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

SPONSOR

Grubesic

ORIGINAL DATE

LAST UPDATED

2/19/07

HB

SHORT TITLE

SMALL LIQUOR DISTILLER LICENSES

SB

1071

ANALYST C. Sanchez

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

Undeterminable Undeterminable Recurring Alcohol and

Gaming

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Public Safety (DPS)

Regulation and Licensing Department (RLD)

SUMMARY

Synopsis of Bill

Senate Bill 1071 amends NMSA 1978 60-6A-22 of the Liquor Control Act to include the

manufacture of spirituous liquors to the Domestic Winery and Small Brewery Act [60-6A-21 to

60-6A-28 NMSA 1978] and creates a new type of liquor license. The “Small Distiller" would be

Senate Bill 1071 – Page

2

permitted to sell only spirituous liquors that are packaged by or for the small distiller to a

wholesaler, a small distiller or a manufacturer. The small distiller would also be able to conduct

tastings and sell by the glass or in unbroken packages, but not for resale, spirituous liquors of the

licensees own production or that of another small distiller or New Mexico manufacturer on the

small distiller’s premises and/or up to two additional off-site locations.

SB 1071 also provides for licensing provisions and license fees of $750.00 per year to include

$200 per year off-site fee.

FISCAL IMPLICATIONS

SB 1071 will slightly increase revenues for the alcohol and gaming division. The exact amount is

undeterminable since the Regulation and Licensing Department is unsure how many licenses will

be requested.

SIGNIFICANT ISSUES

Special Investigations Division Agents would be tasked with conducting periodic premise

inspection as well as enforcement activities as needed. Without adequate safeguards, there is a

potential for “bootlegging" and subterfuge.

ADMINISTRATIVE IMPLICATIONS

The alcohol and gaming division will be responsible for authorizing and regulating additional

licenses.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Status Quo

CS/nt