(a) Subject to subsection (b) of this section, instead of ordering the revocation or suspension of a license, the Board may order a license holder to exchange the license for a lesser license:

(1) under which only alcoholic beverages of a lower alcoholic content or of a more limited kind than under the license ordered exchanged may be sold; and

(2) that has fewer privileges or more or greater restrictions than the license ordered exchanged.

(b) Subsection (a) of this section applies only if:

(1) after a hearing, the Board finds that a license holder or the operation of a licensed premises has violated or is violating this article; and

(2) the penalty for the violation requires or allows a license to be revoked or suspended.