(1) A local agency, retailer, or farmer which is denied participation or, during the course of a contract or agreement, is disqualified or its participation is otherwise adversely affected may request a fair hearing before the department. Expiration of a contract or agreement with a retailer, farmer, or local agency is not subject to appeal.

(2) The issuance of notice of adverse action, the processing of fair hearing requests, and the conduct of such hearings are in accordance with the provisions of 7 CFR 246.18 and applicable sections of the state plan.

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

(a) 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; and

(b) the fair hearing requirements for local agencies, retailers, and farmers set forth in the state plan.

(c) Copies of 7 CFR 246.18 and the local agency and retailer and farmer fair hearing provisions of the state plan may be obtained from the Department of Public Health and Human Services, Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), P.O. Box 202951, Helena, MT 59620-2951.