Bill
SB 1871
Establishes a licensing and oversight framework for cooperative purchase groups and agents to regulate pooled liquor buying by retailers and curb conflicts of interest.
Status: Introduced March 4, 2025; passed the Senate (3rd reading) April 10, 2025; received in the House April 14, 2025; referred to committees and re-referred under Rule 3‑9(a) to Assignments (most recent status).
Statutes amended/added: Adds 235 ILCS 5/1‑3.47; amends 235 ILCS 5/5‑1, 5‑3, 6‑9.10, and 6‑9.15 (Liquor Control Act of 1934).
Purpose
- To establish and regulate “cooperative agents” and clarify rules governing cooperative purchase groups that make pooled liquor purchases on behalf of licensed retailers.
Key provisions
- New defined term: “Cooperative agent” — a person or business entity licensed to act on behalf of a cooperative purchase group (adds Section 1‑3.47).
- New license class: Adds a “cooperative agent license” to the list of license types issued by the Illinois Liquor Control Commission (Sec. 5‑1).
- Licensing fee: The bill requires a fee to obtain a cooperative agent license (amount not specified in the excerpt).
- Use of cooperatives by combined licensees: A licensee holding both on‑premises and off‑premises retail privileges must make on‑premises purchases through an on‑premises cooperative purchase group and off‑premises purchases through an off‑premises cooperative purchase group (separating purchase streams).
- Conflict‑of‑interest and anti‑kickback restrictions: Cooperative purchase groups, cooperative agents, and the cooperative agents’ owners, officers, principals, employees, and their spouses are prohibited from:
- Receiving cash or anything of value from retail licensees, importing distributors, distributors, non‑resident dealers, or manufacturers as part of a cooperative purchasing agreement;
- Being employed by, consulting for, or owning any business that provides marketing services/activities on behalf of manufacturers, non‑resident dealers, foreign importers, importing distributors, or distributors;
- Accepting things of value from, or providing marketing services/activities on behalf of, those supplier entities.
- Records and oversight: Every cooperative agent and cooperative purchase group must make books and records available upon reasonable notice for investigation by the Illinois Liquor Control Commission or any local liquor commission that has jurisdiction over a member licensee.
- Surety bond: The bill makes changes to the surety bond a cooperative purchase group must retain (details unspecified in excerpt).
- Terminology cleanup: Changes references from “cooperative purchasing group” to “cooperative purchase group” to match defined terms.
Who is affected
- Retail licensees (on‑premises and off‑premises sellers) that participate in cooperative purchase groups.
- Organizations that operate cooperative purchase groups and individuals/entities that would serve as cooperative agents.
- Importers, distributors, manufacturers, non‑resident dealers, and foreign importers — constrained in their relationships with cooperatives/agents.
- Illinois Liquor Control Commission and local liquor commissions — gain explicit inspection/record access and enforcement responsibilities.
Potential impacts and considerations
- Establishes a formal licensing and oversight regime for entities that act as purchasing intermediaries, increasing regulatory compliance for cooperative agents and groups.
- Aims to reduce conflicts of interest and limit supplier influence or marketing ties between manufacturers/distributors and purchasing intermediaries.
- Could change how small retailers (especially those sharing buying power through cooperatives) manage purchases and compliance; potential administrative costs from licensing, bonding, and recordkeeping.
- Specifics on fee amounts and surety bond requirements were not included in the provided excerpt and would affect the practical cost of compliance.
Procedural notes
- Sponsor: Sen. Cristina Castro.
- Legislative activity: Multiple committee hearings and amendments in the Senate; passed the Senate as amended on April 10, 2025; sent to the House (received April 14, 2025) and has been referred to House committees (Public Education / Assignments as reflected in the record).
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
