The State agency shall grant or deny authorization to a vendor applicant within 60 days of receipt of an application. Authorization Granted. The State agency shall grant authorization if the vendor applicant's store meets the requirements for authorization as set forth in Regulation .04 of this chapter. Authorization Retained. A vendor retains its authorization until the: Vendor’s authorization is terminated as a sanction for a Program violation in accordance with this chapter; State agency terminates the vendor's authorization in accordance with the provisions of the vendor agreement; Vendor notifies the State agency it wishes to cease operation as a WIC vendor; Authorization period as contained in the vendor agreement has expired; or Vendor is determined, in accordance with Regulation .10H of this chapter, to derive more than 50 percent of its eligible food sales from the redemption of WIC food benefits. Authorization Denied. The State agency shall deny authorization if a vendor applicant's store does not meet the minimum requirements for authorization as set forth in Regulation .04 of this chapter. Upon denial of an application, the State agency shall notify a vendor applicant: In writing of the reason for denial of its application; and Of its right to request a hearing on the denial as set forth in Regulation .18 of this chapter. Authorization Period. The State agency, in accordance with 7 CFR 246.12, may not authorize a vendor for a period exceeding 3 years. The State Agency, at its discretion, may authorize a vendor for a period less than 3 years.