(1) The department (or local agency in consultation with the department), before re-authorization, will conduct periodic reviews of the operations of participating retailers and farmers, as described in the state plan, and will consider the following:

(a) a review of local agency monitoring reports;

(b) results of one or more on site visits;

(c) shared information from the Montana SNAP officer-in-charge;

(d) on site follow-up to (a) when warranted by incomplete information or complaint;

(e) whether the retailer or farmer demonstrates ability to meet Montana WIC Program requirements, as evidenced by performance during the current agreement; and

(f) whether patterns of participant use demonstrate compliance with the program.

(2) Based upon such review, the department may take an adverse action, other than a warning letter, against the retailer or farmer, including disqualification of the retailer or farmer from participation in the program.

(3) When taking an adverse action, other than a warning letter, against a retailer or farmer, including disqualification of a retailer or farmer from the program, the department must provide the affected retailer or farmer with written notice not less than 15 days in advance of the pending action. The notice must include the reasons for the adverse action, the date of adverse action, and, except in cases of the expiration of the retailer's or farmer's WIC agreement, the retailer's or farmer's right to appeal as set forth in 7 CFR 246.18.

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

(a) the "2014 State Plan for Montana's Special Supplemental Nutrition Program for Women, Infants and Children (WIC)", a comprehensive summary of applicable federal regulations, procedures, and forms used by the department; and

(b) 7 CFR 246.18, which is a federal agency rule setting forth the notice and hearing procedures for local agencies, retailers, and farmers who are denied participation or are disqualified from the program.