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SENATE BILL 431
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Antoinette Sedillo Lopez and Shannon D. Pinto
and Joanne J. Ferrary
AN ACT
RELATING TO TAXATION; AMENDING THE DISTRIBUTIONS OF THE LIQUOR
EXCISE TAX; AMENDING DEFINITIONS IN THE LIQUOR EXCISE TAX ACT;
IMPOSING A LIQUOR EXCISE SURTAX ON RETAILERS; DISTRIBUTING THE
REVENUE FROM THE SURTAX TO A NEW TRIBAL ALCOHOL HARMS
ALLEVIATION FUND; CHANGING THE LOCAL DWI GRANT PROGRAM ACT TO
THE LOCAL ALCOHOL HARMS ALLEVIATION PROGRAM ACT AND MAKING
AMENDMENTS TO THE ACT; CREATING THE TRIBAL ALCOHOL HARMS
ALLEVIATION PROGRAM ACT; EXCLUDING THE TAXES IMPOSED BY THE
LIQUOR EXCISE TAX FROM THE DEFINITION OF "GROSS RECEIPTS" IN
THE GROSS RECEIPTS AND COMPENSATING TAX ACT; REQUIRING CERTAIN
LEGISLATIVE COMMITTEES TO REVIEW THE RATES OF THE LIQUOR EXCISE
TAX AND LIQUOR EXCISE SURTAX AND THE DISTRIBUTIONS FROM THOSE
TAXES; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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SECTION 1. Section 7-1-6.40 NMSA 1978 (being Laws 1997,
Chapter 182, Section 1, as amended) is amended to read:
"7-1-6.40. [DISTRIBUTION OF ] DISTRIBUTIONS--LIQUOR EXCISE
TAX TO LOCAL [DWI GRANT] ALCOHOL HARMS ALLEVIATION FUND
[CERTAIN MUNICIPALITIES ] AND DRUG COURT FUND--LIQUOR EXCISE
SURTAX TO TRIBAL ALCOHOL HARMS ALLEVIATION FUND .--
[A. A distribution pursuant to Section 7-1-6.1 NMSA
1978 in an amount equal to forty-five percent of the net
receipts attributable to the liquor excise tax shall be made to
the local DWI grant fund.
B. A distribution pursuant to Section 7-1-6.1 NMSA
1978 of twenty thousand seven hundred fifty dollars ($20,750)
monthly from the net receipts attributable to the liquor excise
tax shall be made to a municipality that is located in a class
A county and that has a population according to the most recent
federal decennial census of more than thirty thousand but less
than sixty thousand and shall be used by the municipality only
for the provision of alcohol treatment and rehabilitation
services for street inebriates.
C. Beginning July 1, 2019 A distribution pursuant
to Section 7-1-6.1 NMSA 1978 in an amount equal to five percent
of the net receipts attributable to the liquor excise tax shall
be made to the drug court fund. ]
A. A distribution pursuant to Section 7-1-6.1 NMSA
1978 shall be made in the following percentages of the net
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receipts attributable to the liquor excise tax:
(1) ninety-four percent to the local alcohol
harms alleviation fund; and
(2) six percent to the drug court fund.
B. A distribution pursuant to Section 7-1-6.1 NMSA
1978 shall be made to the tribal alcohol harms alleviation fund
in an amount equal to the net receipts attributable to the
liquor excise surtax. "
SECTION 2. Section 7-9-3.5 NMSA 1978 (being Laws 2003,
Chapter 272, Section 3, as amended) is amended to read:
"7-9-3.5. DEFINITION--GROSS RECEIPTS.--
A. As used in the Gross Receipts and Compensating
Tax Act:
(1) "gross receipts" means the total amount of
money or the value of other consideration received from selling
property in New Mexico, from leasing or licensing property
employed in New Mexico, from granting a right to use a
franchise employed in New Mexico, from selling services
performed outside New Mexico, the product of which is initially
used in New Mexico, or from performing services in New Mexico.
In an exchange in which the money or other consideration
received does not represent the value of the property or
service exchanged, "gross receipts" means the reasonable value
of the property or service exchanged;
(2) "gross receipts" includes:
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(a) any receipts from sales of tangible
personal property handled on consignment;
(b) the total commissions or fees
derived from the business of buying, selling or promoting the
purchase, sale or lease, as an agent or broker on a commission
or fee basis, of any property, service, stock, bond or
security;
(c) amounts paid by members of any
cooperative association or similar organization for sales or
leases of personal property or performance of services by such
organization;
(d) amounts received from transmitting
messages or conversations by persons providing telephone or
telegraph services;
(e) amounts received by a New Mexico
florist from the sale of flowers, plants or other products that
are customarily sold by florists where the sale is made
pursuant to orders placed with the New Mexico florist that are
filled and delivered outside New Mexico by an out-of-state
florist;
(f) the receipts of a home service
provider from providing mobile telecommunications services to
customers whose place of primary use is in New Mexico if: 1)
the mobile telecommunications services originate and terminate
in the same state, regardless of where the services originate,
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terminate or pass through; and 2) the charges for mobile
telecommunications services are billed by or for a customer's
home service provider and are deemed provided by the home
service provider. For the purposes of this section, "home
service provider", "mobile telecommunications services",
"customer" and "place of primary use" have the meanings given
in the federal Mobile Telecommunications Sourcing Act; and
(g) receipts collected by a marketplace
provider engaging in business in the state from sales, leases
and licenses of tangible personal property, sales of licenses
and sales of services or licenses for use of real property that
are sourced to this state and are facilitated by the
marketplace provider on behalf of marketplace sellers,
regardless of whether the marketplace sellers are engaging in
business in the state; and
(3) "gross receipts" excludes:
(a) cash discounts allowed and taken;
(b) New Mexico gross receipts tax,
governmental gross receipts tax, leased vehicle gross receipts
tax, [and] cannabis excise tax and taxes imposed pursuant to
the Liquor Excise Tax Act payable on transactions for the
reporting period;
(c) taxes imposed pursuant to the
provisions of any local option gross receipts tax that is
payable on transactions for the reporting period;
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(d) any gross receipts or sales taxes
imposed by an Indian nation, tribe or pueblo; provided that the
tax is approved, if approval is required by federal law or
regulation, by the secretary of the interior of the United
States; and provided further that the gross receipts or sales
tax imposed by the Indian nation, tribe or pueblo provides a
reciprocal exclusion for gross receipts, sales or gross
receipts-based excise taxes imposed by the state or its
political subdivisions;
(e) any type of time-price differential;
(f) amounts received solely on behalf of
another in a disclosed agency capacity; and
(g) amounts received by a New Mexico
florist from the sale of flowers, plants or other products that
are customarily sold by florists where the sale is made
pursuant to orders placed with an out-of-state florist for
filling and delivery in New Mexico by a New Mexico florist.
B. When the sale of property or service is made
under any type of charge, conditional or time-sales contract or
the leasing of property is made under a leasing contract, the
seller or lessor may elect to treat all receipts, excluding any
type of time-price differential, under such contracts as gross
receipts as and when the payments are actually received. If
the seller or lessor transfers the seller's or lessor's
interest in any such contract to a third person, the seller or
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lessor shall pay the gross receipts tax upon the full sale or
leasing contract amount, excluding any type of time-price
differential."
SECTION 3. Section 7-17-2 NMSA 1978 (being Laws 1966,
Chapter 49, Section 2, as amended) is amended to read:
"7-17-2. DEFINITIONS.--As used in the Liquor Excise
Tax Act:
A. "alcoholic beverages" means distilled or
rectified spirits, potable alcohol, brandy, whiskey, rum, gin,
aromatic bitters or any similar beverage, including blended or
fermented beverages, dilutions or mixtures of one or more of
the foregoing containing more than one-half of one percent
alcohol by volume, but "alcoholic beverages" does not include
medicinal bitters;
B. "barrel" means the equivalent of thirty-one
gallons;
[B.] C. "beer" means an alcoholic beverage obtained
by the fermentation of any infusion or decoction of barley,
malt and hops or other cereals in water and includes porter,
beer, ale and stout;
[C.] D. "cider" means an alcoholic beverage made
from the normal alcoholic fermentation of the juice of sound,
ripe apples or pears that contains not less than one-half of
one percent of alcohol by volume and not more than eight and
one-half percent of alcohol by volume;
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[D.] E. "department" means the taxation and revenue
department, the secretary of taxation and revenue or any
employee of the department exercising authority lawfully
delegated to that employee by the secretary;
[E.] F. "fortified wine" means wine containing more
than fourteen percent alcohol by volume when bottled or
packaged by the manufacturer, but "fortified wine" does not
include:
(1) wine that is sealed or capped by cork
closure and aged two years or more;
(2) wine that contains more than fourteen
percent alcohol by volume solely as a result of the natural
fermentation process and that has not been produced with the
addition of wine spirits, brandy or alcohol; or
(3) vermouth and sherry;
[F.] G. "microbrewer" means a person who produces
less than two hundred thousand barrels of beer per year;
[G.] H. "person" includes, to the extent permitted
by law, a federal, state or other governmental unit or
subdivision or an agency, department, institution or
instrumentality thereof;
I. "retailer" means a person having a place of
business in New Mexico who sells, offers for sale or possesses
for the purpose of selling alcoholic beverages in New Mexico;
[H.] J. "small winegrower" means a winegrower who
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produces less than one million five hundred thousand liters of
wine in a year;
[I.] K. "spirituous liquors" means alcoholic
beverages, except fermented beverages such as wine, beer, cider
and ale;
[J.] L. "wholesaler" means a person holding a
license issued under Section 60-6A-1 NMSA 1978 or a person
selling alcoholic beverages that were not purchased from a
person holding a license issued under Section 60-6A-1 NMSA
1978;
[K.] M. "wine" means an alcoholic beverage other
than cider that is obtained by the fermentation of the natural
sugar contained in fruit or other agricultural products, with
or without the addition of sugar or other products, and that
does not contain more than twenty-one percent alcohol by
volume; and
[L.] N. "winegrower" means a person licensed
pursuant to Section 60-6A-11 NMSA 1978."
SECTION 4. A new section of the Liquor Excise Tax Act,
Section 7-17-5.2 NMSA 1978, is enacted to read:
"7-17-5.2. [NEW MATERIAL ] IMPOSITION AND RATE OF LIQUOR
EXCISE SURTAX.--Beginning July 1, 2026, there is imposed on a
retailer who sells alcoholic beverages not for resale on which
the surtax imposed by this section has not been paid an excise
surtax, to be referred to as the "liquor excise surtax", at the
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rate of six percent of the price paid for alcoholic beverages
sold by the retailer."
SECTION 5. Section 7-17-6 NMSA 1978 (being Laws 1984,
Chapter 85, Section 4, as amended) is amended to read:
"7-17-6. DEDUCTION--INTERSTATE SALES--WINEGROWER-TO-
WINEGROWER TRANSFERS.--
A. A wholesaler may deduct the liters of spirituous
liquors, gallons of beer and liters of wine sold and shipped to
a person in another state from the units of alcoholic beverages
subject to the [tax] taxes imposed by the Liquor Excise Tax
Act; provided that the department may require the wholesaler to
submit evidence satisfactory to the department that the units
have been sold and shipped to a person in another state.
B. A winegrower may deduct the liters of wine
transferred to the winegrower from another winegrower for
processing, bottling or storage and subsequent return to the
transferor from the units of wine subject to the [liquor excise
tax] taxes imposed by the Liquor Excise Tax Act on the licensed
premises of the winegrower."
SECTION 6. Section 7-17-9 NMSA 1978 (being Laws 1966,
Chapter 49, Section 7, as amended) is amended to read:
"7-17-9. EXEMPTION--CERTAIN SALES TO OR BY
INSTRUMENTALITIES OF ARMED FORCES.--Exempted from the [tax
imposed by Section 7-17-5 NMSA 1978 ] taxes imposed by the
Liquor Excise Tax Act are alcoholic beverages sold to or by any
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instrumentality of the armed forces of the United States
engaged in resale activities."
SECTION 7. Section 7-17-10 NMSA 1978 (being Laws 1966,
Chapter 49, Section 8, as amended) is amended to read:
"7-17-10. DATE PAYMENT DUE.--The [tax ] taxes imposed by
the Liquor Excise Tax Act [is ] are to be paid on or before the
twenty-fifth day of the month following the month in which the
taxable event occurs."
SECTION 8. Section 7-17-11 NMSA 1978 (being Laws 1969,
Chapter 80, Section 1, as amended) is amended to read:
"7-17-11. REFUND OR CREDIT OF [TAX ] TAXES.--The
department shall allow a claim for refund or credit as provided
in Sections 7-1-26 and 7-1-29 NMSA 1978 for the [tax imposed by
Section 7-17-5 NMSA 1978 ] taxes imposed by the Liquor Excise
Tax Act and paid on alcoholic beverages destroyed in shipment,
spoiled or otherwise damaged as to be unfit for sale or
consumption upon submission of proof satisfactory to the
department of such destruction, spoilage or damage."
SECTION 9. Section 7-17-12 NMSA 1978 (being Laws 1984,
Chapter 85, Section 8, as amended) is amended to read:
"7-17-12. INTERPRETATION OF ACT--ADMINISTRATION AND
ENFORCEMENT OF [TAX] TAXES.--
A. The department shall interpret the provisions of
the Liquor Excise Tax Act.
B. The department shall administer and enforce the
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collection of the [liquor excise tax ] taxes imposed by the
Liquor Excise Tax Act , and the Tax Administration Act applies
to the administration and enforcement of the [tax ] taxes."
SECTION 10. Section 11-6A-1 NMSA 1978 (being Laws 1993,
Chapter 65, Section 1) is amended to read:
"11-6A-1. SHORT TITLE.--[Sections 1 through 5 of this
act] Chapter 11, Article 6A NMSA 1978 may be cited as the
"Local [DWI Grant] Alcohol Harms Alleviation Program Act"."
SECTION 11. Section 11-6A-2 NMSA 1978 (being Laws 1993,
Chapter 65, Section 2) is amended to read:
"11-6A-2. DEFINITIONS.--As used in the Local [DWI Grant ]
Alcohol Harms Alleviation Program Act:
A. "council" means the [DWI grant ] local alcohol
harms alleviation council; and
B. "division" means the local government division
of the department of finance and administration."
SECTION 12. Section 11-6A-3 NMSA 1978 (being Laws 1993,
Chapter 65, Section 3, as amended) is amended to read:
"11-6A-3. LOCAL [DWI GRANT ] ALCOHOL HARMS ALLEVIATION
PROGRAM--[FUND] ELIGIBILITY FOR GRANTS .--
A. The division shall establish a "local [DWI
grant] alcohol harms alleviation program" to make grants from
the local alcohol harms alleviation fund to [municipalities or ]
counties upon council approval for [(1) new] innovative or
model programs [services or activities ] that include awareness
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and recovery approaches to [prevent] promote prevention or
facilitate interventions, provide court-ordered supervision
services and reduce harms and risks associated with substance
misuse, including the incidence of [DWI, alcoholism, alcohol
abuse, drug addiction or drug abuse; and (2) programs, services
or activities to prevent or reduce the incidence of domestic
abuse related to DWI, alcoholism, alcohol abuse, drug addiction
or drug abuse.
B. Grants shall be awarded by the council pursuant
to the advice and recommendations of the division.
C. The "local DWI grant fund" is created in the
state treasury and shall be administered by the division. Two
million five hundred thousand dollars ($2,500,000) of liquor
excise tax revenues distributed to the fund and all other money
in the fund, other than money appropriated for distribution
pursuant to Subsections D and E of this section and money
appropriated for DWI program distributions, are appropriated to
the division to make grants to municipalities and counties upon
council approval in accordance with the program established
under the Local DWI Grant Program Act and to evaluate DWI
grantees and the local DWI grant program. Money in the fund
may be used for drug courts. An amount equal to the liquor
excise tax revenues distributed annually to the fund, less five
million six hundred thousand dollars ($5,600,000), is
appropriated to the division to make DWI program distributions
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to counties upon council approval of programs in accordance
with the provisions of the Local DWI Grant Program Act. No
more than six hundred thousand dollars ($600,000) of liquor
excise tax revenues distributed to the fund in any fiscal year
shall be expended for administration of the grant program.
Balances in the fund at the end of any fiscal year shall not
revert to the general fund.
D. Two million eight hundred thousand dollars
($2,800,000) of the liquor excise tax revenues distributed to
the local DWI grant fund is appropriated to the division for
distribution to the following counties in the following amounts
for funding of alcohol detoxification and treatment facilities:
(1) one million seven hundred thousand dollars
($1,700,000) to class A counties with a population of over
three hundred thousand persons according to the 1990 federal
decennial census;
(2) three hundred thousand dollars ($300,000)
each to counties reclassified in 2002 as class A counties with
a population of more than ninety thousand but less than one
hundred thousand persons according to the 1990 federal
decennial census;
(3) two hundred thousand dollars ($200,000) to
class B counties with a population of more than thirty thousand
but less than forty thousand persons according to the 1990
federal decennial census;
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(4) one hundred fifty thousand dollars
($150,000) to class B counties with a population of more than
sixty-two thousand but less than sixty-five thousand persons
according to the 1990 federal decennial census; and
(5) one hundred fifty thousand dollars
($150,000) to class B counties with a population of more than
thirteen thousand but less than fifteen thousand persons
according to the 1990 federal decennial census.
E. three hundred thousand dollars ($300,000) of the
liquor excise tax revenues distributed to the local DWI grant
fund is appropriated to the division for the interlock device
fund.
F. In awarding DWI grants to local communities, the
council:
(1) may fund new or existing innovative or
model programs, services or activities designed to prevent or
reduce the incidence of DWI, alcoholism or alcohol abuse;
(2) may fund existing community-based
programs, services or facilities for prevention, screening and
treatment of alcoholism and alcohol abuse;
(3) may fund new or existing innovative or
model programs, services or activities of any kind designed to
prevent or reduce the incidence of domestic abuse related to
DWI, alcoholism or alcohol abuse;
(4) may fund existing community-based
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programs, services or facilities for prevention and treatment
of domestic abuse related to DWI, alcoholism or alcohol abuse;
(5) shall give consideration to a broad range
of approaches to prevention, education, screening, treatment or
alternative sentencing, including programs that combine
incarceration, treatment and aftercare, to address the problem
of DWI, alcoholism or alcohol abuse; and
(6) shall make grants only to counties or
municipalities in counties that have established a DWI planning
council and adopted a county DWI plan or are parties to a
multicounty DWI plan that has been approved by the council and
approved pursuant to Chapter 43, Article 3 NMSA 1978 and only
for programs, services or activities consistent with that plan.
A DWI plan shall also comply with local DWI grant program rules
and guidelines.
G. The council shall use the criteria in Subsection
F of this section to approve DWI programs, services or
activities for funding through the county DWI program
distribution. Sixty-five percent of the DWI grants awarded to
local communities shall be used for alcohol-related treatment
and detoxification programs ] impaired driving. The division
shall administer the program and shall serve as staff to the
council.
B. A county shall be eligible to receive a grant if
the board of county commissioners of the county has submitted
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to the council a request to use the grant for one or more
programs in the county and the program is approved by the
council and complies with county program guidelines and the
Local Alcohol Harms Alleviation Program Act.
C. No later than April 1 each year, each board of
county commissioners seeking a grant shall make application to
the division for review and approval by the council.
Application shall be made on a form and in a manner determined
by the division. The council shall approve programs eligible
for a grant no later than July 1 of each year. The division
shall provide the grant to each county in quarterly
installments on or before each September 10, December 10, March
10 and June 10."
SECTION 13. Section 11-6A-4 NMSA 1978 (being Laws 1993,
Chapter 65, Section 4, as amended) is amended to read:
"11-6A-4. [DWI GRANT ] LOCAL ALCOHOL HARMS ALLEVIATION
PROGRAM COUNCIL--MEMBERSHIP--DUTIES.--
A. The "[DWI grant] local alcohol harms alleviation
program council" is created and shall consist of:
(1) the president of the New Mexico municipal
league or [his] the president's designee;
(2) the president of the New Mexico
association of counties or [his ] the president's designee;
(3) the secretary of health or the secretary's
designee;
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(4) the secretary of finance and
administration or the secretary's designee;
(5) the secretary of public education or the
secretary's designee;
(6) the secretary of Indian affairs or the
secretary's designee;
(7) the chief of the traffic safety bureau of
the [state highway and transportation ] department of
transportation; and
(8) two representatives of local governing
bodies who shall be appointed by the governor so as to provide
geographic diversity.
B. Appointed members shall be appointed to a two-
year term. In the event of a vacancy, the governor shall
appoint a member for the remainder of the term.
C. The council shall meet as necessary to receive
applications, consider grant requests and [award DWI grants ]
advise the division to make grants to counties pursuant to the
Local [DWI Grant] Alcohol Harms Alleviation Program Act. All
actions of the council require the affirmative vote of a
majority of the members of the council.
D. Members of the council shall be reimbursed for
per diem and mileage in accordance with the Per Diem and
Mileage Act."
SECTION 14. Section 11-6A-5 NMSA 1978 (being Laws 1993,
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Chapter 65, Section 5, as amended) is amended to read:
"11-6A-5. [ADMINISTRATION OF LOCAL DWI GRANT PROGRAM AND
COUNTY DWI PROGRAM DISTRIBUTION--REGULATIONS ] PROMULGATION OF
RULES.--
[A. The division shall administer and evaluate the
local DWI grant program and the county DWI program distribution
and shall serve as staff to the council.
B.] The division, with the advice and approval of
the council, shall [adopt regulations ] promulgate rules
necessary for [operation ] administration of the local [DWI
grant] alcohol harms alleviation program and [the county DWI
program distribution] grants from the local alcohol harms
alleviation fund, including rules for :
[(1)] A. forms and procedures for the application
process for [the local DWI grant program and the county DWI
program distribution] a grant;
[(2)] B. documentation to be provided by the
applicant to assure compliance with the [grant and the ] county
[DWI] program [distribution ] guidelines and [other ] the
provisions of the Local [DWI Grant ] Alcohol Harms Alleviation
Program Act;
[(3)] C. procedures and guidelines for review,
evaluation and approval of [grant awards and for review and
approval of] programs; [to be funded by the county DWI program
distribution;
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(4) procedures and guidelines for oversight,
evaluation and audit of DWI grantees to assure that grants are
being administered in the manner and for the purposes that the
grants were awarded; and
(5)] D. design of an evaluation mechanism for [DWI
grant] county programs [distributions and services ]; and
E. submission by each [DWI grantee ] county of an
annual report or other data on each [local DWI grant program,
distribution or service ] of the county's programs and [its] the
effectiveness and outcomes of the programs ."
SECTION 15. Section 11-6A-6 NMSA 1978 (being Laws 1997,
Chapter 182, Section 2, as amended) is amended to read:
"11-6A-6. [DISTRIBUTION OF CERTAIN LOCAL DWI GRANT
PROGRAM FUNDS--APPROVAL OF PROGRAMS ] EXPENDITURES FROM THE
LOCAL ALCOHOL HARMS ALLEVIATION FUND .--
[A. An amount equal to the liquor excise tax
revenues distributed to the local DWI grant fund for the fiscal
year less five million six hundred thousand dollars
($5,600,000) shall be available for distribution in accordance
with the formula in Subsection B of this section to each county
for council-approved DWI programs, services or activities;
provided that each county shall receive a minimum distribution
of at least one-half percent of the money available for
distribution.
B. Each county shall be eligible for a DWI program
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distribution in an amount derived by multiplying the total
amount of money available for distribution by a percentage that
is the average of the following two percentages;
(1) a percentage equal to a fraction, the
numerator of which is the retail trade gross receipts in the
county and the denominator of which is the total retail trade
gross receipts in the state; and
(2) a percentage equal to a fraction, the
numerator of which is the number of alcohol-related injury
crashes in the county and the denominator of which is the total
alcohol-related injury crashes in the state.
C. A county shall be eligible to receive the
distribution determined pursuant to Subsection B of this
section if the board of county commissioners has submitted to
the council a request to use the distribution for the operation
of one or more DWI programs, services or activities in the
county and the request has been approved by the council. The
request shall also comply with local DWI grant program rules
and guidelines.
D. No later than April 1 each year, each board of
county commissioners seeking approval for the DWI program
distribution pursuant to this section shall make application to
the division for review and approval by the council for one or
more local DWI programs, services or activities in the county.
Application shall be made on a form and in a manner determined
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by the division. The council shall approve the programs
eligible for a distribution no later than July 1 of each year.
The division shall make the annual distribution to each county
in quarterly installments on or before each September 10,
December 10, March 10 and June 10, beginning in September 2004.
The amount available for distribution quarterly to each county
shall be the amount determined by applying the formula in
Subsection B of this section to the amount of liquor excise tax
revenues in the local DWI grant fund at the end of the month
prior to the quarterly installment due date and after one
million three hundred twenty-five thousand dollars ($1,325,000)
has been set aside for the DWI grant program and after the
appropriations and distributions pursuant to Subsections D and
E of Section 11-6A-3 NMSA 1978. ]
A. The "local alcohol harms alleviation fund" is
created as a nonreverting fund in the state treasury. The fund
consists of distributions, appropriations, gifts, grants,
donations and income from investment of the fund. The fund
shall be administered by the division, and, except as provided
in Subsection B of this section, money in the fund is
appropriated to the division to make grants to counties for
programs approved by the council and pursuant to the Local
Alcohol Harms Alleviation Program Act. Expenditures from the
fund shall be by warrant of the secretary of finance and
administration pursuant to vouchers signed by the director of
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the division or the director's authorized representative.
B. On July 1 of each year, three hundred thousand
dollars ($300,000) shall be transferred from the local alcohol
harms alleviation fund to the interlock device fund.
C. Each county shall be eligible for a grant in an
amount derived by multiplying the balance of the local alcohol
harms alleviation fund after the transfer is made pursuant to
Subsection B of this section by a percentage that is the sum of
the following two amounts; provided that each county shall
receive a minimum distribution of at least one-half percent of
the remaining balance of the fund:
(1) one-tenth multiplied by a fraction, the
numerator of which is an amount equal to the population of the
county as determined each year by the department of health and
the denominator of which is the population of the entire state
as determined each year by the department of health; and
(2) nine-tenths multiplied by a fraction, the
numerator of which is an amount equal to the number of
alcohol-related deaths for the county and the denominator of
which is the total alcohol-related deaths for the state.
[E.] D. Grants made to counties pursuant to this
section shall not revert to any fund; provided that if a county
does not have a council-approved [DWI ] program [service or
activity] or does not need the full amount of the available
distribution, the unused money shall revert to the local [DWI
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grant] alcohol harms alleviation fund [and may be used by the
council for the local DWI grant program ].
E. The division may expend up to one million
dollars ($1,000,000) each year for reasonable costs necessary
to administer the local alcohol harms alleviation program and
make grants from the local alcohol harms alleviation fund.
F. As used in this section, [(1) "alcohol-related
injury crashes" means the average annual number of alcohol-
related injury crashes during the period from January 1, 2000
through December 31, 2002, as determined by the traffic safety
bureau of the state highway and transportation department; and
(2) "retail trade gross receipts" means the total reported
gross receipts attributable to taxpayers reporting under the
retail trade industry sector of the state for the most recent
fiscal year as determined by the taxation and revenue
department] "alcohol-related deaths" means the total number of
deaths over the most recently available period of five full
calendar years attributed to alcohol, as calculated by the
department of health."
SECTION 16. [NEW MATERIAL] SHORT TITLE.--Sections 16
through 19 of this act may be cited as the "Tribal Alcohol
Harms Alleviation Program Act".
SECTION 17. [NEW MATERIAL] DEFINITIONS.--As used in the
Tribal Alcohol Harms Alleviation Program Act:
A. "council" means the tribal alcohol harms
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alleviation council; and
B. "department" means the Indian affairs
department.
SECTION 18. [NEW MATERIAL] TRIBAL ALCOHOL HARMS
ALLEVIATION PROGRAM--FUND.--
A. The department shall establish a "tribal alcohol
harms alleviation program" to make grants, upon council
approval pursuant to Section 19 of this 2025 act, to Indian
nations, tribes and pueblos in New Mexico and to local
governments and entities serving tribal nations, tribal
communities, indigenous peoples and urban Indian populations in
New Mexico.
B. The "tribal alcohol harms alleviation fund" is
created as a nonreverting fund in the state treasury. The fund
consists of distributions, appropriations, gifts, grants,
donations and income from investment of the fund. The fund
shall be administered by the department, and, except as
provided in Subsections C and D of this section, money in the
fund is appropriated to the department to make grants pursuant
to the Tribal Alcohol Harms Alleviation Program Act. Any
unexpended or unencumbered balance of a distribution remaining
at the end of a fiscal year shall not revert to any fund.
C. The department may expend up to the following
amounts from the balance of the fund each year, subject to the
availability of money in the fund, and any unexpended or
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unencumbered amounts remaining at the end of a fiscal year
shall revert to the fund:
(1) two million dollars ($2,000,000) for
reasonable costs necessary to administer the fund and to make
grants from the fund; and
(2) three million dollars ($3,000,000) to
conduct culturally appropriate research and evaluation on the
harms and risks of alcohol and substance misuse.
D. On July 1 of 2027 through 2036, subject to the
availability of money in the fund, three million dollars
($3,000,000) shall be appropriated from the fund to the board
of regents of the university of New Mexico for the university's
center on alcohol, substance abuse and addictions and division
of community behavioral health with the department of
psychiatry and behavioral sciences to perform interdisciplinary
cross-campus research on alcohol policy and prevention efforts
and conduct community-engaged studies to assess the public
health and economic impacts of the liquor excise tax and liquor
excise surtax. If, after the amounts pursuant to Subsection C
of this section are deducted, the balance of the fund is less
than three million dollars ($3,000,000), then the balance of
the fund may be appropriated as provided in this subsection.
Any unexpended or unencumbered balance of the appropriated
amount remaining at the end of a fiscal year shall revert to
the fund.
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E. On or before December 1 of each year, the
secretary of Indian affairs, the director of the university of
New Mexico's center on alcohol, substance abuse and addictions
and the division chief of the university of New Mexico's
division of community behavioral health shall report the
results and findings from the research and evaluation performed
pursuant to this section to the legislative finance committee
and the revenue stabilization and tax policy committee.
F. Expenditures from the fund shall be by warrant
of the secretary of finance and administration pursuant to
vouchers signed by the secretary of Indian affairs or the
secretary's authorized representative.
SECTION 19. [NEW MATERIAL] TRIBAL ALCOHOL HARMS
ALLEVIATION COUNCIL--MEMBERSHIP--DUTIES.--
A. The department shall establish a "tribal alcohol
harms alleviation council" that consists of representatives
from Indian nations, tribes and pueblos located in New Mexico,
four representatives serving urban Indian populations in New
Mexico and tribal behavioral health regions identified by the
department.
B. The council shall meet as necessary to receive
applications, consider funding requests and approve grants to
be made by the department to Indian nations, tribes and pueblos
and local governments and entities serving tribal nations,
tribal communities, indigenous peoples and urban Indian
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populations for preventing or reducing harms and risks
associated with substance misuse among tribal nations, tribal
communities, indigenous peoples and urban Indian populations.
C. Once the council has approved a grant, the
council shall notify the department, and the department shall
promptly make the grant from the tribal alcohol harms
alleviation fund to the recipient approved by the council,
subject to availability of money in the fund.
SECTION 20. Section 60-6A-11.1 NMSA 1978 (being Laws
2011, Chapter 109, Section 1) is amended to read:
"60-6A-11.1. DIRECT WINE SHIPMENT PERMIT--AUTHORIZATION--
RESTRICTIONS.--
A. A licensee with a winegrower's license or a
person licensed in a state other than New Mexico that holds a
winery license may apply to the director for and the director
may issue to the applicant a direct wine shipment permit. An
application for a direct wine shipment permit shall include:
(1) contact information for the applicant in a
form required by the department;
(2) an annual application fee of fifty dollars
($50.00) if the applicant does not hold a winegrower's license;
(3) the number of the applicant's winegrower's
license if the applicant is located in New Mexico or a copy of
the applicant's winery license if the applicant is located in a
state other than New Mexico; and
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(4) any other information or documents
required by the director. Upon approval of an applicant for a
permit, the director shall forward to the taxation and revenue
department the name of each permittee and the contact
information for the permittee.
B. A direct wine shipment permit shall be valid for
a permit year. A permittee shall renew a direct wine shipment
permit annually as required by the department to continue
making direct shipments of wine to New Mexico residents.
C. A permittee may ship:
(1) not more than two nine-liter cases of wine
monthly to a New Mexico resident who is twenty-one years of age
or older for the recipient's personal consumption or use, but
not for resale; and
(2) wine directly to a New Mexico resident
only in containers that are conspicuously labeled with the
words:
"CONTAINS ALCOHOL
SIGNATURE OF PERSON 21 YEARS OR OLDER REQUIRED
FOR DELIVERY".
D. A permittee shall:
(1) register with the taxation and revenue
department for the payment of the liquor excise tax, liquor
excise surtax and gross receipts taxes due on the sales of wine
pursuant to the permittee's activities in New Mexico;
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(2) submit to the jurisdiction of New Mexico
courts to resolve legal actions that arise from the shipping by
the permittee of wine into New Mexico to New Mexico residents;
(3) monthly, by the twenty-fifth day of each
month following the month in which the permittee was issued a
direct wine shipment permit, pay to the taxation and revenue
department the liquor excise tax, [due ] liquor excise surtax
and [the] gross receipts tax due; and
(4) submit to an audit by an agent of the
taxation and revenue department of the permittee's records of
the wine shipped pursuant to this section to New Mexico
residents upon notice and during usual business hours.
E. As used in this section:
(1) "permit year" means the period between
July 1 and June 30 of a year; and
(2) "permittee" means a person that is the
holder of a direct wine shipment permit."
SECTION 21. TEMPORARY PROVISION--LOCAL DWI GRANT FUND
DEEMED LOCAL ALCOHOL HARMS ALLEVIATION FUND.--References to the
local DWI grant fund shall be deemed as references to the local
alcohol harms alleviation fund.
SECTION 22. TEMPORARY PROVISION--REVIEW OF LIQUOR EXCISE
TAXES AND DISTRIBUTIONS.--By December 1, 2032, the legislative
finance committee and the revenue stabilization and tax policy
committee shall review the rates of the liquor excise tax and
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liquor excise surtax and the distributions from those taxes to
determine if any changes should be made to the rates of the
taxes or the distributions.
SECTION 23. APPROPRIATIONS.--
A. Two million dollars ($2,000,000) is appropriated
from the local alcohol harms alleviation fund to the Indian
affairs department for expenditure in fiscal year 2026 and
subsequent fiscal years to prepare for the administration of
the Tribal Alcohol Harms Alleviation Program Act and begin to
conduct the research and evaluation required pursuant to that
act. Any unexpended or unencumbered balance remaining at the
end of a fiscal year shall not revert to the local alcohol
harms alleviation fund.
B. One million dollars ($1,000,000) is appropriated
from the local alcohol harms alleviation fund to the board of
regents of the university of New Mexico to be divided equally
among the university's center on alcohol, substance abuse and
addictions and division of community behavioral health with the
department of psychiatry and behavioral sciences for
expenditure in fiscal year 2026 and subsequent fiscal years to
begin to conduct the research and studies required pursuant to
the Tribal Alcohol Harms Alleviation Program Act. Any
unexpended or unencumbered balance remaining at the end of a
fiscal year shall not revert to the local alcohol harms
alleviation fund.
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SECTION 24. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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