§ 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.

(c) As used in this section, the term "for cause" shall also include a
licensee's or permittee's failure to cure a violation of law or rule in
the time period prescribed by the authority pursuant to subdivision six
of this section.

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.

6. (a) Notwithstanding any other provision of this chapter, in lieu of
commencement of a disciplinary proceeding against a licensee or
permittee, for a first-time violation of either a provision of this
chapter or a rule of the authority that is deemed by the authority under
its discretion to be de minimis under the circumstances, and is related
to (i) an administrative process, or (ii) paperwork requested or
received by the authority, or (iii) acts or omissions of the licensee or
permittee, the authority shall provide a cure period or other
opportunity for ameliorative action if the violation can be corrected.

(b) Upon such first-time violation, the authority shall (i) provide
the licensee with a copy of the applicable law or rule and any other
helpful guidance or information explaining such law or rule, to the
extent such materials exist, or (ii) to the extent practicable, provide
such licensee assistance with compliance with the law or the authority's
rules.

(c) The authority shall have the discretion to determine the
appropriate period of time to allow such licensee to cure or take such
other ameliorative action to address such violation, which shall be
reasonable but shall not be less than fifteen business days and not more
than twenty business days, unless a longer period is allowed pursuant to
law or regulation.

(d) No waiver of penalties or cure period or other opportunity for
ameliorative action may be given if the authority determines that such
violation may result in serious actual harm, or may present an
endangerment to public safety, human health or the environment, is a
violation of human or civil rights law, results in loss of employee
wages or benefits, interferes with any remedy, review, or resolution
related to harassment or discrimination claims, was or is a willful
violation, involves tax fraud, violates requirements related to federal
funding to the state, relates to state funding or procurement, is
similar to prior violations, is a penal law violation, relates to a
material or substantive portion of the licensee's business, or is in
contravention of the public interest and/or policy reflected by the
authority's mission.