(1) Based upon outcome of the monitoring as defined in ARM 37.41.208, the department may take an adverse action against the farmer, including disqualification of the farmer from participation in the program.

(2) A written warning may be issued for a first violation of the following:

(a) noncompliance with SFMNP rules and procedures as outlined in the farmer agreement not specifically listed as a violation;

(b) refusal to accept valid coupons for eligible produce;

(c) failure to permit or comply with procedures regarding on-site monitoring visits;

(d) charging participants a price for an item that is greater than that charged to nonparticipants;

(e) charging for items not received; or

(f) accepting coupons after the end of the summer market season.

(3) A second violation of (2)(a) through (f) may result in a 15-day suspension during the current market season.

(4) Suspension from the SFMNP for the remainder of the current market season may occur as a result of the following:

(a) subsequent or continued violations described in (2)(a) through (f);

(b) accepting SFMNP coupons for nonlocally grown produce;

(c) exchanging ineligible products for coupons;

(d) accepting coupons in exchange for cash;

(e) cashing coupons for a nonauthorized farmer;

(f) issuing cash change for purchases less than value of coupon; or

(g) participating in discriminatory practices as defined in the terms and conditions of the farmer agreement and in accordance with 7 CFR 249.7.

(5) A farmer will face immediate disqualification without reinstatement and liable to prosecution under applicable federal, state, or local laws if the farmer engages in illegal activity.

(6) When taking an adverse action involving a suspension against or disqualification of a farmer from the SFMNP, the department will provide the affected 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 farmers' SFMNP agreement, the farmers' right to appeal as set forth in ARM 37.41.213.