N.M. Stat. § 3-29-7 (2026)

A. Insofar as the department deems it necessary for the purpose of the Sanitary
Projects Act, the department may recommend agreements, covenants or rules in regard
to operation, maintenance and permanent use of water supply, reclamation, storm
drainage and wastewater facilities.

   B. The department may:

       (1)    conduct periodic reviews of the operation of the association;

       (2)    require the association to submit information to the department;

       (3)    require submittal of financial reports required pursuant to the Audit Act
[12-6-1 to 12-6-14 NMSA 1978];

      (4)    review and require changes to the rate-setting analysis described in
Section 3-29-12 NMSA 1978;

       (5)    after a hearing, intervene in the operation and management with full
powers, including the power to set and collect assessments from members of the
association, to set and collect service charges and use the same for the proper
operation and management of the association; and
       (6)    appoint and delegate authority to a representative to oversee operation of
the association for a specified period.

    C. The department may in its discretion or shall, upon a petition of twenty-five
percent of the members of the association, conduct investigations as it deems
necessary to determine if the association is being operated and managed in the best
interests of all the members of the association.

   D. Whenever the department determines that an association violated or is violating
the Sanitary Projects Act or a rule adopted pursuant to that act, the department may:

       (1)    issue a compliance order requiring compliance immediately or within a
specified time period, or both; or

       (2)     commence a civil action in district court for appropriate relief, including
injunctive relief.

    E. A compliance order shall state with reasonable specificity the nature of the
violation.

   F. If an association fails to take corrective actions within the time specified in a
compliance order, the department may assess a civil penalty of not more than two
hundred fifty dollars ($250) for each day of continued noncompliance with the
compliance order.

    G. Any compliance order issued by the department pursuant to this section shall
become final unless, no later than thirty days after the compliance order is served, any
association named in the compliance order submits a written request to the department
for a public hearing. The department shall conduct a public hearing within ninety days
after receipt of a request.

   H. The department may appoint an independent hearing officer to preside over any
public hearing held pursuant to Subsection G of this section. The hearing officer shall:

       (1)    make and preserve a complete record of the proceedings; and

     (2)   forward to the department a report that includes recommendations, if
recommendations are requested by the department.

   I. The department shall consider the findings of the independent hearing officer
and, based on the evidence presented at the hearing, the department shall make a final
decision regarding the compliance order.

   J. In connection with any proceeding under this section, the department may:

       (1)    adopt rules for discovery and hearing procedures; and
       (2)   issue subpoenas for the attendance and testimony of witnesses and for
relevant papers, books and documents.

   K. Penalties collected pursuant to this section shall be deposited in the general
fund.

History: 1953 Comp., § 14-28-7, enacted by Laws 1965, ch. 300; 1969, ch. 192, § 4;
2004, ch. 121, § 2; 2006, ch. 60, § 6.

                                     ANNOTATIONS

Cross references. — For municipal requirement for sanitation facilities, see 3-18-22
NMSA 1978.

The 2006 amendment, effective March 6, 2006, deleted most of Subsection A and
added new Subsections B through K.

The 2004 amendment, effective May 19, 2004, amended Subsection A, Paragraph (1)
to delete after "commercial crops" "or for stock watering of animals being raised for
commercial purposes", inserted in Subparagraph (a) of Paragraph (3) after "twenty-
eight" "or fewer" and deleted after "units" "or less", deleted the citation to the Federal
Water Pollution Control Act at the end of Subsection B and changed "or twenty-five
percent" to "of twenty-five percent".