It is enacted by the General Assembly as follows:

SECTION 1. Section 3-7-3 of the General Laws in Chapter 3-7 entitled "Retail Licenses" is hereby amended to read as follows:

3-7-3. Class A license -- Towns and cities of 10,000 or more. -- In cities and towns having a population of ten thousand (10,000) or more inhabitants, a retailer's license, Class A, shall authorize the holder thereof to keep for sale and to sell at the place therein described beverages at retail and to deliver the same in a sealed package or container, which package or container shall not be opened nor its contents consumed on the premises where sold; provided, that the holder thereof, if other than a person entitled to retail, compound and dispense medicines and poisons shall not, on the licensed premises engage in any other business, keep for sale or sell any goods, wares, merchandise or any other article or thing except the beverages authorized under this license and non-alcoholic beverages; provided, however, that this provision shall not apply to the sale or selling of cigarettes, home bar accessories such as pourers, glasses, cork screws, stirrers, flasks, jiggers, wine racks, ice crushers, bottle openers, can openers and such other items of like nature which other items may, by suitable regulation of the director of business regulation, be authorized to be sold; {ADD nor shall this section apply to promotional free goods which are subject to approval by the director; ADD} provided further, however, that in the city of Newport the license may be issued to any person, firm or corporation who are owners of bona fide markets for the sale of alcoholic beverages in conjunction with and in addition to the sale of meats or groceries in those bona fide markets, and provided further, however, that a person, firm or corporation in that city may obtain a limited Class A license to sell beer, lager and ale on the same premises as other goods, wares, merchandise and articles are sold, and provided further, however, that no Class A license shall be granted for any premises unless the premises shall constitute a separate store, the entrance or entrances to which shall be exclusively from the street or streets or arcade; provided, however, that this provision shall not apply to any person, firm or corporation in the city of Newport who are owners of bona fide markets for the sale of alcoholic beverages in conjunction with and in addition to the sale of meats or groceries in those bona fide markets and as long as the market is owned and operated by the mother, father, son, daughter, brother or sister of the original licensee, but not otherwise.

The premises aforementioned shall have opaque walls which shall completely partition and sever said premises from any adjoining market, concession or business; and provided, further, that the foregoing provision shall not be construed to limit the powers of the department to issue licenses on condition nor to make rules and regulations as hereinafter provided. The annual fee for a Class A license shall be five hundred dollars ($500) prorated to the year ending December 1st in every calendar year.

Any licenses issued under the provisions of this section prior to May 8, 1964 shall remain in full force and effect.

SECTION 2. This act shall take effect upon passage.