| Alabama |
None found.
|
None found.
|
None found.
|
| Alaska |
To qualify as a blind trust, the following conditions must be met: (AK ST § 39.50.040)
- Trust may not contain investments or assets if the ownership right or interest is required to be recorded in a public office other than with the Alaska Public Offices Commission, or contain assets with permanency that makes transfer improbable or impractical, including real estate, security interests in personal property, mortgages, and interests in closely held businesses.
- Trustee shall be a bank, trust company, or other institutional fiduciary.
- Trustee shall have full authority to manage the trust.
- Trust instrument shall contain a clear statement that its purpose is to remove from the settlor control and knowledge of investment of trust assets so that conflicts between the settlor's responsibilities and duties as a public official and the settlor's personal or financial interests will be eliminated.
- During trust's term, a settlor or other beneficiary may not communicate with the trustee except in writing and only regarding (A) a request for a distribution, (B) the general financial requirements regarding distributions from the trust as a whole, (C) direction to the trustee that, because a law, executive order, or regulation prohibits the settlor from holding an asset, the asset may not be held by the trust, (D) direction to the trustee to sell all of an asset initially placed in the trust because the settlor has determined the sale is necessary to avoid a conflict of interest, the appearance of impropriety, or an ethical violation; quarterly the trustee may provide to the settlor a written report of the aggregate market value of the trust's assets and property but may not disclose to the settlor or other beneficiary of the trust, or any other interested party, any information about the identity and nature of any of the assets in the trust, and the trustee shall be required to report any known breach of this confidentiality.
- Trust shall terminate only upon order of the commission, death or incompetence of the settlor, termination of the settlor's status as a public official, or revocation approved in advance by the commission; the trustee shall be required to promptly report any termination of the trust to the commission.
- Trustee shall prepare the income tax return of the trust and may participate in the audit of the trust's returns with authority to compromise a tax liability of the trust, but may not disclose the return or information related to the return, except, promptly after the close of each taxable year of the trust, the trustee shall provide the settlor with an annual report summarizing information concerning the trust, including net income or loss, expenses, capital gains, and capital losses of the trust, as necessary to enable the settlor to prepare and file tax returns required by law; however, the summary may not directly or indirectly identify a security or other property that is an asset or former asset of the trust.
- Trustee shall be directed to avoid knowingly making any investment in a corporation, business, or venture over which the settlor is likely to take action by virtue of the settlor's official position.
- For the duration of the trust, a settlor or other beneficiary may not pledge, mortgage, or otherwise encumber a person's interests in an asset that is part of the trust, the settlor may not retain control over the trustee, and the settlor is not permitted to make any recommendations or suggestions as to the trust property.
- Trust instrument agreement must provide that the trustee will give the attorney general or personnel board access to any records or information related to the trust that is necessary when investigating or hearing an accusation alleging a violation of the Alaska Executive Branch Ethics Act.
- Trustee shall report to the commission the beginning and ending value of the trust, and, if the commission requests, the trustee shall prepare under seal a detailed description of transactions and holdings of the trust; the document prepared by the trustee under seal is not public information unless an accusation under the Alaska Executive Branch Ethics Act relevant to the blind trust is filed by the attorney general or the personnel board.
- The trust may not become effective until the trust instrument is submitted and approved by the commission.
Note: this seems to apply to only executive branch officials and employees. AS § 39.50.200. However, the Alaska Public Offices Commission, which has jurisdiction over the legislature, appears to require the same financial disclosures of legislators. 2 AAC 50.680 (Current as of 07/20/2021).
|
May insulate from actual or potential conflicts of interest, or the appearance of conflict. AK ST § 39.50.040.
Note: this seems to apply to only executive branch officials and employees. AS § 39.50.200. However, the Alaska Public Offices Commission, which has jurisdiction over the legislature, appears to require the same financial disclosures of legislators. 2 AAC 50.680 (Current as of 07/20/2021).
|
The original assets placed in the blind trust shall be listed by the official in a statement, together with a description of the actual or potential conflicts of interest, or appearance of conflict, that the official seeks to avoid by the use of the trust. A copy of the instrument creating the blind trust must be included with the statement. A person initiating a written communication under this section shall cause a copy of the communication to be filed with the commission within five days after the date of the communication. The trustee shall maintain and make available for inspection by the commission at the commission's request the trust's tax returns, books of account, and other records and, on or before May 15 of each year, shall file with the commission a notarized document certifying compliance with this section for the preceding calendar year. AK ST § 39.50.040.
Note: this seems to apply to only executive branch officials and employees. AS § 39.50.200. However, the Alaska Public Offices Commission, which has jurisdiction over the legislature, appears to require the same financial disclosures of legislators. 2 AAC 50.680 (Current as of 07/20/2021).
|
| Arizona |
None found.
|
None found.
|
None found.
|
| Arkansas |
None found.
|
Normally it would be a conflict of interest for a state employee to participate in any proceeding, application, ruling, determination, claim, controversy, or any other matter relating to a contract or subcontract in which the employee or an immediate family member thereof has a financial interest, or an associated business has such interest, or an organization in which the employee or member of their family has an arrangement concerning prospective employment has such an interest. However, if the interest is held in a blind trust, then the employee shall not be deemed to have a conflict of interest regarding the matter. A.C.A. § 19-11-705. Any employee who has or obtains a benefit from any state contract with a business in which the employee has a financial interest shall report the benefit to the Director of the Department of Finance and Administration, unless the interest has been placed in a disclosed blind trust. A.C.A. § 19-11-706.
"Employee" means an individual drawing a salary from a state agency, whether elected or not, and any nonsalaried individual performing personal services for any state agency. "State agency" definition includes, among others, any legislative body or other establishment of the legislative branch of the state. A.C.A. § 19-11-701.
|
In order for the conflict protection provision to be triggered, the existence of a blind trust must be disclosed to the Director of the Department of Finance and Administration. A.C.A. § 19-11-705.
|
| California |
No statutory definition was found. However, California's administrative code states that a blind trust must meet the following conditions: (1) trustee must be a disinterested party other than the filer's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, aunt, uncle, or first cousin or the spouse of any such person; (2) trustee must be given complete discretion to manage the trust; (3) trustee must be required to notify the filer of the date of disposition and value at disposition of any original investments or interests in real property so that information can be reported on the filer's next Statement of Economic Interests; (4) trustee must be prohibited from disclosing to the filer any information concerning the replacement assets except for information required under this subsection or the minimum tax information which lists only the totals of taxable items from the trust and does not describe the source of any individual item of income; and (5) if the trust is revoked while the filer is a public official, or if the filer learns of any replacement assets of the trust, the filer must file an amendment to the most recent Statement of Economic Interests disclosing the date of revocation and the previously unreported pro rata share of the trust's interests in real property or investments or income deriving from any such interests in real property or investments and disqualify himself or herself, as necessary. 2 CCR § 18235.
|
No relevant statutes was found. However, California's administrative code states that: A filer must still self-disqualify from participating in decisions which may have a foreseeable and material effect on financial interests. 2 CCR § 18235.
|
A filer with a beneficial interest in a blind trust is not required to disclose the pro rata share of the trust's interests in real property or investments, or income deriving from any such interests or investments, if those interests or investments are acquired after the trust becomes "blind." 2 CCR § 18235.
|
| Colorado |
None found.
|
None found.
|
None found.
|
| Connecticut |
“Blind trust” means a trust established by a public official or state employee or member of his or her immediate family for the purpose of divestiture of all control and knowledge of assets. CT ST § 1-79.
|
None found.
|
Included in financial interest statements shall be the existence of any known blind trusts and the names of the trustees. CT ST § 1-83.
|
| Delaware |
None found.
|
None found.
|
None found.
|
| District of Columbia |
None found.
|
None found.
|
None found.
|
| Florida |
None found. Florida's blind trust law (FL ST § 112.31425) was repealed by Laws 2019, c. 2019-60, § 1, eff. January 1, 2020
|
None found.Florida's blind trust law (FL ST § 112.31425) was repealed by Laws 2019, c. 2019-60, § 1, eff. January 1, 2020
|
None found. Florida's blind trust law (FL ST § 112.31425) was repealed by Laws 2019, c. 2019-60, § 1, eff. January 1, 2020.
|
| Georgia |
None found.
|
None found.
|
None found.
|
| Guam |
None found.
|
None found.
|
None found.
|
| Hawaii |
None found.
|
None found.
|
Disclosure requirements for candidates for state elective offices state that individual items in a blind trust or mutual fund need not be disclosed if the trust or fund has been disclosed. HRS § 84-17.
|
| Idaho |
None found.
|
None found.
|
None found.
|
| Illinois |
None found.
|
None found.
|
None found.
|
| Indiana |
None found.
|
None found. |
None found that relate to state legislators. However, other state officers and employees' financial disclosure requirements include a provision that exempts stocks held in a blind trust from the requirement that the disclosures include the name of any corporation in which the state officer, candidate, or employee of their spouse or unemancipated children own stock or stock options valued over $10,000. IC 4-2-6-8.
|
| Iowa |
None found.
|
None found.
|
None found.
|
| Kansas |
No statutory definition was found. However, Kansas's administrative regulations define "blind trust" as a trust established by a state officer or state employee or the individual's spouse for the purpose of divestiture of all control and knowledge of assets. K.A.R. 19-41-1. (Current as of 07/20/2021).
|
None found. |
None found. |
| Kentucky |
None found.
|
None found.
|
None found.
|
| Louisiana |
None found.
|
None found.
|
None found.
|
| Maine |
None found.
|
None found.
|
None found.
|
| Maryland |
No statutory definition was found. However, Maryland's administrative regulations under Title 19a (State Ethics Commission) requires a blind trust to be: (1) Well diversified (describes a factor test for determining if a trust is well diversified); (2) Readily marketable (describes a factor test); (3) Not a holding in an entity where the official or employee has as his primary State function regulatory or procurement duties relating to the entity, unless, due to the size of the holdings and the nature of the official's or employee's duties, a conflict of interest or appearance of conflict is unlikely; (4) Free of any restriction or encumbrance that would interfere with the trustee's ability to manage and control them. Code Md. Regs. 19A.06.02.02. Qualifications for the trustee of a blind trust are further defined in Code Md. Regs. 19A.06.02.01 et seq. (Current as of 07/20/2021).
|
No specific impact found in state statutes. However, Maryland administrative regulations state that for purposes of disqualification requirements, interests held in a blind trust do not trigger the requirements and limitations of disqualification provisions. Code Md. Regs. 19A.06.01.03 (Current as of 07/20/2021).
|
No specific impact found in state statutes. However, Maryland administrative regulations state that for purposes of disqualification requirements, interests held in a blind trust do not trigger state disclosure or requirements. Code Md. Regs. 19A.06.01.03 (Current as of 07/20/2021).
|
| Massachusetts |
None found.
|
None found.
|
None found.
|
| Michigan |
None found.
|
None found.
|
None found.
|
| Minnesota |
None found.
|
None found.
|
None found. However, the definitions section of the Minnesota chapter on Campaign Finance and Public Disclosure excludes from the definition of "securities" any of the underlying assets owned in a blind trust. M.S.A. § 10A.01. This could indicate that the individual owned assets within a blind trust do not need to be disclosed, only the blind trust itself.
|
| Mississippi |
A blind trust shall comply with the following conditions: (a) The trustee of a blind trust shall be: A bank, trust or brokerage company authorized to exercise fiduciary powers, an individual who is an employee of any such fiduciary, a law firm or an attorney, AND a disinterested party other than the public official or employee's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, aunt, uncle, first cousin, or the spouse of any such person, AND someone who is not a public official or public employee, AND someone who has not been appointed to a public entity by the public official or public employee, or by a public official or public employee supervised by the filer. (b) The trustee shall be given complete discretion to manage the trust, including, but not limited to, the power to dispose of and acquire trust holdings without consulting or notifying the filer. (c) The trustee is prohibited from disclosing to the filer any information concerning the replacement holdings except for information required under this subsection or the minimum tax information which lists only the totals of taxable items from the trust and does not describe the source of individual items of income. (d) A copy of the trust agreement shall be filed with the commission within 5 business days after execution, including an identification of the holdings placed in trust, a statement detailing the date of its creation, and the name and address of the trustee. (e) The trustee annually shall file with the commission a signed statement, under penalty of perjury, stating that he or she has not revealed any information to the filer other than as permitted under this section and that, to the best of the trustee's knowledge, the trust is in compliance with this section. (f) The trustee and the public official or public employee shall not communicate about the blind trust, directly or indirectly, except in writing, and a copy of all such written communications shall be transmitted to the commission. (g) If the trust is revoked during the period of the public official's or public employee's tenure in office, then the public official or public employee, within 10 business days, shall file a statement disclosing all of the assets of the trust at the time of its revocation. MS ST § 25-4-28.
|
None found.
|
A public official or public employee who has an interest in a blind trust is not required to disclose the holdings of the blind trust, if those holdings are acquired by the trustee after the trust meets all requirements. MS ST § 25-4-28.
|
| Missouri |
None found.
|
None found.
|
None found.
|
| Montana |
None found.
|
None found.
|
None found.
|
| Nebraska |
None found.
|
None found.
|
None found.
|
| Nevada |
None found.
|
None found.
|
None found.
|
| New Hampshire |
None found.
|
None found.
|
None found.
|
| New Jersey |
None found.
|
None found. However, according to an executive order, which might not be relevant for rules as they apply to legislators or legislative employees, a blind trust may be used to erect a barrier between State officers and employees and their investments so that such officers might be shielded from potential conflicts. McGreevey Executive Order No. 10, Feb. 28, 2002.
|
None found.
|
| New Mexico |
No statutory definition found within the sections on government ethics. However, the chapter on Public Purchases and Property uses a definition for blind trusts that defines them as a trust managed by a person other than the employee-beneficiary in which the employee-beneficiary is not given notice of alterations in the property of the trust. N.M. Stat. Ann. § 13-1-32.
|
None found.
|
None found.
|
| New York |
None found.
|
None found. However, a State Ethics Commission Advisory Opinion discussing the New York Public Officers Law found that a properly formed blind trust may shield an official from certain conflicts of interest, but it required complete divestiture from any control of assets held in trust. Advisory Opinion No. 96-14.
|
None found.
|
| North Carolina |
Blind trust. A trust established by or for the benefit of a covered person or a member of the covered person's immediate family for divestiture of all control and knowledge of assets. A trust qualifies as a blind trust under this subdivision if the covered person or a member of the covered person's immediate family has no knowledge of the holdings and sources of income of the trust, the trustee of the trust is independent of and not associated with or employed by the covered person or a member of the covered person's immediate family and is not a member of the covered person's extended family, and the trustee has sole discretion as to the management of the trust assets. N.C. Gen. Stat. Ann. § 163A-152.
|
None found.
|
Assets or liabilities held in a blind trust are excepted from the requirement that each asset and liability with a value of at least $10,000 owned by the filer or their immediate family be disclosed. N.C. Gen. Stat. Ann. § 163A-189.
|
| North Dakota |
None found.
|
None found.
|
None found.
|
| Ohio |
None found.
|
None found. However, a State Ethics Commission advisory opinion said, "there is no provision in Ohio that recognizes or provides for the creation of 'blind trusts.' Consequently, the Ethics Law does not recognize a method by which blind trusts, and their assets, can be disclosed in a manner that is consistent with the purpose in creating a blind trust." Advisory Opinion No. 2005-01.
|
None found. However, a State Ethics Commission advisory opinion said, "there is no provision in Ohio that recognizes or provides for the creation of 'blind trusts.' Consequently, the Ethics Law does not recognize a method by which blind trusts, and their assets, can be disclosed in a manner that is consistent with the purpose in creating a blind trust." Advisory Opinion No. 2005-01.
|
| Oklahoma |
None found.
|
None found.
|
None found.
|
| Oregon |
None found.
|
None found.
|
Individual items involved in a mutual fund or blind trust, along with other types of assets, may be excepted from the requirement that information relating to each business that a public official or candidate or household member thereof has or had a personal, beneficial interest or investment over $1,000 must be disclosed. Or. Rev. Stat. Ann. § 244.070.
|
| Pennsylvania |
None found.
|
None found.
|
None found.
|
| Puerto Rico |
None found.
|
None found.
|
None found.
|
| Rhode Island |
None found.
|
None found.
|
None found.
|
| South Carolina |
None found.
|
Where a public official, public member, or public employee or a member of his immediate family holds an economic interest in a blind trust, he is not considered to have a conflict of interest with regard to matters pertaining to that economic interest, if the existence of the blind trust has been disclosed to the appropriate supervisory office. SC ST § 8-13-700.
|
None found.
|
| South Dakota |
None found.
|
None found.
|
None found.
|
| Tennessee |
A trust shall be considered a “blind trust” if created to benefit an individual, their spouse or any dependent child and is under the management and control of a trustee who is a bank or trust company authorized to exercise fiduciary powers, a licensed attorney or a broker who: Is independent of and not associated with any party interested in the trust; Is not or has not been an employee of any interested party or any organization affiliated with any interested party, and is not a partner of, or involved in any joint venture or other investment with any interested party; and Is not a relative of any party. There shall be no communications direct or indirect between the trustee and an interested party with respect to the trust unless the communication is in writing, except for communications that solely consist of requests for distributions of cash or other unspecified assets of the trust. The written communications shall be limited to the general financial interest and needs of the interested party including, but not limited to, an interest in maximizing income or long-term capital gain. The interested parties shall make no effort to obtain information with respect to the holdings of the trust, including obtaining a copy of any trust tax return filed or any information relating to the trust, except as may be needed by the interested parties in order to file tax returns. Tenn. Code Ann. § 35-50-120.
|
None found.
|
For annual financial reports, must disclose name of parties interested in the blind trust with the name and address of the trustee. Not required to disclose individual assets held in a blind trust. Tenn. Code Ann. § 2-10-128.
|
| Texas |
A blind trust is a trust as to which: (1) the trustee: is a disinterested party; is not the individual; is not required to register as a lobbyist under Chapter 305; is not a public officer or public employee; and was not appointed to public office by the individual or by a public officer or public employee the individual supervises; and (2) the trustee has complete discretion to manage the trust, including the power to dispose of and acquire trust assets without consulting or notifying the individual. Tex. Gov't Code Ann. § 572.023.
|
Financial interests prohibited in the statutory section on potential conflicts of interest excludes blind trusts, among others. Tex. Gov't Code Ann. § 2261.252.
|
Financial statements are required to identify the source and category of the amount of all income received as the beneficiary of a trust, other than a qualifying blind trust, and identification of each trust asset, if known to the beneficiary, from which income was received by the beneficiary in excess of $500. Tex. Gov't Code Ann. § 572.023.
|
| Utah |
None found.
|
None found.
|
For each entity in which the regulated officeholder holds any stocks or bonds having a fair market value of $5,000 or more as of the date of the disclosure form or during the preceding year, but excluding funds that are managed by a third party, including blind trusts, managed investment accounts, and mutual funds: (i) the name of the entity; and (ii) a brief description of the type of business or activity conducted by the entity. Utah Code Ann. § 20A-11-1604.
|
| Vermont |
None found.
|
None found.
|
None found.
|
| Virginia |
None found.
|
None found.
|
None found.
|
| Virgin Islands |
None found.
|
None found.
|
None found.
|
| Washington |
None found.
|
None found.
|
None found.
|
| West Virginia |
“Qualified blind trust” includes a trust in which a regulated person or immediate family has a beneficial interest in the principal or income, and which meets the following requirements: (W. Va. Code Ann. § 6B-2-8)
- The trustee of the trust is a financial institution, an attorney, a certified public accountant, a broker, or an investment adviser, who (in the case of a financial institution or investment company, any officer or employee involved in the management or control of the trust): (A) Is independent of and unassociated with any interested party so that the trustee cannot be controlled or influenced in the administration of the trust by any interested party; (B) Is not or has not been an employee of any interested party, or any organization affiliated with any interested party and is not a partner of, or involved in any joint venture or other investment with, any interested party; and (C) Is not a relative of any interested party.
- Any asset transferred to the trust by an interested party is free of any restriction with respect to its transfer or sale unless such restriction is expressly approved by the ethics commission;
- The trust instrument which establishes the trust provides that: (A) Except to the extent provided in paragraph (F) of this subdivision the trustee in the exercise of his authority and discretion to manage and control the assets of the trust shall not consult or notify any interested party; (B) The trust shall not contain any asset the holding of which by an interested party is prohibited by any law or regulation; (C) The trustee shall promptly notify the regulated person and the ethics commission when the holdings of any particular asset transferred to the trust by any interested party are disposed of; (D) The trust tax return shall be prepared by the trustee or his designee, and such return and any information relating thereto (other than the trust income summarized in appropriate categories necessary to complete an interested party's tax return), shall not be disclosed to any interested party; (E) An interested party shall not receive any report on the holdings and sources of income of the trust, except a report at the end of each calendar quarter with respect to the total cash value of the interest of the interested party in the trust or the net income or loss of the trust or any reports necessary to enable the interested party to complete an individual tax return required by law, but such report shall not identify any asset or holding; (F) Except for communications which solely consist of requests for distribution of cash or other unspecified assets of the trust, there shall be no direct or indirect communication between the trustee and an interested party with respect to the trust unless such communication is in writing and unless it relates only (i) to the general financial interest and needs of the interested party (including, but not limited to, an interest in maximizing income or long-term capital gain), (ii) to the notification of the trustee of a law or regulation subsequently applicable to the reporting individual which prohibits the interested party from holding an asset, which notification directs that the asset not be held by the trust, or (iii) to directions to the trustee to sell all of an asset initially placed in the trust by an interested party which in the determination of the reporting individual creates a conflict of interest or the appearance thereof due to the subsequent assumption of duties by the reporting individual (but nothing herein shall require any such direction); and (G) The interested parties shall make no effort to obtain information with respect to the holdings of the trust, including obtaining a copy of any trust tax return filed or any information relating thereto except as otherwise provided in this section.
- The proposed trust instrument and the proposed trustee is approved by the ethics commission and approval shall be given if the conditions of this section are met.
|
Exceptions to financial disclosure requirements and conflict of interest provisions include any qualified blind trust. W. Va. Code, § 6B-2-8.
|
Exceptions to financial disclosure requirements and conflict of interest provisions include any qualified blind trust. W. Va. Code, § 6B-2-8.
|
| Wisconsin |
None found.
|
None found.
|
None found.
|
| Wyoming |
None found.
|
None found.
|
None found.
|