NMSA 1978, § 7-24-10.1 — 7-24-10.1

Use of tax proceeds; local liquor excise tax committee;
joint powers agreement; community participation.

# A.

Prior to an election on the question of imposing a local liquor excise tax pursuant
to the provisions of the Local Liquor Excise Tax Act [7-24-8 to 7-24-16 NMSA 1978], the
governing body of a county shall enter into a joint powers agreement with the governing
body of the most populated municipality and the governing bodies of any other
municipalities in the county that choose to be parties to the agreement to provide for the
use and administration of the tax proceeds. The agreement shall provide for the
establishment and appointment of a local liquor excise tax committee to provide advice,
assist in preventing duplication and supplanting of program funding and make
recommendations to the governing body of the county and the municipal governing
bodies that are parties to the agreement on the use of the tax proceeds. The agreement
shall:
(1) clearly specify the use of the proceeds of the proposed local liquor excise
tax, including the identification of specific local programs, agencies or entities that will
be funded from the tax proceeds;
(2) determine the allocation of election expenses among the parties to the
agreement;
(3) clearly specify that the detoxification center located within a municipality
with a population of not less than fifteen thousand and not more than thirty-five
thousand according to the most recent federal decennial census providing social
detoxification treatment with the greatest numbers of adult clients shall receive the
funding necessary to provide social detoxification of alcohol and drug treatment for
adults;
(4) provide that the remaining proceeds of the proposed local liquor excise tax
shall be used to fund social detoxification of alcohol and drugs for juveniles and other
prevention and treatment programs as recommended by the local liquor excise tax
committee; and
(5) clearly specify that each specific local program, agency or entity that is
funded from the tax proceeds shall be audited at its own expense and provide
accountability reports to the governing body of the county and municipal governing
bodies that are parties to the agreement within thirty days of the end of each quarter of
the calendar year, including an itemized breakdown of program services and
expenditures.

# B.

Prior to the agreement by the governing body of a county and the municipal
governing bodies for use of the proposed local liquor excise tax proceeds, the local
liquor excise tax committee established pursuant to the provisions of Subsection A of
this section shall conduct a public hearing for the purpose of inviting public comment on
use of the proposed local liquor excise tax proceeds. The committee shall make every
effort to provide public notice of the hearing and to invite a broad cross-section of
community representatives and groups to comment on community needs. Following the
hearing, the committee shall make its funding recommendations to the governing body
of the county and the municipal governing bodies.

# C.

On or before April 1 of each calendar year, the governing body of a county or
municipality that has entered into an agreement pursuant to Subsection A of this section
shall submit to the department of finance and administration a report itemizing the
receipts, expenditures and number of clients served pursuant to any such agreement for
the preceding calendar year. On or before July 1 of each year, the department of
finance and administration shall complete an audit of the county's report submitted
pursuant to this section and shall report its findings to the appropriate interim legislative
committee before September 1 of that year.

# D.

If a local program, agency or entity receiving funds from local liquor excise tax
proceeds fails to timely submit an accountability report pursuant to Paragraph (5) of
Subsection A of this section, the county or municipality shall be immediately prohibited
from disbursing any further funds to such local program, agency or entity until the
delinquent accountability report has been submitted to and accepted by the governing
board of the county and the municipal governing bodies.