Bill Amendment: IL HB5487 | 2025-2026 | 104th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

---

Bill Title: LAW FIRM OWNERSHIP

Status: 2026-06-26 - Sent to the Governor [HB5487 Detail]

Download: Illinois-2025-HB5487-House_Amendment_001.html

---

Rep. Jennifer Gong-Gershowitz

Filed: 3/18/2026

 

 

 

10400HB5487ham001 LRB104 20746 JRC 35316 a
AMENDMENT TO HOUSE BILL 5487
AMENDMENT NO. ______. Amend House Bill 5487 by replacing
everything after the enacting clause with the following:
"Section 5. The Attorney Act is amended by adding Section
13 as follows:
(705 ILCS 205/13 new)
Sec. 13. Protection of clients.
(a) As used in this Section:
"Alternative business structure" means any entity that
provides legal services while allowing non-attorney ownership
or decision-making authority of the entity.
"Alternative business structure" does not include
nonprofit organizations.
"Management services organization" means an entity that
provides management and administrative support services in
exchange for ownership of a law firm's assets or payments.

10400HB5487ham001 - 2 - LRB104 20746 JRC 35316 a
(b) An entity owned, operated, or controlled in whole or
in part by persons not licensed as attorneys, including
management services organizations, that is involved with a law
firm or lawyer's practice may not do any of the following:
(1) Interfere with the professional judgment of
attorneys in representing clients.
(2) Exercise control over or be delegated the power to
do any of the following:
(A) accessing, owning, or determining the content
of client records, or accessing any attorney-client
communications;
(B) selecting, hiring, or terminating attorneys or
allied legal staff; or
(C) setting competency, productivity, or
proficiency parameters for attorneys or allied legal
staff.
(3) Charge any fee to the attorney or law firm that is
directly or indirectly based on the fees, revenues, or
profits of the attorney or law firm.
(c) Any contract involving management of a law firm or
attorney's practice with any entity owned, operated, or
controlled by persons not licensed as attorneys, including
management services organizations, may not limit an attorney
or allied legal staff member from:
(1) competing with that law firm or practice in the
event of termination or resignation; or

10400HB5487ham001 - 3 - LRB104 20746 JRC 35316 a
(2) disparaging or commenting on that law firm or
practice as to any issues involving quality of services,
ethical or professional challenges in the practice of law,
or revenue-increasing strategies employed by an entity
owned, operated, or controlled in whole or in part by
persons not licensed as attorneys.
(d) An attorney licensed or otherwise authorized to
practice in this State may not share legal fees directly or
indirectly with an out-of-state alternative business structure
unless all the following apply:
(1) The attorney is also licensed in the state in
which the alternative business structure is approved.
(2) The fees are compensation for providing legal
services in that state.
(3) The law of that state is controlling under Rule
8.5 of the Illinois Rules of Professional Conduct or any
successor rule.
(e) A violation of this Section may constitute cause for
the imposition of discipline by the Attorney Registration and
Disciplinary Commission and subject the attorney to the
following penalties:
(1) statutory damages of $10,000 per violation or 25
times the actual damages incurred by the client, whichever
is greater;
(2) attorney's fees and costs; and
(3) injunctive or declaratory relief.

10400HB5487ham001 - 4 - LRB104 20746 JRC 35316 a
(f) This Section does not apply to any arrangement for the
sharing of legal fees if both of the following conditions are
satisfied:
(1) The arrangement for the sharing of legal fees was
ordered or approved by a court or tribunal of competent
jurisdiction, including, but not limited to, the
establishment or distribution of a common benefit fund in
coordinated, consolidated, or multidistrict litigation.
(2) The manner by which legal fees are to be allocated
is subject to judicial or tribunal oversight and
determined by the court to be fair, reasonable, and
necessary for the administration of justice.
(g) This Section applies only to contracts entered into on
or after the effective date of this amendatory Act of the 104th
General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.".