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F I S C A L I M P A C T R E P O R T

SPONSOR Feldman

DATE TYPED 2/3/05

HB

SHORT TITLE Alcohol Local Empowerment Districts

SB 244

ANALYST Medina

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the Liquor Control Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Regulation and Licensing Department (RLD)

Attorney General (AGO)

Department of Health (DOH)

SUMMARY

Synopsis of Bill

Senate Bill 244 amends the Liquor Control Act to include provisions allowing areas within local

option districts to create and designate by ordinance areas as local empowerment districts if areas

are adversely affected by chronic public intoxication or by illegal activity associate with alcohol

sales or consumption. The bill adds a definition of “chronic public intoxication” to the Liquor

Control Act as “the effects of public consumption of alcoholic beverages or public intoxication

that endanger the public health, safety and welfare of a community”.

Ordinances issued creating local empowerment districts by local option district governing bodies

must demonstrate findings indicating that chronic public intoxication or other illegal activity as-

sociated with alcohol sales or consumption contributes to the deterioration of the quality of life

or threatens the public health, safety and welfare of residents in the area.

Senate Bill 244 -- Page 2

The bill proposes restrictions on the sales and service of alcoholic beverages and the sizes of

containers within a designated local empowerment district including hours of sales and service

and type of alcoholic beverages sold. These restrictions would be subject to public hearings held

by the director of the Special Investigations Division of the Department of Public Safety.

Significant Issues

According to the Attorney General’s staff:

“The state, under its police power, has legitimate and substantial interests in the health

and safety of its citizens, the safety of its highways, the stability of its families, and the

productivity of its work force, all of which are significantly and adversely affected by the

abuse of alcohol, and these state interests are exceptionally strong. Under USCA Const.

Amend. 21., the state has broad authority to regulate alcohol sales under traditional police

powers, but the 21

st

amendment confers power to prohibit totally, and to limit the times,

places and circumstances under which liquor may be sold. Oklahoma Telecasters Asso-

ciation v Crisp, 699 F.2d 490 1983.Whether private interests are unconstitutionally af-

fected by this bill could lead to challenges in court.”

According to the Department of Health:

“The State of New Mexico is one of the leading states for per capita for alcohol consump-

tion and is also one of the leading states for alcohol related problems such as alcohol in-

volved fatal crashes, cirrhosis, and alcohol related deaths (Centers for Disease Control

and Prevention, Wonder Database). Data organized by county show that some counties

bare a heavier burden from substance abuse than others. Rio Arriba County had the high-

est combined alcohol and drug-related death rate in the state. McKinley County had the

second highest rate of combined alcohol and drug related deaths, and had the highest rate

of alcohol related deaths. Grant County in the southern part of the state has the second

highest rate of alcohol and drug related hospitalizations. Grant and Dona Ana Counties

have the highest rates of drug and alcohol related crime.”

ADMINISTRATIVE IMPLICATIONS

The Special Investigations Division of the Department of Public Safety would incur additional

administrative duties.

TECHNICAL ISSUES

Restricting hours of operation for alcohol sales establishments are currently defined under Sec-

tion 60-7A-1 of the Liquor Control Act. Restricting the hours by ordinance of a local option dis-

trict governing body may go beyond the authority of the governing body. The Regulation and

Licensing Department suggests the following:

“Amend 60-7A-1 of the Liquor Control Act, (hours and days of business) to provide for

an exception to the hours and days of businesses when a local empowerment district has

been designated (example: “in cases where a local empowerment district has been desig-

nated, hours of operation cannot begin before 10:00 a.m. nor can they extend beyond

10:00 p.m.”).”

Senate Bill 244 -- Page 3

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

The Liquor Control Act would continue as the legal authority on the sale and consumption of

alcoholic beverages without provisions allowing for the creation of local empowerment districts.

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