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
Gonzales
LAST UPDATED
ORIGINAL DATE 2/18/2025
SHORT TITLE
Rio Hondo Watershed District
BILL
NUMBER Senate Bill 384
ANALYST Davidson
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected $100.0 Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Office of the State Engineer (OSE) New Mexico Department of Agriculture (NMDA) Agency Declined to Respond
New Mexico Environment Department (NMED)
SUMMARY
Synopsis of Senate Bill 384
Senate Bill 384 (SB384) appropriates $100 thousand from the general fund to the New Mexico
Department of Agriculture (NMDA) for the purpose of the planning, developing, and creation of
a Rio Hondo Watershed District.
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
The appropriation of $100 thousand contained in this bill is a nonrecurring expense to the
general fund. Any unexpended or unencumbered balance remaining at the end of FY26 shall
revert to the general fund.
Analysis from NMDA notes it does not anticipate implementation of the bill requiring any
increase in recurring funding, with the agency noting the majority of the work would be Senate Bill 384 – Page 2
coordinated through the supervising soil and water conservation district (SWCD).
SIGNIFICANT ISSUES
Watershed districts are subdistricts of soil and water conservation districts, traditionally formed
for the preserving and protecting the state’s land and water resources. The current statute
governing watershed districts requires the land area in districts to be contiguous and lie within a
well-defined watershed area or sub watershed area. Watershed districts also may incorporate
lands within SWCD’s.
The current political process to form a new watershed district starts when fifty or more
landowners or twenty percent of the landowners in the proposed district file a petition with the
board of a supervising SWCD. After public notice and a hearing, the board of the appropriate
SWCD may decide if the creation of the proposed watershed district is in the interest of the
public. If the board decides in favor of creation, then the SWCD shall hold a referendum on the
proposed district with the affected landowners. Pursuant to a vote, a new district can be formed
and a board of directors for it will be elected in the next general election. Currently, there are
seven active watershed districts in the state.
The Office of the State Engineer (OSE) notes the development by NMDA of a new watershed
district would enable NMDA to plan for preventing and mitigating water-related issues, such as
flooding, erosion, and water-quality degradation. The new watershed district could also enable
NMDA to implement projects such as drainage systems, wetland restoration, and streambank
stabilization in the district.
NMDA notes some confusion regarding which Rio Hondo watershed the bill is discussing.
NMDA notes there is a Rio Hondo watershed near Taos County which falls within the Taos
SWCD. The headwaters of Taos Rio Hondo run from the Sangre de Cristo mountains near Taos
ski valley down to the Rio Grande Gorge near the Arroyo Hondo community. There is however a
different Rio Hondo located in Lincoln and Chavez County. Specifying which Rio Hondo the
bill is addressing would alleviate this issue.
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