HB5487 - 104th General Assembly (2025-2026)

LAW FIRM OWNERSHIP
Last Action
4/09/2026 - House: Third Reading - Short Debate - Passed 070-036-001
Statutes Amended In Order of Appearance
705 ILCS 205/13 new  
Synopsis As Introduced
Amends the Attorney Act. Prohibits a private equity group, hedge fund, or any entity owned, operated, or controlled by a private equity group or hedge fund, including management services organizations, that is involved with a law firm or an attorney's practice from: (1) interfering with the professional judgment of attorneys in representing clients; (2) exercising control over or being delegated the power to own or determine the content of client records, select, hire, or terminate the employment of attorneys or allied legal staff in whole or in part based on competency or proficiency; or set competency or proficiency parameters for attorneys or allied legal staff; or (3) charging 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. Prohibits an attorney from sharing legal fees directly or indirectly with an out-of-state alternative business structure unless: (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; and (3) the law of that state is controlling under the Illinois Rules of Professional Conduct or a successor rule. Provides for the recovery of statutory damages, attorney's fees and costs, and injunctive or declaratory relief as a remedy for violation. Defines terms. Contains applicability provisions. Effective immediately.

House Committee Amendment No. 1
Replaces everything after the enacting clause. Reinserts provisions in the bill as introduced with these changes. Deletes references to "hedge fund" and "private equity group" and makes the Act applicable to "an entity owned, operated, or controlled in whole or in part by persons not licensed as attorneys". Prohibits such an entity from accessing, owning, or determining the content of client records or accessing any attorney-client communications. Makes conforming changes. Effective immediately.

House Floor Amendment No. 2
Provides that an attorney who violates the provisions may be subject to statutory damages of $10,000 per violation or 3 (rather than 25) times the actual damages incurred by the client, whichever is greater.
Actions
DateChamberAction
2/06/2026HouseFiled with the Clerk by Rep. Jennifer Gong-Gershowitz
2/13/2026HouseFirst Reading
2/13/2026HouseReferred to Rules Committee
3/04/2026HouseAssigned to Judiciary - Civil Committee
3/18/2026HouseHouse Committee Amendment No. 1 Filed with Clerk by Rep. Jennifer Gong-Gershowitz
3/18/2026HouseHouse Committee Amendment No. 1 Referred to Rules Committee
3/19/2026HouseHouse Committee Amendment No. 1 Rules Refers to Judiciary - Civil Committee
3/25/2026HouseHouse Committee Amendment No. 1 Adopted in Judiciary - Civil Committee; by Voice Vote
3/25/2026HouseDo Pass as Amended / Short Debate Judiciary - Civil Committee; 020-000-000
3/25/2026HousePlaced on Calendar 2nd Reading - Short Debate
4/07/2026HouseAdded Chief Co-Sponsor Rep. Emanuel "Chris" Welch
4/07/2026HouseSecond Reading - Short Debate
4/07/2026HousePlaced on Calendar Order of 3rd Reading - Short Debate
4/07/2026HouseAdded Co-Sponsor Rep. Suzanne M. Ness
4/07/2026HouseAdded Co-Sponsor Rep. Will Guzzardi
4/07/2026HouseAdded Co-Sponsor Rep. Lilian Jiménez
4/07/2026HouseAdded Co-Sponsor Rep. Diane Blair-Sherlock
4/07/2026HouseAdded Co-Sponsor Rep. Kevin John Olickal
4/07/2026HouseHouse Floor Amendment No. 2 Filed with Clerk by Rep. Jennifer Gong-Gershowitz
4/07/2026HouseHouse Floor Amendment No. 2 Referred to Rules Committee
4/08/2026HouseHouse Floor Amendment No. 2 Recommends Be Adopted Rules Committee; 005-000-000
4/08/2026HouseAdded Co-Sponsor Rep. Abdelnasser Rashid
4/08/2026HouseAdded Chief Co-Sponsor Rep. Mary Beth Canty
4/09/2026HouseAdded Co-Sponsor Rep. Jay Hoffman
4/09/2026HouseRecalled to Second Reading - Short Debate
4/09/2026HouseHouse Floor Amendment No. 2 Adopted
4/09/2026HousePlaced on Calendar Order of 3rd Reading - Short Debate
4/09/2026HouseThird Reading - Short Debate - Passed 070-036-001