(1) In selecting retailers to participate in the program, the state WIC agency will apply the requirements of 7 CFR 246.12(e) through (v), and the following criteria:

(a) whether the place of the retailer's business is permanent; no stores on wheels may be allowed;

(b) whether the retailer stocks and maintains appropriate quantities of authorized WIC foods;

(c) whether the retailer is accessible to WIC clients;

(d) whether the retailer has been disqualified from the USDA SNAP;

(e) whether the retailer has a valid, current business license from each appropriate Montana state agency, as may be required by law.

(2) In selecting farmers to participate in the program, the state agency will apply the requirements of 7 CFR 246.12(v):

(a) The farmer must grow farm-direct approved fruits and vegetables themselves and may sell only locally grown produce as part of their farm-direct participation.

(b) The farmer will agree to sell only the eligible, locally grown foods in exchange for Montana WIC benefits.

(c) The farmer will ensure that no conflict of interest exists between the farmer and the Montana WIC Program.

(d) Farmers must have and maintain a positive compliance history with any and all USDA FNS programs in which they are participating or have participated.

(3) The department adopts and incorporates by reference the following:

(a) 7 CFR 246.12(e) through (v), which is a federal agency rule setting forth the authorization of retailers and farmers; requirements for agreements; periodic review of qualifications; guidelines for training; monitoring; participant, retailer, and farmer complaints and sanctions; requirements for control and reconciliation of food benefits; and payment to retailers and farmers.

(b) Copies of 7 CFR 246.12(e) through (o) may be obtained from the Department of Public Health and Human Services, Special Supplemental Nutrition Program for Women, Infants & Children (WIC), P.O. Box 202951, Helena, MT 59620-2951.