The bill amends various sections of New Mexico water law to increase the maximum penalties for violations and to introduce annual adjustments for inflation. Specifically, the maximum civil penalty for violations related to water law is raised from $100 to $2,000 per day, with a potential maximum of $10,000 per day for violations directly related to the illegal recovery or use of stored water. Additionally, the state engineer is required to adjust these penalty amounts annually starting July 1, 2027, based on the percentage change in the consumer price index, ensuring that penalties remain relevant over time.

The bill also modifies the enforcement process by allowing the state engineer to issue a written notice of violation before a compliance order is issued, and it emphasizes that repayment of overdiverted or illegally diverted water is the preferred remedy. The state engineer is granted the authority to assess civil penalties for ongoing violations and to pursue civil actions for non-compliance with compliance orders. Furthermore, the bill includes provisions for the suspension or revocation of licenses for violations, with the potential for civil penalties to be determined by the district court, not exceeding $10,000.

Statutes affected:
introduced version: 72-2-18, 72-5A-12, 72-12-14