolation, resultingany fromgood thefaith violationefforts orto twenty-fivecomply dollarswith ($25.00)the perapplicable barrelrequirements ofand waterany sold,other whicheverrelevant isfactors. greater.

InA ecompliance torder 17may determiningrequire thepayment amount of the assessed civil penalty,penalty theaccruing statefrom engineer w l n d 18 shall take into consideration the seriousnessdate of the violation,notice =of =violation. 19 a l any good faith efforts to comply with the applicable i a e r 20 requirements and any other relevant factors.

AThe compliance a t m m 21 order may require payment of the assessed civil penalty dshall rnot ebe 22enforceable accruinguntil from the datecompliance oforder thebecomes noticefinal. of violation.

TheH. civil c e s k 23 penalty shall not be enforceable until the compliance order e a n b 24 becomes final.

uIf [a H.person does not comply with a compliance order, the state engineer may file a civil action in the county in which the violation occurred to enforce the compliance order and receive any of the remedies provided in this section, including injunctive relief." SECTION 2.

If a person does not comply with a compliance .232729.2 - 4 - order, the state engineer may file a civil action in the county in which the violation occurred to enforce the compliance order and receive any of the remedies provided in this section, including injunctive relief." SECTION 2.

A person who or governmental entity that is determined to be in violation of the Ground Water Storage and Recovery Act or a permit issued or rules adopted pursuant to the act may be assessed a civil penalty in an amount not HB 111 Page 4 exceeding:

(1) [one hundred dollars ($100)] three thousand four hundred dollars ($3,400) per day of violation not directly related to the illegal recovery or use of stored water;

or e5 t 17 (2) ten thousand dollars ($10,000) per day w l n d 18 of violation directly related to the illegal recovery or use of = = 19 a l stored water.

i a e r 20 B.

An action to recover penalties pursuant to this a t m m 21 section shall be brought by the state engineer in the district d r e 22 court in which the violation occurred." c e s k 23 SECTION 3.

Section 72-12-14 NMSA 1978 (being Laws 1949, e a n b 24 Chapter 178, Section 3) is amended to read:

u [ "72-12-14.

SUSPENSION OR REVOCATION OF LICENSE--APPEAL--LICENSE-- .232729.2APPEAL--DAMAGES.--Upon - 5 - DAMAGES.--[Any license issued under the provisions of this act may be suspended or revoked by] Upon notice and after opportunity for a hearing, the state engineer [upon notice and hearing, in the event that the license shall have violated any] may suspend or revoke a license issued pursuant to the provisions of Sections 72-12-12 through 72-12-17 NMSA 1978 for a violation of a condition of [the] a bond maintained [by him] as a prerequisite for [such] the license.

Appeals from the decision of the state engineer may be taken to [the district courts of the state] a district court in the same manner [and with like effect] as [now] provided for other appeals from action of the state engineer.