WATER LAW VIOLATION PENALTY

HB 348 increases daily penalties for violating New Mexico water laws from $100 to $2,000 for most violations (excluding illegal water recovery), and to $10,000 for violations involving illegal water recovery. It requires annual penalty adjustments based on inflation using the Consumer Price Index, with increases capped at 150% of current amounts. The bill prioritizes requiring violators to repay diverted water as a remedy before imposing fines, and mandates the state engineer to post updated penalty amounts annually on their website. It directly affects water users - such as farmers, ranchers, and developers - who overdivert or illegally use water resources.