Current through Register Vol. 35, No. 18, September 24, 2024
A. No person other than the licensee or
lessee or employees of the licensee or lessee, shall sell or serve alcoholic
beverages at the licensed premises.
(1) All
orders, sales, service, dispensing, delivery and receipt of payment for
alcoholic beverages must be completed by the licensee or lessee, or employees
of the licensee or lessee, or the employees of a third-party delivery licensee
contracted with for delivery purposes.
(2) Sales of alcoholic beverages by a
licensee or lessee may not be combined with any sales of another person or
entity that is not the licensee or lessee. Nothing in this section shall
prohibit the a licensee and a third-party delivery licensee from contracting
for the delivery of alcoholic beverages to consumers.
B. Only the licensee or lessee shall directly
profit from the sale of alcoholic beverages sold pursuant to a license. A
person directly profits from the sale of alcoholic beverages in violation of
this rule when any person other than the licensee or lessee receives any
portion of the profits earned, or receipts, from the sale of alcoholic
beverages, except for:
(1) the payment of rent
for the licensed premises based in whole or in part on a percentage of the
licensee's gross sales;
(2) the
payment to employees of incentive compensation based upon a percentage of gross
sales;
(3) revenues received by an
affiliate of the licensee from the sale of products other than alcoholic
beverages on the licensed premises;
(4) revenues split by a liquor licensee and
its lessee pursuant to a hotel management agreement approved by the division,
provided that operational control of the licensed premises remain at all times
with the lessee and the split of revenue is reasonable;
(5) such other reasonable splitting of
revenues specifically approved by the director, who may require additional
disclosures and sworn statements as condition for such approval; or
(6) such agreements reviewed and approved by
the division in regards to licensees and third-party delivery licensees
contracting for delivery services to consumers.
C. Except as provided in this part, it is a
violation of the act for any licensee to divide, split, or in any way share the
right to sell alcoholic beverages, with any person not named as a licensee on
the license.
D. Upon 30 days'
written notice, a licensee shall demonstrate compliance with this rule. Failure
to demonstrate compliance will result in initiation of proceedings against the
licensee by the director, pursuant to Section
60-6C-1
NMSA 1978 et seq. Evidence of compliance will be provided as follows:
(1) proof that all employees are paid by the
approved operator or that the employees are providing such services as bona
fide volunteers, consisting of copies of canceled paychecks or equivalent
documents for the most recent three-month period; and
(2) proof that receipts of the licensed
business are deposited directly into a bank account in the sole name of the
approved operator, consisting of copies of bank records showing deposits and
the name of the approved operator and signatories on the account; and
(3) proof of operation by the licensee or
lessee, consisting of copies of all real estate lease agreements, concession
agreements, management agreements, contracts for delivery or contracts of any
kind to which the licensee or lessee is a party with other persons for
operation or profit-sharing in the operation; and
(4) proof that receipts of the business are
not shared with non-licensed parties, consisting of copies of all canceled
checks for the most recent three-month period with explanations of payments to
persons other than suppliers, the approved operator, or employees of the
approved operator.
