TITLE 15 GAMBLING AND LIQUOR CONTROL

CHAPTER 10 ALCOHOLIC BEVERAGES GENERAL PROVISIONS

PART 54 SALES - CLUBS

15.10.54.1 ISSUING AGENCY: The Alcohol and Gaming Division of the Department of Regulation and Licensing.

[15.10.54.1 NMAC - Rp, 15 NMAC 10.5.4.1, 4/25/2017]

15.10.54.2 SCOPE: These rules apply to all club licensees under the act.

[15.10.54.2 NMAC - Rp, 15 NMAC 10.5.4.2, 4/25/2017]

15.10.54.3 STATUTORY AUTHORITY: Section 60-3A-10 NMSA of the act authorizes the director to make and adopt such rules as necessary to carry out the duties of the division.

[15.10.54.3 NMAC - Rp, 15 NMAC 10.5.4.3, 4/25/2017]

15.10.54.4 DURATION: Permanent

[15.10.54.4 NMAC - Rp, 15 NMAC 10.5.4.4, 4/25/2017]

15.10.54.5 EFFECTIVE DATE: April 25, 2017, unless a later date is cited at the end of a section.

[15.10.54.5 NMAC - Rp, 15 NMAC 10.5.4.5, 4/25/2017]

15.10.54.6 OBJECTIVE: This part is intended to establish additional standards by which club licensees may sell and serve alcoholic beverages under the act.

[15.10.54.6 NMAC - Rp, 15 NMAC 10.5.4.6, 4/25/2017]

15.10.54.7 DEFINITIONS: Unless otherwise defined in 15.10.2 NMAC, terms in this part has the same meaning as set forth in the act, except that the following definitions apply to this part:

A. “Bona fide guest” means a person whose presence in the club is in response to a specific invitation by a member and for whom the member assumes responsibility.

B. “Member” means:

(1) a person who pays annual membership dues to a holder of a club license pursuant to Section 60-6A-5 NMSA 1978, at the rate of not less than five dollars ($5.00) per year and who, under the constitution and bylaws of the club, has been voted as a member by the current membership, and has all voting rights and full membership privileges as described in Subsection E of Section 60-3A-3 NMSA 1978;

(2) the adult spouse and the adult children of a member or of a deceased member as defined in Paragraph (1) of Subsection B of 15.10.54.7 NMAC;

(3) a member of an official auxiliary or subsidiary group of a club licensed pursuant to Section 60-6A-5 NMSA 1978, who has been issued a personal identification card in accordance with the rules of the club, as described in Section 60-7A-13 NMSA 1978; the club licensee must furnish proof to the director, upon request, of the applicable rules governing personal identification cards, and of the relationship between the club and the official auxiliary or subsidiary group; or

(4) a person who pays membership dues and is a member of a class of a club licensed pursuant to Section 60-6A-5 NMSA 1978, but are persons without full voting rights or full membership privileges, so long as such members are provided for in the articles of incorporation, bylaws, charter, constitution or resolution of the board of directors or other appropriate governing body of the entity holding the club license; members described in this paragraph may not purchase, be served or consume alcoholic beverages within the bar or lounge area of the licensed premises, but may purchase, be served or consume alcoholic beverages in other areas of the licensed premises while engaged in activities whose primary purpose is other than the consumption of alcoholic beverages.

[15.10.54.7 NMAC - Rp, 15 NMAC 10.5.4.7, 4/25/2017]

15.10.54.8 SALES LIMITED TO MEMBERS AND GUESTS:

A. Whenever a member invites one or more bona fide guests, as defined by Subsection A of 15.10.54.7 NMAC onto a club’s licensed premises, the club shall be responsible for identifying each bona fide guest and the club member responsible for such guest by maintaining a sign in sheet identifying the guest and the member, including the member identification number. The club should be able to produce the sign in sheet upon request by the director or the special investigations unit of the department of public safety or other peace officer within the scope of their jurisdiction. Members may not be stationed at the door signing in people who were not previously invited as their guests.

B. A member who has invited bona fide guests to use club facilities shall be responsible at all times while the guests are on the club premises. Except as otherwise permitted by law, no person other than the club members, bona fide guests, and club employees shall be allowed on any part of the licensed premises where alcoholic beverages are being sold, served, or consumed under the club license.

[15.10.54.8 NMAC - Rp, 15 NMAC 10.5.4.8, 4/25/2017]

15.10.54.9 GAMES OF CHANCE:

A. An entity holding a valid club license issued under the act may conduct any activities on the licensed premises that are excluded from the definition of commercial gambling pursuant to Subsection C of Section 60-7A-19 of the Act.

B. Except as noted in A, above, any club licensee may only conduct commercial gambling or other games of chance on what is otherwise a licensed premises if the licensee either:

(1) temporarily suspends the license for the entire premises, or

(2) temporarily suspends the portion of the licensed premises on which the games of chance will occur, subject to the following conditions:

(a) games of chance may be conducted in areas of the licensed premises that are physically segregated from areas in which alcoholic beverages are being sold, served, or consumed. The areas must be separated by walls or other physical obstructions limiting movement of members and their guests between the areas; and

(b) no alcohol may be sold, served, or consumed within the physical area in which games of chance are being conducted; and

(c) appropriate signs must be posted within the areas in which games of chance are being conducted advising members and their guests that alcoholic beverages may not be sold, served, or consumed within those areas; and

(d) members and their guests are prohibited from participating in games of chance in areas in which alcoholic beverages are being sold, served, or consumed.

C. Nothing in this rule shall be construed to authorize any forms of gambling within any licensed premises other than as specifically provided herein and in the act.

D. Any temporary suspension described in Subsection B of 15.10.54.9 NMAC, above, must be requested by application provided by the division, and approved in writing by the division prior to the date of the suspension.

[15.10.54.9 NMAC - Rp, 15 NMAC 10.5.4.9, 4/25/2017]

15.10.54.10 FUND RAISING EVENTS: A club may allow its facilities, including its licensed premises, to be used by another non-profit organization twice in a calendar year for a fund raising event that is open to the public if the club submits an application on the form provided by the division not less than 10 days before the date of the proposed event and receives written approval from the division for the event.

[15.10.54.10 NMAC - Rp, 15 NMAC 10.5.4.10, 4/25/2017]

15.10.54.11 ADVERTISING FOR SPECIAL EVENTS:

A. A club may advertise a special event for the purposes of soliciting new club members or to notify existing members. Any advertisement, either printed, electronic or otherwise, must clearly state that the event is restricted to members of the club and their bona fide guests. If soliciting new members, the advertisement must state “to become a member, please contact” and provide contact information of a club member.

B. Examples of special events include, but are not limited to, musical and other artistic performances, speaking engagements, and promotions by commercial entities.

C. Special events that also constitute “fund raising events” pursuant to section 10, above, are not subject to this advertising rule.

D. Any advertising described in Subsection A of 15.10.54.11 NMAC shall not include references to specific drinks or prices of drinks.

[15.10.54.11 NMAC - Rp, 15 NMAC 10.5.4.11, 4/25/2017]

15.10.54.12 CHANGE IN OFFICERS: A club must report a change in officers within 30 days of an election being held on an application prescribed by the director, including but not limited to, submission of fingerprints, personal affidavits, meeting minutes from the election and a copy of the club’s filing with the New Mexico secretary of state that lists its current officers.

[15.10.54.12 NMAC - Rp, 15 NMAC 10.5.4.12, 4/25/2017]

15.10.54.13 LICENSE RENEWAL REQUIREMENT: In addition to the other requirements provided by law, as part of its annual renewal application, and upon request by the director, a club must furnish proof of its number of members by providing either:

A. a roster of its current members which includes the name, address and phone number of each member; or

B. a sworn statement by either a certified public accountant or an attorney, duly licensed in the state, attesting that during the preceeding 12 months, the club has had no more than 250 members, based upon a personal review of the club’s operations; or

C. a sworn statement by an officer of the statewide or national non-profit organization associated with the club attesting that during the preceeding 12 months, the club has had no more than 250 members, based upon a personal review of the club’s operations.

[15.10.54.13 NMAC - Rp, 15 NMAC 10.5.4.13, 4/25/2017]

HISTORY OF 15.10.54 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the State Records Center and Archives under:

ABC Regulation No. 7A-13(B)(2)(A), Penalties for Violation of Section 60-7A-13(B)(2), Sales by Clubs, Interpreting and Exemplifying Section 60-7A-13(B)(2) NMSA 1978 (1981 and 1985 Supp.), filed 10/29/1985;

ABC 7A-13(B)(2)(A), Penalties for Violation of Section 60-7A-13(B)(2) NMSA 1978, led 2/13/1986; and

AGD Regulation 7A-13, Sales by Clubs, filed 9/25/1990.

History of Repealed Material:

15 NMAC 10.5.4, Sales Clubs, filed 7/21/1999 - Repealed effective 4/25/2017.