A. The director is authorized to issue a tasting permit to a licensed dispenser, retailer, resident manufacturer, nonresident manufacturer, wholesaler or winegrower or an agent of any such licensed entity to conduct tastings of wine, beer, cider or spirituous liquor on a licensed premises in accordance with rules promulgated by the director to protect public health and safety. A person serving wine, beer, cider or spirituous liquor

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at a tasting event permitted pursuant to this section shall have a server permit.

B. To apply for a tasting permit, the holder of a license described in Subsection A of this section shall submit to the department a tasting permit fee of one hundred dollars ($100) and such information as the director may require. A tasting permit shall be valid for one year from the date that it is issued and may be renewed upon application to the department and payment of the tasting permit fee of one hundred dollars ($100). A person permitted to hold tastings pursuant to this section shall notify the director no less than forty-eight hours before a tasting event of the person’s intent to hold the event.

Notification shall include the times and locations of, and the types of products to be included in, the tasting event. Upon receipt of notification, the director shall forward the notice to the appropriate staff member of the special investigations division [New Mexico state police division] of the department of public safety.

C. The director may impose the following administrative penalties on a person who holds a tasting permit for violations of the Liquor Control Act that occur during tastings conducted pursuant to the person’s tasting permit:

(1)     for a first violation, a fine no greater than one thousand dollars ($1,000) or a restriction on issuance of tasting permits to the person for a period of two months, or both;

(2)     for a second violation within a year of the first violation, a fine no greater than two thousand dollars ($2,000) or a restriction on issuance of tasting permits to the person for a period of six months, or both; and

(3)     for a third violation within a year of the first violation, a citation against the license held by the person, a fine no greater than five thousand dollars ($5,000) and a restriction on issuance of tasting permits to the person for a period of one year.