Illinois Senate Bill SB3730

Illinois 2023-2024 Regular Session

• Introduced: 2/9/24
• Refer: 2/9/24
• Refer: 2/28/24

Caption

LIQUOR-COOPERATIVE PURCHASING

Impact

The changes introduced by SB3730 are expected to strengthen regulatory compliance among liquor licensees in Illinois. By clarifying that neither cooperative agents nor purchase groups can receive monetary benefits from retail licensees or distributors, the bill intends to eliminate potential conflicts of interest and reinforce ethical practices within cooperative purchasing agreements. This regulation aims to uphold the integrity of the liquor distribution process while facilitating fair practices among businesses.

Summary

SB3730 amends the Liquor Control Act of 1934, specifically targeting the regulations involving cooperative purchasing agreements for liquor licensees. The bill stipulates that a licensee who holds both on-premises and off-premises licenses can only make purchases through designated cooperative purchase groups based on the intended usage of the products. This provision is aimed at streamlining the purchasing process and ensuring compliance with state regulations, thereby enhancing oversight of cooperative agreements in the liquor industry.

Contention

Key points of contention surrounding the bill include concerns from some stakeholders about the potential constraints on the purchasing flexibility of licensees. Opponents argue that making purchases exclusively through designated cooperative groups may limit the market options for smaller retailers, ultimately affecting their competitiveness. Additionally, the stipulations regarding ownership interests and cash transactions might be seen as overly restrictive by some industry participants, who feel these regulations could impose unnecessary burdens on their operations.