SECTION 1. (a) Notwithstanding section 17 of chapter 138 of the General Laws, the licensing authority of the town of Ludlow may grant three additional licenses for the sale of all alcoholic beverages to be drunk on the premises pursuant to section 12 of said chapter 138 to establishments located within the town’s Proposed DIF District Boundary zone, as defined in subsection (b), upon approval of and under conditions set by the licensing authority for the town of Ludlow. A license granted pursuant to this act shall be clearly marked on its face “DIF District Boundary” and shall be subject to all of said chapter 138 except said section 17.

 (b) The licensing authority of the town of Ludlow shall restrict the licenses granted pursuant to this act to establishments located within the Proposed DIF District Boundary zone, as that area is shown on a map titled “State Street / Ludlow Mills Improvement District 2023” and dated August 10, 2026, a copy of which is on file in the office of the town clerk of the town of Ludlow.

 (c) A license granted pursuant to this act shall only be exercised in the dining room of a common victualler and in other such public rooms or areas as may be deemed reasonable and appropriate by the licensing authority as certified in writing.

 (d) The licensing authority shall not approve the transfer of a license granted pursuant to this act to a location outside of the zoned area as defined in subsection (b), but it may grant a license to a new applicant within such zoned area 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.

 (e) If the licensee terminates or fails to renew a license granted pursuant to this act or any such license 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 under the same conditions as specified in this act.

 (f) All licenses granted under this act shall be issued within 3 years after the effective date of this act; provided, however, that a license originally granted within that time period may be granted to a new applicant under subsections (d) or (e) thereafter.

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