§ 3-5-10. Residence of licensees and qualifications of persons and corporations as licensee.
(a)(1) Except as otherwise provided, licenses are issued only to citizens who are residents
of this state. It is not required that dining car companies, sleeping car companies,
railroad companies operating in this state, or companies operating passenger-carrying
marine vessels in this state be citizens of this state in order to be eligible to
receive retailers' Class G licenses. Retailer's licenses may, however, be issued to
corporations incorporated in any other of the United States which are authorized by
the secretary of state to transact business in this state.
(2) Notwithstanding the provisions of subsection (a)(1) of this section, no license shall
be issued, granted, renewed, or transferred to any trust or trustee or to any corporation
of which any share or shares of stock or other indicia of ownership or control are
owned or held by any trust, or trustee, business organization, or other entity or
person other than a natural person or corporation authorized by the secretary of state
to transact business in this state; provided, however, that this subsection shall
not affect any grant, renewal, or transfer of a license which occurred prior to the
effective date of this subsection [June 15, 2000].
(b)(1) In applications for beverage licenses by corporations except those having more than
twenty-five (25) stockholders, the names and addresses of all officers and members
of the board of directors and of all stockholders shall be filed with the board, body,
or official to whom application is made. No beverage license shall be issued to the
corporation unless each officer, director or stockholder is a suitable person to hold
a license within the discretion of the board, body or official to whom application
is made.
(2) All those corporations holding beverage licenses shall report to the board, body or
official who issued the licenses the name of any newly elected officer or director
and the acquisition by any person of more than ten percent (10%) of any class of corporate
stock, within thirty (30) days after the election or acquisition. Thereupon, the board,
body or official may call a hearing, at its discretion, to determine whether the new
officer, director or stockholder is a suitable person under this section and the board,
body or official may revoke or suspend the license if the new officer or director
or stockholder is not a suitable person to hold a license.
(3) No person shall acquire fifty percent (50%) or more of any class of the stock of any
corporation licensed under this section, except corporations having more than twenty-five
(25) stockholders, unless permission for the acquisition is first given by the board,
body or official who issued the license. Application for permission to acquire stock
is subject to the provisions of § 3-5-19 relating to the transfer of a license to another person except that it shall not
be necessary that a new bond be given. Unless the board, body or official determines
that the person seeking permission to acquire fifty per cent (50%) or more of the
corporation's stock is a suitable person to hold a license, the permission shall not
be given.
(4) The beverage license of a corporation is subject to suspension or revocation for failure
to comply with any of the provisions of this section or for any fraud or misrepresentation
in connection with the beverage license.
(c) Applicants for beverage licenses shall make full disclosure in their applications
for a license of any interest, whether direct or indirect, by any other person, firm
or corporation in the license applied for, and failure to do so or any misrepresentation
by the applicant may be cause for denial of the application or revocation of the license
if granted by the board, body or official issuing the license.
(d) The board, body or official issuing beverage licenses may also deny applications of
persons who have criminal records, or who have records of repeated violations of this
title.