0001| AN ACT | 0002| RELATING TO ALCOHOLIC BEVERAGES; AMENDING THE DEFINITION OF | 0003| DISPENSER; DEFINING RESALE DISPENSER; PROVIDING FOR NONCOMMERCIAL | 0004| BREWING FACILITIES; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978. | 0005| | 0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0007| Section 1. Section 60-3A-3 NMSA 1978 (being Laws 1981, Chapter 39, Section 3, as | 0008| amended) is amended to read: | 0009| "60-3A-3. DEFINITIONS.--As used in the Liquor Control Act: | 0010| A. "alcoholic beverages" means distilled or rectified spirits, potable alcohol, | 0011| brandy, whiskey, rum, gin and aromatic bitters bearing the federal internal revenue strip stamps | 0012| or any similar alcoholic beverage, including blended or fermented beverages, dilutions or | 0013| mixtures of one or more of the foregoing containing more than one-half of one percent alcohol, | 0014| but excluding medicinal bitters; | 0015| B. "beer" means any alcoholic beverage obtained by the fermentation of any | 0016| infusion or decoction of barley, malt and hops or other cereals in water, and includes porter, beer, | 0017| ale and stout; | 0018| C. "brewer" means any person who owns or operates a business for the | 0019| manufacture of beer; | 0020| D. "club" means: | 0021| (1) any nonprofit group, including an auxiliary or subsidiary group, | 0022| organized and operated under the laws of this state with a membership of not less than fifty | 0023| members who pay membership dues at the rate of not less than five dollars ($5.00) per year and | 0024| who, under the constitution and bylaws of the club, have all voting rights and full membership | 0025| privileges and which group is the owner, lessee or occupant of premises used exclusively for club | 0001| purposes and which group the director finds: | 0002| (a) is operated solely for recreation, social, patriotic, political, | 0003| benevolent or athletic purposes; and | 0004| (b) the proposed licensee has been granted an exemption by the | 0005| United States from the payment of the federal income tax as a club under the provisions of | 0006| Section 501(a) of the Internal Revenue Code of 1954, as amended or, if the applicant has not | 0007| operated as a club for a sufficient time to be eligible for the income tax exemption, it must | 0008| execute and file with the director a sworn letter of intent declaring that it will, in good faith, | 0009| apply for such exemption as soon as it is eligible; or | 0010| (2) an airline passenger membership club operated by an air common | 0011| carrier that maintains or operates a clubroom at an international airport terminal. For the | 0012| purposes of this paragraph, "air common carrier" means a person engaged in regularly scheduled | 0013| air transportation between fixed termini under a certificate of public convenience and necessity | 0014| issued by the civil aeronautics board; | 0015| E. "commission" means the secretary of public safety when the term is used in | 0016| reference to the enforcement and investigatory provisions of the Liquor Control Act and means | 0017| the superintendent of regulation and licensing when the term is used in reference to the licensing | 0018| provisions of the Liquor Control Act; | 0019| F. "department" means the special investigations division of the department of | 0020| public safety when the term is used in reference to the enforcement and investigatory provisions | 0021| of the Liquor Control Act and means the superintendent of regulation and licensing when the | 0022| term is used in reference to the licensing provisions of the Liquor Control Act; | 0023| G. "director" means the director of the special investigations division of the | 0024| department of public safety when the term is used in reference to the enforcement and | 0025| investigatory provisions of the Liquor Control Act and means the superintendent of regulation | 0001| and licensing when the term is used in reference to the licensing provisions of the Liquor Control | 0002| Act; | 0003| H. "dispenser" means any person licensed under the provisions of the Liquor | 0004| Control Act selling, offering for sale or having in his possession with the intent to sell alcoholic | 0005| beverages both by the drink for consumption on the licensed premises and in unbroken packages | 0006| for consumption off the licensed premises; | 0007| I. "distiller" means any person engaged in manufacturing spirituous liquors; | 0008| J. "governing body" means the board of county commissioners of a county or the | 0009| city council or city commissioners of a municipality; | 0010| K. "hotel" means any establishment or complex having a resident of New Mexico | 0011| as a proprietor or manager and where, in consideration of payment, meals and lodging are | 0012| regularly furnished to the general public. The establishment or complex must maintain for the | 0013| use of its guests a minimum of twenty-five sleeping rooms; | 0014| L. "licensed premises" means the contiguous areas or areas connected by indoor | 0015| passageways of a structure and the outside dining, recreation and lounge areas of the structure | 0016| that are under the direct control of the licensee and from which the licensee is authorized to sell, | 0017| serve or allow the consumption of alcoholic beverages under the provisions of its license; pro- | 0018| | 0019| vided that in the case of a restaurant, hotel or racetrack, "licensed premises" includes all public | 0020| and private rooms, facilities and areas in which alcoholic beverages are sold or served in the | 0021| customary operating procedures of the restaurant, hotel or racetrack; | 0022| M. "local option district" means any county that has voted to approve the sale, | 0023| serving or public consumption of alcoholic beverages, or any incorporated municipality that falls | 0024| within a county that has voted to approve the sale, serving or public consumption of alcoholic | 0025| beverages, or any incorporated municipality of over five thousand population that has | 0001| independently voted to approve the sale, serving or public consumption of alcoholic beverages | 0002| under the terms of the Liquor Control Act or any former act; | 0003| N. "manufacturer" means a distiller, rectifier, brewer or winer; | 0004| O. "minor" means any person under twenty-one years of age; | 0005| P. "package" means any immediate container of alcoholic beverages that is filled | 0006| or packed by a manufacturer or wine bottler for sale by the manufacturer or wine bottler to | 0007| wholesalers; | 0008| Q. "person" means an individual, corporation, firm, partnership, copartnership, | 0009| association or other legal entity; | 0010| R. "rectifier" means any person who blends, mixes or distills alcohol with other | 0011| liquids or substances for the purpose of making an alcoholic beverage for the purpose of sale | 0012| other than to the consumer by the drink, and includes all bottlers of spirituous liquors; | 0013| S. "resale dispenser" means a retailer licensed pursuant to the provisions of the | 0014| Liquor Control Act who purchases alcoholic beverages from a licensed wholesaler for resale to | 0015| another retailer; | 0016| T. "restaurant" means any establishment having a New Mexico resident as a | 0017| proprietor or manager that is held out to the public as a place where meals are prepared and | 0018| served primarily for on-premises consumption to the general public in consideration of payment | 0019| and that has a dining room, a kitchen and the employees necessary for preparing, cooking and | 0020| serving meals; provided that "restaurant" does not include establishments as defined in regula- | 0021| | 0022| tions promulgated by the director serving only hamburgers, sandwiches, salads and other fast | 0023| foods; | 0024| U. "retailer" means any person licensed under the provisions of the Liquor | 0025| Control Act selling, offering for sale or having in his possession with the intent to sell any | 0001| alcoholic beverages in unbroken packages for consumption and not for resale off the licensed | 0002| premises; | 0003| V. "spirituous liquors" means alcoholic beverages as defined in Subsection A of | 0004| this section except fermented beverages such as wine, beer and ale; | 0005| W. "wholesaler" means any person whose place of business is located in New | 0006| Mexico and who sells, offers for sale or possesses for the purpose of sale any alcoholic beverages | 0007| for resale by the purchaser; | 0008| X. "wine" includes the words "fruit juices" and means alcoholic beverages | 0009| obtained by the fermentation of the natural sugar contained in fruit or other agricultural products, | 0010| with or without the addition of sugar or other products, that do not contain less than one-half of | 0011| one percent nor more than twenty-one percent alcohol by volume; | 0012| Y. "wine bottler" means any New Mexico wholesaler who is licensed to sell wine | 0013| at wholesale for resale only and who buys wine in bulk and bottles it for wholesale resale; and | 0014| Z. "winer" means any person who owns or operates a business for the | 0015| manufacture of wine." | 0016| Section 2. Section 60-6A-26.1 NMSA 1978 (being Laws 1985, Chapter 217, Section 5, | 0017| as amended) is amended to read: | 0018| "60-6A-26.l. SMALL BREWER'S LICENSE.-- | 0019| A. In any local option district, a person qualified under the provisions of the | 0020| Liquor Control Act, except as otherwise provided in the Domestic Winery and Small Brewery | 0021| Act, may apply for and be issued a small brewer's license. | 0022| B. A small brewer's license authorizes the person to whom it is issued to do any | 0023| of the following: | 0024| (l) become a manufacturer or producer of beer; | 0025| (2) package, label and export beer, whether manufactured, bottled or | 0001| produced by him or any other person; | 0002| (3) sell only such beer as is packaged by or for him to a person holding a | 0003| wholesaler's license or a small brewer's license; | 0004| (4) deal in warehouse receipts for beer; | 0005| (5) conduct beer tastings and sell for consumption on or off premises, but | 0006| not for resale, beer produced and bottled by, or produced and packaged for, such licensee on the | 0007| small brewer's premises; | 0008| (6) allow members of the public, on the licensed premises and under the | 0009| direct supervision of the licensee, to manufacture beer for personal consumption and not for | 0010| resale, using the licensee's equipment and ingredients; | 0011| (7) conduct beer tastings of beer produced by members of the public on | 0012| the licensee's premises pursuant to the provisions of this subsection; and | 0013| (8) be deemed a manufacturer for purposes of the Gross Receipts and | 0014| Compensating Tax Act." | 0015| Section 3. A new section of the Liquor Control Act is enacted to read: | 0016| "RESALE DISPENSER--PERMITS--CERTAIN SALES PROHIBITED.-- | 0017| A. A resale dispenser shall apply for and display on the licensed retail premises a | 0018| resale permit approved by the department. The resale dispenser shall not solicit sales of | 0019| alcoholic beverages from other retailers. A resale dispenser shall purchase alcoholic beverages | 0020| only from a licensed wholesaler. | 0021| B. A resale dispenser shall not resell more than five hundred dollars ($500) worth | 0022| of alcoholic beverages per year per retailer. | 0023| C. A retailer shall not purchase alcoholic beverages from a resale dispenser to | 0024| avoid the credit extension prohibition provided in Section 60-7A-9 NMSA 1978." | 0025| Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is | 0001| January 1, 1998. |