SECTION 1. Notwithstanding sections 17 and 17A of chapter 138 of the General Laws, the licensing authority of the city of Salem may convert 1 annual license for the sale of wine and malt beverages to be drunk on the premises to an annual license for the sale of all alcoholic beverages to be drunk on the premises under section 12 of said chapter 138 currently issued to FSPC Corporation, d/b/a Flying Saucer Pizza Company, located at 118 Washington Street in the city of Salem. The license converted under this section shall be subject to all of said chapter 138 except sections 17 and 17A.

The licensing authority shall not approve the transfer of the license converted pursuant to this section 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 the license converted pursuant to this section 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 and the licensing authority may then grant the license to a new applicant at the same location under the same conditions as specified in this act. 

SECTION 2.  (a) The city of Salem shall charge a fee for the conversion of the licenses authorized in section 1 which shall be paid by the licensee at the time of issuance unless the licensing authority agrees to enter into a contract with the licensees to allow the division of the fee into multiple payments over time from the licensee.  If the city elects to accept multiple payments over time from the licensees, 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 the licenses converted pursuant to section 1 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.