Bill
HB 2860
Creates a regulatory framework for cooperative purchase groups and a cooperative agent license to govern bulk liquor buying by retailers, with oversight and conflict rules.
Summary
This bill amends the Illinois Liquor Control Act to create and regulate “cooperative purchase groups” and a new licensure category, “cooperative agent.” Its stated purpose is to authorize and govern cooperative purchasing arrangements among retail licensees while adding control, transparency, and conflict‑of‑interest restrictions on groups and agents that facilitate bulk purchases.
Key provisions
- New license class: Adds a “cooperative agent” license to the list of license types the Illinois Liquor Control Commission may issue. A cooperative agent is a person or legal entity authorized to act on behalf of a cooperative purchase group.
- Scope of agent authority: A cooperative agent may act on behalf of its cooperative purchase group to make purchases on the group’s behalf.
- Purchase channels for combined-license holders: Licensees that hold combined on‑premises and off‑premises licenses must make purchases for on‑premises use only through an on‑premises cooperative purchase group and purchases for off‑premises use only through an off‑premises cooperative purchase group.
- Prohibited financial and business relationships:
- Cooperative purchase groups, cooperative agents, and their owners/officers/principals/employees (and their spouses) may not 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.
- They may not be employed by, consult for, or hold ownership interest in any business that provides marketing services or activities on behalf of manufacturers, non‑resident dealers, foreign importers, importing distributors, or distributors.
- They may not accept things of value from, or provide marketing services for, manufacturers, non‑resident dealers, foreign importers, importing distributors, or distributors.
- Records and oversight: It is the duty of every cooperative agent and cooperative purchase group to make books and records available, upon reasonable notice, for investigation and control by the Illinois Liquor Control Commission or any local liquor commission that has jurisdiction over a member licensee.
- Financial security: The bill makes changes to the surety bond requirements that a cooperative purchase group must retain (text in the provided excerpt is truncated; specifics not provided).
- Terminology: Replaces references to “cooperative purchasing group” with “cooperative purchase group” to match the defined term.
Who is affected
- Cooperative purchase groups and cooperative agents (newly regulated entities)
- Retail licensees that join cooperative purchase groups (on‑premises and off‑premises licensees)
- Distributors, importing distributors, manufacturers, non‑resident dealers and foreign importers (affected by prohibitions on transfers of value and business relationships)
- Illinois Liquor Control Commission and local liquor commissions (enforcement, oversight, and investigatory duties)
Procedural status and timeline
- Introduced in the Illinois House (Rep. Robert “Bob” Rita) — introduced 02/06/2025 (document lists 02/05/2025 filing).
- Committee activity: Referred to Rules Committee; later Rule 19(a) / Re‑referred to Rules Committee. Committee reported favorably without amendment in May 2025 and the bill was placed on the General State Calendar (committee hearings and testimony occurred in March–May 2025).
- Current status in provided materials: Rule 19(a) / Re‑referred to Rules Committee (as of the latest listed actions in May 2025).
Notes and missing details
- The introduced text in the excerpt references establishing a fee for cooperative agent licensure and changes to surety bond requirements, but exact fee amounts and bond specifics are not included in the provided text.
- The provided document includes a separate, unrelated introductory text (an Arizona provision directing an Auditor General review of the Department of Revenue). That appears to be from a different bill and is not part of the Illinois Liquor Control Act changes described above.
Compiled from official sources — confirm details with the bill’s official record.
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