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

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: LAW FIRM OWNERSHIP

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

Download: Illinois-2025-HB5487-Senate_Amendment_002.html

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Sen. Michael E. Hastings

Filed: 5/28/2026

 

 

 

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AMENDMENT TO HOUSE BILL 5487
AMENDMENT NO. ______. Amend House Bill 5487, AS AMENDED,
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:
"Allied legal staff" means persons who are not licensed as
attorneys and may have access to attorney-client and
work-product privileged information in their work, including,
but not limited to, paralegals and legal assistants.
"Alternative business structure" means any entity that
provides legal services and allows persons who are not
licensed as attorneys to have ownership or decision-making

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authority. "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.
(b) The provisions of this Section apply only to:
(1) a licensed attorney or law firm operating in
Illinois with annual global revenue from that licensed
attorney's or law firm's provision of legal services that
is less than $300,000,000; in determining a licensed
attorney's or law firm's revenue for purposes of this
paragraph (1), the determination shall be:
(A) made by taking into account the global revenue
of any partnership or law firm affiliated with the
licensed attorney or law firm, whether or not the
affiliated partnership or other law firm is domiciled
in Illinois; and
(B) based on publicly-available information; and
(2) a licensed attorney or law firm that regularly
represents clients on a contingent fee basis, where the
fee is based on the resolution or outcome of actual or
threatened private litigation, and that has derived more
than 50% of the attorney's or law firm's revenues from the
contingent fee arrangements in each of the preceding 3
calendar years; in determining a licensed attorney's or
law firm's revenue for purposes of this paragraph (2), the

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determination shall be made by taking into account the
gross global revenue of the attorney or law firm, together
with any partnership or law firm affiliated with such
attorney or law firm, whether or not such affiliated
partnership or other law firm is domiciled in Illinois.
Upon request of the Attorney Registration and Disciplinary
Commission or another governmental authority or agency charged
with administering or enforcing the provisions of this
Section, or upon order of a court of competent jurisdiction, a
licensed attorney or law firm shall be permitted to provide a
self-certification attesting, under oath, to the fact that (i)
the licensed attorney's or law firm's annual global revenue is
more or less than $300,000,000, (ii) the licensed attorney or
law firm regularly represents clients on a contingent fee
basis, as that term is used in this subsection, and derived
more or less than 50% of the licensed attorney's or law firm's
revenues from contingent fee arrangements in each of the
previous 3 calendar years, as determined in accordance with
this subsection, or (iii) both (i) and (ii).
(c) Any attorney or law firm subject to this Section that
is party to an agreement with a management services
organization must disclose in all attorney-client contracts
that the attorney or law firm is party to such an agreement and
the material terms of the agreement. Failure to comply with
this duty will subject the lawyer or law firm to the provisions
of subsection (g).

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(d) 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's or attorney'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) to access, own, or determine the content of
client records or to access any attorney-client
communications;
(B) to select, hire, or terminate attorneys or
allied legal staff; or
(C) to set 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 attorney's fees,
revenues, or profits of the attorney or law firm.
The prohibition in paragraph (3) of this subsection does
not apply to the repayment of a loan or extension of credit the
attorney or law firm is obligated to repay if that the amount
of the borrower's obligation is not contingent upon or
calculated on the basis of the borrower's attorney's fees,
revenues, profits, or other financial performance.
(e) Any contract involving management of a law firm or an

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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 its practice in
the event of termination or resignation; or
(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.
(f) 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.
(g) A violation of this Section may constitute cause for
the imposition of discipline by the Attorney Registration and
Disciplinary Commission and subject the attorney, the

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management services organization, and the alternative business
structure to the following penalties:
(1) statutory damages of $10,000 per violation or 3
times the actual damages incurred by the client, whichever
is greater;
(2) attorney's fees and costs; and
(3) injunctive or declaratory relief.
(h) 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.
(i) 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.".