Efforts by Illinois Gov. Rod R. Blagojevich to pass ethics reforms for the state's retirement systems failed to pass the General Assembly before it adjourned Friday, killing chances for passage this year. The state Senate did not vote on a House-amended version of the bill that had tougher restrictions than a version the Senate had passed earlier.
Mr. Blagojevich had proposed the reforms last August to address concerns stemming from indictments connected to the Teachers' Retirement System of Illinois, including alleged abuses in the manager selection process.
The House version would have barred a manager from paying any individual for successfully marketing an investment service to any of the systems. Also, it would have required consultants to accept fiduciary responsibility and would have required disclosure of direct and indirect fees.
"We expect it will be brought up again in the spring legislative session that begins in January," said Becky Carroll, a spokeswoman for the governor. "The legislators and the governor's staff are still trying to iron our issues. I expect the final legislation will reflect their work going on now. Everyone seems to be on board with the concept of moving forward on this (ethics reform). It's just ironing out details."
