SECTION 1. Notwithstanding section 17 of chapter 138 of the General Laws or any other general or special law to the contrary, the licensing authority of the City of Northampton may grant seven (7) additional licenses for the sale of all alcoholic beverages to be drunk on the premises, under section 12 of said chapter 138, to seven entities deemed appropriate by the licensing authority of the City of Northampton. The licenses shall be subject to all of said chapter 138, except said section 17.

The licensing authority shall not approve the transfer of a license granted pursuant to this act nor shall a license be marketed for sale, sold or pledged to any other entity or location. For purposes of this paragraph, a conveyance or transfer of more than forty-nine percent interest in the entity holding the license shall constitute a sale of the license. Violation of this paragraph shall, after due notice and public hearing, be grounds for revocation of the license issued hereunder.

If a license granted pursuant to this act is canceled, 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 of the City of Northampton, which may then grant the license to a new applicant at the same location or new location in the city under the same conditions as specified in this act. The applicant for a license returned to the licensing authority shall file with the licensing authority a letter from the departure 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.

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