[1] NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

 

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

 

 

 

SPONSOR:

Taylor, JG

 

DATE TYPED:

02/06/02

 

HB

385

 

SHORT TITLE:

NM State Fair Liquor License

 

SB

 

 

 

ANALYST:

Gonzales

 

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

 

 

 

 

Indeterminate

Indeterminate

Recurring

OSF

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

Duplicates/Conflicts with/Companion to/Relates to                                                                          

                                                                                                                                                           

 

SOURCES OF INFORMATION

 

LFC Files

New Mexico State Fair (Fair)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 385 amends the Liquor Control Act to add the New Mexico State Fair Commission as a governmental entity thereby allowing the entity to sell alcoholic beverages directly or through its lessee at all facilities on the New Mexico State Fairgrounds if the Fair applies for a governmental license.  The effective date of the provisions of this bill is July 1, 2002.

 

     Significant Issues

 

With the passage of this bill, the Fair should be able to strengthen its ability to attract strong vendors to compete for the alcohol concession.  Additionally, the Fair should be able to charge more money in the form of guaranteed revenue if the competing vendors no longer have to purchase their own very expensive liquor license.

 

FISCAL IMPLICATIONS

 

The New Mexico State Fair is an enterprise agency that uses its self-generated revenue, as opposed to general fund, for its daily operations.  Although the increase in revenue is indeterminate at this time, the Fair should generate additional revenue through its alcohol concession thus allowing the agency to further its revenue-generating efforts to make critical repairs to its facilities. 

 

OTHER SUBSTANTIVE ISSUES

 

Currently, there are two dispenser licenses on the New Mexico State Fairgrounds and used by concessionaires: one is located at the racetrack, which is owned and operated by the Downs of Albuquerque; and one owned and operated by Garduno’s of Mexico.

 

Current state law, Section 60-6A-10 NMSA 1978, the Governmental Liquor License, legally enables certain governmental entities to sell alcoholic beverages by the drink at governmental limited facilities.  The law allows a state fair that is held for less than 10 days per year to apply for a governmental liquor license.  However, since the New Mexico State Fair hosts events on the fairgrounds year-round in addition to the annual 17-day fair, thus making the Fair ineligible to apply for a liquor license.

 

POSSIBLE QUESTIONS

 

1)     Who would be elibible to bid on the liquor concession at the Fair?

2)     How would this bill affect the revenue received from the present consessionairs?

3)     How much money would the New Mexico State Fair have to initially invest for the license?

 

JMG/prr

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