2023 New Mexico Statutes › Chapter 60 - Business Licenses › Article 6A - State Licenses › Section 60-6A-4 - Restaurant license.

A. A local option district may approve the issuance of restaurant licenses for the sale of beer and wine by holding an election on that question pursuant to the procedures set out in Section 60-5A-1 NMSA 1978. The election also may be initiated by a resolution adopted by the governing body of the local option district without a petition from qualified electors having been submitted.
B. A local option district that has approved the issuance of restaurant licenses for the sale of beer and wine is deemed to have approved the issuance of restaurant licenses for the sale of beer, wine and spirituous liquors in restaurants unless the local option district affirmatively adopts an ordinance prohibiting such licenses, except that a local option district within a class B county having a population of between fifty-six thousand and fifty-seven thousand according to the 1980 federal decennial census that has approved the issuance of restaurant licenses for the sale of beer and wine is deemed not to have approved the issuance of restaurant licenses for the sale of beer, wine and spirituous liquors in restaurants unless the local option district affirmatively adopts an ordinance approving such licenses.
C. A restaurant license issued or renewed on or after July 1, 2021 that permits the sale and service of beer and wine only shall be designated a restaurant A license. The license shall be issued in accordance with the provisions of this section and rules adopted by the department.
D. A restaurant license issued on or after July 1, 2021 that permits the sale and service of beer, wine and spirituous liquors shall be designated a restaurant B license. The license shall be issued in accordance with the provisions of this section and rules adopted by the department.
E. After the approval of restaurant licenses by the qualified electors of the local option district for the sale of beer and wine and upon completion of all requirements in the Liquor Control Act [60-3A-1 NMSA 1978] for the issuance of licenses, a restaurant located or to be located within the local option district may receive a restaurant A license to sell, serve or allow the consumption of beer and wine subject to the following requirements and restrictions:
(1) the applicant shall submit evidence to the department that the applicant has a current valid food service establishment permit;
(2) the applicant shall satisfy the director that the primary source of revenue from the operation of the restaurant will be derived from food and not from the sale of beer and wine;
(3) the director shall condition renewal upon a requirement that no less than sixty percent of gross receipts from the preceding twelve months' operation of the licensed restaurant was derived from the sale of food;
(4) upon application for renewal, the licensee shall submit an annual report to the director indicating the annual gross receipts from the sale of food and from beer and wine sales;
(5) all sales, services and consumption of beer and wine authorized by a restaurant A license shall cease at the time food sales and services cease or at 11:00 p.m., whichever time is earlier;
(6) if Sunday sales have been approved in the local option district, a restaurant licensee may serve beer and wine on Sundays until the time meal sales and services cease or 11:00 p.m., whichever time is earlier; and
(7) a restaurant A license shall not be transferable from person to person but shall be transferable from one location to another location within the same local option district.
F. Upon completion of all requirements in the Liquor Control Act for the issuance of licenses on and after July 1, 2021, and barring the adoption of an opt-out ordinance by the governing body of a local option district, a restaurant located or to be located within the local option district may receive a restaurant B license to sell, serve or allow the consumption of beer, wine and spirituous liquors subject to the following requirements and restrictions:
(1) the applicant shall submit evidence to the department that the applicant has a current valid food service establishment permit;
(2) the applicant shall satisfy the director that the primary source of revenue from the operation of the restaurant will be derived from the sale of food and not from the sale of beer, wine and spirituous liquors;
(3) the director shall condition renewal upon a requirement that no less than sixty percent of gross receipts from the preceding twelve months' operation of the licensed restaurant was derived from the sale of food;
(4) upon application for renewal, the licensee shall submit an annual report to the director indicating the annual gross receipts from the sale of food and from beer, wine and spirituous liquors sales;
(5) all sales, service and consumption of beer, wine and spirituous liquors authorized by a restaurant B license shall cease at the time food sales and services cease or at 11:00 p.m., whichever time is earlier;
(6) a restaurant B licensee shall serve a single patron no more than three drinks containing not more than one and one-half ounces of spirituous liquor during any one visit to the restaurant;
(7) if Sunday sales have been approved in the local option district, a restaurant B licensee may serve beer, wine and spirituous liquors on Sundays until the time meal sales and services cease or 11:00 p.m., whichever time is earlier; and
(8) a restaurant B license shall not be transferable from person to person but shall be transferable from one location to another location within the same local option district.
G. The provisions of Section 60-6A-18 NMSA 1978 shall not apply to restaurant licenses.
H. Nothing in this section shall prevent a restaurant licensee from receiving other licenses pursuant to the Liquor Control Act.
I. A person that has held a restaurant A license in good standing for a period of at least twelve consecutive months shall, upon payment of a fee of five hundred dollars ($500), be entitled to a restaurant A New Mexico spirituous liquors permit. In addition to being permitted to sell and serve beer and wine as authorized by a restaurant A license, the restaurant A New Mexico spirituous liquors permit shall entitle the licensee to also sell and serve spirituous liquors produced or bottled by or for a craft distiller pursuant to Section 60-6A-6.1 NMSA 1978.
History:
Laws 1981, ch. 39, § 21; 2003, ch. 103, § 1; 2019, ch. 212, § 236; 2021, ch. 7, § 9.
ANNOTATIONS
The 2021 amendment,
effective July 1, 2021, modified certain restaurant license provisions related to spiritous liquors, and established restaurant A and restaurant B licenses, depending on whether the restaurant sells beer and wine only or whether the restaurant sells beer, wine and spiritous liquors; added new Subsections B through D and redesignated former Subsection B as Subsection E; in Subsection E, changed "meals" to "food" throughout, after "local option district", added "for the sale of beer and wine" and after "receive a restaurant", added "A", deleted former Paragraph E(5) and redesignated former Paragraphs E(6) through E(8) as Paragraphs E(5) through E(7), respectively, in Paragraph E(5), after "restaurant", added "A", and after "cease at the time", changed "meal" to "food", in Paragraph E(7), after "restaurant", added "A", after "person to person", deleted "or" and added "but shall be transferable", and after "another", added "location within the same local option district"; added a new Subsection F and redesignated former Subsections C and D as Subsections G and H, respectively; and added Subsection I.
The 2019 amendment,
effective April 3, 2019, in Subsection A, deleted "At any time after the effective date of the Liquor Control Act", and deleted "registered" preceding "qualified electors"; and in Subsection B, in the introductory clause, deleted "registered" preceding "qualified electors".
The 2003 amendment,
effective July 1, 2003, in Subsection A, substituted "60-5A-1 NMSA 1978" for "15 of that Act" following "out in Section", added the last sentence; substituted "60-6A-18 NMSA 1978" for "35 of the Liquor Control Act" in Subsection C.