A. If a licensee, any owner of a licensee, or any of the licensee's managers, servants, agents, or employees knows or should have known that an illegal or violent act has been committed or is about to be committed on, about, or outside of the licensed premises, it shall be unlawful and a misdemeanor offense for such person to fail to immediately report the same to the police department of the town.

B. As used in this section:

KNOWS OR SHOULD HAVE KNOWN: Actual knowledge, or knowledge that a person exercising reasonable diligence should have. In determining whether a person "should have known" certain information, the court shall apply an objectively reasonable person standard.

OWNER OF A LICENSEE: The sole proprietor of any licensee that is a sole proprietorship; any partner of a licensee that is a general partnership; any general partners of a licensee that is a limited partnership; any member or manager of a licensee that is a limited liability company; any person owning ten percent (10%) or more of the issued and outstanding stock of a licensee that is a corporation; and any person having a ten percent (10%) or more ownership interest in a licensee that is any other form of business entity.

C. The failure of a licensee to comply with the penal requirements of this section may be considered by the licensing authority in any action relating to revocation, suspension or renewal of a license. Proof of the licensee's failure to comply with the requirements of this section on three (3) or more occasions within the licensing period shall constitute prima facie grounds for the suspension, revocation or denial of renewal of a license. (Ord. 4, Series 2009)