Bill > HB5487

This bill amends the Attorney Act to add protections for clients by establishing rules for entities that provide legal services but are owned or controlled by non-attorneys, referred to as "alternative business structures" (ABS), which are defined as entities providing legal services with non-attorney ownership or decision-making authority, excluding non-profit organizations. These ABS, including "management services organizations" (MSOs) which provide administrative support for ownership or payment, are prohibited from interfering with attorneys' professional judgment, controlling client records or attorney-client communications, hiring or firing legal staff, or setting performance standards for attorneys. Furthermore, such entities cannot charge fees based on a law firm's revenue or profits, and contracts with them cannot restrict attorneys from competing or speaking out about the quality of services or ethical issues. The bill also outlines conditions under which Illinois attorneys can share fees with out-of-state ABS, requiring the attorney to be licensed in that state and for the services to be provided there, with the law of that state being controlling. Violations can lead to disciplinary action, statutory damages, attorney fees, and injunctive relief, though these provisions do not apply to court-ordered fee-sharing arrangements in litigation.