(2) The department shall examine livestock or hides, review any evidence submitted pursuant to subsection (1) of this section and otherwise perform brand inspection to determine whether the person in possession is the owner or lawful possessor thereof. Except for brand inspections made under ORS 604.046 (4), if the department determines the person is the owner or lawful possessor, it shall issue an appropriate brand inspection certificate. However, if the department determines there is a question of ownership or right to possession of the livestock or hides, or if the person in possession of the livestock or hides fails to submit the evidence requested under subsection (1) of this section, the department shall refuse to issue its brand inspection certificate and may undertake any of the actions described in ORS 604.056. [1981 c.248 §10]