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IL HB2860

LIQUOR-COOPERATIVE PURCHASING


summary

Introduced
02/05/2025
In Committee
03/21/2025
Crossed Over
Passed
Dead

Introduced Session

104th General Assembly

Bill Summary

Amends the Liquor Control Act of 1934. Creates a cooperative agent license. Provides that a cooperative agent license shall allow the holder to act on behalf of a cooperative purchase group. Establishes a fee for licensure as a cooperative agent. Provides that a licensee with a combined on-premises and off-premises license may make purchases for on-premises use only through an on-premises cooperative purchase group and may make purchases for off-premises use only through an off-premises cooperative purchase group. Provides that cooperative purchase groups, cooperative agents, and the cooperative agents' owners, officers, principals, employees, and their spouse may not: (1) receive cash or anything of value from a retail licensee, importing distributor, distributor, non-resident dealer, or manufacturer as part of a cooperative purchasing agreement; (2) be employed by, consult for, or have an ownership interest in any business or enterprise that provides marketing services or activities on behalf of manufacturers, non-resident dealers, foreign importers, importing distributors, or distributors; or (3) accept things of value from, or provide marketing services or activities on behalf of, manufacturers, non-resident dealers, foreign importers, importing distributors, and distributors. Makes conforming and other changes. Provides that it is the duty of every cooperative agent and cooperative purchase group to make books and records available upon reasonable notice for the purpose of investigation and control by the Illinois Liquor Control Commission or any local liquor commission having jurisdiction over a licensee member of a cooperative purchase group. Makes changes concerning the surety bond a cooperative purchase group is required to retain. Changes references from "cooperative purchasing group" to "cooperative purchase group" to conform to the defined term.

AI Summary

This bill amends the Illinois Liquor Control Act to create a new cooperative agent license and establish detailed regulations for cooperative purchasing groups in the liquor industry. The bill introduces a cooperative agent license that allows a person or business entity to act on behalf of a cooperative purchase group, with specific provisions governing how these groups can operate. Key provisions include limiting retailers to membership in only one cooperative purchase group at a time, requiring written agreements with specific details, and imposing strict restrictions on financial interactions between cooperative agents, purchase groups, and various liquor industry entities. The bill prohibits cooperative agents and their associates from receiving cash or anything of value from retailers, distributors, or manufacturers, and bars them from having ownership interests in other liquor-related businesses or providing marketing services for manufacturers and distributors. The legislation also establishes a $650 initial and $750 renewal fee for the new cooperative agent license and mandates transparency through record-keeping requirements, with cooperative agents and groups required to make their books and records available for investigation by state and local liquor control commissions. Additionally, the bill specifies that retailers with combined on-premises and off-premises licenses must make purchases for each type of sale through separate cooperative purchase groups.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)

bill text


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