Subchapter B. MARKETING BY VENDORS AND AGENTS;
SPECIAL ORDERS; LUXURY ITEM ORDERS; PROMOTION WITH LICENSEES AND UNLAWFUL ACTS
Sec.
13.71. Definitions.
13.72. [Reserved].
13.73. Privileges of vendors’ agents.
13.74. [Reserved].
13.75. [Reserved].
13.76. Special order listings.
13.77. [Reserved].
13.78. Special and luxury item orders: requirements and conditions.
13.79. Special orders and luxury item orders: restrictions.
13.80. [Reserved].
13.81. Promotion with licensees.
13.82. Unsolicited special liquor orders.
13.83. Stock merchandise request forms.
13.84. Authorization for agents to purchase for retail customers.
13.85. Unlawful acts.
13.86. Agency provisions.
13.87. Records.
13.88. Presumption of liability of vendor.
13.89. Penalties.
Source The provisions of this Subchapter B adopted November 2, 1964, amended through March 6, 1970, unless otherwise noted.
§ 13.71. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
Agent—An individual employed by a licensed vendor, to promote the sale of liquor through State Liquor Stores. A person who is a licensee or the holder of a Malt or Brewed Beverage License, or an officer, director, agent or employee of either a licensee or such a licensee, or who is not at least 21 years of age, and of good character, is not eligible to be an agent of a vendor under this subchapter.
Licensed vendor—A licensee holding a Manufacturer or Importer License, or a vendor’s permit, and selling liquors to the Board.
Licensee—A natural person, partnership, association or corporation holding a Hotel, Restaurant, Club or Public Service Liquor License issued by the Board.
Luxury items—Stock merchandise which, based upon their short supply or high demand, have been designated as such by the Board. Sales of luxury items may be initiated at a State Liquor Store or by a vendor or its agent on behalf of a licensee or other person.
Miniature—A container containing less than 6 ounces of a liquor, as prepared for the market.
Other persons—Nonlicensee individuals, such as private citizens.
Special order listing—The formal filing with the Board, on its prescribed form, of information the Board requires as to brand, age, proof, type, blend, cost, and the like, of liquors to be sold through the Special Liquor Order Division. The listing does not become effective until approved by the Board or its authorized representative.
Stock merchandise—Liquors which are obtainable at a State Liquor Store, without placing a special liquor order.
Vendor’s permit—A permit issued to a nonresident vendor under section 208(j) of the Liquor Code (47 P.S. § 2-208(j)). An application for the permit shall be filed with the Board accompanied by proper fees in accordance with section 614-A of The Administrative Code of 1929 (71 P.S. § 240.14A). A permit will be issued for the calendar year only.
Source The provisions of this § 13.71 amended March 12, 1993, effective March 13, 1993, 23 Pa.B. 1145; amended December 17, 1999, effective December 18, 1999, 29 Pa.B. 6337; amended February 6, 2009, effective February 7, 2009, 39 Pa.B. 682. Immediately preceding text appears at serial pages (261759) to (261760).
Notes of Decisions License
The special order form regulations require the signature of the actual purchaser, whether a licensee or an individual customer and for these purposes, a ‘‘licensed vendor’’ is not a ‘‘licensee.’’ Margolis Wines and Spirits, Inc. v. Liquor Control Board, 453 A.2d 43 (Pa. Cmwlth. 1982).
Cross References This section cited in 40 Pa. Code § 11.231 (relating to general provisions); 40 Pa. Code § 11.238 (relating to permit holders); 40 Pa. Code § 11.239 (relating to special order listings); and 40 Pa. Code § 13.81 (relating to promotion with licensees).
§ 13.72. [Reserved].
Source The provisions of this § 13.72 amended through June 18, 1982, effective July 1, 1982, 12 Pa.B. 1860; amended March 12, 1993, effective March 13, 1993, 23 Pa.B. 1145; amended August 29, 1997, effective August 30, 1997, 27 Pa.B. 4432; reserved December 17, 1999, effective December 18, 1999, 29 Pa.B. 6337. Immediately preceding text appears at serial pages (222644) and (234133).
§ 13.73. Privileges of vendors’ agents.
(a) Agents may advertise and promote the sale of stock merchandise by ‘‘missionary work’’ of only those brands sold to the Board by the vendor by whom the agents are employed.
(b) Agents may solicit orders from retail purchasers for stock merchandise or gift certificates for the merchandise.
(c) Agents may solicit from licensees or other persons, orders for those brands of liquor which have been listed with the Special Liquor Purchase Division by the vendors by whom the agents are employed. Special orders obtained by vendors’ agents shall be filed with one of the State Liquor Stores as required in this subchapter.
(d) Agents may solicit from licensees or other persons, orders for those brands of liquor which have been designated by the Board as luxury items. Orders for luxury items obtained by vendors’ agents shall be filed with one of the State Liquor Stores as required in this subchapter.
Source The provisions of this § 13.73 amended December 17, 1999, effective December 18, 1999, 29 Pa.B. 6337; amended February 6, 2009, effective February 7, 2009, 39 Pa.B. 682. Immediately preceding text appears at serial page (261761).
§ 13.74. [Reserved].
Source The provisions of this § 13.74 amended October 16, 1981, effective January 1, 1982, 11 Pa.B. 3552; reserved December 17, 1999, effective December 18, 1999, 29 Pa.B. 6337. Immediately preceding text appears at serial page (234134).
§ 13.75. [Reserved].
Source The provisions of this § 13.75 amended October 16, 1981, effective January 1, 1982, 11 Pa.B. 3552; reserved December 17, 1999, effective December 18, 1999, 29 Pa.B. 6337. Immediately preceding text appears at serial pages (234134) and (222647).
§ 13.76. Special order listings.
(a) It is the intent of this section that vendors shall not compete on special order with items sold to the Board as stock merchandise.
(b) No brand of liquor will be accepted for special order listing unless such brand conforms with the requirements of the Board for listing as stock merchandise.
(c) All listings of liquor, except wine, shall be limited to case quantities, containing not less than 240 fluid ounces unless specially authorized by the Board. Listings of wines and liquors in quarts will not be accepted if 4/5 quarts of the same brand are sold as stock merchandise. Listings in 4/5 quarts will not be accepted if the same brand is sold in quarts as stock merchandise. Other listings will be at the discretion of the Board.
(d) If a vendor has a brand of liquor, except wine, listed as stock merchandise, the Board will not accept for listing by him any other brand of the same class, unless the cost to the Board is at least $3.00 per case more than the cost of the brand listed as stock merchandise, except where specially authorized.
(e) Change of proof or age will not be considered as a different class except when such change in proof or age causes a change in class under Federal law or regulations.
(f) If a vendor has a brand of liquor except wine, listed as stock merchandise and stocked in the State Liquor Stores in two or more bottle sizes, he may not list the same brand in an additional bottle size on special order under this section unless specially authorized by the Board.
(g) If a vendor has any stock listed brand of United States wine selling at the lowest price, the Board will not accept from him for special liquor order listing another brand of the same type that would sell for the same or a lower price.
(h) No listing of combination cases or assortments containing whiskies or dry gins will be accepted by the Board. No listing will be effective, nor shall prices be quoted, nor orders solicited, until such listing has been approved by the Board and the selling prices formally released in writing to the vendor. The cost prices upon which such selling prices are based will not become effective until the selling prices are released.
(i) The Board reserves the right to cancel any special order listing at any time or list any brands of liquor as stock merchandise.
§ 13.77. [Reserved].
Source The provisions of this § 13.77 amended through September 30, 1983, effective October 1, 1983, 13 Pa.B. 2972; amended December 17, 1999, effective December 18, 1999, 29 Pa.B. 6337; reserved February 6, 2009, effective February 7, 2009, 39 Pa.B. 682. Immediately preceding text appears at serial pages (261762) to (261763).
Notes of Decisions Violation
A licensed vendor violates the order book procedures prescribed by 40 Pa. Code § 13.77(a) when it lists its agent as the retail customer. For this purpose, a ‘‘licensed vendor’’ is not a ‘‘licensee.’’ Margolis Wines & Spirits, Inc. v. Liquor Control Board, 453 A.2d 43 (Pa. Cmwlth. 1982).
§ 13.78. Special and luxury item orders: requirements and conditions.
(a) Orders obtained in accordance with this subchapter and presented by licensed vendors or their agents to State Liquor Stores for licensees shall be filled at the established wholesale case prices prescribed by the Board for sales to licensees. The wholesale prices apply only when the retail value of the order equals or exceeds the minimum retail value established by the Board.
(b) Orders presented at State Liquor Stores by agents on behalf of persons other than licensees, such as individuals, or orders presented by individual customers themselves, shall be at the established retail special liquor order or luxury item prices. No order may be taken for less than two bottles.
(c) A licensed vendor or the vendor’s agents may not obtain an order from either a licensee or other person unless there is obtained at the same time a sum not less than the amount required by the Board for deposit on special order sales under the Liquor Code. State Liquor Stores may, at the time of receiving the order or releasing the liquor to the purchaser, accept the checks of licensees in payment.
(d) A licensed vendor or the vendor’s agent may not extend credit to a licensee or any other person.
Source The provisions of this § 13.78 amended July 8, 1977, 7 Pa.B. 1890; amended December 17, 1999, effective December 18, 1999, 29 Pa.B. 6337; amended February 6, 2009, effective February 7, 2009, 39 Pa.B. 682. Immediately preceding text appears at serial page (261763).
§ 13.79. Special orders and luxury item orders: restrictions.
(a) Licensed vendors and their agents shall place special orders for liquor at State Liquor Stores.
(b) Except by special permission of the Board, special order merchandise may not be delivered to a State Liquor Store until the licensed vendor has received from the Board a formal purchase order calling for the delivery of the liquor. Each case of liquor so delivered shall have clearly marked thereon, in addition to the information required by Federal or State regulations, the purchase order number, the store order number, the brand and size, the code number as called for in the purchase order, and other information the Board may prescribe.
(c) Liquor sold to licensees will be released only at the State Liquor Store, to the licensee or the licensee’s agent as named on the Wholesale Purchase Permit Card of the licensee.
(d) Special orders placed by a licensed vendor or the vendor’s agent for a retail customer may be released by the State Liquor Store.
(e) Licensed vendors and their agents shall place luxury item orders for liquor at State Liquor Stores.
(f) Except by special permission of the Board, luxury item order merchandise may not be delivered to a State Liquor Store until the licensed vendor has received from the Board a formal purchase order calling for the delivery of the liquor. Each case of liquor so delivered shall have clearly marked thereon, in addition to the information required by Federal or State regulations, the purchase order number, the store order number, the brand and size, the code number as called for in the purchase order, and other information the Board may prescribe.
(g) Liquor sold to licensees will be released only at the State Liquor Store, to the licensee or the licensee’s agent as named on the Wholesale Purchase Permit Card of the licensee.
(h) Luxury item orders placed by a retail customer, a licensed vendor or the vendor’s agent for a retail customer, may be released by the State Liquor Store.
Source The provisions of this § 13.79 amended December 17, 1999, effective December 18, 1999, 29 Pa.B. 6337; amended February 6, 2009, effective February 7, 2009, 39 Pa.B. 682. Immediately preceding text appears at serial pages (261763) to (261764).
Notes of Decisions Violation
A licensed vendor violates the order book procedures prescribed by 40 Pa. Code § 13.79(a) when it lists its agent as the retail customer. For this purpose, a ‘‘licensed vendor’’ is not a ‘‘licensee.’’ Margolis Wines and Spirits, Inc. v. Liquor Control Board, 453 A.2d 43 (Pa. Cmwlth. 1982).
§ 13.80. [Reserved].
Source The provisions of this § 13.80 reserved September 30, 1983, effective October 1, 1983, 13 Pa.B. 2972. Immediately preceding text appears at serial page (4253).
§ 13.81. Promotion with licensees.
(a) Each agent of a licensed vendor may use up to one case of each product of liquor sold by the licensed vendor to promote that product to licensees, as that term is defined in § 13.71 (relating to definitions), during any calendar month. The product shall be purchased only through the Board, at a State Liquor Store, if the product is available for purchase at a State Liquor Store, or through the Board’s special liquor order purchase process, if the product or desired bottle size is not available for purchase at a State Liquor Store, at the retail price plus any required taxes. The licensed vendor (or the licensed vendor’s authorized supervisor) shall be permitted to purchase and distribute the product to agents under the licensed vendor’s supervision.
(b) [Reserved].
(b.1) For promotion with licensees, agents shall only use product to give tastings, as provided in § 13.211 (relating to tasting events). Agents may not leave any bottle of product with a licensee, whether opened or unopened.
(c) The agent shall affix to each bottle, before promoting the product with a licensee, a separate label, or lettering on the commercial label, at least 1/4 inch high, reading: ‘‘For tastings only. Not to be sold. Possession of this bottle by licensee unlawful.’’
(d) Each licensed vendor shall keep, in hard copy or electronic media consistent with generally accepted accounting procedures, for a period of at least 2 years, a record of all bottles purchased, the names of the agents to whom samples were issued, and the quantity and products.
Authority The provisions of this § 13.81 amended under sections 207(i) and 208(j) of the Liquor Code (47 P.S. § § 2-207(i) and 2-208(j)).
Source The provisions of this § 13.81 amended December 17, 1999, effective December 18, 1999, 29 Pa.B. 6337; amended January 20, 2023, effective January 21, 2023, 53 Pa.B. 501. Immediately preceding text appears at serial pages (341474) to (341475).
Cross References This section cited in 40 Pa. Code § 13.223 (relating to procurement of wine or spirits or both).
§ 13.82. Unsolicited special liquor orders.
Nothing in this subchapter applies to unsolicited special liquor orders under the Liquor Code except the deposit required and the minimum case quantity.
Source The provisions of this § 13.82 amended through September 30, 1983, effective October 1, 1983, 13 Pa.B. 2972. Immediately preceding text appears at serial pages (4253) and (4254).
§ 13.83. Stock merchandise request forms.
(a) Agents engaged in promoting the sale of stock merchandise may use a stock merchandise request form to assure the availability of any merchandise requested by licensees in full case lots. Licensed vendors may obtain supplies of this form from the Bureau of Logistics of the Board at a cost set by the Board to cover the cost of each order book and postage.
(b) Completed forms shall be directed to the State Liquor Store from which the licensee desires to purchase such merchandise. Only requests for full cases received at the store by mail or delivered to the store by a retail licensee will be accepted. Licensed vendors or their agents may not personally deliver such requests to a State Store.
(c) Vendors or their agents may not accept cash deposits on stock merchandise requests.
(d) The use of stock merchandise request forms is restricted to promotional work with retail licensees.
Source The provisions of this § 13.83 amended through September 30, 1983, effective October 1, 1983, 13 Pa.B. 2972. Immediately preceding text appears at serial page (4254).
§ 13.84. Authorization for agents to purchase for retail customers.
(a) Registered agents of vendors, by using stock merchandise request forms, may purchase stock merchandise, or gift certificates for stock merchandise, for retail customers.
(b) Where a retail customer has signed the form, it may be presented by the agent to any State Liquor Store as authorization for the purchase of either stock merchandise or gift certificates for the quantity and brand specified, for such customer.
§ 13.85. Unlawful acts.
Pursuant to sections 491(14) and 493(22) and (23) of the Liquor Code (47 P.S. § § 4-491(14) and 4-493(22) and (23)), the following are prohibited:
(1) To grant, allow, pay or rebate any cash, merchandise, or other thing of value to licensees, their servants, agents, or employes, including the purchase of merchandise at retail for delivery to a licensee; to grant, allow or pay anything of value to a licensee, their servants, agents, or employes, for the privilege of advertising display; to purchase drinks ‘‘for the house’’ to induce the sale of merchandise.
(2) To visit State Liquor Stores or warehouses or directly or indirectly contact store or warehouse employes for the purpose of promoting the sales of merchandise except where the Board has formally approved such visits for the accomplishment of authorized merchandising programs.
(3) To attempt to solicit or induce Board personnel to promote the sale of particular brands.
(4) To attempt to procure information as to the merchandise inventories of State Stores except that, in those instances where the Board has formally approved vendor merchandising programs, inventory information as to the specific products involved in such merchandising programs may be obtained.
(5) To furnish entertainment or offer gratuities to Board personnel.
(6) To grant, allow, or pay money or other thing of substantial value to licensees, their servants, agents, or employes, or induce the sale of merchandise.
(7) To represent expressly or by implication connection with any department of the State Government.
(8) To repurchase, replace, or exchange any liquors purchased by licensees or other persons from State Stores. Defective liquors will be replaced only by the store from which such liquors were purchased, in accordance with Board procedure.
Source The provisions of this § 13.85 amended October 16, 1981, effective October 17, 1981, 11 Pa.B. 3553. Immediately preceding text appears at serial page (4255).
§ 13.86. Agency provisions.
Licensed vendors and their agents shall, except as otherwise restricted in this title, be considered the agents of the persons from whom they obtain special liquor orders or luxury item orders. Neither the Commonwealth nor the Board will be responsible for the proper disposition of moneys collected from a licensee or other person by a licensed vendor or his agents, and under no circumstances will the Commonwealth or the Board be responsible for actions of a licensed vendor or his agents.
Source The provisions of this § 13.86 amended December 17, 1999, effective December 18, 1999, 29 Pa.B. 6337; amended February 6, 2009, effective February 7, 2009, 39 Pa.B. 682. Immediately preceding text appears at serial pages (307860) and (261767).
§ 13.87. Records.
(a) Every licensed vendor shall maintain and keep complete records of all operations in this Commonwealth for 2 years, which shall be open to inspection by authorized representatives of the Board during normal business hours. These records must include salaries or commissions of all agents and other employees working in this Commonwealth, expenses of the employees supported by detailed vouchers, all promotional and advertising expenditures, special order sales, luxury item sales and stock merchandise requests.
(b) The agents of vendors operating in this Commonwealth shall maintain complete records covering their operations in this Commonwealth. The records must also be open to inspection by authorized representatives of the Board during normal business hours.
Source The provisions of this § 13.87 amended December 17, 1999, effective December 18, 1999, 29 Pa.B. 6337; amended February 6, 2009, effective February 7, 2009, 39 Pa.B. 682. Immediately preceding text appears at serial page (261767).
§ 13.88. Presumption of liability of vendor.
In the absence of persuasive evidence to the contrary, it will be presumed that any representative of a vendor who violates this subchapter acts with the consent and knowledge of such vendor, or employer. Penalties will be fixed accordingly on agent, vendor or employer, or both.
§ 13.89. Penalties.
Upon learning of any violation of this subchapter or of any other provisions of this part, or of any laws of the Commonwealth relating to liquor, malt or brewed beverages, or alcohol, by any licensed vendor, or registered or unregistered agent or upon any other sufficient cause shown, the Board may, within one year from the date of such violation or cause appearing, cite such licensed vendor or registered agent, or both, to appear before it or its examiner not less than ten nor more than 15 days from the date of sending such person by registered mail, a notice addressed to the vendor or the registered agent, or both, at the address filed with the Board, to show cause why the license, permit, or registrations should not be suspended or revoked. Upon such hearing, the Board may suspend or revoke such licenses, permits, or registrations and shall notify the licensed vendor or registered agent by registered mail. Any licensed vendor or registered agent whose license, permit, or registration has been revoked shall be ineligible to hold any license, permit, or registration relating to liquor, malt or brewed beverages, or alcohol, until the expiration of 3 years from the date of revocation. The action of the Board will be final.
Source The provisions of this § 13.89 amended October 16, 1981, effective January 1, 1982, 11 Pa.B. 3552. Immediately preceding text appears at serial page (4256).
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