HB 417 — LIQUOR TAX CHANGES & PROGRAMS

el t] 17b ,d i a º r (a) cash discounts allowed and taken;

we lr n= dt 18e (b)w Newd Mexicom gross receipts tax, = = 19 a ln governmentalo gross(b) receiptsNew tax,Mexico leased vehicle gross receipts i a e r 20 tax, [and]d cannabis excise tax and taxes imposed pursuant to a t m m: 21 the Liquor Excise Tax Act payable on transactions for the d r e 22 reporting period;

cb r e st kº 23o (c)t taxesn imposed= pursuant.230379.4AIC toFebruary the24, 2025 (9:03pm) s k m e - 5 - e a n be 24d provisionsr ofe anyl localu option[ A d governmental gross receipts tax, leased vehicle gross receipts tax, [and ] cannabis excise tax thatand istaxes uimposed [pursuant to the Liquor Excise Tax Act payable on transactions for the reporting period;

.230379.4(c) -taxes 5imposed -pursuant (d)to the provisions of any local option gross receipts ortax salesthat taxesis imposedpayable byon antransactions Indianfor nation,the tribereporting orperiod; pueblo;

(d) any gross receipts or sales taxes imposed by an Indian nation, tribe or pueblo;

h (e) any type of time-price differential;

u » r (f) amounts received solely on behalf of t h g e l i another in a disclosed agency capacity;

and h r i s (g) amounts received by a New Mexico h , e h florist from the sale of flowers, plants or other products that t u g e b l e e , gh are customarily sold by florists where the sale is made n d d i = = o h pursuant to orders placed with an out-of-state florist for el t] 17b ,d i a º r filling and delivery in New Mexico by a New Mexico florist.

we lr n= t e w d 18m a n o B.

When the sale of property or service is made =d = 19 a l under any type of charge, conditional or time-sales contract or i a e r 20 the leasing of property is made under a leasing contract, the a t m m: 21 seller or lessor may elect to treat all receipts, excluding any d r e 22 type of time-price differential, under such contracts as gross c e s k 23 receipts as and when the payments are actually received.

Ifb r e at º o t n b= 24.230379.4AIC theFebruary seller24, or2025 lessor(9:03pm) transferss thek seller'sm ore lessor's- 6 - e a n e d r e l u [ interestA ind under any suchtype contractof tocharge, aconditional thirdor person,time-sales thecontract seller or .230379.4the -leasing 6of -property lessoris shallmade payunder thea grossleasing receiptscontract, taxthe uponseller theor fulllessor salemay orelect leasingto contracttreat amount,all receipts, excluding any type of time-price differential."differential, SECTIONunder 3.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 lessor shall pay the gross receipts tax upon the full sale or leasing contract amount, excluding any type of time-price differential." SECTION 3.

"alcoholic beverages" means distilled or rectified spirits, potable alcohol, brandy, whiskey, rum, gin, h aromatic bitters or any similar beverage, including blended or u » r fermented beverages, dilutions or mixtures of one or more of t h g e l i the foregoing containing more than one-half of one percent h r i s alcohol by volume, but "alcoholic beverages" does not include h , e h medicinal bitters;

t u g e b l e e , gh B.

"barrel" means the equivalent of thirty-one n d d i = = o h gallons;

el t] 17b ,d i a º r [B.] C.

"beer" means an alcoholic beverage obtained we lr n= t e w d 18m a n o by the fermentation of any infusion or decoction of barley, =d =m 19: a l malt and hops or other cereals in water and includes porter, i a e r 20 beer, ale and stout;

ab r e t mº o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m 21e [C.]- D.7 - e a n e d r e l u [ A d malt and hops or other cereals in water and includes porter, beer, ale and stout;

"cider"[C. means an alcoholic beverage made d r e 22 from the normal alcoholic fermentation of the juice of sound, c e s k 23 ripe apples or pears that contains not less than one-half of e a n b 24 one percent of alcohol by volume and not more than eight and u [ one-half percent of alcohol by volume;

.230379.4] -D. 7 - [D.] E.

"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;

[D.

] E.

[E.][E. F.

] F.

(1) wine that is sealed or capped by cork h closure and aged two years or more;

g o t hr (2) wine that contains more than fourteen g e i k percent alcohol by volume solely as a result of the natural h r i s fermentation process and that has not been produced with the h , t, addition of wine spirits, brandy or alcohol;

or e u g e b l e e h (3) vermouth and sherry;

[F.]n G.d d i = = o h [F.

"microbrewer"] meansG. a person who produces e t 17 less than two hundred thousand barrels of beer per year;

w"microbrewer" means a person who produces l n] db 18,d [G.]i H.a º e less than two hundred thousand barrels of beer per year;

"person"r includes,i to the extent permitted = =r 19t a l by law, a federal, state or other governmental unit or i a e rw 20d subdivisionm or an agency, department, institution or a tn mo m[G. 21 instrumentality thereof;

d] rH. e 22 I.

"retailer""person" meansincludes, ato person having a place of c e s k 23 business in New Mexico who sells, offers for sale or possesses e a n b 24 for the purposeextent ofpermitted sellingd alcoholicm beverages: in New Mexico;

b e d s º o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 8 - e a n e d r e l u [ [H.]A J.d by law, a federal, state or other governmental unit or subdivision or an agency, department, institution or instrumentality thereof;

"smallI. winegrower" means a winegrower who .230379.4 - 8 - produces less than one million five hundred thousand liters of wine in a year;

"retailer" means a person having a place of business in New Mexico HTRCº, excluding winegrowers, persons issued a small brewer's license pursuant to Section 60-6A-26.1 NMSA 1978 and persons issued a craft distiller's license pursuant to Section 60-6A-6.1 NMSA 1978»HTRC 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 produces less than one million five hundred thousand liters of wine in a year;

h [J.] L.

"wholesaler" means a person holding a g o t hr license issued under Section 60-6A-1 NMSA 1978 or a person g e i k selling alcoholic beverages that were not purchased from a h r i s person holding a license issued under Section 60-6A-1 NMSA h , t, e u g 1978;

e b l e e h [K.] M.

"wine" means an alcoholic beverage other n d d i = = o h than cider that is obtained by the fermentation of the natural l ] b ,d i a º e sugar contained in fruit or other agricultural products, with r i = r t e w d m a n o or without the addition of sugar or other products, and that doesd notm contain: more than twenty-one percent alcohol by volume;

andb e d s º o t 17n [L.]= N..230379.4AIC February 24, 2025 (9:03pm) s k m e - 9 - e a n e d r e l u [ A d does not contain more than twenty-one percent alcohol by volume;

"winegrower"and means[L. a person licensed w l n d 18 pursuant to Section 60-6A-11 NMSA 1978." = = 19 a l SECTION 4.

A] newN. section of the Liquor Excise Tax Act, i a e r 20 Section 7-17-5.2 NMSA 1978, is enacted to read:

"winegrower" means a tperson mlicensed mpursuant 21to "7-17-5.2.Section 60-6A-11 NMSA 1978." SECTION 4.

[NEWA MATERIAL]new IMPOSITION AND RATE OF LIQUOR d r e 22 EXCISE SURTAX.--Beginning July 1, 2026, there is imposed on a c e s k 23 retailer who sells alcoholic beverages not for resale on which e a n b 24 the surtax imposed by this section has not been paid an excise u [ surtax, to be referred to as the "liquor excise surtax", at the .230379.4 - 9 - rate of six percent of the priceLiquor paidExcise forTax alcoholicAct, beveragesSection sold7-17-5.2 byNMSA the1978, retailer."is SECTIONenacted 5.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 rate of six percent of the price paid for alcoholic beverages sold by the retailer." SECTION 5.

DEDUCTION--INTERSTATE SALES--WINEGROWER-TO- h WINEGROWER TRANSFERS.-- g o t hr A.

A wholesaler may deduct the liters of spirituous g e i k liquors, gallons of beer and liters of wine sold and shipped to h r i s a person in another state from the units of alcoholic beverages h , t, subject to the [tax][tax ] taxes imposed by the Liquor Excise Tax e u g e b l e e h Act;

provided that the department may require the wholesaler to n d d i = = o h submit evidence satisfactory to the department that the units l ] b ,d i a º e have been sold and shipped to a person in another state.

r i = r t e w d m a n o 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 e t 17 transferor from the units of wine subject to the [liquor excise w l n d 18m tax]: taxes imposed by the Liquor Excise Tax Act on the licensed = = 19 a l premises of the winegrower." i a e r 20 SECTION 6.

Sectionb 7-17-9e NMSAd 1978s (beingº Lawso 1966,t an t= m.230379.4AIC February 24, 2025 (9:03pm) s k m 21e Chapter- 49,10 Section- 7,e asa amended)n ise amendedd r e l u [ A d transferred to read: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.

dSection r7-17-9 eNMSA 221978 "7-17-9.(being Laws 1966, Chapter 49, Section 7, as amended) is amended to read:

EXEMPTION--CERTAIN"7-17-9. SALES TO OR BY c e s k 23 INSTRUMENTALITIES OF ARMED FORCES.--Exempted from the [tax e a n b 24 imposed by Section 7-17-5 NMSA 1978] taxes imposed by the u [ Liquor Excise Tax Act are alcoholic beverages sold to or by any .230379.4 - 10 - instrumentality of the armed forces of the United States engaged in resale activities." SECTION 7.

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 instrumentality of the armed forces of the United States engaged in resale activities." SECTION 7.

DATE PAYMENT DUE.--The [tax][tax ] taxes imposed by h the Liquor Excise Tax Act [is][is ] are to be paid on or before the g o t hr twenty-fifth day of the month following the month in which the g e i k taxable event occurs." h r i s SECTION 8.

Section 7-17-11 NMSA 1978 (being Laws 1969, h , t, e u g Chapter 80, Section 1, as amended) is amended to read:

e b l e e h "7-17-11.

REFUND OR CREDIT OF [TAX][TAX ] TAXES.--The n d d i = = o h department shall allow a claim for refund or credit as provided l ] b ,d i a º e in Sections 7-1-26 and 7-1-29 NMSA 1978 for the [tax imposed by Sectionr 7-17-5i NMSA= 1978]r taxest imposede byw thed Liquorm Excisea Taxn Acto andSection paid7-17-5 onNMSA alcoholic1978] beveragestaxes destroyedimposed inby shipment, spoiled or otherwise damaged as to be unfit for sale or e t 17 consumption upon submission of proof satisfactory to the wLiquor lExcise n d 18m department: of such destruction, spoilage or damage." = = 19 a l SECTION 9.

Sectionb 7-17-12e NMSAd 1978s (beingº Lawso 1984,t in = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 11 - e a n e d r 20e Chapterl 85,u Section[ 8,A d Tax Act and paid on alcoholic beverages destroyed in shipment, spoiled or otherwise damaged as amended)to isbe amendedunfit for sale or consumption upon submission of proof satisfactory to read:the department of such destruction, spoilage or damage." SECTION 9.

aSection t7-17-12 mNMSA m1978 21(being "7-17-12.Laws 1984, Chapter 85, Section 8, as amended) is amended to read:

INTERPRETATION"7-17-12. OF ACT--ADMINISTRATION AND d r e 22 ENFORCEMENT OF [TAX] TAXES.-- c e s k 23 A.

TheINTERPRETATION departmentOF shallACT--ADMINISTRATION interpretAND theENFORCEMENT provisionsOF of[TAX e] aTAXES.-- nA. b 24 the Liquor Excise Tax Act.

uThe [department B.shall interpret the provisions of the Liquor Excise Tax Act.

The department shall administer and enforce the .230379.4 - 11 - 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." e t 17 SECTION 12.

Section 11-6A-3 NMSA 1978 (being Laws 1993, w l n d 18 Chapter 65, Section 3, as amended) is amended to read:

= = 19 a l "11-6A-3.

LOCAL [DWI GRANT] ALCOHOL HARMS ALLEVIATION i a e r 20 PROGRAM--[FUND] ELIGIBILITY FOR GRANTS.-- a t m m 21 A.

The division shall establish a "local [DWI d r e 22 grant] alcohol harms alleviation program" to make grants from c e s k 23 the local alcohol harms alleviation fund to [municipalities or] e a n b 24 counties upon council approval for [(1) new] innovative or u [ model programs [services or activities] that include awareness .230379.4 - 12 - 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.

GrantsThe department shall beadminister awardedand enforce the collection of the [liquor excise tax ] taxes imposed by the councilLiquor pursuantExcise Tax Act, and the Tax Administration Act applies to the adviceadministration and recommendationsenforcement of the division.[tax ] taxes." SECTION 10.

C.Section 11-6A-1 NMSA 1978 (being Laws 1993, Chapter 65, Section 1) is amended to read:

Theh "local"11-6A-1. DWI grant fund" is created in the state treasury and shall be administered by the division.

TwoSHORT millionTITLE.--[Sections five1 hundredthrough thousand5 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 sectiong ando money e t 17hr appropriatedact] forChapter DWI11, programArticle distributions,6A areNMSA appropriated1978 tomay wbe lcited nas d 18 the divisiong toe make grants to municipalities and counties upon = = 19 a l council approval in accordance with the program established i ak e"Local r[DWI 20Grant under] theAlcohol LocalHarms DWIAlleviation Grant Program ActAct"." andh tor evaluatei DWIs aSECTION t11. m m 21 grantees and the local DWI grant program.

MoneySection in11-6A-2 theNMSA fund1978 d(being rLaws 1993, h , t, e 22u mayg beChapter used65, forSection drug2) courts.is amended to read:

Ane amountb equall to the liquor c e s k 23 excise tax revenues distributed annually to the fund, less five e ah n"11-6A-2. b 24 million six hundred thousand dollars ($5,600,000), is u [ appropriated to the division to make DWI program distributions .230379.4 - 13 - to counties upon council approval of programs in accordance with the provisions of the Local DWI Grant Program Act.

DEFINITIONS.--As used in the Local [DWI Grant ] n d d i = = o h Alcohol Harms Alleviation Program Act:

l ] b ,d i a º e A.

"council" means the [DWI grant ] local alcohol r i = r t e w d m a n o harms alleviation council;

and d m :

b e d s º o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 12 - e a n e d r e l u [ A d 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 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 h or activities to prevent or reduce the incidence of domestic g o t hr abuse related to DWI, alcoholism, alcohol abuse, drug addiction g e i k or drug abuse.

h r i s B.

Grants shall be awarded by the council pursuant h , t, to the advice and recommendations of the division.

e u g e b l e e h C.

The "local DWI grant fund" is created in the n d d i = = o h state treasury and shall be administered by the division.

Two l ] b ,d i a º e million five hundred thousand dollars ($2,500,000) of liquor r i = r t e w d m a n o excise tax revenues distributed to the fund and all other money d m :

b e d s º o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 13 - e a n e d r e l u [ A d 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 to counties upon council approval of programs in accordance with the provisions of the Local DWI Grant Program Act.

h Balances in the fund at the end of any fiscal year shall not u » r revert to the general fund.

t h g e l i D.

Two million eight hundred thousand dollars h r i s ($2,800,000) of the liquor excise tax revenues distributed to h , e h the local DWI grant fund is appropriated to the division for t u g e b l e e , gh distribution to the following counties in the following amounts n d d i = = o h for funding of alcohol detoxification and treatment facilities:

l ] b ,d i a º r (1) one million seven hundred thousand dollars e r = t e w d m a n o ($1,700,000) to class A counties with a population of over threed hundredm thousand: persons according to the 1990 federal decennial census;

b r e t 17º (2)o threet hundred thousand dollars ($300,000) w l n d= 18.230379.4AIC eachFebruary to24, counties2025 reclassified(9:03pm) ins 2002k asm classe A- counties14 with- =e = 19 a ln ae populationd ofr moree thanl ninetyu thousand[ butA lessd thanthree one i a e r 20 hundred thousand persons according to the 1990 federal a t m m 21 decennial census;

d(2) rthree e 22 (3) two hundred thousand dollars ($200,000)($300,000) each to ccounties ereclassified sin k2002 23as class BA counties with a population of more than thirtyninety thousand e a n b 24 but less than fortyone hundred thousand persons according to the 1990 u [ federal decennial census;

.230379.4(3) -two 14 - (4) one hundred fifty thousand dollars ($150,000)($200,000) to class B counties with a population of more than sixty-twothirty thousand but less than sixty-fiveforty thousand persons according to the 1990 federal decennial census;

and(4) (5) one hundred fifty thousand dollars ($150,000) to class B counties with a population of more than thirteensixty-two thousand but less than fifteensixty-five thousand persons according to the 1990 federal decennial census.census;

E.and (5) one hundred fifty thousand dollars h ($150,000) to class B counties with a population of more than u » r thirteen thousand but less than fifteen thousand persons t h g e l i according to the 1990 federal decennial census.

threeh hundredr thousandi dollarss ($300,000)E. of the liquor excise tax revenues distributed to the local DWI grant fund is appropriated to the division for the interlock device fund.

F.three hundred thousand dollars ($300,000) of the h , e h liquor excise tax revenues distributed to the local DWI grant t u g e b l e e , gh fund is appropriated to the division for the interlock device n d d i = = o h fund.

Inl awarding] DWIb grants,d toi locala communities,º ther council:F.

(1)In mayawarding fundDWI newgrants orto existinglocal innovativecommunities, orthe modele programs,r services= ort activities designed to prevent or e tw 17d reducem thea incidencen ofo DWI,council: alcoholism or alcohol abuse;

w l n d 18m (2): may fund existing community-based = = 19 a l programs, services or facilities for prevention, screening and i a e r 20 treatment of alcoholism and alcohol abuse;

ab r e t mº mo 21t (3)n may= fund.230379.4AIC newFebruary or24, existing2025 innovative(9:03pm) ors dk rm e 22- model15 programs,- servicese ora activitiesn ofe anyd kindr designede tol cu e[ sA kd 23(1) preventmay fund new or reduceexisting theinnovative incidenceor ofmodel domesticprograms, abuseservices relatedor activities designed to eprevent aor nreduce bthe 24incidence of DWI, alcoholism or alcohol abuse;

u(2) [ (4) may fund existing community-based .230379.4 - 15 - programs, services or facilities for preventionprevention, screening and treatment of domestic abuse related to DWI, alcoholism orand alcohol abuse;

(5)(3) shallmay givefund considerationnew toor aexisting broadinnovative rangeor ofmodel approachesprograms, toservices prevention, education, screening, treatment or alternativeactivities sentencing,of includingany programskind thatdesigned combineto incarceration,prevent treatmentor andreduce aftercare,the toincidence addressof thedomestic problemabuse ofrelated to DWI, alcoholism or alcohol abuse;

and(4) (6)may shallfund makeexisting grantscommunity-based onlyprograms, toservices counties or municipalitiesfacilities infor countiesprevention that have established a DWI planning council and adoptedtreatment aof countydomestic DWIabuse planrelated or are parties to aDWI, multicountyalcoholism 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 activitiesalcohol consistentabuse; with that plan.

A(5) DWIshall plangive shallconsideration alsoto complya withbroad localrange DWIof grantapproaches programto rulesprevention, education, screening, treatment or alternative sentencing, including programs that combine h incarceration, treatment and guidelines.aftercare, to address the problem u » r of DWI, alcoholism or alcohol abuse;

and t h g e l i (6) shall make grants only to counties or h r i s municipalities in counties that have established a DWI planning h , e h council and adopted a county DWI plan or are parties to a t u g e b l e e , gh multicounty DWI plan that has been approved by the council and n d d i = = o h approved pursuant to Chapter 43, Article 3 NMSA 1978 and only l ] b ,d i a º r for programs, services or activities consistent with that plan.

e r = t e w d m a n o A DWI plan shall also comply with local DWI grant program rules d m :

b r e t º o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 16 - e a n e d r e l u [ A d and guidelines.

The council shall use the criteria in Subsection e t 17 F of this section to approve DWI programs, services or w l n d 18 activities for funding through the county DWI program = = 19 a l distribution.

Sixty-five percent of the DWI grants awarded to i a e r 20 local communities shall be used for alcohol-related treatment a t m m 21 and detoxification programs] impaired driving.

The division d r e 22 shall administer the program and shall serve as staff to the c e s k 23 council.

e a n b 24 B.

A county shall be eligible to receive a grant if u [ the board of county commissioners of the county has submitted .230379.4 - 16 - 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.

No later than April 1 each year, each board of h county commissioners seeking a grant shall make application to g o t hr the division for review and approval by the council.

g e i k Application shall be made on a form and in a manner determined h r i s by the division.

The council shall approve programs eligible h , t, for a grant no later than July 1 of each year.

The division e u g e b l e e h shall provide the grant to each county in quarterly n d d i = = o h installments on or before each September 10, December 10, March l ] b ,d i a º e 10 and June 10." r i = r t e w d m a n o SECTION 13.

Section 11-6A-4 NMSA 1978 (being Laws 1993, Chapterd 65,m Section: 4, as amended) is amended to read:

b e d s º o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 17 - e a n e d r e l u [ A d Chapter 65, Section 4, as amended) is amended to read:

[DWI GRANT]GRANT ] LOCAL ALCOHOL HARMS ALLEVIATION e t 17 PROGRAM COUNCIL--MEMBERSHIP--DUTIES.-- w l n d 18 A.

The "[DWI grant] local alcohol harms alleviation = = 19 a l program council" is created and shall consist of:

i a e r 20 (1) the president of the New Mexico municipal a t m m 21 league or [his][his ] the president's designee;

d r e 22 (2) the president of the New Mexico c e s k 23 association of counties or [his][his ] the president's designee;

e a n b 24 (3) the secretary of health or the secretary's u [ designee;

.230379.4 - 17 - (4) the secretary of finance and administration or the secretary's designee;

(6) the secretary of Indian affairs or the h secretary's designee;

g o t hr (7) the chief of the traffic safety bureau of g e i k the [state highway and transportation]transportation ] department of h r i s transportation;

and h , t, (8) two representatives of local governing e u g e b l e e h bodies who shall be appointed by the governor so as to provide n d d i = = o h geographic diversity.

l ] b ,d i a º e B.

Appointed members shall be appointed to a two- r i = r t e w d m a n o year term.

In the event of a vacancy, the governor shall appointd am member: for the remainder of the term.

b e d s º o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 18 - e a n e d r e l u [ A d appoint a member for the remainder of the term.

The council shall meet as necessary to receive e t 17 applications, consider grant requests and [award DWI grants]grants w] l n d 18 advise the division to make grants to counties pursuant to the = = 19 a l Local [DWI Grant]Grant ] Alcohol Harms Alleviation Program Act.

All i a e r 20 actions of the council require the affirmative vote of a a t m m 21 majority of the members of the council.

d r e 22 D.

Members of the council shall be reimbursed for c e s k 23 per diem and mileage in accordance with the Per Diem and e a n b 24 Mileage Act." u [ SECTION 14.

Section 11-6A-5 NMSA 1978 (being Laws 1993, .230379.4 - 18 - Chapter 65, Section 5, as amended) is amended to read:

The division shall administer and evaluate the h local DWI grant program and the county DWI program distribution g o t hr and shall serve as staff to the council.

g e i k B.] The division, with the advice and approval of h r i s the council, shall [adopt regulations]regulations ] promulgate rules h , t, necessary for [operation] administration of the local [DWI e u g e b l e e h grant] alcohol harms alleviation program and [the county DWI n d d i = = o h program distribution] grants from the local alcohol harms l ] b ,d i a º e alleviation fund, including rules for:

[(1)]r i = r t e w d m a n o [(1) ] A.

forms and procedures for the application processd form [the: local DWI grant program and the county DWI program distribution] a grant;

b e d s º o t 17n [(2)]= B..230379.4AIC February 24, 2025 (9:03pm) s k m e - 19 - e a n e d r e l u [ A d process for [the local DWI grant program and the county DWI program distribution] a grant;

documentation[(2) to] beB. provided by the w l n d 18 applicant to assure compliance with the [grant and the] county = = 19 a l [DWI] program [distribution] guidelines and [other] the i a e r 20 provisions of the Local [DWI Grant] Alcohol Harms Alleviation a t m m 21 Program Act;

ddocumentation rto ebe 22provided [(3)]by C.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;

procedures[(3) and] guidelinesC. for review, c e s k 23 evaluation and approval of [grant awards and for review and e a n b 24 approval of] programs;

[toprocedures beand fundedguidelines byfor thereview, countyevaluation DWIand programapproval uof [[grant distribution;awards and for review and approval of] programs;

.230379.4[to -be 19funded -by (4)the procedurescounty and guidelines for oversight, evaluation and audit of DWI granteesprogram todistribution; assure that grants are being administered in the manner and for the purposes that the grants were awarded;

(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;

design of an evaluation mechanism for [DWI h grant] county programs [distributions and services];

and g o t hr E.

submission by each [DWI grantee] county of an g e i k annual report or other data on each [local DWI grant program, h r i s distribution or service] of the county's programs and [its] the h , t, effectiveness and outcomes of the programs." e u g e b l e e h SECTION 15.

Section 11-6A-6 NMSA 1978 (being Laws 1997, n d d i = = o h Chapter 182, Section 2, as amended) is amended to read:

l ] b ,d i a º e "11-6A-6.

[DISTRIBUTION OF CERTAIN LOCAL DWI GRANT r i = r t e w d m a n o PROGRAM FUNDS--APPROVAL OF PROGRAMS] EXPENDITURES FROM THE LOCALd ALCOHOLm HARMS: ALLEVIATION FUND.-- [A.

Anb amounte equald tos theº liquoro excise tax e t 17 revenues distributed to the local DWI grant fund for the fiscal w l n d 18 year less five million six hundred thousand dollars = =.230379.4AIC 19February a24, l2025 ($5,600,000)(9:03pm) shalls bek availablem for distribution in accordance i a e r- 20 with- thee formulaa inn Subsectione Bd ofr thise sectionl tou each[ countyA ad tLOCAL mALCOHOL mHARMS 21ALLEVIATION forFUND.-- council-approved[A. DWI programs, services or activities;

dAn ramount eequal 22to providedthe thatliquor eachexcise countytax revenues distributed to the local DWI grant fund for the fiscal year less five million six hundred thousand dollars ($5,600,000) shall receivebe aavailable minimumfor distribution cin eaccordance swith kthe 23formula ofin atSubsection leastB one-halfof percentthis ofsection theto moneyeach availablecounty for ecouncil-approved aDWI nprograms, bservices 24or distribution.activities;

uprovided [that B.each county shall receive a minimum distribution of at least one-half percent of the money available for distribution.

EachB. county shall be eligible for a DWI program .230379.4 - 20 - 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)Each acounty percentageshall equalbe toeligible for a fraction,DWI theprogram numeratordistribution ofin whichan isamount thederived retailby trademultiplying grossthe receiptstotal inamount theof countymoney andavailable thefor denominatordistribution ofby whicha percentage that is the totalaverage retailof tradethe grossfollowing receiptstwo inpercentages; the state;

and(1) (2) a percentage equal to a fraction, the numerator of which is the numberretail oftrade alcohol-relatedgross injuryreceipts crashes in the h county and the denominator of which is the total alcohol-relatedretail injurytrade crashesu » r gross receipts in the state.state;

C.and t h g e l i (2) a percentage equal to a fraction, the h r i s numerator of which is the number of alcohol-related injury h , e h crashes in the county and the denominator of which is the total t u g e b l e e , gh alcohol-related injury crashes in the state.

An countyd shalld bei eligible= to= receiveo theh distributionC. 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 e t 17 county and the request has been approved by the council.

TheA wcounty shall be eligible to receive the l n] db 18,d requesti shalla alsoº complyr withdistribution localdetermined DWIpursuant grantto programSubsection rulesB =of this e r = 19t e w d m a ln ando guidelines.section if the board of county commissioners has submitted to d m :

ib r e t º o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 21 - e a n e d r 20e D.l u [ A d 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.

NoThe laterrequest than April 1 each year, each board of a t m m 21 county commissioners seeking approval for the DWI program d r e 22 distribution pursuant to this section shall makealso applicationcomply towith c e s k 23 the division for review and approval by the council for one or e a n b 24 more local DWI programs,grant servicesprogram orrules activitiesand inguidelines. the county.

uD. [ Application shall be made on a form and in a manner determined .230379.4 - 21 - by the division.

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 by the division.

h The amount available for distribution quarterly to each county u » r shall be the amount determined by applying the formula in t h g e l i Subsection B of this section to the amount of liquor excise tax h r i s revenues in the local DWI grant fund at the end of the month h , e h prior to the quarterly installment due date and after one t u g e b l e e , gh million three hundred twenty-five thousand dollars ($1,325,000) n d d i = = o h has been set aside for the DWI grant program and after the l ] b ,d i a º r appropriations and distributions pursuant to Subsections D and e r = t e w d m a n o E of Section 11-6A-3 NMSA 1978.] A.d m :

b r e t º o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 22 - e a n e d r e l u [ A d A.

The fund e t 17 consists of distributions, appropriations, gifts, grants, w l n d 18 donations and income from investment of the fund.

The fund = = 19 a l shall be administered by the division, and, except as provided i a e r 20 in Subsection B of this section, money in the fund is a t m m 21 appropriated to the division to make grants to counties for d r e 22 programs approved by the council and pursuant to the Local c e s k 23 Alcohol Harms Alleviation Program Act.

Expenditures from the e a n b 24 fund shall be by warrant of the secretary of finance and u [ administration pursuant to vouchers signed by the director of .230379.4 - 22 - the division or the director's authorized representative.

Each county shall be eligible for a grant in an h amount derived by multiplying the balance of the local alcohol u » r harms alleviation fund after the transfer is made pursuant to t h g e l i Subsection B of this section by a percentage that is the sum of h r i s the following two amounts;

provided that each county shall h , e h receive a minimum distribution of at least one-half percent of t u g e b l e e , gh the remaining balance of the fund:

n d d i = = o h (1) one-tenth multiplied by a fraction, the l ] b ,d i a º r numerator of which is an amount equal to the population of the countye asr determined= eacht yeare byw thed departmentm ofa healthn ando thecounty denominator of which is the population of the entire state as determined each year by the department of health;health and d m :

andb r e t 17º (2)o nine-tenthst multipliedn by= a.230379.4AIC fraction,February the24, w2025 l(9:03pm) ns dk 18m numeratore of- which23 is- ane amounta equaln toe thed numberr ofe = = 19 a l alcohol-relatedu deaths[ forA thed county and the denominator of iwhich ais ethe rpopulation 20of whichthe isentire thestate totalas alcohol-relateddetermined deathseach foryear by the state.department of health;

and (2) nine-tenths multiplied by a tfraction, mthe mnumerator 21of [E.]which D.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.

Grants[E.] madeD. to counties pursuant to this d r e 22 section shall not revert to any fund;

providedGrants thatmade ifto acounties countypursuant cto ethis ssection kshall 23 does not have a council-approved [DWI] program [service or e a n b 24 activity] or does not need the full amount of the available u [ distribution, the unused money shall revert to theany localfund; [DWI .230379.4 - 23 - grant] alcohol harms alleviation fund [and may be used by the council for the local DWI grant program].

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 grant] alcohol harms alleviation fund [and may be used by the council for the local DWI grant program].

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 h make grants from the local alcohol harms alleviation fund.

u » r F.

As used in this section, [(1) "alcohol-related t h g e l i injury crashes" means the average annual number of alcohol- h r i s related injury crashes during the period from January 1, 2000 h , e h through December 31, 2002, as determined by the traffic safety t u g e b l e e , gh bureau of the state highway and transportation department;

and (2)n "retaild traded grossi receipts"= means= theo totalh reported(2) gross"retail receipts attributable to taxpayers reporting under the retail trade industrygross sectorreceipts" ofmeans the statetotal forreported thel most] recentb fiscal,d yeari asa determinedº byr thegross taxationreceipts andattributable revenueto department]taxpayers "alcohol-relatedreporting deaths"under means the totale numberr of= e t 17e deaths over the most recently available period of five full w l n d 18m calendara yearsn attributedo toretail alcohol,trade asindustry calculatedsector byof the =state =for 19the amost lrecent departmentd ofm health.": i a e r 20 SECTION 16.

[NEWb MATERIAL]r SHORTe TITLE.--Sectionst 16º ao t mn m= 21.230379.4AIC throughFebruary 1924, of2025 this(9:03pm) acts mayk bem citede as- the24 "Tribal- Alcohole a n e d r e 22l Harmsu Alleviation[ ProgramA Act".d 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.

c[NEW eMATERIAL s] kSHORT 23TITLE.--Sections SECTION16 17.through 19 of this act may be cited as the "Tribal Alcohol Harms Alleviation Program Act".

[NEWSECTION MATERIAL]17. DEFINITIONS.--As used in the e a n b 24 Tribal Alcohol Harms Alleviation Program Act:

u[NEW [MATERIAL A.] DEFINITIONS.--As used in the Tribal Alcohol Harms Alleviation Program Act:

"council"A. means the tribal alcohol harms .230379.4 - 24 - alleviation council;

"council" means the tribal alcohol harms alleviation council;

[NEW MATERIAL]MATERIAL ] TRIBAL ALCOHOL HARMS ALLEVIATION PROGRAM--FUND.-- h A.

The department shall establish a "tribal alcohol g o t hr harms alleviation program" to make grants, upon council g e i k approval pursuant to Section 19 of this 2025 act, to Indian h r i s nations, tribes and pueblos in New Mexico and to local h , t, e u g governments and entities serving tribal nations, tribal e b l e e h communities, indigenous peoples and urban Indian populations in n d d i = = o h New Mexico.

l ] b ,d i a º e B.

The "tribal alcohol harms alleviation fund" is r i = r t e w d m a n o created as a nonreverting fund in the state treasury.

The fund consistsd ofm distributions,: appropriations, gifts, grants, donations and income from investment of the fund.

Theb fund e td 17s shallº beo administeredt byn the= department,.230379.4AIC and,February except24, as2025 w(9:03pm) ls nk dm 18e provided- in25 Subsections- Ce anda Dn ofe thisd section,r moneye in the = = 19 a l fundu is[ appropriatedA tod theconsists departmentof todistributions, makeappropriations, grantsgifts, pursuantgrants, idonations aand eincome rfrom 20investment toof the Tribalfund. Alcohol Harms Alleviation Program Act.

AnyThe afund tshall mbe madministered 21by unexpendedthe ordepartment, unencumberedand, balanceexcept ofas aprovided distributionin remainingSubsections dC rand eD 22of atthis section, money in the endfund ofis aappropriated fiscalto yearthe shalldepartment notto revertmake grants pursuant to anythe fund.Tribal Alcohol Harms Alleviation Program Act.

cAny eunexpended sor kunencumbered 23balance C.of a distribution remaining at the end of a fiscal year shall not revert to any fund.

The department may expend up to the following e a n b 24 amounts from the balance of the fund each year, subject to the u [ availability of money in the fund, and any unexpended or .230379.4 - 25 - 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 e t 17 and conduct community-engaged studies to assess the public w l n d 18 health and economic impacts of the liquor excise tax and liquor = = 19 a l excise surtax.

If, after the amounts pursuant to Subsection C i a e r 20 of this section are deducted, the balance of the fund is less a t m m 21 than three million dollars ($3,000,000), then the balance of d r e 22 the fund may be appropriated as provided in this subsection.

c e s k 23 Any unexpended or unencumbered balance of the appropriated e a n b 24 amount remaining at the end of a fiscal year shall revert to u [ the fund.

.230379.4 - 26 - 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 e t 17 from Indian nations, tribes and pueblos located in New Mexico, w l n d 18 four representatives serving urban Indian populations in New = = 19 a l Mexico and tribal behavioral health regions identified by the i a e r 20 department.

a t m m 21 B.

The council shall meet as necessary to receive d r e 22 applications, consider funding requests and approve grants to c e s k 23 be made by the department to Indian nations, tribes and pueblos e a n b 24 and local governments and entities serving tribal nations, u [ tribal communities, indigenous peoples and urban Indian .230379.4 - 27 - populations for preventing or reducing harms and risks associated with substance misuse among tribal nations, tribal communities, indigenous peoples and urban Indian populations.

OnceThe thedepartment councilmay hasexpend approvedup ato grant, the councilfollowing shallamounts notifyfrom the department,balance andof the departmentfund shalleach promptlyyear, makesubject to the grantavailability fromof themoney tribalin alcoholthe harmsfund, alleviationand fundany tounexpended theor recipientunencumbered approvedamounts byremaining at the council,end subjectof toa availabilityfiscal ofyear moneyshall inrevert to the fund.fund:

SECTION(1) 20.two million dollars ($2,000,000) for reasonable costs necessary to administer the fund and to make grants from the fund;

Sectionand 60-6A-11.1h NMSA(2) 1978three (beingmillion Lawsdollars 2011,($3,000,000) Chapterto 109,u Section» 1)r isconduct amendedculturally toappropriate read:research and evaluation on the t h g e l i harms and risks of alcohol and substance misuse.

"60-6A-11.1.h r i s D.

DIRECTOn WINEJuly SHIPMENT1 PERMIT--AUTHORIZATION--of RESTRICTIONS.--2027 A.through 2036, subject to the h , e h availability of money in the fund, three million dollars t u g e b l e e , gh ($3,000,000) shall be appropriated from the fund to the board n d d i = = o h of regents of the university of New Mexico for the university's l ] b ,d i a º r center on alcohol, substance abuse and addictions and division e r = t e w d m a n o of community behavioral health with the department of d m :

Ab licenseer withe at winegrower'sº licenseo ort an person= licensed.230379.4AIC inFebruary a24, state2025 other(9:03pm) thans Newk Mexicom thate holds- 26 - e a wineryn licensee mayd applyr e l u [ A d psychiatry and behavioral sciences to theperform directorinterdisciplinary forcross-campus research on alcohol policy and theprevention directorefforts mayand issueconduct community-engaged studies to assess the applicantpublic ahealth directand wineeconomic shipmentimpacts permit.of the liquor excise tax and liquor excise surtax.

AnIf, eafter tthe 17amounts applicationpursuant forto aSubsection directC wineof shipmentthis permitsection shallare include: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.

wAny lunexpended nor dunencumbered 18balance (1)of contact information for the applicantappropriated inamount aremaining =at =the 19end of a lfiscal formyear requiredshall byrevert to the department;fund.

iE. a e r 20 (2) an annual application fee of fifty dollars a t m m 21 ($50.00) if the applicant does not hold a winegrower's license;

dOn ror ebefore 22December (3)1 of each year, the numbersecretary of Indian affairs, the applicant'sdirector winegrower'sof cthe euniversity sof kNew 23Mexico's licensecenter ifon alcohol, substance abuse and addictions and the applicantdivision ischief locatedof inthe Newuniversity Mexicoof orNew aMexico's copydivision of ecommunity abehavioral nhealth bshall 24report the applicant'sh wineryresults licenseand iffindings from the applicantresearch isand locatedevaluation inperformed a u [» stater otherpursuant thanto Newthis Mexico;section to the legislative finance committee t h g e l i and the revenue stabilization and tax policy committee.

andh .230379.4r -i 28s -F. (4) any other information or documents required by the director.

UponExpenditures approvalfrom ofthe anfund applicantshall forbe aby permit,warrant theh director, shalle forwardh toof the taxationsecretary of finance and revenueadministration departmentpursuant to t u g e b l e e , gh vouchers signed by the namesecretary of eachIndian permitteeaffairs andor the contactn informationd ford thei permittee.= = o h secretary's authorized representative.

l ] b ,d i a º r SECTION 19.

[NEW MATERIAL ] TRIBAL ALCOHOL HARMS e r = t e w d m a n o ALLEVIATION COUNCIL--MEMBERSHIP--DUTIES.-- d m :

b r e t º o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 27 - e a n e d r e l u [ A d 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.

AThe directcouncil wineshall shipmentmeet permitas shallnecessary to receive applications, consider funding requests and approve grants to be validmade by the department to Indian nations, tribes and pueblos and local governments and entities serving tribal nations, tribal communities, indigenous peoples and urban Indian populations for apreventing permitor year.reducing harms and risks associated with substance misuse among tribal nations, tribal communities, indigenous peoples and urban Indian populations.

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.

Once the council has approved a grant, the council shall notify the department, and the department shall h promptly make the grant from the tribal alcohol harms u » r alleviation fund to the recipient approved by the council, t h g e l i subject to availability of money in the fund.

h r i s SECTION 20.

Section 60-6A-11.1 NMSA 1978 (being Laws h , e h 2011, Chapter 109, Section 1) is amended to read:

t u g e b l e e , gh "60-6A-11.1.

DIRECT WINE SHIPMENT PERMIT--AUTHORIZATION-- n d d i = = o h RESTRICTIONS.-- l ] b ,d i a º r A.

A licensee with a winegrower's license or a e r = t e w d m a n o person licensed in a state other than New Mexico that holds a d m :

b r e t º o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 28 - e a n e d r e l u [ A d 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 (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.

h B.

A direct wine shipment permit shall be valid for g o t hr a permit year.

A permittee shall renew a direct wine shipment g e i k permit annually as required by the department to continue h r i s making direct shipments of wine to New Mexico residents.

h , t, C.

e u g e b l e e h (1) not more than two nine-liter cases of wine n d d i = = o h monthly to a New Mexico resident who is twenty-one years of age l ] b ,d i a º e or older for the recipient's personal consumption or use, but r i = r t e w d m a n o not for resale;

and (2)d winem directly: to a New Mexico resident only in containers that are conspicuously labeled with the e t 17 words:

wb le n d 18s "CONTAINSº ALCOHOLo =t n = 19.230379.4AIC aFebruary l24, SIGNATURE2025 OF(9:03pm) PERSONs 21k YEARSm ORe OLDER- REQUIRED29 i- e a n e d r 20e FORl DELIVERY".u [ A d (2) wine directly to a New Mexico resident only in containers that are conspicuously labeled with the words:

a"CONTAINS tALCOHOL mSIGNATURE mOF PERSON 21 D.YEARS OR OLDER REQUIRED FOR DELIVERY".

D.

d r e 22 (1) register with the taxation and revenue c e s k 23 department for the payment of the liquor excise tax, liquor e a n b 24 excise surtax and gross receipts taxes due on the sales of wine u [ pursuant to the permittee's activities in New Mexico;

.230379.4 - 29 - (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 h direct wine shipment permit, pay to the taxation and revenue g o t hr department the liquor excise tax, [due][due ] liquor excise surtax g e i k and [the] gross receipts tax due;

and h r i s (4) submit to an audit by an agent of the h , t, taxation and revenue department of the permittee's records of e u g e b l e e h the wine shipped pursuant to this section to New Mexico n d d i = = o h residents upon notice and during usual business hours.

l ] b ,d i a º e E.

r i = r t e w d m a n o (1) "permit year" means the period between Julyd 1m and: June 30 of a year;

andb (2)e "permittee"d meanss aº persono thatt isn the= .230379.4AIC February 24, 2025 (9:03pm) s k m e t- 1730 holder- ofe a directn winee shipmentd permit."r we l nu [ A d 18July SECTION1 21.and June 30 of a year;

TEMPORARYand PROVISION--LOCAL(2) DWI"permittee" GRANTmeans FUND = = 19 a lperson DEEMEDthat LOCALis ALCOHOL HARMS ALLEVIATION FUND.--References to the iholder aof e r 20 local DWI grant fund shall be deemed as references to the local a tdirect mwine mshipment 21permit." alcoholSECTION harms21. alleviation fund.

dTEMPORARY rPROVISION--LOCAL eDWI 22GRANT SECTIONFUND 22.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.

TEMPORARYHTRCº PROVISION--REVIEWSECTION OF22. LIQUOR EXCISE c e s k 23 TAXES AND DISTRIBUTIONS.--By December 1, 2032, the legislative e a n b 24 finance committee and the revenue stabilization and tax policy u [ committee shall review the rates of the liquor excise tax and .230379.4 - 30 - 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.

TEMPORARY PROVISION--AUTHORIZED DISTRIBUTIONS FROM LOCAL DWI GRANT FUND.--The annual distribution authorized prior to the effective date of this act pursuant to Section 11-6A-6 NMSA 1978 to be made to each county in quarterly installments on or before September 10, 2025, December 10, 2025, March 10, 2026 and June 10, 2026 shall be made from the local alcohol harms alleviation fund.»HTRC SECTION 23.HTRCº22.»HTRC HTRCº23.»HTRC TEMPORARY PROVISION--REVIEW OF LIQUOR EXCISE TAXES AND DISTRIBUTIONS.--By h December 1, 2032, the legislative finance committee and the g o t hr revenue stabilization and tax policy committee shall review the g e i k rates of the liquor excise tax and liquor excise surtax and the h r i s distributions from those taxes to determine if any changes h , t, e u g should be made to the rates of the taxes or the distributions.

e b l e e h SECTION HTRCº 23.»HTRC HTRCº24.»HTRC APPROPRIATIONS.-- n d d i = = o h A.

Two million dollars ($2,000,000) is appropriated froml the] localb alcohol,d harmsi alleviationa fundº toe ther Indiani affairs= departmentr forfrom expenditurethe inlocal fiscalalcohol yearharms 2026alleviation andfund subsequent fiscal years to preparethe forIndian thet administratione ofw thed Tribalm Alcohola Harmsn Alleviationo Programaffairs Actdepartment andfor beginexpenditure toin conductfiscal theyear research2026 and evaluationd requiredm pursuant: to that act.

b e d s º o t n = .230379.4AIC February 24, 2025 (9:03pm) s k m e - 31 - e a n e d r e l u [ A d 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.

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 e t 17 among the university's center on alcohol, substance abuse and w l n d 18 addictions and division of community behavioral health with the = = 19 a l department of psychiatry and behavioral sciences for i a e r 20 expenditure in fiscal year 2026 and subsequent fiscal years to a t m m 21 begin to conduct the research and studies required pursuant to d r e 22 the Tribal Alcohol Harms Alleviation Program Act.

Any c e s k 23 unexpended or unencumbered balance remaining at the end of a eh a n b 24 fiscal year shall not revert to the local alcohol harms u [» r alleviation fund.

.230379.4t -h 31g -e l i SECTION 24.HTRCº 24.»HTRC HTRCº25.»HTRC EFFECTIVE DATE.-- h r i s The effective date of the provisions of this act is July 1, h , e h 2025.

EFFECTIVEt DATE.--Theu effectiveg datee ofb thel provisionse ofe this, actgh is- July32 1,- 2025.n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

-b 32r - 5 7 9 11 13 15 e t 17º wo lt n d= 18.230379.4AIC =February =24, 192025 a(9:03pm) ls ik am e re 20 a tn me m 21 d r e 22l c e s k 23 e a n b 24 u [ .230379.4A d