SENATE BILL 57

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Ron Griggs

AN ACT

RELATING TO ALCOHOLIC BEVERAGES; ENACTING A NEW SECTION OF THE LIQUOR CONTROL ACT TO ALLOW CERTAIN DISPENSER LICENSEES TO LEASE A PRIVILEGE GRANTED BY THEIR LICENSE; ADDRESSING LESSOR AND LESSEE LIABILITY; REQUIRING RULES.

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

     SECTION 1. Section 60-6A-3 NMSA 1978 (being Laws 1981, Chapter 39, Section 20) is amended to read:

     "60-6A-3. DISPENSER'S LICENSE.--

          A. In any local option district, a person qualified [under] pursuant to the provisions of the Liquor Control Act may apply for and be issued a dispenser's license for the sale of alcoholic beverages.

          B. Except as provided in Section 60-6A-3.1 NMSA 1978, a dispenser's license [when issued] shall only be used by the person to whom the license is issued and shall only be used within the licensed premises, pursuant to provisions of the Liquor Control Act."

     SECTION 2. A new section of the Liquor Control Act, Section 60-3A-3.1 NMSA 1978, is enacted to read:

     "60-3A-3.1. [NEW MATERIAL] DISPENSER'S LICENSE--LEASE OF LICENSE PRIVILEGES--LIABILITY--RULES.--

          A. A dispenser who exercises the privileges conferred by a dispenser's license only to:

                (1) sell alcoholic beverages by the drink for consumption on the licensed premises may lease to one other person the privilege to sell alcoholic beverages in unbroken packages for consumption, but not for resale, off the licensed premises; provided that the location of the lessee's premises, which shall be considered licensed premises, is at a site approved by the director outside the local option district where the dispenser-lessor's licensed premises are located; or

                (2) sell alcoholic beverages in unbroken packages for consumption, but not for resale, off the licensed premises may lease to one other person the privilege to sell alcoholic beverages by the drink for consumption on the licensed premises; provided that the location of the lessee's premises, which shall be considered licensed premises, is at a site approved by the director outside the local option district where the dispenser-lessor's licensed premises are located.

          B. A lease made pursuant to Subsection A of this section is subject to approval by the local government where the lessee's premises are to be located following the transfer approval process prescribed in Section 60-6B-4 NMSA 1978.

          C. The lessee and the lessee's privilege to sell and serve alcoholic beverages pursuant to and in the context of this section are subject to the Liquor Control Act and applicable rules to the same extent as they apply to Liquor Control Act licensees and licenses; provided that the privilege to sell and serve alcoholic beverages shall have no impact on the maximum number of licenses that may be issued pursuant to Section 60-6A-18 NMSA 1978.

          D. No later than November 1, 2017, the director shall promulgate rules the director deems necessary to implement the provisions of this section. These rules shall include a form to be acknowledged by the dispenser-lessor and lessee that sets out the terms of the relationship between the dispenser-lessor, lessee and department as provided by the provisions of this section and the rules.

          E. Notwithstanding another provision of law, unless a preponderance of the evidence for civil suits or substantial evidence for administrative sanctions reveals that a dispenser-lessor had actual knowledge of the violation and took no reasonable action to prevent or mitigate the violation, a violation of the Liquor Control Act or applicable rules by the lessee or at the lessee's licensed premises shall not subject the dispenser-lessor or the dispenser-lessor's license to civil damages or sanctions or to administrative sanctions."

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.

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