SECTION 1. Chapter 3-7 of the General Laws entitled "Retail Licenses" is hereby amended by adding thereto the following section:

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 jurisdiction.

(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 charges; and

(2) holds a Class B or Class ED license; and

(3) has a fire department occupancy permit of no less than two hundred (200) persons and no greater than ten thousand (10,000) persons; and

(4) 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 such establishment when alcoholic beverages are being sold, served or permitted on the premises shall, during the time such patrons are permitted on the premises:

(1) Require one (1) 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) Shall 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) Shall sell not more than one (1) alcoholic beverage to an eligible patron in a single transaction, and shall prohibit a patron from carrying more than one (1) alcoholic beverage from a bar or drink dispensing location;

(4) Shall 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 initially.

(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 subsections 3-7-7(a)(1) and 3-7-7(a)(4), and notwithstanding other provisions of these subsections, 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 such 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 such license, and at least thirty (30) days prior to hearings related to such 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;

(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 establishment; and

(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.

SECTION 2. Chapter 11-18 of the General Laws entitled "Fraud and False Dealing" is hereby amended by adding thereto the following section:

11-18-20.1. Possession of false identification. -- The possession of a motor vehicle operator's license card or other documents commonly used to identify the bearer containing a photograph of the possessor, but with the name, or date of birth of a person other than that of the possessor shall be punishable by a fine of not more than five hundred dollars ($500).

SECTION 3. This act shall take effect upon passage.