Chapter 200


Enacted 07/02/11





     Introduced By: Senators Metts, Jabour, and Doyle

     Date Introduced: March 10, 2011


It is enacted by the General Assembly as follows:


     SECTION 1. Sections 3-5-19 and 3-5-21 of the General Laws in Chapter 3-5 entitled

"Licenses Generally" are hereby amended to read as follows:


     3-5-19. Transfer or relocation of license. (a) The board, body or official which has

issued any license under this title may permit the license to be used at any other place within the

limits of the town or city where the license was granted, or, in their discretion, permit the license

to be transferred to another person, but in all cases of change of licensed place or of transfer of

license, the issuing body shall, before permitting the change or transfer, give notice of the

application for the change or transfer in the same manner as is provided in this chapter in the case

of original application for the license, and a new bond shall be given upon the issuance of the

license provided, that notice by mail need not be made in the case of a transfer of a license

without relocation. In all cases of transfer of license, indebtedness of the licensee incurred in the

operation of the licensed premises shall be paid to or released by an objecting creditor before the

issuing body permits the transfer. In cases of dispute as to the amount of indebtedness, the issuing

body, may, in its discretion, permit the transfer upon statement of the licensee, under oath, that

the claim of indebtedness is disputed and that the statement of dispute is not interposed for the

purpose of inducing transfer of the license. No creditor is allowed to object to the transfer of a

license by a receiver, trustee in bankruptcy, assignee for the benefit of creditors, executor,

administrator, guardian or by any public officer under judicial process. In case of the death of any

licensee, the license becomes part of the personal estate of the deceased. The holders of any retail

Class A license within the city or town issuing or transferring a Class A license have standing to

be heard before the board, body, or official granting or transferring the license.

     (b) The transfer of a license is contingent upon the full payment of outstanding police

detail bills.

     (c) The transferee of a license assumes all penalties that the license board has imposed

upon the transferor of the license.


     3-5-21. Revocation or suspension of licenses -- Fines for violating conditions of

license. -- (a) Every license is subject to revocation or suspension and a licensee is subject to fine

by the board, body or official issuing the license, or by the department or by the division of

taxation, on its own motion, for breach by the holder of the license of the conditions on which it

was issued or for violation by the holder of the license of any rule or regulation applicable, or for

breach of any provisions of this section.

      (b) Any fine imposed pursuant to this section shall not exceed five hundred dollars

($500) for the first offense and shall not exceed one thousand dollars ($1,000) for each

subsequent offense. For the purposes of this section, any offense committed by a licensee three

(3) years after a previous offense shall be considered a first offense.

     (c) In the event that a licensee is required to hire a police detail and the police refuse to

place a detail at the location because a licensee has failed to pay outstanding police detail bills or

to reach a payment plan agreement with the police department, the license board may prohibit the

licensee from opening its place of business until such time as the police detail bills are paid or a

payment plan agreement is reached.


     SECTION 2. Section 3-7-16.6 of the General Laws in Chapter 3-7 entitled "Retail

Licenses" is hereby amended to read as follows:


     3-7-16.6. Class N nightclub license. -- (a) Notwithstanding any provision of this title to

the contrary, any town or city council, by ordinance, may authorize the licensing authorities

designated as having the right, power, and jurisdiction to issue licenses under this title pursuant to

section 3-5-15 to designate and issue a special class of Class N nightclub licenses within its


      (b) A Class N license, when so authorized, shall be required by each establishment

within the jurisdiction which:

      (1) Has as its primary source of revenue the sale of alcoholic beverages and/or cover


      (2) Holds a Class B or Class ED license;

      (3) Has a fire department occupancy permit of no less than two hundred (200) persons

and no greater than ten thousand (10,000) persons; or any establishment with a fire department

occupancy permit of less than two hundred (200) persons that holds an entertainment license.

      (c) Any establishment with a Class N license which admits patrons under twenty-one

(21) years of age on the premises of the establishment when alcoholic beverages are being sold,

served, or permitted on the premises shall, during the time the patrons are permitted on the


      (1) Require one form of identification. The identification shall contain the bearer's

photograph, and must be one of the following: state driver's license, US military identification,

state issued identification card, or passport, from every person claiming to be twenty-one (21)

years of age or older;

      (2) Identify patrons over twenty-one (21) years of age with both an identifiable hand

stamp and a bracelet and shall require every patron to show both hand stamp and bracelet before

purchasing an alcoholic beverage;

      (3) Sell not more than one alcoholic beverage to an eligible patron in a single

transaction, and shall prohibit a patron from carrying more than one alcoholic beverage from a

bar or drink dispensing location;

      (4) Not permit any patron who leaves the premises to be readmitted prior to closing

without payment of the same admission or cover charge required of patrons entering the premises


      (d) The licensing authority of each town or city shall set the closing time for each

establishment holding a Class N nightclub license within its jurisdiction pursuant to section 3-7-

7(a)(1) and (a)(4), and notwithstanding other provisions of those subdivisions, an establishment

holding a Class N nightclub license which is permitted to remain open until two o'clock (2:00)

a.m., shall not admit patrons after one o'clock (1:00) a.m.

      (e) The licensing authority of each town or city will establish the cost and duration of all

Class N nightclub licenses issued by that authority.

      (f) Notwithstanding the provisions of section 3-5-17, no licensing authority may issue a

Class N nightclub license unless the following notice requirements have been met:

      (1) Any establishment applying for a Class N nightclub license, or the renewal of that

license, or which is the subject of a hearing relating to its Class N nightclub license, must provide

the general public with notice of its application by posting a twenty-four (24) inch by thirty-six

(36) inch notice on its premises, in a manner clearly visible to the general public, at least thirty

(30) days prior to the hearing date before the licensing authority for the license, and at least thirty

(30) days prior to hearings related to the license on appeal to the director. If any hearing is

scheduled to occur in less than thirty (30) days, the applicant or Class N nightclub license holder

must post this notice within three (3) business days after its receipt of notification of that hearing

from the licensing authority or the director.

      (2) The notice shall contain the name of the applicant and a description by street and

number or other plain designation of the particular location for which the Class N nightclub

license is requested. The notice shall state that remonstrants are entitled to be heard at the hearing

on the Class N nightclub license, and shall provide the time and place of that hearing.

      (g) Any establishment that holds a Class N nightclub license must:

      (1) Comply with local ordinances governing noise levels;

      (2) Cooperate with law enforcement officials;

      (3) Provide private security for the safety of patrons both inside and outside the

establishment, which private security must be certified by TIPS or a similar agency approved by

the licensing authority; and

      (4) Collect trash generated by the establishment every night that the establishment is

open in an area surrounding the premises that is reasonable and prudent, given the size of the


      (h) The licensing authority of each town or city will develop requirements for police

details for the purposes of public safety and traffic control in and around the premise of each

establishment holding a Class N nightclub license.

     (i) (1) The licensing authority which has issued a license under this section may ban the

admittance of persons under the age of twenty-one (21) on the licensee’s premise:

     (i) On certain nights; or

     (ii) At certain times; or

     (iii) At all times.

     (2) Provided however, any ban under this subsection herein shall be supported by a

finding that:

     (i) The licensee has failed to implement measures designed to prevent underage drinking;


     (ii) The licensee has multiple violations of the provisions of one or more of the following

sections: 3-8-1, 3-8-4 and/or 3-8-10.


     SECTION 3. This act shall take effect upon passage.



LC01555/SUB A