SECTION 1. (a) Notwithstanding sections 11 and 17 of chapter 138 of the General Laws or any general or special law to the contrary, the licensing authority in the town of South Hadley may grant: (i) 4 additional licenses for the sale of all alcoholic beverages to be drunk on the premises pursuant to section 12 of said chapter 138; and (ii) 2 additional licenses for the sale of all alcoholic beverages not to be drunk on the premises pursuant to section 15 of said chapter 138.

(b) A license granted pursuant to clause (i) of subsection (a) shall only be exercised in the dining room of a common victualler licensed to conduct a restaurant and other such public rooms or areas as may be deemed reasonable and appropriate by the licensing authority as certified in writing.

(c) The licensing authority shall not approve the transfer of a license granted 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.

(d) If a licensee terminates or fails to renew a license granted under this section or any such license is cancelled, revoked or no longer in use, it shall be returned physically, with all legal rights, privileges and restrictions pertaining thereto, to the licensing authority and the licensing authority may, within 3 years after such return, then grant the license to a new applicant at the same location under the same conditions as specified in this section, otherwise such license shall dissolve.

(e) A license granted under this section shall be issued within 1 year 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 (c) and (d) thereafter.

SECTION 2. Upon issuance of the license authorized in clause (ii) of subsection (a) of section 1, the licensee shall return physically, with all of the legal rights, privileges and restrictions pertaining thereto, to the licensing authority its license for the sale of wine and malt beverages not to be drunk on the premises under section 15 of chapter 138 of the General Laws.

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