SECTION 1. (a) Notwithstanding section 17 and 17A of chapter 138 of the General Laws, the licensing authority of the city of Salem may:

(1) grant 1 additional license for the sale of all alcoholic beverages to be drunk on the premises pursuant to section 12 of said chapter 138 to ZXE, LLC, d/b/a Merchant Hotel, to be located at 148 Washington street;

(2) grant 1 additional license for the sale of wine and malt beverages to be drunk on the premises pursuant to section 12 of said chapter 138 to Brew on the Grid Salem, LLC, d/b/a Brew on the Grid, to be located at 217 Essex street; and

(3) convert 1 seasonal license for the sale of all alcoholic beverages to be drunk on the premises pursuant to section 12 of said chapter 138, currently issued to Salem BC, LLC, d/b/a Bonchon, located at 299 Essex street to an annual license for the sale of all alcoholic beverages to be drunk on the premises pursuant to said section 12 of said chapter 138.

An applicant for conversion of a seasonal license to an annual license pursuant to clause (3) shall not be required to notify abutters pursuant to section 15A of said chapter 138.

The licenses granted or converted under this section shall be subject to all of said chapter 138 except sections 17 and 17A.

(b) The licensing authority shall not approve the transfer of a license granted or converted pursuant to this act to any other location, but it may grant the license to a new applicant at the same location if the applicant files with the licensing authority a letter from the department of revenue and a letter from the department of unemployment assistance indicating that the license is in good standing with those departments and that all applicable taxes, fees and contributions have been paid.

If a license granted or converted pursuant to this act is cancelled, revoked or no longer in use at the location of original issuance, it shall be returned physically, with all of the legal rights, privileges and restrictions pertaining thereto, to the licensing authority which may then grant the license to a new applicant at the same location and under the same conditions as specified in this act.

SECTION 2. (a) The city of Salem shall charge a fee for the granting or conversion of a license pursuant to this act, which shall be paid by the licensee at the time of issuance, unless the licensing authority agrees to enter into a contract with the licensee to allow the division of the fee into multiple payments over time from a licensee.  If the city elects to accept multiple payments over time from a licensee, the option shall be made available, upon request, to all qualified applicants for a license.

(b) Any fee collected by the city of Salem for a license granted or converted pursuant to this act which is greater than the amount of the fee charged for an annual renewal of a similar license issued by the city shall be deposited into the city's economic development account and expended by it in a manner consistent with the purposes of such account.

SECTION 3. This act shall take effect upon its passage.