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

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

SPONSOR

Griego

ORIGINAL DATE

LAST UPDATED

2/09/07

3/16/07

HB

SHORT TITLE

Relating to Business Licenses; Changing

Licensing

SB

811/aSCORC/aSFl#1/aSF

l#2//aHBIC

ANALYST

C. Sanchez

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB1046

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

$0.1

$0.1 Recurring General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Regulation and Licensing Department (RLD)

SUMMARY

Synopsis of HBIC Amendment

The House Business and Industry amendment on page 2, line 11, after “resident" inserts “who is

not a felon, who has power of attorney and authority to bind the applicant to matters related to

liquor sales and operations and". The amendment specifies who can serve as a notice for the

applicant seeking a liquor license.

Senate Bill 811/aSCORC/aSFl#1/aSFl#2/aHBIC – Page

2

In addition, the amendment on page 2, line 13, strikes “change" and inserts in lieu thereof

“charge". The amendment simply makes a technical change.

Synopsis of SFl #2 Amendment

The second Senate Floor amendment strikes the Senate Corporations and Transportation

amendment which added language describing a director’s designee as one who the

director deems

trustworthy and reliable.

Synopsis of SFl #1 Amendment

The first Senate Floor amendment removes language that changed the expiration date for certain

licenses. The Senate Floor amendment also reduces the nonrefundable application fee from $300

hundred back to $200 hundred. Finally, the amendment strikes the Senate Corporations and

Transportation Committee amendment which described a director’s designee as one who the

director deems trustworthy and reliable.

Synopsis of SCORC Amendment

The Senate Corporations and Transportation Committee amendment for Senate Bill 811 makes

technical changes that clarify individuals referenced in the original bill.

Synopsis of Original Bill

Senate Bill 811 amends sections of the Liquor Control Act. One change will increase the

application filing fee. Another change will eliminate the designation of a Resident Agent and

will replace that requirement with the submission of the name and address of a New Mexico

resident designated to accept service of process. The bill details reporting requirements for

certain types of legal entities, namely, limited liability companies and trusts. SB 811 also

contains language that would exempt officers, directors and shareholders of publicly traded

companies as well as those officers and directors of corporations who do not participate in the

operation of the liquor license and those individuals who have been previously fingerprinted and

who had no prior arrest record from the fingerprint requirements currently in place. SB 811

would also change the posting requirements and would allow the director to prescribe the method

by which postings would be accomplished. SB 811 would also amend the reporting

requirements so that a reportable transfer of ownership will not occur when ultimate ownership

of the corporation or limited partnership does not change. Additionally, SB 811 would change

the date for expiration and renewal of Dispenser, Canopy and retailer licenses from June 30 of

each year to October 31 of each year.

FISCAL IMPLICATIONS

Increases the application filing fee from $200 to $300. This increases revenue to the general

fund. Changes to the renewal date of liquor licenses would affect the General fund, in that

revenues for license renewals would come in at a later date.

ADMINISTRATIVE IMPLICATIONS

The changes to the renewal date would have significant impact to the Alcohol and Gaming

Senate Bill 811/aSCORC/aSFl#1/aSFl#2/aHBIC – Page

3

Division in staffing and to the industry. The change would alter the processing timetables which

industry is used to and may result in late submission of renewal applications. The staff of AGD

would then be processing applications for renewal for a longer period of time, which would

impact the processing of other types of applications.

DUPLICATES

HB 1046

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Status Quo

CS/nt:csd