The bill amends the Liquor Excise Tax Act to introduce a new six percent liquor excise surtax on retailers selling alcoholic beverages, effective July 1, 2026. The revenue generated from this surtax will be allocated to a newly established Tribal Alcohol Harms Alleviation Fund. Additionally, the bill revises the distribution of the existing liquor excise tax, directing ninety-four percent of the net receipts to the local alcohol harms alleviation fund and six percent to the drug court fund. It also updates definitions within the Act, including the definition of "retailer" and introduces "barrel" as a measurement unit. The bill further renames the Local DWI Grant Program to the Local Alcohol Harms Alleviation Program and outlines eligibility for grants aimed at promoting prevention and intervention related to substance misuse.

Moreover, the bill establishes a "Tribal Alcohol Harms Alleviation Council" within the Department of Indian Affairs, consisting of representatives from Indian nations, tribes, pueblos, and urban Indian populations in New Mexico. This council will review applications and approve grants to prevent or reduce substance misuse harms in these communities. The bill also mandates annual reporting by key officials to legislative committees and amends laws regarding direct wine shipment permits to require permit holders to register for and pay relevant taxes. Additionally, it appropriates $2 million from the local alcohol harms alleviation fund to the Indian Affairs Department and $1 million to the University of New Mexico for research related to the Tribal Alcohol Harms Alleviation Program Act, with an effective date for the provisions set for July 1, 2025.

Statutes affected:
introduced version: 7-1-6.40, 7-9-3.5, 7-17-2, 7-17-6, 7-17-9, 7-17-10, 7-17-11, 7-17-12, 11-6A-1, 11-6A-2, 11-6A-3, 11-6A-4, 11-6A-5, 11-6A-6, 60-6A-11.1