The bill amends existing water law in New Mexico to increase the maximum penalties for violations and to introduce annual adjustments for these penalties to account for inflation. Specifically, the maximum civil penalty for violations of 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.

Furthermore, the bill 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 for violations. The bill also clarifies that compliance orders can only be enforced once they become final and outlines the conditions under which civil penalties may be assessed. Overall, these changes aim to strengthen the enforcement of water laws and ensure that penalties are effective deterrents against violations.

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