Proposed Illinois Bills Could Unwind Restructuring Deadline for ABA Businesses

Recently proposed legislation in the Illinois General Assembly – Senate Bill (SB) 3807 and House Bill (HB) 5171 – is garnering attention. Both bills hit the docket in February 2026 and aim to alleviate corporate practice restrictions and encourage multidisciplinary practices by:

• repealing, with immediate effect, Section 150 of the Behavior Analyst Licensing Act (the Act), which requires applied behavioral analysis (ABA) businesses to be owned by licensed behavioral analysts (but that provides already existing ABA businesses until January 15, 2027, to come into compliance)
• adding language reinforcing that clinical decisions must continue to be made by licensees and not by any unlicensed owner, officer or agent of an ABA business, consistent with current restrictions on the corporate practice of medicine and other licensed professions in other states
• amending the Act to include occupational therapists in the list of exempt professionals
• amending the Professional Services Corporation Act to permit licensed behavioral analysts to form a single professional corporation with two distinct groups of licensed professionals: 1) psychologists, social workers, marriage and family therapists, licensed professional counselors and other mental health providers (Mental Health Providers), or 2) occupational therapists, physical therapists, speech pathologists and other rehabilitation therapy providers (Rehab Providers)
• amending the Professional Limited Liability Company Act to permit licensed behavioral analysts to form a single professional limited liability company with the Mental Health Providers above; stakeholders have indicated that the omission of the Rehab Providers was an oversight or error but should be added in future amendments to the bill

Considerations and Next Steps

The Act was signed in 2022 and resulted in Illinois joining New York as one of two states that expressly require ABA businesses to be owned by licensed behavioral analysts. Over the past few years, providers have had to restructure their organizations to meet these ownership requirements.

Market sources report that certain small and medium-sized providers have struggled to come into compliance, citing increased investment of time, energy and funds, and additional administrative complexities, as the main culprits. They have further expressed concern that the additional administrative burden has pulled resources away from patient care and expanding access to services.

At the same time, professional associations appear to both oppose and support these proposed bills, creating uncertainty as to whether the bills will gain sufficient support to successfully advance.

For questions about SB 3807, HB 5171 or ABA business ownership requirements under the Behavior Analyst Licensing Act, please contact the authors or your Holland & Knight relationship attorney.

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