Sponsored by:
Assemblywoman AMY H. HANDLIN
District 13 (Monmouth)
SYNOPSIS
Restricts business entities that make campaign contributions from performing certain local government contracts.
CURRENT VERSION OF TEXT
As introduced.
An Act restricting business entities that make campaign contributions from performing certain local government contracts and supplementing, amending, and repealing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2004, c.19 (C.19:44A-20.3) is amended to read as follows:
2. Notwithstanding the provisions of any other law to the contrary:
a State agency in the Legislative Branch shall not enter into a contract having an anticipated value in excess of $17,500, as determined in advance and certified in writing by the State agency, with a business entity, that requires approval by a presiding officer of either or both houses of the Legislature [, except a contract that is awarded pursuant to a fair and open process,] if, during the preceding one-year period, that business entity has made a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to the State committee of the political party of which that presiding officer, serving when the contract is awarded, is a member or to a legislative leadership committee or any candidate committee established by that presiding officer; and
a business entity that has entered into a contract having an anticipated value in excess of $17,500 with a State agency in the Legislative Branch, that requires approval by a presiding officer of either or both houses of the Legislature [, except a contract that is awarded pursuant to a fair and open process,] shall not make a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to the State committee of the political party of which that presiding officer is a member or to a legislative leadership committee or to any candidate committee established by that presiding officer, during the term of that contract.
No such committee shall accept such a contribution from a business entity during the term of its contract with a State agency in the Legislative Branch.
(cf: P.L.2004, c.19, s.2)
2. Section 3 of P.L.2004, c.19 (C.19:44A-20.4) is amended to read as follows:
3. Notwithstanding the provisions of any other law to the contrary:
a county, or any agency or instrumentality thereof, shall not enter into a contract having an anticipated value in excess of $17,500, as determined in advance and certified in writing by the county, agency or instrumentality, with a business entity [, except a contract that is awarded pursuant to a fair and open process,] if, during the preceding one-year period, that business entity has made a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any county committee of a political party in that county if a member of that political party is serving in an elective public office of that county when the contract is awarded or to any candidate committee of any person serving in an elective public office of that county when the contract is awarded; and
a business entity that has entered into a contract having an anticipated value in excess of $17,500 with a county, or any agency or instrumentality thereof, [except a contract that is awarded pursuant to a fair and open process,] shall not make such a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any county committee of a political party in that county if a member of that political party is serving in an elective public office of that county when the contract is awarded or to any candidate committee of any person serving in an elective public office of that county when the contract is awarded, during the term of that contract.
No such committee shall accept such a contribution from a business entity during the term of its contract with the county.
(cf: P.L.2004, c.19, s.3)
3. Section 4 of P.L.2004, c.19 (C.19:44A-20.5) is amended to read as follows:
4. Notwithstanding the provisions of any other law to the contrary:
a municipality, or any agency or instrumentality thereof, shall not enter into a contract having an anticipated value in excess of $17,500, as determined in advance and certified in writing by the municipality, agency or instrumentality, with a business entity [, except a contract that is awarded pursuant to a fair and open process,] if, during the preceding one-year period, that business entity has made a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any municipal committee of a political party in that municipality if a member of that political party is serving in an elective public office of that municipality when the contract is awarded or to any candidate committee of any person serving in an elective public office of that municipality when the contract is awarded; and
a business entity that has entered into a contract having an anticipated value in excess of $17,500 with a municipality, or any agency or instrumentality thereof, [except a contract that is awarded pursuant to a fair and open process,] shall not make such a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any municipal committee of a political party in that municipality if a member of that political party is serving in an elective public office of that municipality when the contract is awarded or to any candidate committee of any person serving in an elective public office of that municipality when the contract is awarded, during the term of that contract.
No such committee shall accept such a contribution from a business entity during the term of its contract with the municipality.
(cf: P.L.2004, c.19, s.4)
4. (New section) Notwithstanding the provisions of any other law to the contrary:
a local board of education, or any agency or instrumentality thereof, shall not enter into a contract having an anticipated value in excess of $17,500, as determined in advance and certified in writing by the board, agency or instrumentality, with a business entity if, during the preceding one-year period, that business entity has made a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any candidate committee of any person serving on that board when the contract is awarded; and
a business entity that has entered into a contract having an anticipated value in excess of $17,500 with a local board of education, or any agency or instrumentality thereof, shall not make such a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any candidate committee of any person serving on that board when the contract is awarded, during the term of that contract.
No such committee shall accept such a contribution from a business entity during the term of that contract.
5. (New section) Notwithstanding the provisions of any other law to the contrary:
a board of fire commissioners of a fire district, or any agency or instrumentality thereof, shall not enter into a contract having an anticipated value in excess of $17,500, as determined in advance and certified in writing by the board, agency or instrumentality, with a business entity if, during the preceding one-year period, that business entity has made a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any candidate committee of any person serving on that board when the contract is awarded; and
a business entity that has entered into a contract having an anticipated value in excess of $17,500 with a board of fire commissioners of a fire district, or any agency or instrumentality thereof, shall not make such a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any candidate committee of any person serving on that board when the contract is awarded, during the term of that contract.
No such committee shall accept such a contribution from a business entity during the term of that contract.
6. Section 6 of P.L.2004, c.19 (C.19:44A-20.7) is amended to read as follows:
6. As used in sections 2 through 12 of this act:
"business entity" means any natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of this State or of any other state or foreign jurisdiction; and "business entity" shall also include a redeveloper who enters into a redevelopment agreement with a public entity; and with respect to a natural person who is a business entity, the term shall include the spouse, domestic partner, civil union partner or child of that person residing therewith;
"interest" means the ownership or control of more than 10% of the profits or assets of a business entity or 10% of the stock in the case of a business entity that is a corporation for profit, as appropriate;
["fair and open process" means, at a minimum, that the contract shall be: publicly advertised in newspapers or on the Internet website maintained by the public entity in sufficient time to give notice in advance of the contract; awarded under a process that provides for public solicitation of proposals or qualifications and awarded and disclosed under criteria established in writing by the public entity prior to the solicitation of proposals or qualifications; and publicly opened and announced when awarded. The decision of a public entity as to what constitutes a fair and open process shall be final.]
"State agency in the Legislative Branch" means the Legislature of the State and any office, board, bureau or commission within or created by the Legislative Branch.
(cf: P.L.2005, c.51, s.14)
7. Section 7 of P.L.2004, c.19 (C.19:44A-20.8) is amended to read as follows:
7. a. Prior to awarding any contract, [except a contract that is awarded pursuant to a fair and open process,] a State agency in the Legislative Branch, a county, [or] a municipality, a local board of education or a fire district shall require the business entity to which the contract is to be awarded to provide a written certification that it has not made a contribution that would bar the award of a contract pursuant to this act.
b. A business entity shall
have a continuing duty to report to the Election Law Enforcement Commission any
contributions that constitute a violation of this act that are made during the
duration of
a contract.
(cf: P.L.2005, c.51, s.15)
8. Section 2 of P.L.2005, c.271 (C.19:44A-20.26) is amended to read as follows:
2. a. Not later than 10 days prior to entering into any contract having an anticipated value in excess of $17,500, except for a contract that is required by law to be publicly advertised for bids, a State agency, county, municipality, independent authority, board of education, or fire district shall require any business entity bidding thereon or negotiating therefor, to submit along with its bid or price quote, a list of political contributions as set forth in this subsection that are reportable by the recipient pursuant to the provisions of P.L.1973, c.83 (C.19:44A-1 et al.) and that were made by the business entity during the preceding 12-month period, along with the date and amount of each contribution and the name of the recipient of each contribution. A business entity contracting with a State agency shall disclose contributions to any State, county, or municipal committee of a political party, legislative leadership committee, candidate committee of a candidate for, or holder of, a State elective office, or any continuing political committee. A business entity contracting with a county, municipality, independent authority, other than an independent authority that is a State agency, board of education, or fire district shall disclose contributions to: any State, county, or municipal committee of a political party; any legislative leadership committee; or any candidate committee of a candidate for, or holder of, an elective office of that public entity, of that county in which that public entity is located, of another public entity within that county, or of a legislative district in which that public entity is located or, when the public entity is a county, of any legislative district which includes all or part of the county, or any continuing political committee.
The provisions of this section shall not apply to a contract when a public emergency requires the immediate delivery of goods or services.
b. When a business entity is a natural person, a contribution by that person's spouse, domestic partner, civil union partner or child[,] residing therewith, shall be deemed to be a contribution by the business entity. When a business entity is other than a natural person, a contribution by any person or other business entity having an interest therein shall be deemed to be a contribution by the business entity. When a business entity is other than a natural person, a contribution by: all principals, partners, officers, or directors of the business entity or their spouses, domestic partners, or civil union partners or children of those persons residing therewith; any subsidiaries directly or indirectly controlled by the business entity; or any political organization organized under section 527 of the Internal Revenue Code that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee, shall be deemed to be a contribution by the business entity.
c. As used in this section:
"business entity" means a for-profit entity that is a natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of this State or of any other state or foreign jurisdiction; and "business entity" shall also include a redeveloper who enters into a redevelopment agreement with a public entity;
"interest" means the ownership or control of more than 10% of the profits or assets of a business entity or 10% of the stock in the case of a business entity that is a corporation for profit, as appropriate; and
"State agency" means any of the principal departments in the Executive Branch of the State Government, and any division, board, bureau, office, commission or other instrumentality within or created by such department, the Legislature of the State and any office, board, bureau or commission within or created by the Legislative Branch, and any independent State authority, commission, instrumentality or agency.
d. Any business entity that fails to comply with the provisions of this section shall be subject to a fine imposed by the New Jersey Election Law Enforcement Commission in an amount to be determined by the commission which may be based upon the amount that the business entity failed to report.
(cf: P.L.2007, c.304, s.1)
9. Section 3 of P.L.2005, c.271 (C.19:44A-20.27) is amended to read as follows:
3. a. Any business entity making a contribution of money or any other thing of value, including an in-kind contribution, or pledge to make a contribution of any kind to a candidate for or the holder of any public office having ultimate responsibility for the awarding of public contracts, or to a political party committee, legislative leadership committee, political committee or continuing political committee, which has received in any calendar year $50,000 or more in the aggregate through agreements or contracts with a public entity, shall file an annual disclosure statement with the New Jersey Election Law Enforcement Commission, established pursuant to section 5 of P.L.1973, c.83 (C.19:44A-5), setting forth all such contributions made by the business entity during the 12 months prior to the reporting deadline.
b. The commission shall prescribe forms and procedures for the reporting required in subsection a. of this section which shall include, but not be limited to:
(1) the name and mailing address of the business entity making the contribution, and the amount contributed during the 12 months prior to the reporting deadline;
(2) the name of the candidate for or the holder of any public office having ultimate responsibility for the awarding of public contracts, candidate committee, joint candidates committee, political party committee, legislative leadership committee, political committee or continuing political committee receiving the contribution; and
(3) the amount of money the business entity received from the public entity through contract or agreement, the dates, and information identifying each contract or agreement and describing the goods, services or equipment provided or property sold.
c. The commission shall maintain a list of such reports for public inspection both at its office and through its Internet site.
d. When a business entity is a natural person, a contribution by that person's spouse, domestic partner, civil union partner or child[,] residing therewith, shall be deemed to be a contribution by the business entity. When a business entity is other than a natural person, a contribution by any person or other business entity having an interest therein shall be deemed to be a contribution by the business entity. When a business entity is other than a natural person, a contribution by: all principals, partners, officers, or directors of the business entity, or their spouses, domestic partners, or civil union partners or children of those persons residing therewith; any subsidiaries directly or indirectly controlled by the business entity; or any political organization organized under section 527 of the Internal Revenue Code that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee, shall be deemed to be a contribution by the business entity.
As used in this section:
"business entity" means a for-profit entity that is a natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of this State or of any other state or foreign jurisdiction; and "business entity" shall also include a redeveloper who enters into a redevelopment agreement with a public entity; and
"interest" means the ownership or control of more than 10% of the profits or assets of a business entity or 10% of the stock in the case of a business entity that is a corporation for profit, as appropriate.
e. Any business entity that fails to comply with the provisions of this section shall be subject to a fine imposed by the New Jersey Election Law Enforcement Commission in an amount to be determined by the commission which may be based upon the amount that the business entity failed to report.
(cf: P.L.2007, c.304, s.2)
10. (New section) A county, municipality, independent authority, board of education, or fire district shall not establish, by ordinance, resolution or regulation, limits on political contributions by business entities performing or seeking to perform public contracts. Any ordinance, resolution or regulation of a unit of local government in effect on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be void and unenforceable.
11. Section 1 of P.L.2005, c.271 (C.40A:11-51) is repealed.
12. This act shall take effect on January 1st following enactment.
STATEMENT
This bill would make a number of changes to current "pay-to-play" laws, including changes to implement recent recommendations made by the Election Law Enforcement Commission. Specifically, the bill would:
1) eliminate provisions of existing law that exclude contracts awarded pursuant to a "fair and open process" from pay-to-play proscriptions and provide instead that only contracts that are valued at $17,500 or less will be excluded;
2) expand current restrictions on the receipt of public contracts by business entities who make political contributions to include contracts with local boards of education, or any agency or instrumentality thereof, and boards of fire commissioners, or any agency or instrumentality thereof;
3) include in the definition of "business entity" used with respect to units of local government and the reporting requirements for a business entity making contributions to certain political committees, a redeveloper who enters into a redevelopment agreement with any public entity, as well as the spouse, domestic partner, civil union partner or child of a natural person who is a business entity; and
4) expressly supersede and preempt any action heretofore or hereafter taken by a county, municipality, independent authority, board of education, or fire district with regard to limiting political contributions by entities performing or seeking to perform government contracts.
The bill also repeals the section of current law that allows local governments to adopt their own pay-to-play policies.