Committee advances single-use bag measure with opt-in local funding and state fallback

The House Energy, Environment & Natural Resources Committee on Feb. 27 advanced a committee substitute for House Bill 392, the Single-Use Plastic Bag Act. The substitute keeps a 10-cent per paper-bag fee but clarifies how the fee is allocated and allows local governments to opt in to receive the revenue for local waste-reduction programs.

Representative Luhan, sponsor of the substitute, told the committee the changes were negotiated with municipalities and stakeholders. The substitute clarifies that when the 10-cent fee is collected it is directed to the municipality if that local government adopts an ordinance to accept and administer the funds; if a municipality opts not to accept the local fee, the money is directed to the New Mexico Environment Department's raid fund for grants supporting recycling infrastructure and illegal dumping abatement.

The substitute also makes technical changes: it clarifies the offense language (penalties counted by day rather than per-incident), removes a fixed rulemaking date and aligns effective dates so local governments may act by ordinance. Supporters argued the structure preserves local control while creating a statewide fallback for bag-fee revenue to support waste reduction.

Representative Randall Kippenbrau, executive director of the Santa Fe Solid Waste Management Agency, testified in support of the measure. Questions from committee members focused on the fee level, local discretion, and how the proceeds would be used; Representative Montoya said he may offer amendments on the floor to limit local authorities from increasing the fee beyond implementation costs. Representative Henry asked about recyclability; staff and witnesses clarified that plastic bags are not accepted in New Mexico recycling programs, and the substitute aims to curb single-use bag litter.

The committee recorded a do-pass vote on the substitute. The committee's roll-call vote showed a majority in favor; the clerk recorded the result as a committee do-pass in the hearing minutes. The motion was made by Representative Luhan.

What happens next: the substitute will proceed to the next committee and then to the House floor if it continues to advance. The substitute gives local governments a direct option to receive and spend the fee locally; where local governments decline, proceeds go to the Environment Department's grants program for recycling and illegal-dumping abatement.