New Mexico Administrative Code
Title 15 - GAMBLING AND LIQUOR CONTROL
Chapter 10 - ALCOHOLIC BEVERAGES GENERAL PROVISIONS
Part 70 - OPERATION AND PROFITING BY AUTHORIZED PERSONS AND ALTERNATING PROPRIETORSHIPS
Section 15.10.70.10 - ALTERNATING PROPRIETORSHIPS
Current through Register Vol. 35, No. 18, September 24, 2024
A. An "alternating proprietorship" is an arrangement in which two or more entities may alternate using a licensed premises, equipment and employees to manufacture alcoholic beverages. Alternating proprietorships allow existing, duly licensed New Mexico winegrowers, small brewers and craft distillers to use excess capacity and provide opportunity to begin on a small scale, without investing in premises and equipment.
B. Each licensee participating in an alternating proprietorship must separately manufacture alcoholic beverages, whereby each licensee's product must be separate and identifiable from the product of any other parties to the alternating proprietorship, including prior to fermentation, during fermentation, during cellar storage, and as finished product after production and before removal from the premises.
C. An alternating proprietorship may only occur between licensees of the same license type.
D. Filing of written agreement:
E. All alternating proprietorships must be approved in advance by the Division: Any determination pursuant to this section shall be interpreted consistent with the United State Code of Federal Regulations at Part 27, Section 19.693, Part 27, Section 25.52, and with all relevant United States alcohol and tobacco tax and trade bureau industry circulars.
F. All alternating proprietorships must be approved by the United States department of the treasury, alcohol and tobacco tax and trade bureau prior to final approval by the division.
G. A small brewer, winegrower, or craft distiller license whose production plan wholly relies upon an alternating proprietorship shall not be entitled to any off-site premises as otherwise provided by the act.
