The owner of a brand of spirituous liquors shall file as part of the schedule a verified affirmation that the price to New Mexico wholesalers is no greater than the lowest price at which the item of spirituous liquors is sold by the brand owner or any related person to any wholesaler anywhere in any other state of the United States or in the District of Columbia, or to any state or state agency which owns and operates retail liquor stores. As used in this section, "related person" means any person:

A. in any business in which the brand owner has an interest, direct or indirect, by stock or other security ownership, as lender or lienor or by interlocking director or officer;

B. in the exclusive, principal or substantial business of selling a brand of spirituous liquors purchased from the brand owner; or

C. who has an exclusive franchise or contract to sell the brand of spirituous liquors.

History: Laws 1981, ch. 39, § 65; 1985, ch. 5, § 3.

Constitutionality. — This section is neither arbitrary nor discriminatory and does not violate due process or equal protection and is, therefore, constitutional. United States Brewers Ass'n v. Director of N.M. Dep't of ABC, 1983-NMSC-059, 100 N.M. 216, 668 P.2d 1093, appeal dismissed, 465 U.S. 1093, 104 S. Ct. 1581, 80 L. Ed. 2d 115 (1984).

This section violates the Commerce Clause of the United States Constitution even though it regulates all brand owners of intoxicating liquors evenhandedly, arguably promotes the state's legitimate interest in assuring the lowest possible price, for its residents, and allows brand owners to change out-of-state prices for a product once the price and discount schedule mandated by Section 60-8A-12 NMSA 1978 is filed, because its practical effect is to control prices in other states. Brown-Forman Corp. v. N.M. Dep't of ABC, 672 F. Supp. 1383 (D.N.M. 1987).