§ 3-5-10 - Residence of licensees and qualifications of persons and corporations as licensee.
SECTION 3-5-10
§ 3-5-10 Residence of licensees andqualifications of persons and corporations as licensee. – (a) Except as otherwise provided, licenses are issued only to citizens who areresidents of this state. It is not required that dining car companies, sleepingcar companies, railroad companies operating in this state, or companiesoperating passenger-carrying marine vessels in this state be citizens of thisstate in order to be eligible to receive retailers' Class G licenses.Retailer's licenses may, however, be issued to corporations incorporated in anyother of the United States which are authorized by the secretary of state totransact business in this state.
(2) Notwithstanding the provisions of subsection (a)(1) ofthis section, no license shall be issued, granted, renewed, or transferred toany trust or trustee or to any corporation of which any share or shares ofstock 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 anatural person or corporation authorized by the secretary of state to transactbusiness in this state; provided, however, that this subsection shall notaffect any grant, renewal, or transfer of a license which occured prior to theeffective date of this subsection [June 15, 2000].
(b) In applications for beverage licenses by corporationsexcept those having more than twenty-five (25) stockholders, the names andaddresses of all officers and members of the board of directors and of allstockholders shall be filed with the board, body, or official to whomapplication is made. No beverage license shall be issued to the corporationunless each officer, director or stockholder is a suitable person to hold alicense within the discretion of the board, body or official to whomapplication is made.
(2) All those corporations holding beverage licenses shallreport to the board, body or official who issued the licenses the name of anynewly elected officer or director and the acquisition by any person of morethan ten percent (10%) of any class of corporate stock, within thirty (30) daysafter the election or acquisition. Thereupon, the board, body or official maycall 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 ordirector or stockholder is not a suitable person to hold a license.
(3) No person shall acquire fifty percent (50%) or more ofany class of the stock of any corporation licensed under this section, exceptcorporations having more than twenty-five (25) stockholders, unless permissionfor the acquisition is first given by the board, body or official who issuedthe license. Application for permission to acquire stock is subject to theprovisions of § 3-5-19 relating to the transfer of a license to anotherperson except that it shall not be necessary that a new bond be given. Unlessthe board, body or official determines that the person seeking permission toacquire fifty per cent (50%) or more of the corporation's stock is a suitableperson to hold a license, the permission shall not be given.
(4) The beverage license of a corporation is subject tosuspension or revocation for failure to comply with any of the provisions ofthis section or for any fraud or misrepresentation in connection with thebeverage license.
(c) Applicants for beverage licenses shall make fulldisclosure in their applications for a license of any interest, whether director indirect, by any other person, firm or corporation in the license appliedfor, and failure to do so or any misrepresentation by the applicant may because for denial of the application or revocation of the license if granted bythe board, body or official issuing the license.
(d) The board, body or official issuing beverage licenses mayalso deny applications of persons who have criminal records, or who haverecords of repeated violations of this title.