Before issuing a permit to operate a weighing and measuring establishment, the director shall receive a placed-in-service report from a repairperson, who is registered with the department, or inspect each weighing and measuring device to determine whether the applicant qualifies to hold a permit pursuant to subsection (1) of section 89-187.07 except when the requirements of section 89-187.04 have been met. A placed-in-service report shall be in the form prescribed by the department. A weighing and measuring establishment receiving a placed-in-service report for all of its weighing and measuring devices, passing inspection by the department, or meeting the requirements of section 89-187.04 and otherwise found to qualify to hold a permit pursuant to subsection (1) of section 89-187.07 shall be issued a permit. An applicant who does not receive a permit shall be notified in writing of the grounds for denial, and such applicant shall be afforded the opportunity of a hearing to present evidence that the establishment is qualified to hold a permit pursuant to subsection (1) of section 89-187.07 and should be issued a permit. All such hearings shall be in compliance with the Administrative Procedure Act.