(a) For the purposes of this section, a person is responsibly connected with a business if he is a partner, officer, director, holder or owner of at least 10 percent of its voting stock, or an employee in a managerial or executive capacity in the business.
(b) After an applicant for or recipient of inspection services is accorded an opportunity for a hearing, the Secretary may refuse or withdraw inspection services for any period of time for any establishment, if he determines that:
(1) The applicant or recipient is unfit to engage in any business requiring inspection because:
(i) The applicant or recipient, or in case the applicant or recipient is a partnership, any general partner, or in case the applicant or recipient is a corporation, any officer, director, holder, or owner of more than 10 percent of the voting stock, is or has been responsibly connected with any business or person who has committed any offense under this subtitle or has been convicted in any federal, State, or local court of any felony or of any violation of law designed to protect the public from unwholesome, adulterated, or misbranded food or from fraud, in connection with transactions in food; or
(ii) The applicant or recipient, or any person, conducting a business with which the applicant or recipient was responsibly connected, had inspection services refused or withdrawn for a period which has not expired; or
(2) The application for inspection contains a materially false or misleading statement made by the applicant or recipient, or its representative on its behalf, or any fact required by the application form has been concealed or withheld.
(c) After notice to the operator of the establishment, the Secretary may refuse or withdraw inspection services for any establishment for any failure of the operator to (1) maintain the establishment premises and facilities in a sanitary condition, (2) destroy any condemned carcass, part of it, or meat food product as required, or (3) conduct operations at the establishment in accordance with the requirements of this subtitle. After the cause for refusal or withdrawal is corrected, refusal or withdrawal shall terminate and inspection service shall be provided as soon as possible. The Secretary may stay any order of refusal or withdrawal of services pending determination of an appeal to the board of review.
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