Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR Carraro

ORIGINAL DATE

LAST UPDATED

01/23/07

HB

SHORT TITLE

Liquor License Definitions, Sales & Transfers

SB 191

ANALYST Hanika Ortiz

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

$.01

$.01 non-recurring General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Regulation and Licensing Department (RLD)

SUMMARY

Synopsis of Bill

Senate Bill 191 amends Sections 60-3A-3 “D(2)" and “M" of the Liquor Control Act as it relates

to the definitions of “club" and “licensed premises."

“Club" is now defined to include an airline passenger membership club operated by an “air

common carrier." An “air common carrier" has been redefined to include a person engaged in

regularly scheduled air transportation between fixed terminals under a certificate issued by the

federal aviation administration as opposed to the civil aeronautics board, which no longer exists.

SB 191 will amend the Liquor Control Act to reflect the correct federal regulating agency in the

airline industry.

“Licensed premises" is now defined to exclude locations where motor fuel or liquefied petro-

leum gases or compressed natural gases are sold for the generation of power in an internal com-

bustion engine (gas station).

Senate Bill 191 – Page

2

SB 191 further provides that licensees, who currently hold qualified licenses at establishments

that sell gasoline to the public, may renew the license in an inactive status, without penalty of

cancellation, until July 1, 2009. During the inactive grace period from July 1, 2007 to July 1,

2009, the licensee may transfer, assign, sell or lease the inactive license for use at a licensed

premise.

FISCAL IMPLICATIONS

Licenses currently held at locations where gas is sold will be required to pay a $200 fee to trans-

fer the license or a $250 to transfer a leased license. When a license is placed in voluntary tem-

porary suspension, the licensee is required to pay a $20 fee. The Alcohol Division of the RLD

reports that all fees, permits, application fees, license renewal fees, etc. pursuant to the Act are

credited to the general fund.

SIGNIFICANT ISSUES

RLD reports that licenses that sell gasoline for use in motor vehicles must place those licenses in

an inactive status effective July 1, 2007. The licensee has two years until July 1, 2009 to sell,

transfer, assign or lease the inactive license. At the end of the two year grace period, the Director

of the Alcohol Division has the discretion of canceling the license or extending the inactive hold-

ing period. The licensee will be responsible for paying license transfer fees. Holders of inactive

licenses will be permitted to sell their stock of alcoholic beverages, in whole or part, during the

inactive period.

ADMINISTRATIVE IMPLICATIONS

RLD states the existing staff in the Alcohol Division will monitor licenses currently held at loca-

tions that sell gasoline used for public consumption.

TECHNICAL ISSUES

The bill is unclear as to what circumstances will be considered “good cause" in the Director of

the Alcohol Division extending the inactive holding period for a particular licensee.

AHO/nt