(1) The department, after written notice to the applicant or registered cardholder, may deny or revoke an application or registry identification card if: 

(a) the applicant did not provide the information required in the application;

(b) the department determines the information provided in the application was inaccurate, misleading, or falsified;

(c) the applicant did not submit the required fee with the application;

(d) the applicant or registered cardholder does not have or no longer has a debilitating medical condition as defined in 16-12-102, MCA;

(e) the applicant is not a resident of the State of Montana;

(f) the applicant is in the custody of or under supervision of the Department of Corrections or youth court

(g) the applicant or registered cardholder is found to be in violation of 16-12-523, MCA;

(h) the applicant or registered cardholder did not report changes to the department in accordance with ARM 42.39.311;

(i) the registry identification card has been found to be altered or manipulated in any way;

(j) the cardholder violates the daily or monthly purchase limitations contained in 16-12-515, MCA; or

(k) the registered cardholder is found to be in violation of any provision under Title 16, chapter 12, part 5, MCA.

(2) Any denial or revocation under this part is subject to a contested case hearing before the department's Office of Dispute Resolution, as provided under ARM 42.2.621.