Business Advice and Financial Planning

(Tarver, D-Chicago; Sims, D-Chicago) is the first major update of the Residential Real Estate Disclosure Act since its enactment in 1994. Among its many changes include the following: allowing for electronic delivery and notice of the disclosure and harmonizes this Act with the newer Illinois Trust Code and the Transfer on Death Instrument Act. It also clarifies that a seller does not waive being exempt if a disclosure report is nevertheless delivered. It also includes additional consumer protections for the buyer. Passed both chambers. 

(Reick, R-Woodstock; Barickman, R-Bloomington) creates a statutory form for special warranty deeds to standardize the most common form of deed used in commercial real estate practice. Passed both chambers. 

(Gong-Gershowitz, D-Glenview; Fine; D-Glenview) allows an agent to present and a health care provider to accept via an electronic device an electronic copy of an executed statutory short form as proof of the health care agency. House Bill 5047 has passed the House and is in the Senate. 

(Gong-Gershowitz, D-Glenview)  amends the Powers Of Attorney For Health Care Article of the Illinois Power of Attorney Act. Changes the statutory short form power of attorney for health care to include the option to present the form electronically as proof of agency. Provides that, if the principal has authorized the agent to present the statutory short form electronically, an attending physician, emergency medical services personnel, or health care provider shall not refuse to give effect to a health care agency if the agent presents an electronic device displaying an electronic copy of an executed form as proof of the health care agency. Makes conforming changes and requires a public information campaign by the Illinois Department of Public Health. House Bill 5047 is scheduled for hearing next Wednesday in House Judiciary Committee. 

(Sims, D-Chicago; Ann Williams, D-Chicago)  was signed into law on Aug. 13 by Governor Pritzker. It repeals the current exception to the attorney’s six-year statute of repose for estate planning work. That exception was for two years after the death of the client. Senate Bill 2179 provides for a six-year statute of repose to make it consistent with all other legal work, but it also includes a safe harbor period to ensure judicial approval of the legislation. This means that for estate planning done before the amendment’s effective date, regardless of how long ago, there would be a reasonable time period (not to exceed six years) after the statute’s effective date within which a claim could be brought to ensure claims are not abruptly terminated. It takes effect on Jan. 1, 2022. 

(Morrison, D-Highwood; Morgan, D-Highwood) makes several changes to the BCA. It amends section 7.05 to provide that shareholder meetings can be held through means of remote communication if the corporation implements reasonable measures to ensure that a) each person participating remotely is a shareholder; and b) shareholders participating remotely have a reasonable opportunity to participate in the meeting and to vote on resolutions considered at the meeting. It allows for both fully remote shareholder meetings and hybrid meetings at which some shareholders are present in person and some shareholders participate remotely. The Governor signed this bill into law Aug. 6, 2019 to become effective Jan. 1, 2022.

(Williams, D-Chicago; Connor, D-Crest Hill) is the trailer bill to the 2019 rewrite of the Illinois Trust Code (ITC). Illinois joined 34 other U.S. jurisdictions that adopted a version of the Uniform Trust Code on which the ITC is based. House Bill 1795 clarifies certain definitions and the intent behind certain sections of the ITC and otherwise enhances coordination of the ITC.  It does not make substantive amendments to the ITC. The Governor signed House Bill 1795 into law as Public Act 102-279 to take effect on Jan. 1, 2022. 

(Martwick, D-Chicago; Didech, D-Buffalo Grove). Before the 2016 rewrite, a LLC could not eliminate or reduce any fiduciary duties, including the traditional ones of fairness obligation, entity opportunities, or competing with the entity. It would prohibit an operating agreement from restricting or eliminating the duty to act fairly or the duty of care. The Governor signed it on July 30, 2021. Effective Jan. 1, 2022