§ 118. Revocation of licenses for cause. 1. Any license or permit issued pursuant to this chapter may be revoked, cancelled, suspended and/or subjected to the imposition of a civil penalty for cause, and must be revoked for the following causes:

(a) Conviction of the licensee, permittee or his agent or employee for selling any illegal alcoholic beverages on the premises licensed.

(b) For transferring, assigning or hypothecating a license or permit. 2. Notwithstanding the issuance of a license or permit by way of renewal, the liquor authority may revoke, cancel or suspend such license or permit and/or may impose a civil penalty against any holder of such license or permit, as prescribed by this section and section one hundred nineteen of this chapter, for causes or violations occurring during the license period immediately preceding the issuance of such license or permit, and may recover, as provided in section one hundred twelve of this chapter, the penal sum of the bond on file during said period. 3. (a) As used in this section, the term "for cause" shall also include the existence of a sustained and continuing pattern of noise, disturbance, misconduct, or disorder on or about the licensed premises, related to the operation of the premises or the conduct of its patrons, which adversely affects the health, welfare or safety of the inhabitants of the area in which such licensed premises are located.

(b) (i) As used in this section, the term "for cause" shall also include, for licensees that sell alcoholic beverages for on premises consumption, deliberately misleading the authority:

(A) as to the nature and character of the business to be operated on the licensed premises; or

(B) by substantially altering the nature or character of such business at the licensed premises during the licensing period without seeking appropriate approvals from the authority.

(ii) As used in this subdivision, the term "substantially altering the nature or character" of such business shall mean any significant alteration in the scope of business activities conducted at a licensed premises that would require obtaining an alternate form of license. 4. As used in this chapter, the existence of a sustained and continuing pattern of noise, disturbance, misconduct, or disorder on or about the licensed premises, related to the operation of the premises or the conduct of its patrons, will be presumed upon the sixth incident reported to the authority by a law enforcement agency of noise or disturbance or misconduct or disorder on or about the licensed premises or related to the operation of the premises or the conduct of its patrons, in any sixty day period, absent clear and convincing evidence of either fraudulent intent on the part of any complainant or a factual error with respect to the content of any report concerning such complaint relied upon by the authority. 5. Notwithstanding any other provision of this chapter to the contrary, a suspension imposed under this section against the holder of a license issued under section sixty-one-a of this chapter shall only suspend the licensed activities related to the type of alcoholic beverage involved in the violation resulting in the suspension.