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AN ACT

RELATING TO BUSINESS LICENSES; CHANGING LICENSING

REQUIREMENTS FOR CERTAIN BUSINESSES; CHANGING FINGERPRINT

REQUIREMENTS FOR LIQUOR LICENSES; AMENDING SECTIONS OF THE

LIQUOR CONTROL ACT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 60-6B-2 NMSA 1978 (being Laws 1981,

Chapter 39, Section 38, as amended) is amended to read:

"60-6B-2. APPLICATIONS.--

A. Before a new license authorized by the Liquor

Control Act may be issued by the director, the applicant for

the license shall:

(1) submit to the director a written

application for the license under oath, in the form

prescribed by and stating the information required by the

director, together with a nonrefundable application fee of

two hundred dollars ($200);

(2) submit to the director for approval a

description, including floor plans, in a form prescribed by

the director, that shows the proposed licensed premises for

which the license application is submitted. The area

represented by the approved description shall become the

licensed premises;

(3) submit the name and street address of a

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New Mexico resident 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 upon whom the

director may serve any notice related to ownership or

operation of the license, including any notice of charge

pursuant to Chapter 60, Article 6C NMSA 1978;

(4) if the applicant is a corporation, be

required to submit as part of its application the following:

(a) a certified copy of its articles of

incorporation or, if a foreign corporation, a certified copy

of its certificate of authority;

(b) the names and addresses of all

officers and directors and those stockholders owning ten

percent or more of the voting stock of the corporation and

the amounts of stock held by each stockholder; provided,

however, a corporation may not be licensed if an officer,

manager, director or holder of more than a ten percent

interest in the applicant entity would not be eligible to

hold a license pursuant to the Liquor Control Act; and

regarding the corporation as the director may require to

assure full disclosure of the corporation's structure and

financial responsibility;

(5) if the applicant is a limited

partnership, submit as part of its application the following:

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(a) a certified copy of its certificate

of limited partnership;

(b) the names and addresses of all

general partners and of all limited partners contributing ten

percent or more of the total value of contributions made to

the limited partnership or entitled to ten percent or more of

the profits earned or other income paid by the limited

partnership. A limited partnership shall not receive a

license if a partner or holder of a ten percent or greater

interest in the applicant entity designated in this

subsection would not be eligible to hold a license issued

pursuant to the Liquor Control Act; and

regarding the limited partnership as the director may require

to assure full disclosure of the limited partnership's

structure and financial responsibility;

(6) if the applicant is a limited liability

company, submit as part of its application the following:

(a) a copy of the articles of

organization, with a copy of the certificate of filing with

the public regulation commission;

(b) the name and addresses of all the

managing members and all of the nonmanaging members that own

a greater than ten percent interest in the limited liability

company. Any direct or indirect parent entity of the limited

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liability company with an interest of ten percent or more in

the applicant entity shall submit application forms and

qualify to hold a license; and

regarding the limited liability company as the director may

require to assure full disclosure of the limited liability

company's structure and financial responsibility;

(7) if the applicant is a trust, submit as

part of its application:

(a) the names and addresses of the

trustees;

(b) the names and addresses of any

beneficiaries having control over the property of the trust

or receiving regular and substantial distributions of

principal and income from the trust. Any beneficiary

receiving regular and substantial distributions from the

trust shall qualify to hold a license. The director may

request a copy of the trust agreement for review, which trust

agreement need not become part of the application.

Affidavits as to the operation and distribution of the

principal and income may be requested in lieu of, or in

addition to, the copy of the trust agreement that is supplied

for review by the department; and

regarding the trust as the director may require to assure

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full disclosure of the trust's structure and financial

responsibility; and

(8) obtain approval for the issuance from

the governing body of the local option district in which the

proposed licensed premises are to be located in accordance

with the provisions of the Liquor Control Act.

B. Except for individual officers, directors,

shareholders, members or partners of entities that are

publicly traded on a national stock exchange and for

individuals who have been fingerprinted for another

New Mexico license and had no prior criminal or arrest

record, every applicant for a new license or for a transfer

of ownership of a license shall file with the application two

complete sets of fingerprints taken under the supervision of

and certified to by an officer of the New Mexico state

police, a county sheriff, a municipal chief of police, a

police officer in a foreign country or an individual

qualified to take fingerprints by virtue of training or

experience, for each of the following individuals:

(1) if the applicant is a person, for the

applicant;

(2) if the applicant or the holder of a ten

percent or greater interest in the applicant entity is a

corporation, for each principal officer, for each member of

the board of directors and for each stockholder with a ten

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percent or greater interest in the applicant entity;

(3) if the applicant or the holder of a ten

percent or greater interest in the applicant entity is a

general partnership, for each partner;

(4) if the applicant or the holder of a ten

percent or greater interest in the applicant entity is a

limited partnership, for each general partner, for each

limited partner holding a ten percent or greater interest in

the applicant entity and for any principal officers of the

limited partnership;

(5) if the applicant or the holder of a ten

percent or greater interest in the applicant entity is a

limited liability company, for each managing member, for each

member who owns a ten percent or greater interest in the

applicant entity and for any principal officer of the limited

liability company; and

(6) if the applicant is a trust, for each

trustee and for each beneficiary who has control over trust

property and income or who receives substantial and regular

distributions from the trust.

C. Upon submission of a sworn affidavit from each

person who is required to file fingerprints stating that the

person has not been convicted of a felony in any jurisdiction

and pending the results of background investigations, a

temporary license for ninety days may be issued. The

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temporary license may be extended by the director for an

additional ninety days if the director determines there is

not sufficient time to complete the background investigation

or obtain reviews of fingerprints from appropriate agencies.

A temporary license shall be surrendered immediately upon

order of the director.

D. An applicant who files a false affidavit shall

be denied a license. When the director determines a false

affidavit has been filed, the director shall refer the matter

to the attorney general or district attorney for prosecution

of perjury.

E. If an applicant is not a resident of

New Mexico, fingerprints may be taken under supervision and

certification of comparable officers in the state of

residence of the applicant.

F. Before issuing a license, the department shall

hold a public hearing within thirty days after receipt of the

application pursuant to Subsection K of this section.

G. An application for transfer of ownership shall

be filed with the department no later than thirty days after

the date a person acquired an ownership interest in a

license. It shall contain the actual date of sale of the

license and shall be accompanied by a sworn affidavit from

the owner of record of the license agreeing to the sale of

the license to the applicant as well as attesting to the

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accuracy of the information required by this section to be

filed with the department. A license shall not be

transferred unless it will be placed into operation in an

actual location within one hundred twenty days of issuance of

the license, unless for good cause shown the director grants

an additional extension for a length of time determined by

the director.

H. Whenever it appears to the director that there

will be more applications for new licenses than the available

number of new licenses during any time period, a random

selection method for the qualification, approval and issuance

of new licenses shall be provided by the director. The

random selection method shall allow each applicant an equal

opportunity to obtain an available license, provided that all

dispenser's and retailer's licenses issued in a calendar year

shall be issued to residents of the state. For the purposes

of random selection, the director shall also set a reasonable

deadline by which applications for the available licenses

shall be filed. A person shall not file more than one

application for each available license and no more than three

applications per calendar year.

I. After the deadline set in accordance with

Subsection H of this section, no more than ten applications

per available license shall be selected at random for

priority of qualification and approval. Within thirty days

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after the random selection for the ten priority positions for

each license, a hearing pursuant to Subsection K of this

section shall be held to determine the qualifications of the

applicant having the highest priority for each available

license. If necessary, such a hearing shall be held on each

selected application by priority until a qualified applicant

for each available license is approved. Further random

selections for priority positions shall also be held pursuant

to this section as necessary.

J. All applications submitted for a license shall

expire upon the director's final approval of a qualified

applicant for that available license.

K. The director shall notify the applicant by

certified mail of the date, time and place of the hearing.

The hearing shall be held in Santa Fe. The director may

designate a hearing officer to take evidence at the hearing.

The director or the hearing officer shall have the power to

administer oaths.

L. In determining whether a license shall be

issued, the director shall take into consideration all

requirements of the Liquor Control Act. In the issuance of a

license, the director shall specifically consider the nature

and number of prior violations of the Liquor Control Act by

the applicant or of any citations issued within the prior

five years against a license held by the applicant or in

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which the applicant had an ownership interest required to be

disclosed under the Liquor Control Act. The director shall

disapprove the issuance or give preliminary approval of the

issuance of the license based upon a review of all

documentation submitted and any investigation deemed

necessary by the director.

M. Before a new license is issued for a location,

the director shall cause a notice of the application for the

license to be posted conspicuously, on a sign not smaller

than thirty inches by forty inches, on the outside of the

front wall or front entrance of the immediate premises for

which the license is sought or, if no building or

improvements exist on the premises, the notice shall be

posted at the front entrance of the immediate premises for

which the license is sought, on a billboard not smaller than

five feet by five feet. The contents of the notice shall be

in the form prescribed by the department, and such posting

shall be over a continuous period of twenty days prior to

preliminary approval of the license. The director shall

prescribe the manner in which the posting may be accomplished

by the licensee, the licensee's representative or the

director's designee.

N. A license shall not be issued until the posting

requirements of Subsection M of this section have been met.

O. All costs of publication and posting shall be

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paid by the applicant.

P. It is unlawful for a person to remove or deface

a notice posted in accordance with this section. A person

convicted of a violation of this subsection shall be punished

by a fine of not more than three hundred dollars ($300) or by

imprisonment in the county jail for not more than one hundred

twenty days or by both.

Q. A person aggrieved by a decision made by the

director as to the approval or disapproval of the issuance of

a license may appeal to the district court pursuant to the

provisions of Section 39-3-1.1 NMSA 1978. If the disapproval

is based upon local option district disapproval pursuant to

Subsection H of Section 60-6B-4 NMSA 1978, the local option

district shall be a necessary party to an appeal. The

decision of the director shall continue in force, pending a

reversal or modification by the district court, unless

otherwise ordered by the court."

Section 2. Section 60-6B-6 NMSA 1978 (being Laws 1981,

Chapter 39, Section 42, as amended) is amended to read:

"60-6B-6. CORPORATE LICENSEES--LIMITED PARTNERSHIP

LICENSEES--REPORTING.--

A. A corporation that holds a license issued under

the Liquor Control Act shall notify the director within

thirty days after the occurrence of any change in the

officers, directors or holders of more than ten percent of

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the voting stock of the corporation, giving the names and

addresses of the new officers, directors or stockholders. A

corporate licensee shall also notify the director immediately

of a change of agent by filing a new power of attorney. The

director shall by regulation define what corporate changes,

including but not limited to transfer of stock, merger and

consolidation, constitute transfers of ownership of corporate

licenses and shall, upon making such a determination, order

appropriate compliance with the Liquor Control Act, provided

that a transfer of ownership of a corporate license shall not

be deemed to occur where ultimate ownership of the

corporation does not change.

B. A limited partnership that holds a license

issued under the Liquor Control Act shall notify the director

within thirty days after the occurrence of any change of

general partners or of limited partners contributing ten

percent or more of the total value of contributions made to

the limited partnership or entitled to ten percent or more of

the profits earned or other compensation by way of income

paid by the limited partnership. The director shall by

regulation define what limited partnership changes constitute

transfers of ownership of limited partnership licenses and

shall, upon making such determination, order appropriate

compliance with the Liquor Control Act, provided that a

transfer of ownership of a licensee that is a limited

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partnership shall not be deemed to occur where ultimate

ownership of the limited partnership does not change.

C. A legal entity that is not a corporation or

limited partnership and that holds a license issued under the

Liquor Control Act shall notify the director within thirty

days after the occurrence of any change in the trustees,

partners, owners or members of more than a ten percent

interest in the entity, giving the names and addresses of the

new trustees, partners or owners. The director shall by

regulation define what entity changes constitute a transfer of

ownership of such entity's license and shall, upon making such

determination, order appropriate compliance with the Liquor

Control Act, provided that a transfer of ownership of a

licensee shall not be deemed to occur where there is no change

in the ultimate ownership of the legal entity."