Governors' Disclosure — How We Did It
WASHINGTON, July 19, 2007 — Center researchers developed a comprehensive state-by-state analysis of personal financial disclosure regulations for governors.
First, a series of questions was developed that addressed four key areas relating to governors' personal financial disclosure statements:
- Filing – how often are governors required to file reports?
- Extent – what information and level of detail are required?
- Access – how much public access do the state agencies provide to the information?
- Enforcement – what audit authority does the state have?
- Extra – do elected officials besides the governor file? What about non-elected officials?
Most questions had a yes or no answer (some had a third option), with each answer assigned a weighted numerical value. The answers with the highest values reward full disclosure, public access and accountability. The maximum number of points a state could receive was 100.
Center researchers determined answers to each of the 43 questions by studying active statutes current as of 2007, codes of ethics, disclosure forms and Web sites. Most questions required the researchers to find the information in the state statute and then interview public officials in charge of ethics agencies for confirmation. Each answer underwent a thorough fact-checking process and a number of consistency checks to ensure uniformity across the states.
Because only a few states scored an 80 or above, scores of 70 and higher are considered relatively satisfactory. Scores of 60 to 69 are considered marginal. Scores below 60 are considered failing.
The Survey
FILING (total 4 points maximum):
1. Requires financial disclosure filing?
No – 0
Yes – 1
States requiring governors to file personal financial-disclosure statements received a point. Ultimately, only the four states that don't require governors to file — Idaho, Michigan, Utah and Vermont — received zero points for this question.
2. Requires complete financial disclosure filing (no update filing allowed)?
No – 0
Yes – 1
Update filings are short (usually one page) forms that governors are allowed to file in years when their personal financial interests have not changed or changed very little. For the purposes of this survey, update forms do not qualify as complete filings.
3. Requires financial disclosure filing annually?
No – 0
Yes – 1
States that require annual disclosure for governors receive a point. For example, North Dakota, which requires a filing only during election years would not receive a point.
4. Requires financial disclosure filing for candidates?
No – 0
Yes – 1
In addition to personal financial disclosure requirements for governors, most states require personal financial disclosure filing for candidates seeking the office. States received a point for requiring complete financial disclosure for candidates, regardless of when they are required to file again if elected to office.
EXTENT (total 83 points maximum):
EMPLOYMENT (total 29 points maximum):
5. Employment information required?
No – 0
Yes – 5
States requiring governors to report employment information received full points for this question.
6. Employment information not narrowly defined?
No – 0
Yes – 5
In some states, governors are required to report sources of income over a certain threshold or income received from a state agency only — or another requirement that is so narrow many things could be left off the form.
States received full points for this question if the trigger for reporting employment income was $5,000 or less. States did not receive points for this question if the trigger for reporting employment income was higher than $5,000 or if large categories of potential employers were excluded.
7. Employer/business name required?
No – 0
Yes – 5
States requiring governors to report the name of any employer or source of income other than the state on the filing received full points for this question.
8. Employment job title required?
No – 0
Yes – 2
States received full points for requiring governors to report their job titles.
9. Employer description required?
No – 0
Yes – 2
States requiring governors to report a job description received full points for this question. The description could be very specific or a general category assignment. In either case, a state received full points.
10. Value range/income amount required?
No – 0
Yes – 5
A state received full points for this question if governors are required to disclose their incomes from each employment interest. In some states, an exact amount is required, but in others, a value range and letter key is provided (i.e., A=less than $1,000; B=$1,000 to $9,999; C=$10,000 or more). In either case, a state received full points.
11. Spouse employment information required and clear?
No – 0
If required and not clear – 2.5
Yes – 5
A state received 5 points for this question if a spouse's employment information is required AND clearly labeled on the form. States that require governors to report their spouses' information but do not explicitly require a governor to designate which interests are held by the governor and which are held by the spouse received 2.5 points for this question.
In addition, a state received partial points for this question when any of the disclosure requirements required of the filer for this section are NOT required of the spouse.
OFFICER/DIRECTOR (total 18 points maximum):
12. Officer/director information required?
No – 0
Yes – 4
States requiring governors to report positions held as officers or directors received full points for this question.
13. Officer/director information not narrowly defined?
No – 0
Yes – 4
In some states, governors are required to report compensated officer/director positions or positions with for-profit entities only — or another requirement that is so narrow many things could be left off the form.
States received full points for this question if all compensated and uncompensated positions were required to be reported, including positions in for-profit and nonprofit entities.
14. Officer/director entity name required?
No – 0
Yes – 4
States received full points for this question if the name of the entity where a governor serves as an officer or director is required to be disclosed.
15. Officer/director entity description required?
No – 0
Yes – 2
States received full points for requiring governors to provide a description of the entity where they serve as an officer or director. The description could be very specific or a general category assignment. In either case, a state received full points.
16. Spouse officer/director information required and clear?
No – 0
If required and not clear – 2
Yes – 4
A state received 4 points for this question if a spouse's employment information is required AND clearly labeled on the form. States that require governors to report their spouse's information but do not explicitly require a governor to designate which interests are held by the governor and which are held by the spouse received 2 points for this question.
In addition, a state might have been allocated partial points for this question in the event that any of the disclosure requirements required of the filer for this section (Q14-Q15) are NOT required of the spouse. Any discrepancies between filer and spouse reporting requirements are reflected in this question.
INVESTMENTS (total 17 points maximum):
17. Investment information required?
No – 0
Yes – 3
States requiring governors to disclose investment information received full points for this question. Investment information includes stock holdings, closely held businesses and other ownership interests. States that require governors to report these investment interests received full points.
18. Investment information not narrowly defined?
No – 0
Yes – 3
In some states, governors are required to report investment information over a certain threshold only — or another requirement that is so narrow many things could be left off the form.
States received full points for this question if the trigger for reporting investment holdings was a value/income amount of $5,000 or less, or 1 percent ownership or less. Many states have two thresholds (for example, Washington requires reporting of investment holdings valued at more than $1,500 or with ownership of at least 10 percent). For states such as this, the question is scored using the lower value (Washington receives full points because the value trigger of $1,500 is less than $5,000). But states where neither criterion is low enough, such as Kentucky which requires only investments valued more than $10,000 or with ownership of 5 percent, did not receive points for this question.
19. Investment entity name required?
No – 0
Yes – 3
States requiring governors to report the name of the investment interest received full points for this question.
20. Investment entity description required?
No – 0
Yes – 2
States received full points for this question if governors were required to include an investment entity description. The description might be very specific or a general category assignment. In either case, a state received full points.
Some states allow governors to report stock interests (e.g., stocks, mutual funds) and closely-held personal business interests (e.g., sole proprietors, partnerships) under two different reporting requirements. Half-points were awarded for this question in states that require an investment entity description for closely-held personal business interests only and not for general stock interests.
21. Investment value range/holding amount required?
No – 0
Yes – 3
A state received full points for this question if governors are required to disclose their income amount from each investment interest. In some states, an exact amount is required, but in others, a value range and letter key is provided (i.e., A=less than $1,000; B=$1,000 to $9,999; C=$10,000 or more). In either case, a state received full points.
22. Spouse investment information required and clear?
No – 0
If required and not clear – 1.5
Yes – 3
A state received 3 points for this question if a spouse's investment information is required AND clearly labeled on the form. States that require governors to report their spouse's information but do not explicitly require a governor to designate which interests are held by the governor and which are held by the spouse received 1.5 points for this question.
In addition, a state might have been allocated partial points for this question in the event that any of the disclosure requirements required of the filer for this section (Q19-Q21) are NOT required of the spouse. Any discrepancies between filer and spouse reporting requirements are reflected in this question.
CLIENTS (total 8 points maximum):
23. Client information required?
No – 0
Yes – 2
States received full points for requiring client information of any type. Some states allowed governors to identify clients by checking a box on the form that corresponded to a specific industry; others were required to disclose the exact names of their clients. Both requirements satisfied this question and received full points.
While some states do require information about a filer doing business with a government agency, that did not satisfy the question. This question pertains to private clients associated with filer's outside interests. We did note when information about contracts/leases with the state was required to be reported, but no points were awarded.
24. Client name required?
No – 0
Yes – 2
States requiring governors to report the individual names of their clients received full points for this question.
25. Client value range/income amount required?
No – 0
Yes – 2
A state received full points for this question if governors are required to disclose the income amount for each client. In some states an exact amount is required, but in others a value range and letter key is provided (i.e., A=less than $1,000; B=$1,000 to $9,999; C=$10,000 or more). In either case, a state received full points.
26. Spouse client information required and clear?
No – 0
If required and not clear – 1
Yes – 2
A state received two points if a spouse's client information is required AND clearly labeled on the form. States that require governors to report their spouse's information but do not explicitly require a governor to designate which interests are held by the governor and which are held by the spouse received only one point for this question.
In addition, a state might have been allocated partial points for this question in the event that any of the disclosure requirements required of the filer for this section (Q24-25) are NOT required of the spouse. Any discrepancies between filer and spouse reporting requirements are reflected in this question.
REAL PROPERTY (total 8 points maximum):
27. Real-property information required?
No – 0
Yes – 2
States requiring governors to report real property information received full points for this question. In states where real estate interests were not explicitly required to be reported in the language of the statutes, interviews were conducted to determine the final answer for this question.
28. Real-property information not narrowly defined?
No – 0
Yes – 2
In some states, governors are required to report only real property producing income — or another requirement that is so narrow many things could be left off the form.
States received full points for this question if the trigger for reporting real property was a value of $10,000 or less and there were no other limiting circumstances. States did not receive points for this question if the trigger for reporting real property involved the production of income.
29. Real-property value range/amount required?
No – 0
Yes – 2
A state received full points for this question if governors are required to disclose the value amount of each real property interest. In some states an exact amount is required, but in others a value range and letter key is provided (i.e., A=less than $1,000; B=$1,000 to $9,999; C=$10,000 or more). In either case, a state received full points.
30. Spouse real-property information required and clear?
No – 0
If required and not clear – 1
Yes – 2
A state received two points if a spouse's real-property information is required AND clearly labeled on the form. States that require governors to report their spouse's information but do not explicitly require a governor to designate which interests are held by the governor and which are held by the spouse received only one point for this question.
In addition, a state might have been allocated partial points for this question in the event that any of the disclosure requirements required of the filer for this section (Q29) are NOT required of the spouse. Any discrepancies between filer and spouse reporting requirements are reflected in this question.
FAMILY (total 3 points maximum):
31. Spouse name required?
No – 0
Yes – 2
States requiring governors to report their spouse's name on the form received full points for this question.
32. Dependent name required?
No – 0
Yes – 1
States requiring governors to report their dependents' names on the form received full points for this question.
PUBLIC ACCESS (total 8 points maximum):
33. Electronic filing available for governor?
No – 0
Yes – 1
States that have a system in place for governors to file personal financial disclosure reports electronically received a point for this question.
34. Governors not forwarded reviewer information?
No – 0
Yes – 1
States that require citizens and journalists to sign release forms which are then forwarded to the governors received no points for this question. If a state requires a reviewer identification form to be filled out, but does not forward that request to governors, it received full points for this question.
35. In-person appearance not required to obtain filings?
No – 0
Yes – 1
States that require a person to physically come in to their office to obtain copies of filings received zero points for this question. Maryland is the only state with this requirement currently, though New York just removed its in-person requirement in 2007.
36. Copy fees less than 50 cents per page?
No – 0
Yes – 1
When citizens request copies of paper disclosure reports, state agencies charge a copying fee. This fee ranges from 5 cents to one dollar per page. States that use a floating scale to determine fees (e.g., 5 cents for the first 10 pages and 10 cents for each additional page) were assigned the score appropriate for the first price. States that had different prices for in-state versus out-of-state residents received the score appropriate for the in-state price.
37. Blank disclosure form available on Web?
No – 0
Yes – 1
States providing blank copies of disclosure reports on their Web sites received full points for this question.
38. Disclosure filings available electronically or on the Web in any format?
No – 0
Yes – 3
States that make governors' disclosure reports electronically available for viewing in any format — either on a disk or on their Web site — received full points for this question. Since many states are in transition from paper filing to electronic filing availability, points were awarded to agencies that provide electronic-availability.
ENFORCEMENT (total 5 points maximum):
States handle the enforcement of financial disclosure in very different ways. Sometimes the state agency in charge of collecting forms also performs an audit. In other states, there is an entirely separate audit authority (such as the state attorney general).
39. Late-filing penalties on the books?
No – 0
Yes – 1
If a state has a penalty on the books for late filings, it receives a point. For the purposes of this survey, late-filings penalties are assessed to governors who miss the deadline for filing a traditional report.
40. Misfiling penalties on the books?
No – 0
Yes – 1
States that assess a penalty for governors who file incomplete (e.g., missing pages, signatures) or intentionally incorrect forms received a point for this question.
41. State has auditing authority?
No – 0
Yes – 1
States received a point for this question if at least one state agency has the legal authority to conduct an official audit of the disclosure filings. Authority could rest with any state agency — the secretary of state, an ethics board, the attorney general or any other governmental body — to win a point.
This question captures the issue of whether or not any state entity — either on its own initiative OR in response to a complaint — has the authority to audit these documents. For the purposes of this survey, an audit is defined by whether the state has the power to subpoena or compel a governor to produce additional documents (such as bank statements), hold hearings, or any other activities that allow the state agency to determine whether the disclosure reports are complete and accurate. States that are limited to conducting an informal review process did not receive full points.
42. State routinely reviews filings for accuracy and completeness, either through formal audit process or informal review process?
No – 0
Yes – 1
States received a point for this question if the oversight agency routinely reviews the filings to ensure they are properly completed. This question captures the issue of whether or not the state has the authority to review the filings on their own initiative, and not just in response to a complaint. For the purposes of this review, it does not matter if the review is a formal audit or something informal.
Researchers scored this question on the basis of an expert interview (and sometimes a statute provided confirmation). States where experts answered "no" to the question or said they did a "cursory" review, where they checked if filings came in, but did nothing further, did not receive points for this question.
43. State published list of delinquent filers on Web or in printed document?
No – 0
Yes – 1
States received a point for this question if the state makes public a list those who failed to file reports by the required deadline, or filed incomplete or inaccurate reports.
To receive a point, the state must post or publish a separate list where the public can see it, such as in a newsletter, local newspaper or Web site. States that flag delinquent filers in their searchable database, but do not provide a definitive list, received no points for this question.