In the event of a conviction for a violation of chapter 41, title 18, Idaho Code, relating to obscenity, by any:
(1) licensee,
(2) agent of licensee or
(3) employee or licensee if such licensee knew or should have known in the exercise of reasonable diligence that said employee was violating the provisions of chapter 41, title 18, Idaho Code,
and if the violation committed by any of the above occurred on, or in connection with, premises licensed under this act by such licensee, the director shall suspend the license of such licensee for a period of six (6) months. If such licensee, or his agent or employee, has previously been convicted of a violation of chapter 41, title 18, Idaho Code, relating to obscenity, which violation occurred on, or in connection with, the premises licensed under this act by such licensee, the director shall revoke the license of such licensee.