Production company Rust Movie Productions, LLC has been issued with a $136,793 civil penalty over the fatal shooting of cinematographer Halyna Hutchins on the set of Rust following a six-month investigation by the state's environment department.
This is the maximum fine allowable by state law in New Mexico, according to the state's Occupational Health and Safety Bureau.
The report found that the production company "knew that firearm safety procedures were not being followed on set" and "demonstrated plain indifference to employee safety".
Ms Hutchins was killed on the set of the movie in October last year after a prop gun actor Alec Baldwin was holding was discharged.
Director Joel Souza was also wounded in the shooting on the Bonanza Creek Ranch set near Santa Fe.
Baldwin's lawyers say they are "grateful" to the New Mexico occupational health and safety bureau, claiming the report "exonerates" the actor.
The report concluded the company showed "plain indifference to the recognised hazards associated with the use of firearms on set that resulted in a fatality, severe injury, and unsafe working conditions".
It also noted that while the film industry has "clear national guidelines" for firearms safety, Rust Movie Productions "failed to follow these guidelines or take other effective measures to protect workers".
The guidelines require live ammunition "never to be used nor brought onto any studio lot or stage" and that safety meetings take place every day when firearms are being handled.
They also requires that employees "refrain from pointing a firearm at anyone" except after consultation with senior figures such as the armorer.
But the report concludes: "By failing to follow these practices, an avoidable loss of life occurred."
New Mexico's environment cabinet secretary James Kenney said in a statement: "Our investigation found that this tragic incident never would have happened if Rust Movie Productions, LLC had followed national film industry standards for firearm safety.
"This is a complete failure of the employer to follow recognised national protocols that keep employees safe.
"Employees should speak up about unsafe workplace conditions or report them anonymously to us."
Source: Press Association
