Chapter 020

2020 -- H 7557 Enacted 06/26/2020

A N   A C T

RELATING TO ALCOHOLIC BEVERAGES - CLASS A LIQUOR LICENSES

Introduced By: Representatives Shekarchi, Phillips, O'Brien, Millea, and Hawkins

Date Introduced: February 12, 2020

It is enacted by the General Assembly as follows:

SECTION 1. Section 3-5-16 of the General Laws in Chapter 3-5 entitled "Licenses

Generally" is hereby amended to read as follows:

3-5-16. Maximum number of licenses.

(a)(1) The department of business regulation shall have the right and power to limit the

number of licenses of each class. The limit shall not exceed the maximum number, if any, of any

class of license that is fixed by the licensing boards within their respective towns or cities.

(2) The number of Class C licenses in any town or city shall not exceed one for each one

thousand (1,000) of its inhabitants.

(3) Every city and town may grant in any year renewals of any license of Class A in

operation prior to April 28, 1969, except when renewal of that license is refused for cause, but no

further new and original licenses of Class A shall be granted until the number of licenses of Class

A outstanding in any city or town has been reduced to less than one for each six thousand (6,000)

of its inhabitants (one for each four thousand (4,000) of its inhabitants in any city or town with

less than twenty thousand (20,000) inhabitants), as determined by the last census taken under the

authority of the United States or the state, by cancellation, revocation, or the failure of holders of

those licenses to apply for renewals. After that reduction to less than one for each six thousand

(6,000) inhabitants (one for each four thousand (4,000) inhabitants in any town or city with less

than twenty thousand (20,000) inhabitants), licenses of Class A may be granted in any year by

any city or town only up to a total not exceeding one for each six thousand (6,000) of its

inhabitants (one for each four thousand (4,000) of its inhabitants in any town or city with less

than twenty thousand (20,000) inhabitants) as determined by census as required in this

subsection. However, two (2) Class A licenses may be issued by every city or town of the state

irrespective of population and, until the qualified electors of any city or town shall vote to the

contrary, one Class A license may be issued in every city or town in this state unless otherwise

ordered by the city or town council.

Any Class A license issued to or held by a Class E licensee pursuant to the provisions of

§ 3-7-5 shall be included in the total of, and subject to the limit upon the number of, Class A

licenses which may be granted by any city or town under this section.

(b) The transfer of any existing license from the holder of this license to another person

shall not be considered as the issuance of a new license under this section.

(c) The several cities and towns, except those cities and towns that had in effect on June

1, 1971, a limit on the number of retailers' Class B or D licenses, shall not issue any new retailers'

Class B or D licenses until May 1, 1972. The provisions of this section shall not apply to any

application filed on or before May 30, 1971.

(d) Notwithstanding the provisions of subsection (a) of this section, irrespective of the

population of the town of Smithfield, it is expressly authorized to issue a total of five (5) Class A

liquor licenses.

SECTION 2. This act shall take effect upon passage.

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LC003944

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