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

SPONSOR Jennings

ORIGINAL DATE

LAST UPDATED

2-7-06

HB

SHORT TITLE Alcohol at Certain Permissive Lotteries

SB 725

ANALYST Dearing

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

FY08

NFI*

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Regulation and Licensing Department (RLD)

Department of Public Safety (DPS)

SUMMARY

Synopsis of Bill

Senate Bill 725 amends Section 60-6A-12 of the Liquor Control Act to permit a permissive lot-

tery conducted pursuant to Section 30-19-6 at a public celebration at which alcoholic beverages

are dispensed under the provision of Section 60-6A-12.

FISCAL IMPLICATIONS

No fiscal implications with enactment of this legislation, however, minor record keeping increase

incurred due to necessity to ensure no more than two lotteries per year (see Performance Implica-

tions). *Similarly, it would become incumbent upon Agents of the Special Investigations Divi-

sion to verify the benefactor and the net proceeds of the permissive lottery.

SIGNIFICANT ISSUES

A liquor licensee and his employees would be permitted to conduct a permissive lottery at public

celebrations where a Special Dispenser Permit has been obtained from the Alcohol and Gaming

Division.

Senate Bill 725 – Page

2

Currently any type of “gambling” is not permitted where alcoholic beverages are being sold,

served or consumed at a location where a special dispenser permit has been issued.

A “permissive lottery” applies to:

-

any sale or drawing of any prize at any fair held in the state for the benefit of any church,

public library or religious society in the state, or for charitable purposes when all the pro-

ceeds of such fair shall be expended in the state for the benefit of such church, public library,

religious society or charitable purposes.

-

A lottery shall be operated for the benefit of the organization or charitable purpose only when

the entire proceeds of the lottery go to the organization or charitable purpose and not party of

such proceeds go to any individual member or employee;

-

Other organizations that are permitted to conduct “permissive lotteries” include, bona fide

motion picture theatres, and bona fide county fairs.

Section 30-19-6 provides that no more than two lotteries shall be operated in any year by any

organization.

PERFORMANCE IMPLICATIONS

Unknown level of increase/decrease in manpower needed for establishing compliance. How-

ever, could be substantial because the Alcohol and Gaming Division would be required to main-

tain records to ensure that each organization does not conduct more than two lotteries in any

year.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

If enacted, this bill would be in direct conflict of Section 60-7A-19 which provides that it is a

violation of the Liquor Control Act for a licensee to knowingly allow commercial gambling on

the licensed premises. A Special Dispenser Permit becomes a licensed premises when the Alco-

hol and Gaming Division approves the permit.

The only exceptions to commercial gambling (60-7A-19) are 1) activities authorized pursuant to

the New Mexico Lottery Act; 2) organizations exempt from the state income tax; and 3) gaming

authorized pursuant to the Gaming Control Act.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The sale or drawing of any prize at any fair or public celebration held in this state for the benefit

of any church, public library or religious society for charitable purposes would continue be con-

ducted without intoxicating beverages.

PD/yr:mt