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

Trujillo

ORIGINAL DATE

LAST UPDATED

2/22/07

3/7/07

HB

1046/aHBIC/aHJC/aHFL

SHORT TITLE

Relating to Business Licenses; Changing

Licensing

SB

ANALYST

C. Sanchez

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

Indeterminable

Indeterminable Recurring General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates, SB 811

SOURCES OF INFORMATION

LFC Files

Responses Received From

Regulation and Licensing Department (RLD)

Department of Public Safety (DPS)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of HFL Amendment

The House Floor 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.

Synopsis of HJC Amendment

The House Judiciary Committee amendment removes language that changed the expiration date

for certain licenses. The amendment also reduces the nonrefundable application fee from $300

hundred back to $200 hundred. Finally, the amendment strikes language describing a director’s

designee as one who the

director deems trustworthy and reliable.

House Bill 1046/aHBIC/aHJC/aHFL– Page

2

Synopsis of HBIC Amendment

The House Business and Industry amendment strikes the language that changed the date for

expiration and renewal of Dispenser, Canopy and retailer licenses from June 30 of each year to

October 31 of each year.

Synopsis of Original Bill

House Bill 1046 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. HB 1046 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. HB 1046

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

by which postings would be accomplished. HB 1046 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, HB 1046 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

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,

SB 811

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Status Quo

CS/nt