SENATE BILL 815

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

James G. Taylor

AN ACT

RELATING TO BUSINESS LICENSES; CHANGING THE NOTICE PROVISIONS FOR CORPORATE LIQUOR LICENSEES.

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

     Section 1. Section 60-6B-6 NMSA 1978 (being Laws 1981, Chapter 39, Section 42, as amended) is repealed and a new Section 60-6B-6 NMSA 1978 is enacted to read:

     "60-6B-6. [NEW MATERIAL] LICENSES--CORPORATE, PARTNERSHIP, LIMITED LIABILITY COMPANIES AND TRUSTS--NOTICE REQUIREMENTS.--

          A. A licensee shall notify the director within thirty days of any change in officers or directors of the licensee or a change of shareholders, partners or members of the licensee, whether the change of shareholders, partners or members is a change in the direct or indirect ownership of the licensee; provided, however, no notice or application is required if an officer, director, partner or member who is not required to be disclosed to the director on an initial application resigns or is terminated or if an officer, director, partner or member who is required to be disclosed resigns and is not replaced.

          B. A licensee that is a trust shall notify the director within thirty days of any change in trustees or any change in beneficiaries of the trust that are entitled to a distribution of ten percent or more of the trust.

          C. Although the following changes require notice to the director, the changes do not constitute transfers of ownership of the licensee:

                (1) the licensee elects new officers or directors who would be required to be disclosed if the licensee were acquiring the license from a different person;

                (2) the transfer of the liquor license to another person where all direct or indirect owners of ten percent or more of the transferee are also direct or indirect owners of ten percent or more of the licensee;

                (3) a person who owns, directly or indirectly, more than ten percent of the licensee acquires an additional direct or indirect interest in the licensee;

                (4) a person acquires a direct or indirect interest in the licensee, but does not acquire an interest that results in a ten percent or greater total direct or indirect interest in the licensee;

                (5) the transfer of an ownership interest in the licensee to a person who has been involved in the business of the licensee for more than two years;

                (6) the merger of two corporations that are publicly traded and that have both been previously qualified to own one or more New Mexico liquor licenses; and

                (7) the acquisition of a publicly traded corporate licensee, or substantially all of the assets located at one or more licensed premises at which a publicly traded corporate licensee operates, by another corporate licensee that is publicly traded and that has been previously qualified to own one or more New Mexico liquor licenses.

          D. The director may, by rule, define further changes in the licensee that do or do not constitute a transfer of ownership of the licensee. If a change in the licensee is not a transfer of ownership, only a limited application shall be submitted to the director. The limited application shall provide the director with:

                (1) information concerning any new officers, directors, shareholders, partners, members, trustees and beneficiaries of trusts;

                (2) articles of incorporation, articles of organization, partnership agreements, operating agreements, certificates of authority and documents required for trusts; and  

                (3) if appropriate, proof that the licensee is authorized to do business and is in good standing in New Mexico.

          E. A limited application does not require hearings, notices, tax clearances or liquor wholesaler clearances."

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