(1) Applications for project funding shall be filed with the department on or before December 1 of each year. Filing requirements will be satisfied by receipt of the original and ten copies of each application at the Montana Department of Agriculture.

(2) The advisory committee, at the first regular meeting of each calendar year, will review education, production, research, and marketing project applications and a recommendation made to the department as to which projects they would propose to fund and the amount of funding suggested. Recommended projects will be determined by amount of funds, type of project, need as determined by the industry, and whether the project is new or ongoing.

(3) Applicants shall be notified within 30 days after the committee's first calendar year meeting whether or not their application(s) have been granted and the amount to be funded for each approved project.

(4) The department shall evaluate all outstanding project agreements semiannually for adequate and satisfactory financial control, accounting, and performance by project participants.

(5) The department may modify or terminate the funding of any project if a determination is made that the grantee has not complied or cannot comply with a provision of the project agreement. The department shall notify the grantee in writing within 30 days of such determination of the reasons for the determination, and the effective date of the modification or termination.