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 existing liquor excise tax revenues, directing 94% to the Local Alcohol Harms Alleviation Fund and 6% 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 Local DWI Grant Program will be renamed the Local Alcohol Harms Alleviation Program, with new eligibility criteria emphasizing innovative programs aimed at preventing 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 that the Secretary of Indian Affairs and other officials report their findings to legislative committees annually. Additionally, it amends laws regarding direct wine shipment permits, requiring permit holders to register for and pay relevant taxes. The bill appropriates $2 million from the local alcohol harms alleviation fund for the administration of the Tribal Alcohol Harms Alleviation Program and $1 million for related research at the University of New Mexico, with an effective date 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