LAW FIRM OWNERSHIP
Summary
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.
Bill status
signed
all 5 stages cleared
Introduction
Apr 2026
Committee Review
May 2026
House Passage
May 2026
Senate Passage
May 2026
Signed into Law
Aug 2026
Introduced Apr 14, 2026
Signed Aug 7, 2026
Maddy AI version diff · 2 comparisons
What changed between versions
Engrossed
→
Enrolled
·
5 edits
·
Aug 7, 2026
MODERATE
The bill was finalized as an Enrolled version, incorporating significant substantive changes to regulate alternative business structures in law firms. The most critical change is the introduction of a $300 million revenue threshold, which exempts smaller law firms from strict prohibitions on non-attorney ownership and management control. Additionally, the bill now explicitly defines 'allied legal staff' and adds specific disclosure requirements for contracts involving management services organizations.
Scope change
The bill's applicability is now limited based on firm size and business model; it primarily applies to large firms with global revenue over $300 million or those that regularly rely on contingent fees for more than 50% of their income.
DEFINITION
Added a new definition for 'allied legal staff' to clarify who is not considered an attorney but may access privileged information.
Clarified that prohibitions on fee-sharing with management organizations do not apply to standard loan repayments or credit extensions.
ELIGIBILITY
Replaced broad prohibitions on non-attorney ownership with a revenue-based threshold, exempting firms with less than $300 million in global revenue from the strictest restrictions.
REQUIREMENT
Added a requirement for attorneys to disclose in client contracts if they have an agreement with a management services organization.
Updated the list of prohibited actions for non-attorney entities to include specific restrictions on hiring, firing, and setting performance parameters for staff.
Floor votes · Senate May 30, 2026 · House Apr 9, 2026
How they voted
38–19
Passed · 1 other
Total votes 58
May 30, 2026
D
Democratic39
97% Yea
R
Republican19
100% Nay
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
80
Key actions
19
Committee
25
Amendments
18
Aug 7, 2026
Signed into law
Governor Approved
lower
May 31, 2026
Lower · Passed
Passed Both Houses
lower
May 31, 2026
Introduced
Senate Floor Amendment No. 3 House Concurs 075-039-001
lower
May 31, 2026
Introduced
Senate Floor Amendment No. 2 House Concurs 075-039-001
lower
May 31, 2026
Lower · Passed
Senate Committee Amendment No. 1 House Concurs 075-039-001
lower
May 31, 2026
Lower · Passed
Senate Floor Amendment No. 3 Motion to Concur Recommends Be Adopted Judiciary - Civil Committee; 013-007-000
lower
May 31, 2026
Lower · Passed
Senate Floor Amendment No. 2 Motion to Concur Recommends Be Adopted Judiciary - Civil Committee; 013-007-000
lower
May 31, 2026
Lower · Passed
Senate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Judiciary - Civil Committee; 013-007-000
lower
May 30, 2026
Committee
Senate Floor Amendment No. 3 Motion to Concur Rules Referred to Judiciary - Civil Committee
lower
May 30, 2026
Committee
Senate Floor Amendment No. 2 Motion to Concur Rules Referred to Judiciary - Civil Committee
lower
May 30, 2026
Committee
Senate Committee Amendment No. 1 Motion to Concur Rules Referred to Judiciary - Civil Committee
lower
May 30, 2026
Committee
Senate Floor Amendment No. 3 Motion to Concur Referred to Rules Committee
lower
May 30, 2026
Committee
Senate Floor Amendment No. 2 Motion to Concur Referred to Rules Committee
lower
May 30, 2026
Committee
Senate Committee Amendment No. 1 Motion to Concur Referred to Rules Committee
lower
May 30, 2026
Introduced
Senate Floor Amendment No. 3 Motion Filed Concur Rep. Jennifer Gong-Gershowitz
lower
May 30, 2026
Introduced
Senate Floor Amendment No. 2 Motion Filed Concur Rep. Jennifer Gong-Gershowitz
lower
May 30, 2026
Lower · Passed
Senate Committee Amendment No. 1 Motion Filed Concur Rep. Jennifer Gong-Gershowitz
lower
May 30, 2026
Introduced
Placed on Calendar Order of Concurrence Senate Amendment(s) 1, 2, 3
lower
May 30, 2026
Introduced
Arrived in House
lower
May 30, 2026
Upper · Passed
Third Reading - Passed; 039-019-000
upper
May 30, 2026
Upper · Passed
Senate Floor Amendment No. 3 Adopted; Hastings
upper
May 30, 2026
Upper · Passed
Senate Floor Amendment No. 2 Adopted; Hastings
upper
May 30, 2026
Introduced
Senate Floor Amendment No. 3 Be Approved for Consideration Assignments
upper
May 30, 2026
Committee
Senate Floor Amendment No. 3 Referred to Assignments
upper
May 30, 2026
Introduced
Senate Floor Amendment No. 3 Filed with Secretary by Sen. Michael E. Hastings
upper
May 29, 2026
Introduced
Senate Floor Amendment No. 2 Recommend Do Adopt Judiciary; 005-003-000
upper
May 28, 2026
Introduced
Senate Floor Amendment No. 2 Assignments Refers to Judiciary
upper
May 28, 2026
Committee
Senate Floor Amendment No. 2 Referred to Assignments
upper
May 28, 2026
Introduced
Senate Floor Amendment No. 2 Filed with Secretary by Sen. Michael E. Hastings
upper
May 6, 2026
Upper · Passed
Do Pass as Amended Judiciary; 008-001-000
upper
May 6, 2026
Upper · Passed
Senate Committee Amendment No. 1 Adopted
upper
May 6, 2026
Upper · Passed
Senate Committee Amendment No. 1 Assignments Refers to Judiciary
upper
May 5, 2026
Committee
Senate Committee Amendment No. 1 Referred to Assignments
upper
May 5, 2026
Introduced
Senate Committee Amendment No. 1 Filed with Secretary by Sen. Michael E. Hastings
upper
Apr 22, 2026
Committee
Assigned to Judiciary
upper
Apr 14, 2026
Committee
Referred to Assignments
upper
Apr 14, 2026
Introduced
Arrive in Senate
upper
Apr 9, 2026
Lower · Passed
Third Reading - Short Debate - Passed 070-036-001
lower
Apr 9, 2026
Lower · Passed
House Floor Amendment No. 2 Adopted
lower
Apr 8, 2026
Lower · Passed
House Floor Amendment No. 2 Recommends Be Adopted Rules Committee; 005-000-000
lower
Apr 7, 2026
Committee
House Floor Amendment No. 2 Referred to Rules Committee
lower
Apr 7, 2026
Introduced
House Floor Amendment No. 2 Filed with Clerk by Rep. Jennifer Gong-Gershowitz
lower
Mar 25, 2026
Lower · Passed
Do Pass as Amended / Short Debate Judiciary - Civil Committee; 020-000-000
lower
Mar 25, 2026
Lower · Passed
House Committee Amendment No. 1 Adopted in Judiciary - Civil Committee; by Voice Vote
lower
Mar 19, 2026
Lower · Passed
House Committee Amendment No. 1 Rules Refers to Judiciary - Civil Committee
lower
Mar 18, 2026
Committee
House Committee Amendment No. 1 Referred to Rules Committee
lower
Mar 18, 2026
Introduced
House Committee Amendment No. 1 Filed with Clerk by Rep. Jennifer Gong-Gershowitz
lower
Mar 4, 2026
Committee
Assigned to Judiciary - Civil Committee
lower
Feb 13, 2026
Committee
Referred to Rules Committee
lower
2 primary · 10 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Jen Gong-Gershowitz
DDemocratic
P
Mike Hastings
DDemocratic
Co
Abdelnasser Rashid
DDemocratic
Co
Chris Welch
DDemocratic
Co
Diane Blair-Sherlock
DDemocratic
Co
Jay Hoffman
DDemocratic
Co
Kevin Olickal
DDemocratic
Co
LJ
Lilian Jiménez
DDemocratic
Co
Mary Beth Canty
DDemocratic
Co
Robert Peters
DDemocratic
Co
Suzanne Ness
DDemocratic
Co
Will Guzzardi
DDemocratic
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