(a) This section does not apply to a license issued as an exception to the population and numerical limitations specified in “Rule 19 – Population and Numerical Limitations” of the Rules and Regulations of the Board.

(b) Subject to subsection (c) of this section, the Board, after a hearing, may approve a transfer of a Class B beer, wine, and liquor (on-sale) hotel and restaurant license to a Class D beer, wine, and liquor (on-sale) license if, before the annual renewal of the license:

(1) the license holder is cited by the Board for violating the license restriction concerning the percent of food sold versus the percent of alcoholic beverages sold; or

(2) because of hardship or economic conditions, the license holder:

(i) knows that the food-alcoholic beverages restriction under item (1) of this paragraph is being violated on the licensed premises; and

(ii) notifies the Board in writing of this violation and the reasons for requesting the transfer.

(c) A license may not be transferred unless, after a hearing, the Board finds that the transfer is in the best interest, health, safety, and welfare of the neighborhood in which the license transfer is to be granted.