The department will impose the penalties authorized by Section 7-12-13.1 NMSA 1978 in accordance with the following schedule.

1. A. The penalty for a first offense shall be imposed as follows:

   (1) one hundred dollars ($100) for a violation involving a quantity of fewer than two cartons of contraband cigarettes;

   (2) two hundred fifty dollars ($250) for a violation involving a quantity of between two cartons and not more than twenty-five cartons of contraband cigarettes;

   (3) five hundred dollars ($500) for a violation involving a quantity of between twenty-six cartons and not more than two hundred ninety-nine cartons of contraband cigarettes; or

   (4) one thousand dollars ($1,000) for a violation involving a quantity of three hundred or more cartons of contraband cigarettes.

2. B. The penalty for a second offense shall be imposed as follows:

   (1) one thousand five hundred dollars ($1,500) for a violation involving a quantity of fewer than two cartons of contraband cigarettes;

   (2) one thousand seven hundred fifty dollars ($1,750) for a violation involving a quantity of between two cartons and not more than twenty-five cartons of contraband cigarettes;

   (3) two thousand dollars ($2,000) for a violation involving a quantity of between twenty-six cartons and not more than two hundred ninety-nine cartons of contraband cigarettes; or

   (4) two thousand five hundred dollars ($2,500) for a violation involving a quantity three hundred or more cartons of contraband cigarettes.

3. C. The penalty for a third offense shall be imposed as follows:

   (1) five thousand dollars ($5,000) for a violation involving a quantity of fewer than two cartons of contraband cigarettes;

   (2) seven thousand five hundred dollars ($7,500) for a violation involving a quantity of more than two cartons and not more than twenty-five cartons of contraband cigarettes;

   (3) ten thousand dollars ($10,000) for a violation involving a quantity of between twenty-six cartons and not more than two hundred ninety-nine cartons of contraband cigarettes; or

   (4) fifty thousand dollars ($50,000) for a violation involving a quantity of three hundred or more cartons of contraband cigarettes.

4. D. The level of the penalty imposed for a second or third offense is determined only on the quantity of cigarettes involved with that offense, and not on cigarettes involved in a prior offense.

[3.9.1.15 NMAC - N, 11/15/06]