Make State Governments More Open, Honest, and Transparent Act of 2017

Summary: Make State Governments More Open, Honest, and Transparent Act of 2017 This bill directs the head of a federal agency that administers any of specified block grant programs to suspend the authority of the state to administer funds under the program if the state does not enact or enforce at least one law that requires disclosure by a state legislator of financial interests, prohibits a legislator from soliciting political party or election campaign contributions, or prohibits the making or soliciting of contributions during a period of contractor performance or negotiations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Make State Governments More Open, 
Honest, and Transparent Act of 2017''.

SEC. 2. NATIONAL STANDARDS RELATING TO STATE CONFLICT OF INTEREST 
              PROTECTIONS.

    (a) In General.--The head of a Federal agency that administers a 
Federal block grant program in a fiscal year shall take the following 
actions with respect to a State that is in noncompliance as described 
in subsection (b) on the first day of the fiscal year:
            (1) Suspend the authority of the State or any political 
        subdivision of the State to administer funds made available to 
        the State or subdivision under the Federal block grant program 
        in that fiscal year.
            (2) Exercise the authority of the State described in 
        paragraph (1) in that fiscal year, including the selection of 
        the projects to be carried out in the State or subdivision 
        under the Federal block grant program.
    (b) Requirement.--A State shall be treated as being in 
noncompliance as described in this subsection with respect to a fiscal 
year if the Director of the Office of Government Ethics determines that 
the State has not enacted or is not enforcing one or more of the 
following laws on the first day of the fiscal year:
            (1) A law that requires an individual serving as a member 
        of the legislature of the State to prepare and make available 
        to the public an annual report disclosing the financial 
        interests of the individual during the preceding year.
            (2) A law that prohibits an individual serving as a member 
        of the legislature of the State to solicit or require, either 
        directly or indirectly, an employee of the individual to make a 
        financial or in-kind contribution to a political party or a 
        political campaign.
            (3) A law that makes it unlawful for any person--
                    (A) who enters into any contract with the State 
                (including any department or agency of the State) 
                either for the rendition of personal services or 
                furnishing any material, supplies, or equipment to the 
                State or for selling any land or building to the State, 
                if payment for the performance of such contract or 
                payment for such material, supplies, equipment, land, 
                or building is to be made in whole or in part from 
                funds appropriated by the State, at any time between 
                the commencement of negotiations for and the later of 
                (i) the completion of performance under, or (ii) the 
                termination of negotiations for, such contract or 
                furnishing of material, supplies, equipment, land, or 
                buildings, directly or indirectly to make any 
                contribution of money or other things of value, or to 
                promise expressly or impliedly to make any such 
                contribution to any political party, committee, or 
                candidate for State public office or to any person for 
                any political purpose or use; or
                    (B) knowingly to solicit any such contribution from 
                any such person for any such purpose during any such 
                period.
    (c) Definitions.--In this section, the following definitions apply:
            (1) Federal block grant program.--The term ``Federal block 
        grant program'' means each of the following:
                    (A) The Innovative Education Program Strategies 
                Block Grant program of the Department of Education.
                    (B) The Energy Efficiency and Conservation Block 
                Grant program of the Department of Energy.
                    (C) The following programs of the Department of 
                Health and Human Services:
                            (i) The Child Care and Development Block 
                        Grant program.
                            (ii) The Community Mental Health Services 
                        Block Grant program.
                            (iii) The Community Services Block Grant 
                        program.
                            (iv) The Low Income Home Energy Assistance 
                        Block Grant program.
                            (v) The Maternal and Child Health Services 
                        Block Grant program.
                            (vi) The Preventive Health and Health 
                        Services Block Grant program.
                            (vii) The Social Services Block Grant 
                        program.
                            (viii) The Substance Abuse Prevention and 
                        Treatment Block Grant program.
                            (ix) The Temporary Assistance to Needy 
                        Families program.
                            (x) The Title V Abstinence Education Block 
                        Grant program.
                    (D) The Homeland Security Grant Programs (State 
                Homeland Security Programs, Urban Area Security 
                Initiative Grant, and Operation Stonegarden) of the 
                Department of Homeland Security.
                    (E) The following programs of the Department of 
                Housing and Urban Development:
                            (i) The Community Development Block Grant 
                        program.
                            (ii) The Indian Community Development Block 
                        Grant program.
                            (iii) The Emergency Solutions Grant 
                        Program.
                            (iv) The HOME Investment Partnerships 
                        Program.
                            (v) The Indian Housing Block Grant program.
                            (vi) The Native Hawaiian Housing Block 
                        Grant program.
                    (F) The Edward Byrne Memorial Justice Assistance 
                Grant program of the Department of Justice.
                    (G) The Workforce Investment Act (Youth, Adult, and 
                Dislocated Workers) program of the Department of Labor.
                    (H) The following programs of the Department of 
                Transportation:
                            (i) The Federal Aviation Administration 
                        Airport Improvement State Block Grant Program.
                            (ii) The Surface Transportation Block Grant 
                        Program.
            (2) State.--The term ``State'' means any of the 50 States, 
        the District of Columbia, or Puerto Rico.