SECTION 1.  (a) Notwithstanding section 17 of chapter 138 of the General Laws, the licensing authority of the town of Danvers may grant 10 additional licenses for the sale of all alcoholic beverages to be drunk on the premises pursuant to section 12 of said chapter 138 to: (i) establishments located along United States highway route 1 from the Peabody city line to the Topsfield town line or along state highway route 114 from the Middleton town line to the Peabody city line, hereinafter referred to collectively as the Route 1/Route 114 District; or (ii) establishments located within the geographical area, hereinafter referred to as the Downtown/Danversport District, bounded by state route 62, in the north, Pine street and Sylvan street, in the west, the Peabody and Salem city lines, in the south, and the Crane river and the Beverly city line, in the east, including establishments within the town of Danvers located on or along those boundaries. A license granted pursuant to this act shall be clearly marked on its face “Route 1/Route 114 District” or “Downtown/Danversport District” and shall be subject to all of said chapter 138 except said section 17.

(b)  Notwithstanding section 12 of chapter 138 of the General Laws, the licensing authority may restrict the licenses issued pursuant to this act to holders of common victualler licenses.

(c)  The licensing authority shall not approve the transfer of a license granted pursuant to this act to a location outside of the Route 1/Route 114 District or the Downtown/Danversport District but it may grant the license to a new applicant along or within the same district in which the license was originally issued pursuant to subsection (a) 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.

(d)  If a license granted pursuant to this act is cancelled, revoked or no longer in use, it shall be returned physically, with all of the legal rights, privileges and restrictions pertaining thereto, to the licensing authority and the licensing authority may then grant the license to a new applicant at a location along or within the same district in which the license was originally issued pursuant to subsection (a) and under the same conditions as specified in this act.

SECTION 2. This act shall take effect upon its passage.