(a) This section applies to:
(1) Class A beer licenses, beer and light wine licenses, and beer, wine, and liquor licenses;
(2) Class B beer licenses, beer and light wine licenses, and beer, wine, and liquor licenses; and
(3) Class D beer, wine, and liquor licenses.
(b) Except as provided in subsection (c) of this section, the Board may not issue a license specified in subsection (a) of this section to a person whose establishment is outside:
(1) a municipality; or
(2) a community with at least 500 residents in a 1-mile radius.
(c) Subject to subsection (d) of this section, the prohibition against issuing a license in subsection (b) of this section does not apply to:
(1) a restaurant that derives more than 50% of its average monthly gross receipts from sales other than alcoholic beverages; or
(2) a hotel or motel that has at least 20 rooms regularly for hire and that offers meals for sale as a regular and substantial part of its business.
(d) A license issued under subsection (c) of this section may not be reissued, renewed, or transferred if the license holder fails to continue to comply with the requirements of this section.