A. The director may suspend or revoke the license or permit or fine the licensee in an amount not more than ten thousand dollars ($10,000), or both, when he finds that any licensee has:

(1) violated any provision of the Liquor Control Act [60-3A-1 NMSA 1978] or any regulation or order promulgated pursuant to that act;

(2) been convicted of a felony pursuant to the provisions of the Criminal Code [Chapter 30 NMSA 1978], the Liquor Control Act or federal law; or

(3) permitted his licensed premises to remain a public nuisance in the neighborhood where it is located after written notice from the director that investigation by the department has revealed that the establishment is a public nuisance in the neighborhood.

B. The director shall suspend or revoke the license or permit and may fine the licensee in an amount not to exceed ten thousand dollars ($10,000), or both, when he finds that any licensee or:

(1) his employee or agent knowingly has sold, served or given any alcoholic beverage to a minor in violation of Section 60-7B-1 NMSA 1978 or to an intoxicated person in violation of Section 60-7A-16 NMSA 1978, on two separate occasions within any twelve-month period; or

(2) his agent has made any material false statement or concealed any material facts in his application for the license or permit granted him pursuant to the provisions of the Liquor Control Act.

C. Any licensee aggrieved by a revocation, suspension or fine proposed to be imposed by the director pursuant to this section shall be entitled to the hearing procedures set forth in Chapter 60, Article 6C NMSA 1978 before the revocation, suspension or fine shall be effective.

D. Any charge filed against a licensee by the department and the resulting disposition of the charge shall be reported to the department of public safety and local law enforcement agencies whose jurisdictions include the licensed establishment.

History: Laws 1981, ch. 39, § 97; 1993, ch. 68, § 11; 1998 (1st S.S.), ch. 16, § 1.

Cross references. — For cancellation of license for nonuse, failure to engage in business, see 60-6B-7 NMSA 1978.

The 1998 (1st S.S.) amendment, effective August 2, 1998, deleted former Subsection C, relating to penalties for selling, serving or delivering alcoholic beverages to an intoxicated person or a minor through a drive-up window, redesignated the subsequent subsections accordingly, and made a minor stylistic change in present Subsection C.

The 1993 amendment, effective July 1, 1993, inserted "or administrative fine" in the catchline; rewrote the introductory paragraph of Subsection A which read "A liquor control hearing officer may suspend or revoke the license or fine the licensee, or both when he finds that any licensee has"; rewrote Paragraph (2) of Subsection A which read "made any material false statement in his application for the license granted him under the provisions of the Liquor Control Act"; deleted "suffered or" at the beginning of Paragraph (3) of Subsection A; added current Subsections B to D; redesignated former Subsection B as Subsection E; substituted "department of public safety" for "state police" and "jurisdictions" for "jurisdiction" in Subsection E; and made a minor stylistic change.

Criminal conviction is not a condition precedent to the imposition of a fine. — The criminal conviction of a server under Section 60-7B-1 NMSA 1978 is not a condition precedent to the imposition of a civil fine on the licensee pursuant to Subsection A of Section 60-6C-1 NMSA 1978. Town & Country Food Stores, Inc. v. N. M. Regulation & Licensing Dep't, 2012-NMCA-046, 277 P.3d 490.

Where, in a sting operation, the licensee's employee sold beer to a minor; a hearing officer found that the licensee violated Section 60-7B-1 NMSA 1978 and imposed a fine on the licensee; and the district attorney dismissed charges filed against the employee after the employee completed a pre-prosecution program, the criminal conviction of the employee was not a condition precedent to the imposition of the fine under Subsection A of Section 60-6C-1 NMSA 1978. Town & Country Food Stores, Inc. v. N. M. Regulation & Licensing Dep't, 2012-NMCA-046, 277 P.3d 490.

Superintendent has inherent power to cancel and revoke licenses. — The chief of the division (now director of alcohol and gaming division), having power to grant liquor licenses under the provisions of the Liquor Control Act has likewise inherent power to cancel and revoke any license which he finds has been, for any reason, issued without authority or issued in conflict with the statutes governing and limiting the issuance thereof. Baca v. Grisolano, 1953-NMSC-028, 57 N.M. 176, 256 P.2d 792.

Presumption that valid license originally issued. — This section, in setting up grounds for revocation of a license, obviously implies that a prior valid license had been issued and the grounds of revocation enumerated in the statute relate to misconduct of one kind or another on the part of the licensee. Baca v. Grisolano, 1953-NMSC-028, 57 N.M. 176, 256 P.2d 792.

Mistake of facts in issuing license ground for revocation. — A license issued under a mistake of facts necessary to authorize its issuance may be revoked; and the officer issuing it is not estopped by his conduct in issuing it to revoke or cancel it. Such a proceeding does not come under the statute authorizing a revocation of a license because of misconduct of the holder. Baca v. Grisolano, 1953-NMSC-028, 57 N.M. 176, 256 P.2d 792.

Sale of liquor on Sunday. — Making a sale of intoxicating liquor on Sunday was grounds for revocation of dispenser's license. Kearns v. Aragon, 1959-NMSC-102, 65 N.M. 119, 333 P.2d 607.

Revocation needs evidential support. — Action of chief of division (now director of alcohol and gaming division) in revoking a license on the ground that it was issued illegally must be supported by some evidence of probative value, or else the decision of the liquor authority must be set aside. Baca v. Chaffin, 1953-NMSC-006, 57 N.M. 17, 253 P.2d 309.

As sale of liquor during prohibited hours. — Where proprietor permits his employees to sell liquor during prohibited hours, he would be liable under the statute for the violation and his license would be subject to revocation. 1945 Op. Att'y Gen. No. 45-4680.

Failure to pay wholesaler not grounds for revocation. — No retailer, dispenser or club licensee subjects himself to a suspension or revocation of his license by failing to pay his bills to a licensed wholesaler within 30 days from the date of delivery. 1958 Op. Att'y Gen. No. 58-153.

Premises remaining public nuisance. — A hearing officer may revoke a liquor license after hearing where the licensee permits his premises to remain a public nuisance after written notice from the director. 1987 Op. Att'y Gen. No. 87-15.

Law reviews. — For annual survey of New Mexico law relating to administrative law, see 12 N.M.L. Rev. 1 (1982).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 45 Am. Jur. 2d Intoxicating Liquors § 203.

Showing as to diversion or other misconduct which will support revocation of liquor permit, 76 A.L.R. 1245.

Revocation of liquor license of one person as ground for refusal of license to another, 153 A.L.R. 836.

Revocability of license for fraud or other misconduct before or at the time of its issuance, 165 A.L.R. 1138.

Revocation of license for violation of regulation forbidding employee or entertainer from drinking or mingling with patrons at bar or tavern, or soliciting drinks from them, 99 A.L.R.2d 1216.

Sale or use of narcotics or dangerous drugs on licensed premises as ground for revocation or suspension of liquor license, 51 A.L.R.3d 1130.

48 C.J.S. Intoxicating Liquors § 175.