The State Department of Agriculture shall refuse to grant any application for a bakery license if the department finds after proper investigation that any of the following has occurred:

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(1) The applicant has made to the department any false statement of a material nature.

(2) The premises or equipment of the bakery sought to be licensed are not of a sanitary construction, design or condition. However, this section may not be applied to prevent licensing and operation of a bakery solely because the bakery is in an area that is part of and not separate from a domestic kitchen if the bakery is upon investigation by the department found to be constructed and maintained in a clean, healthful and sanitary condition.

(3) The applicant has failed to comply with ORS § 625.010 to 625.270 or any other applicable law of this state relative to bakeries or bakery products or any regulation in effect thereunder, except that if it is determined that an applicant has not so complied the applicant shall be allowed a reasonable time, not exceeding 30 days, within which to comply, and the refusal or neglect of the applicant to comply within that period is cause for denial of the application. [Amended by 1973 c.243 § 1; 2005 c.22 § 441]