1. Short title This Act may be cited as the Make State Governments More Open, Honest, and Transparent Act of 2017 . 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