N.M. Code R. § 15.10.70.10

Current through Register Vol. 35, No. 11, June 11, 2024

Section 15.10.70.10 - ALTERNATING PROPRIETORSHIPS

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:

(1) Any bona fide alternating propietorship between one or more duly licensed craft distillers, winegrowers or small brewers shall be documented through a written agreement signed by each licensee or its resident agent.

(2) The agreement shall quantify the extent to which the licensed premises, employees and equipment may be used by each duly-licensed licensee.

(3) All parties to the agreement shall furnish a true and correct copy to the division.

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.

N.M. Code R. § 15.10.70.10

Adopted by New Mexico Register, Volume XXVIII, Issue 08, April 25, 2017, eff. 4/25/2017