FOOD RECOVERY & COMPOSTING ACT

SB0047

SENATE BILL 47

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Pete Campos
and
Elizabeth "Liz" Stefanics

AN ACT

RELATING TO WASTE MANAGEMENT; ENACTING THE FOOD RECOVERY AND
COMPOSTING ACT; ESTABLISHING A FOOD RECOVERY AND COMPOSTING
PROGRAM WITHIN THE DEPARTMENT OF ENVIRONMENT; CREATING THE FOOD
RECOVERY AND COMPOSTING ADVISORY GROUP; IMPOSING A SURCHARGE ON
SOLID WASTE DISPOSAL; CREATING THE FOOD RECOVERY AND COMPOSTING
FUND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
[
NEW MATERIAL
] SHORT TITLE.--Sections 1
through 6 of this act may be cited as the "Food Recovery and
Composting Act".

SECTION 2.
[
NEW MATERIAL
] DEFINITIONS.--As used in the
Food Recovery and Composting Act:

A. "composting" means the controlled aerobic
biological decomposition of organic waste resulting in a stable
organic product that can be used as a soil additive, fertilizer
or growth media;

B. "composting facility" means a facility, other
than a transformation facility, that:

(1) is capable of providing biological
stabilization of organic material;

(2) accepts only source-separated compostable
materials; and

(3) is registered with the department;

C. "department" means the department of
environment;

D. "eligible entity" means a municipality, a
county, a land grant-merced controlled and governed pursuant to
Sections 49-1-1 through 49-1-8 or 49-4-1 through 49-4-21 NMSA
1978, an acequia, a soil and water conservation district, a
solid waste authority or an Indian nation, tribe or pueblo;

E. "organic waste" means biodegradable material
that comes from plants or animals;

F. "solid waste" means any discarded material
destined for landfill disposal, incineration or other final
disposal at a solid waste facility, not including segregated or
source-separated materials that are rescued, reused or
composted;

G. "solid waste facility" includes:

(1) an incinerator;

(2) a solid waste transfer station;

(3) a landfill or landfill system; and

(4) other facilities accepting mixed solid
waste; and

H. "transformation facility" means a facility that
changes the physical, chemical or energy state of waste to
reduce the volume, change the energy or create new products out
of the waste.

SECTION 3.
[
NEW MATERIAL
] FOOD RECOVERY AND COMPOSTING
PROGRAM.--

A. The "food recovery and composting program" is
created in the department to provide grants and education and
outreach to advance food recovery, composting and organic waste
reduction across the state. The department, in consultation
with the food recovery and composting advisory group, shall
administer the program.

B. The department may:

(1) award grants to eligible entities;

(2) contract for services to advance food
recovery, composting and organic waste reduction initiatives;
and

(3) provide education, outreach and other
programming to advance food recovery, composting and organic
waste reduction initiatives.

C. The department shall promulgate rules to
administer the food recovery and composting program, including:

(1) provisions to establish procedures for
review, evaluation and approval of grant applications that:

(a) aim to achieve wide participation
from all regions;

(b) ensure balanced urban and rural
representation in the selection process;

(c) establish a user-friendly and
straightforward application process; and

(d) provide support and technical
assistance to applicants during the application process; and

(2) reporting requirements for grantees to
share the progress and expenditures made under the grant with
the department.

D. Beginning January 1, 2027, the department may
award a grant to an eligible entity to:

(1) advance food recovery, composting or
organic waste reduction initiatives;

(2) fund pilot programs and perform targeted
research that explores the public health and economic benefits
of food recovery, composting or organic waste reduction
initiatives;

(3) provide education and outreach related to
advancing food recovery, composting or organic waste reduction
initiatives in the state; and

(4) contract for services that achieve the
objectives outlined in Paragraphs (1) through (3) of this
subsection.

SECTION 4.
[
NEW MATERIAL
]
FOOD RECOVERY AND COMPOSTING
ADVISORY GROUP.--

A.

The "food recovery and composting advisory
group" is created and is composed of no more than fifteen
members, including at least one representative each from:

(1) the department;

(2) the New Mexico department of agriculture;

(3) the economic development department;

(4) a municipal government;

(5) a board of county commissioners;

(6) a tribal government located within the
state;

(7) a land grant-merced controlled and
governed pursuant to Sections 49-1-1 through 49-1-8 or 49-4-1
through 49-4-21 NMSA 1978;

(8) a solid waste authority;

(9) an acequia;

(10) a soil and water conservation district;

(11) an organization specializing in pollution
reduction;

(12) an organization specializing in food
recovery, composting or organic waste reduction; and

(13) the food recovery, composting or organic
waste reduction industry.

B. The secretary of environment shall appoint
members of the food recovery and composting advisory group to
serve two-year terms as volunteers with no compensation,
perquisite or allowance from the state for their services. The
secretary shall fill vacancies by appointing a replacement to
serve the unexpired term.

C. The food recovery and composting advisory group
shall:

(1) make recommendations to the department on
grant application guidelines, deadlines and reporting
requirements for eligible entities;

(2) review and make recommendations for
funding grant applications made to the department under the
food recovery and composting program that ensure a balanced
selection process of applicants from urban and rural areas; and

(3) develop voluntary and incentive-based
programming to
advance food recovery, composting and organic
waste reduction initiatives

that shall be administered by the
department.

SECTION 5.
[
NEW MATERIAL
] FOOD RECOVERY AND COMPOSTING
FUND.--

A. The "food recovery and composting fund" is
created as a nonreverting fund in the state treasury.

The fund
consists of appropriations, gifts, grants, donations, income
from investment of the fund and other money credited to the
fund. The department shall administer the fund, and money in
the fund is subject to appropriation by the legislature to the
department to carry out the provisions of Subsection B of this
section. Disbursements from the fund shall be made by warrant
of the secretary of finance and administration pursuant to
vouchers signed by the secretary of environment.

B. Money in the fund may be used by the department
to:

(1) make grants to eligible entities;

(2) contract for services to advance food
recovery, composting or organic waste reduction initiatives;
provided that no more than fifteen percent of the amount
appropriated from the fund is used to contract for the
services; and

(3) provide education, outreach and other
programming to advance food recovery, composting and organic
waste reduction initiatives; provided that no more than fifteen
percent of the amount appropriated from the fund is used to
provide such programming.

SECTION 6.
[
NEW MATERIAL
] FOOD RECOVERY AND COMPOSTING
SURCHARGE.--

A. A surcharge is imposed on each solid waste
facility operating within the state. The surcharge shall be in
an amount equal to three dollars ($3.00) per ton of solid waste
processed at the solid waste facility. The owner or operator
of a solid waste facility that owns or operates an on-site
composting facility shall pay a reduced surcharge of two
dollars ($2.00) per ton of solid waste processed at that solid
waste facility. The surcharge imposed pursuant to this section
may be referred to as the "food recovery and composting
surcharge".

B. The surcharge imposed by this section shall be
administered in accordance with the provisions of the Tax
Administration Act and shall be paid to the taxation and
revenue department by each solid waste facility that processes
solid waste pursuant to Subsection A of this section in the
form and manner required by that department on or before the
twenty-fifth day of the month following the month in which the
solid waste is processed. The taxation and revenue department
may retain an administrative fee of up to three percent of the
amount collected.

C. Beginning January 1, 2027, and every January 1
thereafter, the department shall publish a report on the amount
of money collected pursuant to this section broken down by the
number of tons of solid waste processed at each solid waste
facility.

SECTION 7.
Section 7-1-2 NMSA 1978 (being Laws 1965,
Chapter 248, Section 2, as amended) is amended to read:

"7-1-2. APPLICABILITY.--The Tax Administration Act
applies to and governs:

A. the administration and enforcement of the
following taxes or tax acts as they now exist or may hereafter
be amended:

(1) Income Tax Act;

(2) Withholding Tax Act;

(3) Oil and Gas Proceeds and Pass-Through
Entity Withholding Tax Act;

(4) Gross Receipts and Compensating Tax Act,
Interstate Telecommunications Gross Receipts Tax Act and Leased
Vehicle Gross Receipts Tax Act;

(5) Liquor Excise Tax Act;

(6) Local Liquor Excise Tax Act;

(7) any municipal local option gross receipts
tax or municipal compensating tax;

(8) any county local option gross receipts tax
or county compensating tax;

(9) Special Fuels Supplier Tax Act;

(10) Gasoline Tax Act;

(11) petroleum products loading fee, which fee
shall be considered a tax for the purpose of the Tax
Administration Act;

(12) Alternative Fuel Tax Act;

(13) Cigarette Tax Act;

(14) Estate Tax Act;

(15) Railroad Car Company Tax Act;

(16) Investment Credit Act, rural job tax
credit, Laboratory Partnership with Small Business Tax Credit
Act, Technology Jobs and Research and Development Tax Credit
Act, Film Production Tax Credit Act, Affordable Housing Tax
Credit Act and high-wage jobs tax credit;

(17) Corporate Income and Franchise Tax Act;

(18) Uniform Division of Income for Tax
Purposes Act;

(19) Multistate Tax Compact;

(20) Tobacco Products Tax Act;

(21) the telecommunications relay service
surcharge imposed by Section 63-9F-11 NMSA 1978, which
surcharge shall be considered a tax for the purposes of the Tax
Administration Act;

(22) the Insurance Premium Tax Act;

(23) the Health Care Quality Surcharge Act;

(24) the Cannabis Tax Act; [
and
]

(25) the Health Care Delivery and Access Act;

and

(26) the Food Recovery and Composting Act;

B. the administration and enforcement of the
following taxes, surtaxes, advanced payments or tax acts as
they now exist or may hereafter be amended:

(1) Resources Excise Tax Act;

(2) Severance Tax Act;

(3) any severance surtax;

(4) Oil and Gas Severance Tax Act;

(5) Oil and Gas Conservation Tax Act;

(6) Oil and Gas Emergency School Tax Act;

(7) Oil and Gas Ad Valorem Production Tax Act;

(8) Natural Gas Processors Tax Act;

(9) Oil and Gas Production Equipment Ad
Valorem Tax Act;

(10) Copper Production Ad Valorem Tax Act;

(11) any advance payment required to be made
by any act specified in this subsection, which advance payment
shall be considered a tax for the purposes of the Tax
Administration Act;

(12) Enhanced Oil Recovery Act;

(13) Natural Gas and Crude Oil Production
Incentive Act; and

(14) intergovernmental production tax credit
and intergovernmental production equipment tax credit;

C. the administration and enforcement of the
following taxes, surcharges, fees or acts as they now exist or
may hereafter be amended:

(1) Weight Distance Tax Act;

(2) the workers' compensation fee authorized
by Section 52-5-19 NMSA 1978, which fee shall be considered a
tax for purposes of the Tax Administration Act;

(3) Uniform Unclaimed Property Act (1995);

(4) 911 emergency surcharge and the network
and database surcharge, which surcharges shall be considered
taxes for purposes of the Tax Administration Act;

(5) the solid waste assessment fee authorized
by the Solid Waste Act, which fee shall be considered a tax for
purposes of the Tax Administration Act;

(6) the water conservation fee imposed by
Section 74-1-13 NMSA 1978, which fee shall be considered a tax
for the purposes of the Tax Administration Act; and

(7) the gaming tax imposed pursuant to the
Gaming Control Act; and

D. the administration and enforcement of all other
laws, with respect to which the department is charged with
responsibilities pursuant to the Tax Administration Act, but
only to the extent that the other laws do not conflict with the
Tax Administration Act."

SECTION 8.
A new section of the Tax Administration Act,
Section 7-1-6.74 NMSA 1978, is enacted to read:

"7-1-6.74. [
NEW MATERIAL
] DISTRIBUTION--FOOD RECOVERY AND
COMPOSTING SURCHARGE.--A distribution pursuant to Section
7-1-6.1 NMSA 1978 of the net receipts attributable to the food
recovery and composting surcharge shall be distributed to the
food recovery and composting fund."

SECTION 9.
EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2026.

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