HOUSE MEMORIAL 119

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

INTRODUCED BY

Rick Little

A MEMORIAL

REQUESTING THE LEGISLATIVE INTERIM COMMITTEE DEALING WITH ECONOMIC AND RURAL DEVELOPMENT ISSUES TO STUDY THE DISTRIBUTION AND AVAILABILITY OF LIQUOR LICENSES AND PROPOSE LEGISLATION TO MAKE IT MORE EQUITABLE.

     WHEREAS, there are at least nineteen different liquor licenses in New Mexico that authorize the sale of different alcoholic beverages in different circumstances, including, among others, craft distillers, winegrowers, small brewers and brandy manufacturers; and

     WHEREAS, only dispenser's licenses allow the sale and service of beer, wine and spirits by the drink in any approved setting; and

     WHEREAS, only retailer's and some dispenser's licenses allow the sale of beer, wine and spirits in unbroken packages, although craft distillers, winegrowers and small brewers are authorized to sell unbroken packages of products that are produced in New Mexico; and

     WHEREAS, retailer's and dispenser's licenses are limited based on population and location; and

     WHEREAS, one thousand four hundred eleven dispenser's and retailer's licenses have been issued based on population and location; and

     WHEREAS, New Mexico's population has declined and shifted such that the number and location of licenses no longer align with the limitations, and more licenses exist now than are authorized by statute, notwithstanding that the excess licenses are specifically permitted by the same statute; and

     WHEREAS, an unintended consequence of the limitations on retailer's and dispenser's licenses is that a lucrative private market has developed for the transfer of the licenses between holders, and the average "sale" price of a dispenser's license is now over three hundred thousand dollars ($300,000), which represents a substantial asset to the holder; and

     WHEREAS, more than one thousand licenses other than dispenser's and retailer's licenses currently exist; and

      WHEREAS, while restaurant (beer and wine) licenses are unlimited and non-transferable, a restaurant cannot serve mixed drinks made with spirits without a dispenser's license; and

     WHEREAS, the private market cost of obtaining a dispenser's license is prohibitive for most small business owners; and

     WHEREAS, there are now communities in the state in which no dispenser's or retailer's licenses are located; and

     WHEREAS, the lack of availability and distribution of retailer's and dispenser's licenses has become a detriment to the vibrancy of struggling rural communities;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the legislative interim committee dealing with economic and rural development issues be requested to study the availability and distribution of liquor licenses and develop proposed legislation for introduction in the next legislative session to remedy discrepancies and inequities found by the study; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the co-chairs of the New Mexico legislative council and the directors of the legislative council service and the legislative finance committee.

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