0001| HOUSE BILL 456
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| G. X. McSHERRY
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO WINEGROWERS; CONSOLIDATING LICENSES; AMENDING,
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0012| REPEALING AND ENACTING SECTIONS OF THE LIQUOR CONTROL ACT.
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0013|
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0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015| Section 1. Section 60-3A-3 NMSA 1978 (being Laws 1981,
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0016| Chapter 39, Section 3, as amended) is amended to read:
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0017| "60-3A-3. DEFINITIONS.--As used in the Liquor Control
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0018| Act:
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0019| A. "alcoholic beverages" means distilled or
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0020| rectified spirits, potable alcohol, brandy, whiskey, rum, gin
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0021| and aromatic bitters bearing the federal internal revenue
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0022| strip stamps or any similar alcoholic beverage, including
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0023| blended or fermented beverages, dilutions or mixtures of one
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0024| or more of the foregoing containing more than one-half of one
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0025| percent alcohol, but excluding medicinal bitters;
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0001| B. "beer" means any alcoholic beverage obtained by
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0002| the fermentation of any infusion or decoction of barley, malt
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0003| and hops or other cereals in water, and includes porter, beer,
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0004| ale and stout;
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0005| C. "brewer" means any person who owns or operates
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0006| a business for the manufacture of beer;
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0007| D. "club" means:
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0008| (1) any nonprofit group, including an
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0009| auxiliary or subsidiary group, organized and operated under
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0010| the laws of this state with a membership of not less than
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0011| fifty members who pay membership dues at the rate of not less
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0012| than five dollars ($5.00) per year and who, under the
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0013| constitution and bylaws of the club, have all voting rights
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0014| and full membership privileges and which group is the owner,
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0015| lessee or occupant of premises used exclusively for club
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0016| purposes and which group the director finds:
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0017| (a) is operated solely for recreation,
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0018| social, patriotic, political, benevolent or athletic purposes;
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0019| and
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0020| (b) the proposed licensee has been
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0021| granted an exemption by the United States from the payment of
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0022| the federal income tax as a club under the provisions of
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0023| Section 501(a) of the Internal Revenue Code of [1954]
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0024| 1986, as amended or, if the applicant has not operated as a
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0025| club for a sufficient time to be eligible for the income tax
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0001| exemption, it must execute and file with the director a sworn
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0002| letter of intent declaring that it will, in good faith, apply
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0003| for such exemption as soon as it is eligible; or
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0004| (2) an airline passenger membership club
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0005| operated by an air common carrier which maintains or operates
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0006| a clubroom at an international airport terminal. For the
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0007| purposes of this paragraph, "air common carrier" means a
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0008| person engaged in regularly scheduled air transportation
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0009| between fixed termini under a certificate of public
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0010| convenience and necessity issued by the civil aeronautics
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0011| board;
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0012| E. "commission" means the secretary of public
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0013| safety when the term is used in reference to the enforcement
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0014| and investigatory provisions of the Liquor Control Act and
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0015| means the superintendent of regulation and licensing when the
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0016| term is used in reference to the licensing provisions of the
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0017| Liquor Control Act;
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0018| F. "department" means the special investigations
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0019| division of the department of public safety [department]
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0020| when the term is used in reference to the enforcement and
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0021| investigatory provisions of the Liquor Control Act and means
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0022| the superintendent of regulation and licensing when the term
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0023| is used in reference to the licensing provisions of the Liquor
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0024| Control Act;
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0025| G. "director" means the director of the special
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0001| investigations division of the department of public safety
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0002| [department] when the term is used in reference to the
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0003| enforcement and investigatory provisions of the Liquor Control
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0004| Act and means the superintendent of regulation and licensing
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0005| when the term is used in reference to the licensing provisions
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0006| of the Liquor Control Act;
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0007| H. "dispenser" means any person licensed under the
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0008| provisions of the Liquor Control Act selling, offering for
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0009| sale or having in his possession with the intent to sell
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0010| alcoholic beverages both by the drink for consumption on the
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0011| licensed premises and in unbroken packages for consumption and
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0012| not for resale off the licensed premises;
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0013| I. "distiller" means any person engaged in
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0014| manufacturing spirituous liquors;
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0015| J. "governing body" means the board of county
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0016| commissioners of a county or the city council or city
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0017| commissioners of a municipality;
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0018| K. "hotel" means any establishment or complex
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0019| having a resident of New Mexico as a proprietor or manager and
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0020| where, in consideration of payment, meals and lodging are
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0021| regularly furnished to the general public. The establishment
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0022| or complex must maintain for the use of its guests a minimum
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0023| of twenty-five sleeping rooms;
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0024| L. "licensed premises" means the contiguous areas
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0025| or areas connected by indoor passageways of a structure and
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0001| the outside dining, recreation and lounge areas of the
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0002| structure which are under the direct control of the licensee
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0003| and from which the licensee is authorized to sell, serve or
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0004| allow the consumption of alcoholic beverages under the
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0005| provisions of its license; provided that in the case of a
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0006| restaurant, hotel or racetrack, "licensed premises" includes
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0007| all public and private rooms, facilities and areas in which
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0008| alcoholic beverages are sold or served in the customary
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0009| operating procedures of the restaurant, hotel or racetrack;
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0010| M. "local option district" means any county which
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0011| has voted to approve the sale, serving or public consumption
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0012| of alcoholic beverages, or any incorporated municipality which
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0013| falls within a county which has voted to approve the sale,
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0014| serving or public consumption of alcoholic beverages, or any
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0015| incorporated municipality of over five thousand population
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0016| which has independently voted to approve the sale, serving or
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0017| public consumption of alcoholic beverages under the terms of
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0018| the Liquor Control Act or any former act;
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0019| N. "manufacturer" means a distiller, rectifier,
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0020| brewer or winer;
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0021| O. "minor" means any person under twenty-one years
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0022| of age;
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0023| P. "package" means any immediate container of
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0024| alcoholic beverages which is filled or packed by a
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0025| manufacturer or wine bottler for sale by the manufacturer or
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0001| wine bottler to wholesalers;
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0002| Q. "person" means an individual, corporation,
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0003| firm, partnership, copartnership, association or other legal
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0004| entity;
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0005| R. "rectifier" means any person who blends, mixes
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0006| or distills alcohol with other liquids or substances for the
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0007| purpose of making an alcoholic beverage for the purpose of
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0008| sale other than to the consumer by the drink, and includes all
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0009| bottlers of spirituous liquors;
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0010| S. "restaurant" means any establishment having a
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0011| New Mexico resident as a proprietor or manager which is held
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0012| out to the public as a place where meals are prepared and
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0013| served primarily for on-premises consumption to the general
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0014| public in consideration of payment and which has a dining
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0015| room, a kitchen and the employees necessary for preparing,
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0016| cooking and serving meals; provided that "restaurant" does not
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0017| include establishments as defined in regulations promulgated
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0018| by the director serving only hamburgers, sandwiches, salads
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0019| and other fast foods;
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0020| T. "retailer" means any person licensed under the
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0021| provisions of the Liquor Control Act selling, offering for
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0022| sale or having in his possession with the intent to sell any
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0023| alcoholic beverages in unbroken packages for consumption and
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0024| not for resale off the licensed premises;
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0025| U. "spirituous liquors" means alcoholic beverages
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0001| as defined in Subsection A of this section except fermented
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0002| beverages such as wine, beer and ale;
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0003| V. "wholesaler" means any person whose place of
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0004| business is located in New Mexico and who sells, offers for
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0005| sale or possesses for the purpose of sale any alcoholic
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0006| beverages for resale by the purchaser;
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0007| W. "wine" includes the words "fruit juices" and
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0008| means alcoholic beverages obtained by the fermentation of the
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0009| natural sugar contained in fruit or other agricultural
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0010| products, with or without the addition of sugar or other
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0011| products, which do not contain less than one-half of one
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0012| percent nor more than twenty-one percent alcohol by volume;
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0013| X. "wine bottler" means any New Mexico wholesaler
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0014| who is licensed to sell wine at wholesale for resale only and
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0015| who buys wine in bulk and bottles it for wholesale resale;
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0016| [and]
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0017| Y. ["winer"] "winegrower" means any person who
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0018| owns or operates a business for the manufacture of wine; and
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0019| Z. "winer" means a winegrower."
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0020| Section 2. Section 60-6A-11 NMSA 1978 (being Laws 1981,
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0021| Chapter 39, Section 28, as amended) is amended to read:
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0022| "60-6A-11. WINEGROWER'S LICENSE.--
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0023| A. Exempt from the procurement of any other
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0024| license [under] pursuant to the terms of the Liquor
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0025| Control Act, but not from the procurement of a winegrower's
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0001| license, is any person in this state who produces wine.
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0002| Except during periods of shortage or reduced availability, at
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0003| least fifty percent of a winegrower's overall annual
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0004| production of wine shall be produced from grapes or other
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0005| agricultural products grown in this state pursuant to
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0006| regulations adopted by the director.
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0007| B. [Any] A person issued a winegrower's
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0008| license pursuant to [Subsection A of] this section may do
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0009| any of the following:
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0010| (1) manufacture or produce wine, including
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0011| blending, mixing, flavoring, coloring, bottling and labeling,
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0012| whether the wine is manufactured or produced by or for the
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0013| winegrower;
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0014| (2) store, transport, import or export wines;
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0015| (3) sell wines to a holder of a New Mexico
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0016| winegrower's, [winer's] wine wholesaler's, wholesaler's or
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0017| wine exporter's license or to a winegrower's agent;
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0018| (4) deal in warehouse receipts for wine;
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0019| [(4)] (5) sell wines in other states or
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0020| foreign jurisdictions to the holders of any license issued
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0021| under the authority of that state or foreign jurisdiction
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0022| authorizing [such a] the purchase of wine;
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0023| [(5)] (6) buy wine or distilled wine
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0024| products from other persons, including licensees and
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0025| permittees under the Liquor Control Act, for use in blending,
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0001| mixing or bottling of wines;
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0002| [(6)] (7) conduct wine tastings and sell,
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0003| by the glass or by the bottle or sell in unbroken packages
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0004| for consumption off the premises but not for resale wine of
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0005| his own production on the winegrower's premises; [and
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(7)] (8) at no more than [two] three
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0007| off-premises locations, conduct wine tastings and sell in
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0008| unbroken packages for consumption off premises, but not for
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0009| resale, wine of his own production after the director has
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0010| determined that the off-premises locations meet the
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0011| requirements of the Liquor Control Act and the department
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0012| regulations for new liquor license locations;
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0013| (9) be deemed a manufacturer for purposes of
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0014| the Gross Receipts and Compensating Tax Act;
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0015| (10) at public celebrations on or off the
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0016| winegrower's premises, after the winegrower has paid the
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0017| applicable fees and been issued the appropriate permit, to
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0018| conduct wine tastings, sell by the glass or the bottle or sell
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0019| in unbroken packages, for consumption off premises but not for
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0020| resale, wine produced by or for the winegrower; and
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0021| (11) apply to the department for a permit to
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0022| join with other licensed winegrowers to sell wine produced by
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0023| or for winegrowers at a common facility at which there may be
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0024| products of two or more licensed winegrowers offered for
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0025| tasting and sale by the glass or bottle or for sale in
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0001| unbroken packages for consumption off premises but not for
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0002| resale.
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0003| C. Except as limited by Subsection D of Section
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0004| 60-7A-1 NMSA 1978, sales of wine as provided for in
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0005| [Paragraphs (6) and (7) of Subsection B of] this section
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0006| shall be permitted between the hours of 7:00 a.m. and midnight
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0007| Monday through Saturday, and the holder of a winegrower's
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0008| license or public celebration permit may conduct wine
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0009| tastings and sell, by the glass or bottle or in unbroken
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0010| packages for consumption off premises but not for resale,
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0011| wine of his own production on the winegrower's premises
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0012| between the hours of 12:00 noon and midnight on Sunday.
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0013| D. At public celebrations off the winegrower's
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0014| premises in any local option district permitting the sale of
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0015| alcoholic beverages, the holder of a winegrower's license
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0016| [upon the payment of] shall pay ten dollars ($10.00) to
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0017| the department for a "winegrower's public celebration permit"
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0018| to be issued under rules adopted by the director [may conduct
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tastings, sell in unbroken packages for consumption at other
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than the public celebration, but not for resale, and sell, for
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consumption at a public celebration, wine of his own
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production]. Upon request, the department may issue to a
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0023| holder of a winegrower's license a public celebration permit
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0024| for a location at the public celebration that is to be shared
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0025| with other permittees. As used in this subsection, "public
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0001| celebration" includes any state or county fair, community
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0002| fiesta, cultural or artistic event or sporting competition of
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0003| a seasonal nature or activities held on an intermittent basis.
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0004| E. Every application for the issuance or annual
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0005| renewal of a winegrower's license shall be on a form
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0006| prescribed by the director and accompanied by a license fee to
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0007| be computed as follows on the basis of total annual wine
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0008| produced or blended:
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0009| (1) less than five thousand gallons per year,
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0010| twenty-five dollars ($25.00) per year;
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0011| (2) between five thousand and one hundred
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0012| thousand gallons per year, one hundred dollars ($100) per
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0013| year; and
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0014| (3) over one hundred thousand gallons per
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0015| year, two hundred fifty dollars ($250) per year."
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0016| Section 3. Section 60-6A-22 NMSA 1978 (being Laws 1983,
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0017| Chapter 280, Section 3, as amended) is amended to read:
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0018| "60-6A-22. DEFINITIONS.--As used in the Domestic Winery
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0019| and Small Brewery Act:
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0020| A. "brandy" means an alcoholic liquor distilled
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0021| from wine or from fermented fruit juice;
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0022| B. "beer" means any fermented beverage containing
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0023| more than one-half percent alcohol obtained by the
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0024| fermentation of any infusion or decoction of barley, malt and
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0025| hops or other cereal in water, and includes porter, beer, ale
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0001| and stout;
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0002| C. "small brewer" means any person who owns or
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0003| operates a business for the manufacture of beer but does not
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0004| manufacture more than two hundred thousand barrels of beer per
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0005| year;
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0006| D. "public celebration" means any state fair,
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0007| county fair, community fiesta, cultural or artistic
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0008| performance;
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0009| E. "wine" means the product obtained from normal
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0010| alcoholic fermentation of the juice of sound ripe grapes or
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0011| other agricultural products containing natural or added sugar,
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0012| or any such alcoholic beverage to which is added grape brandy,
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0013| fruit brandy or spirits of wine which is distilled from the
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0014| particular agricultural products of which the wine is made,
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0015| and other rectified wine products by whatever name which do
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0016| not contain more than fifteen percent added flavoring,
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0017| coloring and blending material and which contain not more than
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0018| twenty-four percent of alcohol by volume, and includes
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0019| vermouth;
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0020| F. "wine blender" means a person authorized to
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0021| operate a bonded wine cellar pursuant to a permit issued for
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0022| that purpose under the internal revenue laws of the United
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0023| States but who does not have facilities or equipment for the
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0024| conversion of grapes, berries or other fruit into wine and
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0025| does not engage in the production of wine in commercial
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0001| quantities; provided that any person who produces or blends
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0002| not to exceed three hundred gallons of wine per year shall
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0003| not, because of such production or blending, be considered a
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0004| wine blender; and
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0005| G. "winer" means [any person who has facilities
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and equipment for the conversion in New Mexico of grapes,
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berries or other fruit into wine and is engaged in the
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commercial production of wine; provided that any person who
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produces not to exceed two hundred gallons of wine per year
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for his own consumption shall not, because of such production,
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be considered a winer] a person licensed as a winegrower."
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0012| Section 4. Section 60-6A-24 NMSA 1978 (being Laws 1983,
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0013| Chapter 280, Section 5, as amended) is amended to read:
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0014| "60-6A-24. WINE BLENDER'S LICENSE.--
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0015| A. In any local option district, a person
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0016| qualified under the provisions of the Liquor Control Act,
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0017| except as otherwise provided in the Domestic Winery and Small
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0018| Brewery Act, may apply for and be issued a wine blender's
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0019| license.
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0020| B. A wine blender's license authorizes the person
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0021| to whom it is issued to [exercise all the privileges of a
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winer's license except]:
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0023| (1) package, rectify, blend, mix, flavor,
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0024| color, label and export wine, whether manufactured or produced
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0025| by him or any other person;
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0001| (2) sell only wine packaged by or for him to
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0002| a person holding a New Mexico wine wholesaler's, wholesaler's,
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0003| winegrower's or wine exporter's license or to a winegrower's
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0004| agent;
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0005| (3) deal in warehouse receipts for wine; and
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0006| (4) be deemed a manufacturer for purposes of
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0007| the Gross Receipts and Compensating Tax Act.
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0008| C. A wine blender's license does not authorize the
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0009| person to whom it is issued:
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0010| (l) to crush, ferment and produce wine from
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0011| grapes, berries and other fruits;
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0012| (2) to obtain or be issued a winer's license,
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0013| a retailer's license or a dispenser's license;
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0014| (3) to buy, sell, receive or deliver wine
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0015| from persons other than authorized licensees; or
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0016| (4) to conduct wine [tasting] tastings or
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0017| sell for consumption off premises, at retail, or to sponsor
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0018| wine tastings, either on or off the wine blender's premises."
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0019| Section 5. Section 60-6A-27 NMSA 1978 (being Laws 1983,
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0020| Chapter 280, Section 8, as amended) is amended to read:
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0021| "60-6A-27. LICENSE FEES.--Every application for the
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0022| issuance or annual renewal of the following licenses and
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0023| permits shall be accompanied by a license fee or permit fee in
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0024| the following specified amounts:
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0025| A. brandy manufacturer's license, seven hundred
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0001| fifty dollars ($750);
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0002| B. small brewer's license, seven hundred fifty
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0003| dollars ($750);
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0004| [C. winer's license, seven hundred fifty dollars
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($750);
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D.] C. wine blender's license, seven hundred
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0007| fifty dollars ($750);
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0008| [E.] D. wine exporter's license, five hundred
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0009| dollars ($500);
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0010| [F. winer's off-premises permit, two hundred
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dollars ($200) for each off-premises location;
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G. winer's public celebrations permit, ten dollars
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($10.00) for each public celebration] and
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0014| [H.] E. small brewer's public celebrations
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0015| permit, ten dollars ($10.00) for each public celebration."
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0016| Section 6. Section 60-6A-29 NMSA 1978 (being Laws 1988,
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0017| Chapter 60, Section 1) is amended to read:
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0018| "60-6A-29. WINE WHOLESALER'S LICENSE.--
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0019| A. In any local option district, a winegrower [or
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winer] licensed under the Liquor Control Act may apply for
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0021| and be issued a license as a wine wholesaler of wines produced
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0022| by or for New Mexico winegrowers [or winers].
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0023| B. No wine wholesaler shall sell, offer for sale
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0024| or ship wine not received at and shipped from the premises
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0025| specified in the wine wholesaler's license.
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0001| C. No wine wholesaler shall sell or offer for sale
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0002| wine to any person other than the holder of a New Mexico wine
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0003| wholesaler's, wholesaler's, retailer's, dispenser's, canopy,
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0004| restaurant or club license or a governmental licensee or its
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0005| lessee.
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0006| D. Nothing contained in this section shall prevent
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0007| the sale, transportation or shipment of wine by a wine
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0008| wholesaler to any person outside the state when shipped under
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0009| permit from the department."
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0010| Section 7. A new section of the Liquor Control Act is
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0011| enacted to read:
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0012| "[NEW MATERIAL] INTERSTATE WINE TASTINGS--COMPETITIONS-
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0013| -PERMITS.--
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0014| A. Exempt from the procurement of any other
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0015| license or permit issued pursuant to the terms of the Liquor
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0016| Control Act, but not exempt from the procurement of a
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0017| competition permit, is a winemaker or winery licensed outside
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0018| of New Mexico that desires to participate in a regional wine
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0019| tasting or competition within New Mexico. One permit shall be
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0020| issued by the director to an out-of-state winemaker or winery
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0021| for the duration of the wine tasting or competition.
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0022| B. A person issued a competition permit pursuant
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0023| to this section may do any of the following:
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0024| (1) bring no more than twenty-five cases of
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0025| wine into New Mexico after indicating on his permit
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0001| application the number of cases to be brought into the state;
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0002| (2) participate in the regional competition
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0003| and any wine tastings associated with the competition for
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0004| which the competition permit is issued;
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0005| (3) participate in the regional wine tasting
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0006| for which the competition permit is issued; and
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0007| (4) at a wine tasting for which he is issued
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0008| the permit, conduct tasting of wine and sell by the glass or
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0009| bottle or in unbroken packages for consumption off the wine
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0010| tasting premises but not for resale, wine brought into the
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0011| state by him for the wine tasting or competition.
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0012| C. Every application for the issuance of a
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0013| competition permit shall be on a form prescribed by the
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0014| director and accompanied by a permit fee of twenty-five
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0015| dollars ($25.00).
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0016| D. As used in this section:
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0017| (1) "competition" means an event at which a
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0018| jury of wine tasters compares the quality of the wines entered
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0019| for judging and at which prizes are offered for the wines
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0020| judged to be of the best quality;
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0021| (2) "regional competition" means a
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0022| competition at which the wines to be judged are from more than
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0023| one state or country;
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0024| (3) "regional wine tasting" means a wine
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0025| tasting at which the wines offered for tasting are from more
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0001| than one state or country;
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0002| (4) "winemaker" means a person who
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0003| manufactures or produces wine;
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0004| (5) "winery" means an establishment at which
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0005| wine is manufactured or produced and that is licensed for that
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0006| purpose by the state or country in which it is located; and
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0007| (6) "wine tasting" means an event at which
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0008| wines are offered for tasting but not necessarily for sale and
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0009| not for comparison for the purpose of awarding prizes to the
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0010| wines of the best quality."
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0011| Section 8. REPEAL.--Section 60-6A-23 NMSA 1978 (being
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0012| Laws 1983, Chapter 280, Section 4, as amended) is repealed.
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0013| Section 9. EFFECTIVE DATE.--The effective date of the
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0014| provisions of this act is July 1, 1998.
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0015|
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