New Mexico 2025 2025 Regular Session

New Mexico House Bill HB85 Introduced / Fiscal Note

Filed 01/23/2025

                    Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance 
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they 
are used for other purposes. 
 
F I S C A L    I M P A C T    R E P O R T 
 
 
SPONSOR Cates/Ferrary 
LAST UPDATED 
ORIGINAL DATE 1/23/25 
 
SHORT TITLE Prohibiting Nonfunctional Turf Installation 
BILL 
NUMBER House Bill 85 
  
ANALYST Davidson 
  
  
  
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT* 
(dollars in thousands) 
Agency/Program 
FY25 FY26 FY27 
3 Year 
Total Cost 
Recurring or 
Nonrecurring 
Fund 
Affected 
NMED 
No fiscal 
impact 
No fiscal 
impact 
No fiscal 
impact 
$0 Recurring General Fund 
Total 
No fiscal 
impact 
No fiscal 
impact 
No fiscal 
impact 
$0 Recurring General Fund 
Parentheses ( ) indicate expenditure decreases. 
*Amounts reflect most recent analysis of this legislation. 
 
Sources of Information
 
 
LFC Files 
 
Agency Analysis Received From 
New Mexico Environment Department Office of the State Engineer 
 
SUMMARY 
 
Synopsis of House Bill 85   
 
House Bill 85 (HB85) creates a new statute that would prohibit the installation of nonfunctional 
turf on all state-owned or state-funded property beginning January 1
st
, 2027. The bill requires 
that, after January 1
st
, 2032, existing nonfunctional turf on state-owned or state-funded property 
only be irrigated with recycled or reclaimed water and that nonfunctional turf removed from 
state-owned or state-funded property be replaced with drought- and climate-resilient 
landscaping. 
 
This bill does not contain an effective date and, as a result, would go into effect 90 days after the 
Legislature adjourns if enacted, or June 20, 2025. 
 
FISCAL IMPLICATIONS  
 
HB85 would have no fiscal impact through FY27. However, analysis from the New Mexico 
Environment Department (NMED) notes that, due to the requirement that existing nonfunctional 
turf be irrigated with reclaimed or recycled water after January 1
st
, 2032, the bill could increase  House Bill 85 – Page 2 
 
the workload of its Ground Water Quality Bureau, specifically its Pollution Prevention Section. 
NMED’s Ground Water Quality Bureau is tasked with permitting the use of reclaimed 
wastewater; the Pollution Prevention Section further processes these permits. NMED predicts 
that the requirements set out in HB85 would, beginning in FY28 and FY29, require the Ground 
Water Quality Bureau and Pollution Prevention Section to process an additional 20-30 reclaimed 
wastewater end-user permits per year. NMED estimates that this increase would require 
additional FTE costing around $250 thousand annually by 2032.  
 
NMED notes that transitioning state-owned and state-funded property to xeriscaping could 
reduce water usage and, subsequently, water utility bills by between 50 and 70 percent. 
 
SIGNIFICANT ISSUES 
 
NMED notes that not all local government entities that would be affected by HB85 own or 
operate water treatment systems capable of treating wastewater for landscape irrigation use. 
Upgrading water systems capable of treating wastewater for landscape irrigation use requires 
“purple pipe” infrastructure for all properties using the treated wastewater, which, according to 
agency analysis, can cost between $50 to $250 per linear foot of line, translating to an average 
cost of $792 thousand per mile. NMED also notes that the costs associated with updating the 
infrastructure would likely fall on the local government entity. 
 
NMED states that operation of upgraded water treatment systems would also require employing 
water treatment operators with higher level credentials, a labor force already in short supply in 
New Mexico. 
 
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP 
 
HB85 is similar to House Bill 352 from the 2024 legislative session, though HB85 does not 
require counties and municipalities to create a penalty for not following the new statute. House 
Bill 352 also applied to all nonfunctional turf on nonresidential property, whereas HB85 
specifically applies to nonfunctional turf on state-owned and state-funded property. HB85 also 
moves the timeline prohibiting new installation and removal.  
 
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