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-HOUSE BILL 111
-57TH LEGISLATURE - 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
-AN ACT
-RELATING TO WATER; INCREASING THE MAXIMUM PENALTY FOR A
-VIOLATION OF WATER LAW.
-BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
-SECTION 1.  Section 72-2-18 NMSA 1978 (being Laws 2001,
-Chapter 143, Section 1, as amended) is amended to read:
-"72-2-18.  STATE ENGINEER--ENFORCEMENT--COMPLIANCE
-ORDERS--PENALTY.--
-A.  When a person, pursuant to a finding of fact,
-violates a requirement or prohibition of Chapter 72 NMSA 1978,
-a regulation, code, order or special order adopted by the state
-engineer pursuant to Section 72-2-8 NMSA 1978, a condition of a
-permit or license issued by the state engineer pursuant to law
-or an order entered by a court adjudicating a water right, the
-state engineer may, in addition to any other remedies available
-.232729.2
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-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.
-B.  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
-Indian nation, tribe or pueblo to enforce its orders and
-decrees pertaining to water rights.
-C.  A compliance order may include an order to cease
-the violation of a requirement or prohibition of 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.
-D.  The state engineer shall provide an opportunity
-for the person named in the compliance order to have a hearing
-on the alleged violation pursuant to Section 72-2-16 NMSA 1978.
-A hearing shall be held if a written request is made to the
-state engineer within thirty days after receipt of the notice
-of the compliance order sent by certified mail.  If service by
-certified mail is not possible, the state engineer may serve
-the compliance order by process server or other effective
-means.  Notice shall be deemed effective when delivered to the
-.232729.2
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-address of record of the person named in the compliance order.
-A compliance order issued pursuant to this section shall become
-final unless the person named in the order submits a written
-request for a hearing to the state engineer within thirty days
-of receipt of the order.  A compliance order shall be
-enforceable only upon becoming final.  Nothing in this section
-shall prohibit the person named in the order from pursuing an
-informal resolution of the matter after a timely request for
-hearing has been made.
-E.  A compliance order may require repayment of
-water that was overdiverted or illegally diverted.  Repayment
-of water may be up to double the amount of the overdiversion 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
-requirements and any other relevant factors.  Any requirement
-to repay water shall not be enforceable until the compliance
-order becomes final.  Installation of a measuring device may be
-required prior to any future diversion of water.  The state
-engineer shall not pursue a civil penalty pursuant to
-Subsection G of this section for an overdiversion of a water
-right.  This subsection shall not be construed to alter or
-affect any stream adjudication court orders in place prior to
-the effective date of this 2026 act.
-.232729.2
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-F.  Any appeal to district court shall be conducted
-pursuant to Chapter 72, Article 7 NMSA 1978 and shall not stay
-enforcement of the compliance order unless ordered by the
-district court.
-G.  [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 dollars ($3,400)
-per day for [violation of the compliance order.  Any civil
-penalty assessed shall accrue from the date of assessment of
-the penalty] each day during any portion of which the violation
-continues.  If the water is sold without a permit to do so, the
-maximum penalty shall be double the economic benefit to the
-violator resulting from the violation or twenty-five dollars
-($25.00) per barrel of water sold, whichever is greater.  In
-determining the amount of the civil penalty, the state engineer
-shall take into consideration the seriousness of the violation,
-any good faith efforts to comply with the applicable
-requirements and any other relevant factors.  A compliance
-order may require payment of the assessed civil penalty
-accruing from the date of the notice of violation.  The civil
-penalty shall not be enforceable until the compliance order
-becomes final.
-H.  If a person does not comply with a compliance
-.232729.2
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-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.  Section 72-5A-12 NMSA 1978 (being Laws 1999,
-Chapter 285, Section 12) is amended to read:
-"72-5A-12.  PENALTIES.--
-A.  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
-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
-(2)  ten thousand dollars ($10,000) per day
-of violation directly related to the illegal recovery or use of
-stored water.
-B.  An action to recover penalties pursuant to this
-section shall be brought by the state engineer in the district
-court in which the violation occurred."
-SECTION 3.  Section 72-12-14 NMSA 1978 (being Laws 1949,
-Chapter 178, Section 3) is amended to read:
-"72-12-14.  SUSPENSION OR REVOCATION OF LICENSE--APPEAL--
-.232729.2
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-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.  In the event of such breach, the
-state engineer, on behalf of the state [of New Mexico] and any
-other person injured [thereby] by the breach, is authorized to
-recover in a civil suit in the district court of the county
-where the well involved is located, judgment for [such] damages
-[as may have been] sustained by reason [thereof] of the breach.
-In addition, the state engineer is authorized to recover on
-behalf of the state [of New Mexico] a civil penalty in an
-amount to be determined by the district court [in which the
-action is tried] not to exceed [$1,000.00] ten thousand dollars
-($10,000), and judgment for both damages and penalty shall be
-against the principal and sureties [upon said] on the bonds."
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-.232729.2
+FIFTY-SEVENTH LEGISLATURE
+SECOND SESSION, 2026
+February 14, 2026
+Mr. President:
+Your CONSERVATION COMMITTEE, to whom has been referred
+     HOUSE BILL 111
+has had it under consideration and reports same with recommendation
+that it DO PASS.
+Respectfully submitted,
+____________________________________
+Senator Elizabeth "Liz" Stefanics, Chair
+Adopted_______________________ Not Adopted_______________________
+          (Chief Clerk)                          (Chief Clerk)
+                  Date ________________________
+The roll call vote was  9  For  0  Against
+Yes: Cervantes, Charley, Ezzell, Hamblen, O'Malley, Scott,
+Sedillo Lopez, Stefanics, Thornton
+No: 0
+Excused: None
+Absent: None
+HB0111CO1.wpd