It is enacted by the General Assembly as follows:

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

{ADD 3-7-7. Class B license. -- ADD} A retailer's license, Class B, shall be issued only to a duly licensed bona fide tavern keeper or victualer whose tavern or victualing house may be open for business and regularly patronized at least from 9 o'clock a.m. to 7 o'clock p.m. provided, that no beverages shall be sold or served after 1 o'clock a.m., nor before 6 o'clock a.m.; provided, however, that local boards of licenses may fix an earlier closing time within their jurisdiction, at their discretion {ADD ; provided, however, the East Greenwich town council may, in its discretion, issue full and limited Class B licenses which may not be transferred, but which shall revert to the town of East Greenwich if not renewed by the holder thereof ADD} . It shall authorize the holder thereof to keep for sale and sell beverages including beer in cans, at retail at the place therein described and to deliver the same for consumption on the premises or place where sold, but only at tables or lunch bar where food is served; and it shall also authorize the charging of a cover, minimum or door charge; provided, however, that the amount of the cover, or minimum or door charge shall be posted at the entrance of the establishments in a prominent place; provided, however, that holders of licenses shall not be permitted to hold dances within the licensed premises, unless proper permits have been properly obtained from the local licensing authorities; provided further, however, that any holder of a Class B license may upon the approval of the local licensing board and for additional payment of two hundred dollars ($200) open for business at 12 o'clock (12:00) P.M. and on Fridays and Saturdays and the night before legal Rhode Island holidays may close at 2 a.m.; all requests for a 2 a.m. license shall be advertised by the local licensing board in a newspaper having a circulation in the county where the establishment applying for the license is located. A holder of a retailer's license, Class B, shall be allowed to erect signs advertising his business and products sold on the premises, including neon signs, and shall be allowed to light those signs during all lawful business hours, including Sundays and holidays.

The annual fee for the license shall be for a tavern keeper four hundred dollars ($400) to one thousand five hundred dollars ($1,500), and for a victualer four hundred dollars ($400) to one thousand dollars ($1,000); provided, however, that in towns with a population of less than two thousand five hundred (2,500) inhabitants as determined by the last census taken under the authority of the United States or the state of Rhode Island, the fee for each retailer's Class B license shall be determined by the town council, but shall in no case be less than three hundred dollars ($300) annually; provided further, that if the applicant so requests in his application, any retailer's Class B license may be issued limiting the sale of beverages on the licensed premises to malt and vinous beverages containing not more than twenty percent (20%) alcohol by volume, and the fee for that limited Class B license shall be two hundred dollars ($200) annually. The fee for any Class B license shall in each case be prorated to the year ending December 1, in every calendar year.

SECTION 2. This act shall take effect upon passage.