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

SPONSOR Harrison

DATE TYPED 02/10/05 HB 691

SHORT TITLE Local Empowerment Districts for Alcohol

SB

ANALYST Ford

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

Minimal – See

Narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 244

SOURCES OF INFORMATION

LFC Files

Responses Received From

SUMMARY

Attorney General (AGO)

Department of Health (DOH)

Department of Public Safety (DPS)

Regulation and Licensing Department (RLD)

Synopsis of Bill

House Bill 691 allows local counties and municipalities to create local empowerment districts in

areas suffering from problems associated with chronic public intoxication or illegal activities as-

sociated with alcohol. Jurisdictions may enact restrictions on the sale of alcohol that are stricter

than the restrictions in state law by adopting an ordinance that meets specified requirements. Re-

strictions must be reasonably related to reducing chronic public intoxication or illegal activities

associated with alcohol sales or consumption and may include restrictions on hours of operation,

types of products sold and size of containers.

Before taking effect, the creation of the local empowerment district and the restrictions shall be

approved by the director of Alcohol and Gaming Division of RLD after a public hearing. The

House Bill 691-- Page 2

bill provides for the dissolution of a local empowerment district by the director, either at the re-

quest of the jurisdiction or by the director’s discretion.

Significant Issues

DOH writes that New Mexico is one of the leading states for per capita alcohol consumption and

is also one of the leading states for alcohol related problems, such as accidents, cirrhosis, and

alcohol related deaths. Some areas of the state bear the burden of these problems more heavily

than others. DOH further notes that chronic public intoxication is often associated with in-

creased crime and places additional stress on law enforcement, emergency medical services,

sanitation, and health systems.

DPS writes that restrictions within a local empowerment district may simply push the problems

associated with chronic public intoxication out of the local empowerment district and into nearby

jurisdictions, jeopardizing the safety of the motoring public and the individual traveling outside

the district to obtain prohibited beverages. DPS also notes that the restrictions could create a

black market for banned products.

AGO writes that liquor licensees could challenge the provisions of the bill on grounds that they

violate equal protection by creating different restrictions for people holding the same license.

The AGO also notes that Section 60-7A-15 NMSA 1978 allows the district attorney to bring an

action to abate a public nuisance with regard to illegal sale or consumption of alcoholic bever-

ages.

FISCAL IMPLICATIONS

The bill will result in costs increases to RLD to hold public hearings on the creation of local em-

powerment districts. The costs will depend on the number of jurisdictions that pass ordinances

creating the local empowerment districts.

The special investigation division of DPS, which is charged with enforcing provisions of the Liq-

uor Control Act, may also incur cost increases to enforce the stronger restrictions created in local

empowerment districts.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 691 duplicates Senate Bill 244

TECHNICAL ISSUES

DPS and RLD note that “illegal activities” is not defined in the bill.

EF/njw