The bill introduces a new section to the Liquor Control Act that establishes a special independent theater dispensing license, allowing independent theaters to serve beer and wine during movie screenings and events. The license can be issued by the director of the department, contingent upon adherence to public health and safety rules, and requires a $100 application fee. The license is valid for one year and can be renewed for the same fee. It permits licensed individuals to serve limited quantities of alcohol—specifically, two twelve-ounce servings of beer or two six-ounce servings of wine per customer per event. Additionally, the license is non-transferable and requires approval from the local governing body.

The bill defines an "independent theater" as a business primarily focused on exhibiting movies and hosting events, located in a single site, owned by a New Mexico resident or registered organization, and operational for at least one year. The effective date for the provisions of this act is set for July 1, 2025.