Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Maestas
LAST UPDATED
ORIGINAL DATE 3
/5/2025
SHORT TITLE Liquor Changes
BILL
NUMBER Senate Bill 466
ANALYST Montano
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected
License
Fee
No fiscal
impact
Net Zero Net Zero Net Zero Net Zero Recurring General Fund
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
RLD/ABC No fiscal impact $40.0 No fiscal impact $40.0 Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Regulation and Licensing Department (RLD)
SUMMARY
Synopsis of Senate Bill 466
Senate Bill 466 (SB466) introduces several amendments to New Mexico’s Liquor Control Act,
focusing on restaurant liquor licenses, licensing fees, and local regulatory flexibility. The bill
modifies the structure of restaurant liquor licenses by creating a new “Restaurant C” license,
which permits the sale and service of only beer and wine. It also revises the definitions and
conditions for Restaurant A and Restaurant B licenses. A Restaurant A license would now allow
for the sale of beer, wine, and spirituous liquors that are produced by or for a craft distiller, while
a Restaurant B license would now permit the sale of beer, wine, and spirituous liquors. The bill
eliminates several restrictions on Restaurant B license holders, including language that limits
Restaurant B license holders from serving customers no more than three drinks containing 1.5
ounces of spirituous liquor per visit or the requirement for renewal of a Restaurant B license that
food sales comprise at least 60 percent of total gross receipts from the 12 months prior to the
renewal. Additionally, the bill eliminates the requirement that a holder of a Restaurant A license
maintain a good standing for 12 consecutive months before applying for a New Mexico
spirituous liquor permit. Senate Bill 466 – Page 2
The bill also revises licensing fees, increasing the renewal cost for a Restaurant A license from
$1,050 to $1,550, while setting the fee for a Restaurant B license at $10,000 for the first year and
$6,000 for each subsequent year. The new Restaurant C license is assigned a renewal fee of
$1,050. Other wholesale and retail liquor license fees remain unchanged.
SB466 creates a new section of the Liquor Control Act establishing local entertainment zones.
Counties and municipalities may now designate specific areas as entertainment zones through
ordinances or resolutions. These zones are intended to support local businesses by promoting
leisure, arts, culture, and entertainment. Local governments may modify alcohol regulations
within these zones, including adjusting open container laws, altering service hours, and enacting
customized licensing rules. To qualify, an entertainment zone must have a clearly defined
boundary and demonstrate a concentration of businesses such as restaurants, bars, theaters, and
music venues.
The bill removes prior restrictions that prohibited liquor-licensed establishments from operating
near churches, thereby allowing businesses to obtain licenses regardless of their proximity to
places of worship. Additionally, SB466 repeals Section 60-6B-10 of the Liquor Control Act,
which previously imposed zoning and operational restrictions on liquor-licensed businesses. By
eliminating these provisions, the bill streamlines regulations and aligns them with the newly
introduced entertainment zone framework.
The effective date of this bill is July 1, 2025.
FISCAL IMPLICATIONS
The Regulation and Licensing Department (RLD) projects that the enactment of SB466 will not
affect the Alcohol Beverage Control division’s (ABC) net revenue. Decreasing the renewal cost
for Restaurant B licenses will be offset by an increase in the number of Restaurant B licenses
renewed each year.
RLD projects the costs of developing, programming, and implementing the necessary changes
entailed in SB466 to be around $40 thousand. The $40 thousand would be the cost to update the
NM Plus licensing system to change current liquor licenses and to add the newly created
Restaurant C license type.
SIGNIFICANT ISSUES
RLD notes:
Section 3, page 11, lines 1 through 6, of the bill allows the governing body to adopt its
own regulations governing the public purchase, possession and consumption of alcohol,
including open container allowances, hours of operation and licensing provisions
notwithstanding any limitations set forth by the act. This will allow municipalities and
counties to disregard state statutes, concerning the public purchase, possession and
consumption of alcohol, hours of operation, and even the licensing requirements set by
the state and instead institute their own laws to be followed as long as the area has been
deemed by them as an entertainment zone. It will allow local municipalities or counties to
pass alcohol ordinances that contradict the restrictions placed by the Act, including but
not limited to: Senate Bill 466 – Page 3
Hours of operation past 11pm for restaurant licenses and beyond 2am for
dispenser’s licenses and retail licenses.
Allowing alcohol service and consumption in unlicensed public establishments.
This change to the law will create significant challenges for the ABC and the Special
Investigations Unit (SIU) at the Department of Public Safety in enforcing state liquor
laws. It will create a jurisdictional checkerboard across the state, making enforcement of
liquor laws with any consistency very difficult to impossible.
PERFORMANCE IMPLICATIONS
RLD notes:
Existing ABC staff will be able to handle any changes in initial license and renewal
applications the Bill may cause. However, it must be noted that the changes made by
Section 3 of SB466 will impose substantial difficulties for the ABC and SIU concerning
any consistent enforcement of the act statewide.
TECHNICAL ISSUES
RLD notes:
Section 1, page 4, lines 5 through 8 currently reads “the applicant shall satisfy the
director that the primary source of revenue from the operation of the restaurant will be
derived from food and not from the sale of beer and wine. This will need to be corrected
to read “the applicant shall satisfy the director that the primary source of revenue from
the operation of the restaurant will be derived from food and not from the sale of
alcoholic beverages.” The reason is that the language contained in these lines currently
only applies to Restaurant A Licenses (which only sell and serve beer and wine) while
the amendments the Bill makes will apply to all Restaurant License types.
SB466 as drafted only requires Restaurant A Licenses to cease alcohol service at time
food sales and service ceases or at 11:00pm, whichever is earlier. If the intent is to apply
to all restaurant licenses Section 1, Page 4, lines 17 through 20 will need to be amended.
Section 3, page 11, lines 1 through 6, of the Bill contradict Section 3, page 11, lines 7
through 10. Section 3, page 11, lines 1 through 6, of the Bill allows the LOD governing
body to adopt its own regulations governing the public purchase, possession and
consumption of alcohol, including open container allowances, hours of operation and
licensing provisions despite any limitations set forth by the Act. Section 3, page 11, lines
7 through 10, of the Bill require that establishments within an entertainment zone, that
sell and serve alcoholic beverages, comply with all applicable Liquor Control Act
licensing requirements and any additional conditions imposed by the governing body.
NM/sgs/SL2