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 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 "retailer," and introduces new terms such as "barrel" and "microbrewer." The bill further renames the Local DWI Grant Program Act to the Local Alcohol Harms Alleviation Program Act, enhancing its focus on prevention and intervention strategies related to substance misuse.

Moreover, the bill establishes a "Tribal Alcohol Harms Alleviation Council" within the Department of Indian Affairs, which will consist of representatives from various tribal communities in New Mexico. This council will review applications and approve grants aimed at reducing substance misuse harms. The bill also mandates annual reporting from 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 provisions set to take effect on 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