A488

An Act concerning campaign contributions, amending P.L.1993, c.65, supplementing Title 19 of the Revised Statutes and repealing P.L.2004, c. (C. ) (Senate, No.2 of 2004, enacted June 16, 2004).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) The Legislature finds and declares:

a. All individuals, businesses, organizations, associations, and other persons have a right to participate fully in the political process of New Jersey, including making contributions to and soliciting contributions for candidates, holders of public office, political parties and political committees.

b. When an individual or business interest makes or solicits a significant amount of money or other thing of value to obtain a contract awarded by a government agency, it constitutes a violation of the public's trust in government and raises legitimate public concerns about whether the contract has been awarded on the basis of merit.

c. The growing infusion of funds into the political process at all levels of government, including those funds donated by business entities, has generated widespread cynicism among the public that special interest groups are "buying" favors from elected officeholders.

d. This increasing amount of money is feeding the corrosive perception among much of the electorate that the current system used to finance the election of candidates to public office at every level is either corrupt or making the corruption of individual public officials more likely.

e. To protect the integrity of government contractual decisions, limit the pervasive power of money in campaigns for public office and strengthen the public's confidence in every level of government, it will be the policy of this State to prohibit awarding government contracts on every level of government to business entities that are also major contributors to candidates, holders of public office, political parties and political committees.

2. (New section) As used in sections 1 through 9, inclusive, of P.L. , c. (C. )(now pending before the Legislature as sections 1 through 9 of this bill):

"business entity" means an individual, including the individual's spouse, and any child living at home, and any person, firm, corporation, professional corporation, partnership, organization or association. This definition includes all principals who own two percent or more of the equity in the corporation or business trust, and the partners, and officers as a group employed by the entity, as well as any subsidiaries directly controlled by the business entity.

"public office having ultimate responsibility for the award of public contracts" means, as may be appropriate:

(1) the Legislature, if the contract requires approval or appropriation from the Legislature;

(2) the Governor, if a public officer who is responsible for the award of the contract is appointed by the Governor, whether or not the appointment is subject to the advice and consent of the Senate, including independent authorities, and excluding members of boards, commissions, boards of trustees and other such entities appointed by the Governor;

(3) both the Legislature and the Governor;

(4) the elected offices in a county, if the contract requires approval by the holder of an elected office or appropriation by the governing body of the county;

(5) the elected offices in a municipality, if the contract requires approval by the holder of an elected office or appropriation by the governing body of the municipality; and

(6) the elected offices in a school district, if the contract requires approval by the holder of an elected office or appropriation by the governing body of the school district.

"professional business entity" means a business entity as defined in this section that provides services by individuals who are required to be professionally licensed under the laws or regulations of this State.

"public entity" means any of the principal departments in the Executive Branch of 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; the Judiciary of the State and any office, board, bureau or commission within or created by the Judicial Branch; any independent State authority, commission, instrumentality or agency; any public institution of higher education; and, to the extent permitted by law, any interstate agency to which New Jersey is a party; a county, municipality or school district, and any division, board, bureau, office or instrumentality of a county, municipality or school district, or any authority, commission or other body created by one or more counties, municipalities or school districts; and any other State or local public body or quasi-public body the creation of which is authorized or directed by statute.

3. (New section) a. No public entity, or any of the purchasing agents or agencies thereof, shall enter into an agreement or contract with a business entity or professional business entity for goods, services or equipment or to sell property where the aggregate value of the transaction exceeds $17,500, if that entity has solicited or made a contribution of money or any other thing of value, including an in-kind contribution, or pledged to make a contribution of any kind to a candidate for or the holder of any public office having ultimate responsibility for the award of public contracts, or to any political party committee, legislative leadership committee, political committee or continuing political committee, in excess of the amounts specified in subsection c. of this section within one year immediately preceding the commencement of negotiations for the contract or agreement or the submittal of a bid, whichever is earlier.

b. No business entity or professional business entity that submits a bid or enters into negotiations for, or agrees to, any agreement or contract with a public entity, or any of the purchasing agents or agencies thereof, for goods, services or equipment or to sell property in which the aggregate value of the transaction exceeds $17,500, shall knowingly solicit or make 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 holder of any public office having ultimate responsibility for the award of public contracts, or to any political party committee, legislative leadership committee, political committee or continuing political committee, between the start of negotiations or submittal of the bid relative to such an agreement or contract, whichever is earlier, and the termination of negotiations or the completion of the agreement or contract, whichever is later.

c. (1) No professional business entity, including principals who own two percent or more of the equity in the corporation or business trust, and the partners and officers of such an entity, shall pay or make a contribution of money or other thing of value, including an in-kind contribution, or pledge to make a contribution of any kind to any candidate for or the holder of any public office having ultimate responsibility for the award of public contracts to any political party committee, legislative leadership committee, political committee or continuing political committee, which exceeds $400 each per year.

(2) No business entity, including the principals, partners, and officers of the entity as a group, shall pay or make a contribution of money or other thing of value, including an in-kind contribution, or pledge to make a contribution of any kind to candidates for or the holders of any public offices having ultimate responsibility for the award of public contracts or to political party committees, legislative leadership committees, political committees or continuing political committees, which in the aggregate exceeds $5,000 per year.

(3) The contribution limits in this subsection shall be adjusted by the Election Law Enforcement Commission in the same manner as adjustments are made pursuant to section 22 of P.L.1993, c.65 (C.19:44A-7.2).

d. For the purposes of P.L. , c. (C. )(now pending before the Legislature as this bill), the terms "contribution," "in-kind contribution," "other thing of value," "candidate," "candidate committee," "joint candidates committee," "legislative leadership committee," "political party committee," "political committee" and "continuing political committee" shall have the meanings set forth in the "New Jersey Campaign Contributions and Expenditures Reporting Act," P.L.1973, c.83 (C.19:44A-1 et seq.).

4. (New section) No contribution of money or any other thing of value, including in-kind contributions, or pledge to make a contribution of any kind made by a business entity or professional business entity to a candidate for or the holder of any public office having ultimate responsibility for the award of public contracts, or to any political party committee, legislative leadership committee, political committee or continuing political committee shall be a violation of the provisions of sections 1 through 9, inclusive, of P.L. , c. (C. )(now pending before the Legislature as sections 1 through 9 of this bill), nor shall an agreement or contract for goods, services or equipment or to sell property be disqualified or terminated by the public entity, if that contribution was made by the business entity or professional business entity prior to the effective date of P.L. , c. (C. )(now pending before the Legislature as this bill).

5. (New section) a. Prior to awarding any contract or agreement to any business entity or professional business entity for goods, services or equipment or to sell property, a public entity, or any of the purchasing agents or agencies thereof, shall receive a sworn statement from the business entity or professional business entity that it has not made a contribution or pledged to make a contribution in violation of section 3 of P.L. , c. (C. )(now pending before the Legislature as this bill). This certification shall be made prior to the effective starting date of the agreement or contract with the public entity and shall be in addition to any other certifications that may be prescribed by law.

b. The business entity or professional business entity shall have a continuing duty to report any violations of sections 1 through 9 of P.L. , c. (C. )(now pending before the Legislature as section 1 through 9 of this bill) that may occur during the negotiation for or the duration of the contract or agreement.

6. (New section) A candidate for or the holder of any public office, and political party committees, legislative leadership committees, political committees and continuing political committees, shall use reasonable efforts to notify contributors and potential contributors that contributions of money or any other thing of value, including in-kind contributions, or pledges to make a contribution of any kind from a business entity or professional business entity, may affect the ability of that business entity or professional business entity to engage in agreements or contracts with a public entity for goods, services or equipment or to sell property, as the case may be. Such reasonable efforts shall include, but not be limited to, notification in written fundraising solicitations or donor information request forms or other fundraising solicitation materials. The failure of a business entity or professional business entity to receive the notice prescribed in this section shall not be a defense to a violation of P.L. , c. (C. ) (now pending before the Legislature as this bill).

7. (New section) A business entity or professional business entity may cure a violation of section 3 of P.L. , c. (C. ) (now pending before the Legislature as this bill), if no later than 30 days following the day of the general election next following the date on which the contribution is made, the business entity or professional business entity seeks and receives reimbursement of the prohibited contribution from the candidate for or holder of any public office, or the political party committee, legislative leadership committee, political committee or continuing political committee.

8. (New section) a. Any business entity or professional business entity found to knowingly conceal or misrepresent any contribution of money or other thing of value, including an in-kind contribution, or a pledge to make a contribution of any kind given to a candidate for or the holder of any public office having ultimate responsibility for the award of public contracts, or to a political party committee, legislative leadership committee, political committee or continuing political committee, or to knowingly have made or solicited such contributions through intermediaries for the purpose of concealing or misrepresenting the source of the contribution, shall be considered to be in breach of the terms of any agreement or contract between that business entity or professional business entity and the public entity then in effect and shall be subject to the penalties prescribed in subsection c. of this section and any other penalties prescribed by law.

b. No person shall make and no person, other than a candidate or an official representative of the candidate committee or joint candidates committee of the candidate, shall accept any contribution on the condition or with the agreement that it will be contributed to any other particular candidate, subject to the penalties prescribed in subsection c. of this section, section 22 of P.L.1973, c.83 (C.19:44A-22) and any other penalties prescribed by law. The expenditure of funds received by a person shall be made at the sole discretion of the recipient person.

c. Any business entity or professional business entity found to be in violation of section of 3 of P.L. , c. (C. )(now pending before the Legislature as this bill) or subsection a. of this section or that knowingly fails to reveal a contribution of money or any other thing of value, including an in-kind contribution, or a pledge to make a contribution of any kind, shall be disqualified from eligibility for future contracts or agreements with the public entity where the violation is found to have occurred for a period of four calendar years from the date of the determination of the violation

(1) by the Director of the Division of Purchase and Property or the Director of the Division of Property Management and Construction in the Department of the Treasury when the contract or agreement involved is with the State, or

(2) by some other designated agency or authority, as the case may be, when the contract or agreement involved is with a public entity other than the State,

and in addition shall have any contract or agreement with the public entity then in effect terminated immediately.

9. (New section) a. Any business entity or professional 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 or professional 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 or professional 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 or professional 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.

10. Section 22 of P.L.1993, c.65 (C.19:44A-7.2) is amended to read as follows:

22. a. Not later than December 1 of each year preceding any year in which a general election is to be held to fill the office of Governor for a four-year term, the Election Law Enforcement Commission shall adjust the amounts, set forth in subsection b. of this section, which shall be applicable under P.L.1973, c.83 (C.19:44A-1 et al.) to primary and general elections for any public office other than the office of Governor, to limitations on contributions to and from political committees, continuing political committees, candidate committees, joint candidates committees, political party committees and legislative leadership committees and to other amounts, at a percentage which shall be the same as the percentage of change that the commission applies to the amounts used for the primary and general elections for the office of Governor held in the third year preceding the year in which that December 1 occurs, pursuant to section 19 of P.L.1980, c.74 (C.19:44A-7.1), and any amount so adjusted shall be rounded in the same manner as provided in that section.

b. The amounts subject to adjustment as provided under this section shall be:

(1) the minimum amount raised or expended by any two or more persons acting jointly who qualify as a political committee and the minimum amount contributed or expected to be contributed in any calendar year by any group of two or more persons acting jointly who qualify as a continuing political committee as defined in section 3 of P.L.1973, c.83 (C.19:44A-3);

(2) the minimum amount of a contribution to a political committee, continuing political committee, legislative leadership committee or political party committee which triggers an obligation to report that contribution to the commission pursuant to section 8 of P.L.1973, c.83 (C.19:44A-8), and the minimum amount of a contribution to a candidate, candidate committee or joint candidates committee which triggers an obligation to report that contribution to the commission pursuant to section 16 of P.L.1973, c.83 (C.19:44A-16);

(3) the minimum amount of a contribution to a political committee, continuing political committee, legislative leadership committee or a political party committee received during the period between the 13th day prior to the election and the date of the election, the minimum amount of an expenditure by a political committee during that period, and the minimum amount of an expenditure by a continuing political committee during the period beginning after March 31 and ending on the date of the primary election and the period beginning after September 30 and ending on the date of the general election which triggers an obligation to report that contribution to the commission pursuant to section 8 of P.L.1973, c.83 (C.19:44A-8), and the minimum amount of a contribution to a candidate, candidate committee or joint candidates committee received during the period between the 13th day prior to the election and the date of the election which triggers an obligation to report that contribution to the commission pursuant to section 16 of P.L.1973, c.83 (C.19:44A-16);

(4) the maximum amount which may be expended by the campaign organizations of two or more candidates forming a joint candidates committee without being required to file contribution reports, pursuant to section 8 of P.L.1973, c.83 (C.19:44A-8);

(5) the maximum amount that a person, not acting in concert with any other person or group, may spend to support or defeat a candidate or to aid the passage or defeat of a public question without being required to report all such expenditures and expenses to the commission pursuant to section 11 of P.L.1973, c.83 (C.19:44A-11) and the maximum amount that a person, not acting in concert with any other person or group, may raise through a public solicitation and expend to finance any lawful activity in support of or in opposition to any candidate or public question or to seek to influence the content, introduction, passage or defeat of legislation pursuant to section 19 of P.L.1973, c.83 (C.19:44A-19)

(6) the maximum amount that may be expended, in the aggregate, on behalf of a candidate without requiring that candidate to file contribution reports with the commission and the maximum amount that may be expended, in the aggregate, on behalf of a candidate seeking election to a public office of a school district, without requiring that candidate to file contribution reports with the commission pursuant to section 16 of P.L.1973, c.83 (C.19:44A-16);

(7) the maximum amount of penalty which may be imposed by the commission on any person who fails to comply with the regulatory provisions of P.L.1973, c.83 (C.19:44A-1 et al.) for a first offense or a second and subsequent offenses, pursuant to section 22 of P.L.1973, c.83 (C.19:44A-22);

(8) the maximum amount of penalty which may be imposed by the commission on any corporation or labor organization which provides any of its employees any additional increment of salary for the express purpose of making a contribution to a candidate, candidate committee, joint candidates committee, political party committee, legislative leadership committee, political committee or continuing political committee for a first or a second and subsequent offenses, pursuant to section 15 of P.L.1993, c.65 (C.19:44A-20.1);

(9) the maximum amount of contributions permitted to be made by an individual, a corporation or labor organization to a candidate, candidate committee or joint candidates committee, the maximum amount of contributions permitted to be made by a political committee or a continuing political committee to a candidate, candidate committee or joint candidates committee other than the committee of a candidate for nomination or election to the office of Governor and the maximum amount of contributions permitted to be made by one candidate, candidate committee or joint candidates committee, other than the committee of a candidate for nomination or election to the office of Governor, to another candidate, candidate committee or joint candidates committee other than the committee of a candidate for nomination or election to the office of Governor pursuant to section 18 of P.L.1993, c.65 (C.19:44A-11.3);

(10) the maximum amount of contributions permitted to be made by an individual, corporation, labor organization, political committee, continuing political committee, candidate committee or joint candidates committee or any other group to any political party committee or any legislative leadership committee pursuant to section 19 of P.L.1993, c.65 (C.19:44A-11.4);

(11) the maximum amount of contributions permitted to be made by a candidate, candidate committee or joint candidates committee to a political committee or a continuing political committee and the maximum amount of contributions permitted to be made by one political committee or continuing political committee to another political committee or continuing political committee pursuant to section 20 of P.L.1993, c.65 (C.19:44A-11.5)[.];

(12) the amount of filing fees which may be collected from a candidate committee, a joint candidates committee, a continuing political committee, a political party committee, a legislative leadership committee, or any other person pursuant to section 6 of P.L.1973, c.83 (C.19:44A-6) (as that section shall have been amended by P.L. , c. , now pending before the Legislature as Senate Committee Substitute for Senate Bill No. 70 (1R));

(13) the maximum amount of contributions permitted to be made by a county committee of a political party to a candidate committee or joint candidates committee, a political committee or continuing political committee, a legislative leadership committee, the State committee of a political party, another county committee of a political party or a municipal committee of a political party, pursuant to section 18 of P.L.1993, c.65 (C.19:44A-11.3); and

(14) the maximum amount of contributions permitted to be made by a municipal committee of a political party to a candidate committee or joint candidates committee, a political committee or continuing political committee, a legislative leadership committee, the State committee of a political party, a county committee of a political party or another municipal committee of a political party, pursuant to section 18 of P.L.1993, c.65 (C.19:44A-11.3).

c. Not later than December 15 of each year preceding any year in which a general election is to be held to fill the office of Governor for a four-year term, the commission shall report to the Legislature and make public its adjustment of limits in accordance with the provisions of this section. Whenever, following the transmittal of that report, the commission shall have notice that a person has declared as a candidate for nomination for election or for election to any public office in a forthcoming primary or general election, it shall promptly notify that candidate of the amounts of those adjusted limits.

(cf: P.L.1993, c.65, s.22)

11. Section 18 of P.L.1993, c.65 (C.19:44A-11.3) is amended to read as follows:

18. a. No individual, other than an individual who is a candidate, no corporation of any kind organized and incorporated under the laws of this State or any other state or any country other than the United States, no labor organization of any kind which exists or is constituted for the purpose, in whole or in part, of collective bargaining, or of dealing with employers concerning the grievances, terms or conditions of employment, or of other mutual aid or protection in connection with employment, or any group shall: (1) pay or make any contribution of money or other thing of value to a candidate who has established only a candidate committee, his campaign treasurer, deputy campaign treasurer or candidate committee which in the aggregate exceeds $1,500 per election, or (2) pay or make any contribution of money or other thing of value to candidates who have established only a joint candidates committee, their campaign treasurer, deputy campaign treasurer, or joint candidates committee, which in the aggregate exceeds $1,500 per election per candidate, or (3) pay or make any contribution of money or other thing of value to a candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers, or candidate committee or joint candidates committee, which in the aggregate exceeds $1,500 per election. No candidate who has established only a candidate committee, his campaign treasurer, deputy campaign treasurer or candidate committee shall knowingly accept from an individual, other than an individual who is a candidate, a corporation of any kind organized and incorporated under the laws of this State or any other state or any country other than the United States, a labor organization of any kind which exists or is constituted for the purpose, in whole or in part, of collective bargaining, or of dealing with employers concerning the grievances, terms or conditions of employment, or of other mutual aid or protection in connection with employment, or any group any contribution of money or other thing of value which in the aggregate exceeds $1,500 per election, and no candidates who have established only a joint candidates committee, or their campaign treasurer, deputy campaign treasurer, or joint candidates committee, shall knowingly accept from any such source any contribution of money or other thing of value which in the aggregate exceeds $1,500 per election per candidate, and no candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers, or candidate committee or joint candidates committee shall knowingly accept from any such source any contribution of money or other thing of value which in the aggregate exceeds $1,500 per election.

b. (1) No political committee or continuing political committee shall: (a) pay or make any contribution of money or other thing of value to a candidate who has established only a candidate committee, his campaign treasurer, deputy campaign treasurer or candidate committee, other than a candidate for nomination for election or for election for the office of Governor, which in the aggregate exceeds $5,000 per election, or (b) pay or make any contribution of money or other thing of value to candidates who have established only a joint candidates committee, their campaign treasurer or deputy campaign treasurer, or the joint candidates committee, which in the aggregate exceeds $5,000 per election per candidate, or (c) pay or make any contribution of money or other thing of value to a candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers, or candidate committee or joint candidates committee, which in the aggregate exceeds $5,000 per election. No candidate who has established only a candidate committee, his campaign treasurer, deputy campaign treasurer or candidate committee, other than a candidate for nomination for election or for election for the office of Governor, shall knowingly accept from any political committee or continuing political committee any contribution of money or other thing of value which in the aggregate exceeds $5,000 per election, and no candidates who have established only a joint candidates committee, their campaign treasurer, deputy campaign treasurer, or joint candidates committee, shall knowingly accept from any such source any contribution of money or other thing of value which in the aggregate exceeds $5,000 per election per candidate, and no candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers, or candidate committee or joint candidates committee shall knowingly accept from any such source any contribution of money or other thing of value which in the aggregate exceeds $5,000 per election.

(2) [The limitation upon the knowing acceptance by a candidate, campaign treasurer, deputy campaign treasurer, candidate committee or joint candidates committee of any contribution of money or other thing of value from a political committee or continuing political committee under the provisions of paragraph (1) of this subsection shall also be applicable to the knowing acceptance of any such contribution from the county committee of a political party by a candidate or the campaign treasurer, deputy campaign treasurer, candidate committee or joint candidates committee of a candidate for any elective public office in another county or, in the case of a candidate for nomination for election or for election to the office of member of the Legislature, in a legislative district in which, according to the federal decennial census upon the basis of which legislative districts shall have been established, less than 20% of the population resides within the county of that county committee. In addition, all contributor reporting requirements and other restrictions and regulations applicable to a contribution of money or other thing of value by a political committee or continuing political committee under the provisions of P.L.1973, c.83 (C.19:44A-1 et al.) shall likewise be applicable to the making or payment of such a contribution by such a county committee.

The limitation upon the knowing acceptance by a candidate, campaign treasurer, deputy campaign treasurer, candidate committee or joint candidates committee of any contribution of money or other thing of value from a political committee or continuing political committee under the provisions of paragraph (1) of this subsection, except that the amount of any contribution of money or other thing of value shall be in an amount which in the aggregate does not exceed $25,000, shall also be applicable to the knowing acceptance of any such contribution from the county committee of a political party by a candidate, or the campaign treasurer, deputy campaign treasurer, candidate committee or joint candidates committee of a candidate, for nomination for election or for election to the office of member of the Legislature in a legislative district in which, according to the federal decennial census upon the basis of which legislative districts shall have been established, at least 20% but less than 40% of the population resides within the county of that county committee. In addition, all contributor reporting requirements and other restrictions and regulations applicable to a contribution of money or other thing of value by a political committee or continuing political committee under the provisions of P.L.1973, c.83 (C.19:44A-1 et al.) shall likewise be applicable to the making or payment of such a contribution by such a county committee.]

(a) No county committee of a political party, other than the county committee of the county in which the candidate or candidates reside, shall pay or make a contribution of money or other thing of value to a candidate committee, a joint candidates committee or both which in the aggregate exceeds $7,200 per election. No candidate committee, joint candidates committee or both shall knowingly accept from a county committee of a political party, other than the county committee of the county in which the candidate or candidates reside, a contribution of money or other thing of value, which in the aggregate exceeds $7,200 per election.

(b) No county committee of a political party shall pay or make a contribution of money or other thing of value to a political committee, which in the aggregate exceeds $7,200 per election. No political committee shall knowingly accept from a county committee of a political party a contribution of money or other thing of value, which in the aggregate exceeds $7,200 per election.

(c) No county committee of a political party shall pay or make a contribution of money or other thing of value to a continuing political committee, which in the aggregate exceeds $7,200 per year. No continuing political committee shall knowingly accept from a county committee of a political party a contribution of money or other thing of value, which in the aggregate exceeds $7,200 per year.

(d) No county committee of a political party shall pay or make a contribution of money or other thing of value to a legislative leadership committee, or to the State committee of a political party, which in the aggregate exceeds $25,000 per year. No legislative leadership committee and no State committee of a political party shall knowingly accept from a county committee of a political party a contribution of money or other thing of value, which in the aggregate exceeds $25,000 per year.

(e) No county committee of a political party shall pay or make a contribution of money or other thing of value to another county committee of a political party, which in the aggregate exceeds $7,200 per year. No county committee of a political party shall knowingly accept from another county committee of a political party a contribution of money or other thing of value, which in the aggregate exceeds $7,200 per year.

(f) No county committee of a political party shall pay or make a contribution of money or other thing of value to a municipal committee of a political party, other than a municipal committee of a municipality located in the same county as the county committee, which in the aggregate exceeds $7,200 per year. No municipal committee of a political party, other than a municipal committee of a municipality located in the same county as the county committee, shall knowingly accept from that county committee a contribution of money or other thing of value, which in the aggregate exceeds $7,200 per year.

(3) (a) No municipal committee of a political party, other than a municipal committee in the county in which the candidate or candidates reside, shall pay or make a contribution of money or other thing of value to a candidate committee, a joint candidates committee or both, which in the aggregate exceeds $7,200 per election. No candidate committee, joint candidates committee or both shall knowingly accept from a municipal committee of a political party, other than a municipal committee in the county in which the candidate or candidates reside, a contribution of money or other thing of value, which in the aggregate exceeds $7,200 per election.

(b) No municipal committee of a political party shall pay or make a contribution of money or other thing of value to a political committee, which in the aggregate exceeds $7,200 per election. No political committee shall knowingly accept from a municipal committee of a political party a contribution of money or other thing of value, which in the aggregate exceeds $7,200 per election.

(c) No municipal committee of a political party shall pay or make a contribution of money or other thing of value to a continuing political committee, which in the aggregate exceeds $7,200 per year. No continuing political committee shall knowingly accept from a municipal committee of a political party a contribution of money or other thing of value, which in the aggregate exceeds $7,200 per year.

(d) No municipal committee of a political party shall make a contribution of money or other thing of value to a legislative leadership committee or to the State committee of a political party, which in the aggregate exceeds $25,000 per year. No legislative leadership committee and no State committee of a political party shall knowingly accept from a municipal committee of a political party a contribution of money or other thing of value, which in the aggregate exceeds $25,000 per year.

(e) No municipal committee of a political party shall pay or make a contribution of money or other thing of value to another municipal committee of a political party, which in the aggregate exceeds $7,200 per year. No municipal committee of a political party shall knowingly accept from another municipal committee of a political party a contribution of money or other thing of value, which in the aggregate exceeds $7,200 per year.

(f) No municipal committee of a political party shall pay or make a contribution of money or other thing of value to a county committee of a political party, other than the county committee of the county in which the municipality is located, which in the aggregate exceeds $7,200 per year. No county committee of a political party, other than the county committee of the county in which the municipality is located, shall knowingly accept from a municipal committee a contribution of money or other thing of value, which in the aggregate exceeds $7,200 per year.

(4) With respect to the limitations in [this paragraph] paragraphs (2) and (3) of this subsection, the Legislature finds and declares that:

(a) Persons or organizations making contributions to the county committee of a political party or a municipal committee of a political party have a right to expect that their money will be used, for the most part, to support candidates for elective office who will most directly represent the interest of that county or municipality;

(b) The practice of allowing a county committee or municipal committee to use funds raised with this expectation to make unlimited contributions to candidates for the [Legislature] public office or to political committees or other county or municipal committees who may have a limited, or even nonexistent, connection with or interest in that county or municipality serves to undermine public confidence in the integrity of the electoral process;

(c) Furthermore, the risk of actual or perceived corruption is raised by the potential for contributors to circumvent limits on contributions to candidates by funneling money to candidates through county or municipal committees;

(d) The State has a compelling interest in preventing the actuality or appearance of corruption and in protecting public confidence in democratic institutions by limiting the amounts which a county committee or municipal committee may contribute to [legislative] candidates [whose districts are not located in close proximity to that county] for public office in different parts of the State, to political committees or to other county and municipal political party committees; and

(e) It is, therefore, reasonable for the State to promote this compelling interest by limiting the amount a county committee or municipal committee may give to a [legislative] candidate [based upon the degree to which the population of the legislative district overlaps with the population of that county] for public office in different parts of the State, political committees or other county and municipal political party committees.

c. (1) No candidate who has established only a candidate committee, his campaign treasurer, deputy treasurer or candidate committee shall (a) pay or make any contribution of money or other thing of value to another candidate who has established only a candidate committee, his campaign treasurer, deputy campaign treasurer or candidate committee, other than a candidate for nomination for election or for election for the office of Governor, which in the aggregate exceeds $5,000 per election, or (b) pay or make any contribution of money or other thing of value to candidates who have established only a joint candidates committee, their campaign treasurer, deputy campaign treasurer, or joint candidates committee, which in the aggregate exceeds $5,000 per election per candidate in the recipient committee, or (c) pay or make any contribution of money or other thing of value to a candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers, or candidate committee or joint candidates committee, which in the aggregate exceeds $5,000 per election. No candidate who has established only a candidate committee, his campaign treasurer, deputy campaign treasurer or candidate committee, other than a candidate for nomination for election or for election to the office of the Governor, shall knowingly accept from another candidate who has established only a candidate committee, his campaign treasurer, deputy campaign treasurer or candidate committee, any contribution of money or other thing of value which in the aggregate exceeds $5,000 per election, and no candidates who have established only a joint candidates committee, their campaign treasurer, deputy campaign treasurer, or joint candidates committee, shall knowingly accept from any such source any contribution of money or other thing of value which in the aggregate exceeds $5,000 per election per candidate in the recipient committee, and no candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers, or candidate committee or joint candidates committee, shall knowingly accept from any such source any contribution of money or other thing of value which in the aggregate exceeds $5,000 per election.

(2) No candidates who have established only a joint candidates committee, their campaign treasurer, deputy campaign treasurer, or joint candidates committee shall (a) pay or make any contribution of money or other thing of value to another candidate who has established only a candidate committee, his campaign treasurer, deputy campaign treasurer or candidate committee, other than a candidate for nomination for election or for election for the office of Governor, which in the aggregate exceeds, on the basis of each candidate in the contributing joint candidates committee, $5,000 per election, or (b) pay or make any contribution of money or other thing of value to candidates who have established only a joint candidates committee, their campaign treasurer, deputy campaign treasurer or joint candidates committee, which in the aggregate exceeds, on the basis of each candidate in the contributing joint candidates committee, $5,000 per election per candidate in the recipient joint candidates committee, or (c) pay or make any contribution of money or other thing of value to a candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers or candidate committee or joint candidates committee, which in the aggregate exceeds, on the basis of each candidate in the contributing joint candidates committee, $5,000 per election. No candidate who has established only a candidate committee, his campaign treasurer, deputy campaign treasurer, or candidate committee, other than a candidate for nomination for election or for election for the office of Governor, shall knowingly accept from other candidates who have established only a joint candidates committee, their campaign treasurer, deputy campaign treasurer or joint candidates committee, any contribution of money or other thing of value which in the aggregate exceeds, on the basis of each candidate in the contributing committee, $5,000 per election, and no candidates who have established only a joint candidates committee, their campaign treasurer, deputy campaign treasurer, or joint candidates committee, shall knowingly accept from any such source any contribution of money or other thing of value which in the aggregate exceeds, on the basis of each candidate in the contributing joint candidates committee, $5,000 per election per candidate in the recipient joint candidates committee, and no candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers, or candidate committee or joint candidates committee, shall knowingly accept from any such source any contribution of money or other thing of value which in the aggregate exceeds, on the basis of each candidate in the contributing joint candidates committee, $5,000 per election.

(3) No candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers, or candidate committee or joint candidates committee shall (a) pay or make any contribution of money or other thing of value to another candidate who has established only a candidate committee, his campaign treasurer, deputy campaign treasurer or candidate committee, other than a candidate for nomination for election or for election for the office of Governor, which in the aggregate exceeds $5,000 per election, or (b) pay or make any contribution of money or other thing of value to candidates who have established only a joint candidates committee, their campaign treasurer, deputy campaign treasurer or joint candidates committee, which in the aggregate exceeds $5,000 per election per candidate in the recipient joint candidates committee, or (c) pay or make any contribution of money or other thing of value to a candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers, or candidate committee or joint candidates committee, which in the aggregate exceeds $5,000 per election. No candidate who has established only a candidate committee, his campaign treasurer, deputy campaign treasurer, or candidate committee, other than a candidate for nomination for election or for election for the office of Governor, shall knowingly accept from a candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers, or candidate committee or joint candidates committee, any contribution of money or other thing of value which in the aggregate exceeds $5,000 per election, and no candidates who have established only a joint candidates committee, their campaign treasurer, deputy campaign treasurer, or joint candidates committee, shall knowingly accept from any such source any contribution of money or other thing of value which in the aggregate exceeds $5,000 per election per candidate in the recipient joint candidates committee, and no candidate who has established both a candidate committee and a joint candidates committee, the campaign treasurers, deputy campaign treasurers, or candidate committee or joint candidates committee shall knowingly accept from any such source any contribution of money or other thing of value which in the aggregate exceeds $5,000 per election.

(4) Expenditures by a candidate for nomination for election or for election to the office of member of the Legislature or to an office of a political subdivision of the State, or by the campaign treasurer, deputy treasurer, candidate committee or joint candidates committee of such a candidate, which are made in furtherance of the nomination or election, respectively, of another candidate for the same office in the same legislative district or the same political subdivision shall not be construed to be subject to any limitation under this subsection; for the purposes of this sentence, the offices of member of the State Senate and member of the General Assembly shall be deemed to be the same office.

d. Nothing contained in this section shall be construed to impose any limitation on contributions by a candidate, or by a corporation, 100% of the stock in which is owned by a candidate or the candidate's spouse, child, parent or sibling residing in the same household, to that candidate's campaign.

e. For the purpose of determining the amount of a contribution to be attributed as given to or by each candidate in a joint candidates committee, the amount of the contribution to or by such a committee shall be divided equally among all the candidates in the committee.

(cf: P.L.1993, c.65, s.18)

12. Section 19 of P.L.1993, c.65 (C.19:44A-11.4) is amended to read as follows:

19. a. (1) Except as otherwise provided in paragraph (2) of this subsection, no individual, no corporation of any kind organized and incorporated under the laws of this State or any other state or any country other than the United States, no labor organization of any kind which exists or is constituted for the purpose, in whole or in part, of collective bargaining, or of dealing with employers concerning the grievances, terms or conditions of employment, or of other mutual aid or protection in connection with employment, no political committee, continuing political committee, candidate committee or joint candidates committee or any other group, shall pay or make any contribution of money or other thing of value to the campaign treasurer, deputy treasurer or other representative of the State committee of a political party or the campaign treasurer, deputy campaign treasurer or other representative of any legislative leadership committee, which in the aggregate exceeds $25,000 per year, or in the case of a joint candidates committee when that is the only committee established by the candidates, $25,000 per year per candidate in the joint candidates committee, or in the case of a candidate committee and a joint candidates committee when both are established by a candidate, $25,000 per year from that candidate. No campaign treasurer, deputy campaign treasurer or other representative of the State committee of a political party or campaign treasurer, deputy campaign treasurer or other representative of any legislative leadership committee shall knowingly accept from an individual, a corporation of any kind organized and incorporated under the laws of this State or any other state or any country other than the United States, a labor organization of any kind which exists or is constituted for the purpose, in whole or in part, of collective bargaining, or of dealing with employers concerning the grievances, terms or conditions of employment, or of other mutual aid or protection in connection with employment, a political committee, a continuing political committee, a candidate committee or a joint candidates committee or any other group, any contribution of money or other thing of value which in the aggregate exceeds $25,000 per year, or in the case of a joint candidates committee when that is the only committee established by the candidates, $25,000 per year per candidate in the joint candidates committee, or in the case of a candidate committee and a joint candidates committee when both are established by a candidate, $25,000 per year from that candidate.

Adjustments to the limits established in this paragraph which have been made by the Election Law Enforcement Commission, pursuant to section 22 of P.L.1993, c.65 (C.19:44A-7.2), prior to the effective date of P.L.2001, c.384 are rescinded. The limits established in this paragraph shall remain as stated in this paragraph until subsequently adjusted by the commission in the manner prescribed by section 22 of P.L.1993, c.65 (C.19:44A-7.2).

(2) No national committee of a political party shall pay or make any contribution of money or other thing of value to the campaign treasurer, deputy treasurer or other representative of the State committee of a political party which in the aggregate exceeds $50,000 per year, and no campaign treasurer, deputy campaign treasurer or other representative of the State committee of a political party shall knowingly accept from the national committee of a political party any contribution of money or other thing of value which in the aggregate exceeds $50,000 per year.

b. No individual, no corporation of any kind organized and incorporated under the laws of this State or any other state or any country other than the United States, no labor organization of any kind which exists or is constituted for the purpose, in whole or in part, of collective bargaining, or of dealing with employers concerning the grievances, terms or conditions of employment, or of other mutual aid or protection in connection with employment, no political committee, continuing political committee, candidate committee or joint candidates committee or any other group, shall pay or make any contribution of money or other thing of value to any county committee of a political party, which in the aggregate exceeds $25,000 per year, or in the case of a joint candidates committee when that is the only committee established by the candidates, $25,000 per year per candidate in the joint candidates committee, or in the case of a candidate committee and a joint candidates committee when both are established by a candidate, $25,000 per year from that candidate. No campaign treasurer, deputy campaign treasurer or other representative of a county committee of a political party shall knowingly accept from an individual, a corporation of any kind organized and incorporated under the laws of this State or any other state or any country other than the United States, a labor organization of any kind which exists or is constituted for the purpose, in whole or in part, of collective bargaining, or of dealing with employers concerning the grievances, terms or conditions of employment, or of other mutual aid or protection in connection with employment, a political committee, a continuing political committee, a candidate committee or a joint candidates committee or any other group, any contribution of money or other thing of value which in the aggregate exceeds $25,000 per year, or in the case of a joint candidates committee when that is the only committee established by the candidates, $25,000 per year per candidate in the joint candidates committee, or in the case of a candidate committee and a joint candidates committee when both are established by a candidate, $25,000 per year from that candidate.

c. No individual, no corporation of any kind organized and incorporated under the laws of this State or any other state or any country other than the United States, no labor organization of any kind which exists or is constituted for the purpose, in whole or in part, of collective bargaining, or of dealing with employers concerning the grievances, terms or conditions of employment, or of other mutual aid or protection in connection with employment, no political committee, continuing political committee, candidate committee or joint candidates committee or any other group shall pay or make any contribution of money or other thing of value to any municipal committee of a political party, which in the aggregate exceeds $5,000 per year, or in the case of a joint candidates committee when that is the only committee established by the candidates, $5,000 per year per candidate in the joint candidates committee, or in the case of a candidate committee and a joint candidates committee when both are established by a candidate, $5,000 per year from that candidate. No campaign treasurer, deputy campaign treasurer or other representative of a municipal committee of a political party shall knowingly accept from an individual, a corporation of any kind organized and incorporated under the laws of this State or any other state or any country other than the United States, a labor organization of any kind which exists or is constituted for the purpose, in whole or in part, of collective bargaining, or of dealing with employers concerning the grievances, terms or conditions of employment, or of other mutual aid or protection in connection with employment, a political committee, a continuing political committee, a candidate committee or a joint candidates committee or any other group, any contribution of money or other thing of value which in the aggregate exceeds $5,000 per year, or in the case of a joint candidates committee when that is the only committee established by the candidates, $5,000 per year per candidate in the joint candidates committee, or in the case of a candidate committee and a joint candidates committee when both are established by a candidate, $5,000 per year from that candidate.

[No county committee of a political party in any county shall pay or make any contribution of money or other thing of value to a municipal committee of a political party in a municipality not located in that county which in the aggregate exceeds the amount of aggregate contributions which, under this subsection, a continuing political committee is permitted to pay or make to a municipal committee of a political party. No campaign treasurer, deputy campaign treasurer or other representative of a municipal committee of a political party in any municipality shall knowingly accept from any county committee of a political party in any county other than the county in which the municipality is located any contribution of money or other thing of value which in the aggregate exceeds the amount of contributions permitted to be so paid or made under that subsection.]

d. For the purpose of determining the amount of a contribution to be attributed as given by each candidate in a joint candidates committee, the amount of the contribution by such a committee shall be divided equally among all the candidates in the committee.

(cf: P.L.2001, c.384, s.2)

13. (New section) As soon as practicable upon the enactment of P.L. , c. (C. )(now pending before the Legislature as this bill), the agencies or authorities given responsibility by subsection c. of section 8 of P.L. , c. (C. )(now pending before the Legislature as this bill) for monitoring compliance with the provisions of sections 2 through 8 of the act shall provide notice of those provisions to all public entities, as defined in the act, that would be affected thereby.

14. (New section) The provisions of this act shall be deemed to be severable and if any phrase, clause, sentence or provision of this act is declared to be unconstitutional or the applicability thereof to any person or circumstance is held invalid, the remainder of this act shall not thereby be deemed to be unconstitutional or invalid and the other provisions or applications of the sections which can be given effect without the invalid provision or application shall be given effect.

15. P.L.2004, c. (C. ) (Senate, No.2 of 2004, enacted June 16, 2004) is hereby repealed.

16. This act shall take effect immediately but shall remain inoperative until the 30th day following the date of enactment for any public entity, as defined under the bill, except for the Executive Branch of State government, the Legislative branch, the Judicial branch, or the departments, agencies or instrumentalities thereof, and independent State authorities and the agencies or instrumentalities thereof.

STATEMENT

This bill supplements and amends current law to limit campaign contributions to certain candidates, holders of public office and political committees by certain entities doing business with the State and its authorities and agencies and with county and municipal governments and school districts and the agencies and instrumentalities thereof, any public institution of higher education and any interstate agency to which New Jersey is a party, and by county and municipal political party committees. In addition, the bill repeals P.L.2004, c. (Senate, No.2 of 2004, enacted June 16, 2004), which limits the eligibility of a business entity that has contributed to elected officials at the State, county, or municipal level, or to a State, county, or municipal political party committee to obtain a public contract from the corresponding unit of government.

Under the bill, a business entity or professional business entity that contracts with a public entity for goods, services, equipment or the sale of property, with a value in excess of $17,500, is prohibited from making, from the submittal of a bid or the start of the negotiations and for the contract period, contributions of money or any other thing of value to a candidate for or the holder of any public office having ultimate responsibility for the award of public contracts, or to any political party committee, legislative leadership committee, political committee or continuing political committee.

In the year prior to the bid submittal or commencement of negotiations, the professional business entity may only contribute to a candidate for or the holder of any public office, or to a political party committee, legislative leadership committee, political committee or continuing political committee $400 each per year. For a business entity, the limit is $5,000 per year in the aggregate to all candidates for or the holders of any public offices with ultimate responsibility for the award of public contracts and to all political party committees, legislative leadership committees, political committees and continuing political committees. These limits would be adjusted quadrennially by the Election Law Enforcement Commission in the same manner as it makes adjustments by law under the "New Jersey Campaign Contributions and Expenditures Reporting Act."

Under the bill, a "business entity" means an individual, including an individual's spouse, or any child living at home, and any person, firm, corporation, professional corporation, partnership, organization or association. The "office that is considered to have ultimate responsibility for the award of the contract" means: 1) the Legislature, if the contract requires approval or appropriation from the Legislature; 2) the Governor, if a public officer who is responsible for the award of the contract is appointed by the Governor, whether or not the appointment is subject to the advice and consent of the Senate; 3) both the Legislature and the Governor; 4) the elected offices in a county, if the contract requires approval by the holder of an elected office or appropriation by the governing body thereof; 5) the elected offices in a municipality, if the contract requires approval by the holder of an elected office or appropriation by the governing body thereof; and 6) the elected offices in a school district, if the contract requires approval by the holder of an elected office or appropriation by the governing body thereof. A "professional business entity" is a business entity which provides services by individuals who are required to be professionally licensed under the laws or regulations of this State. A "public entity" means any of the principal departments in the Executive Branch of State government, and any division, board, bureau, office, commission or other instrumentality within or created thereby; the Legislature and any office, board, bureau or commission within or created thereby; the Judiciary and any office, board, bureau or commission within or created thereby; any independent State authority, commission, instrumentality or agency; any public institution of higher education; and, to the extent permitted by law, any interstate agency to which New Jersey is a party; a county, municipality or school district, and any division, board, bureau, office or instrumentality of a county, municipality or school district or any authority, commission or other body created thereby; and any other State or local public body or quasi-public body the creation of which is authorized or directed by statute.

Under the bill for both professional business entities and business entities, contributions made prior to enactment will not be considered violations; sworn statements of compliance are required; a violation may be cured by its return to the contributor no later than 30 days after the general election next following the date on which the contribution is made; notification of the consequences under the bill will have to be given to contributors; penalties are provided for violations; certain annual reports to the Election Law Enforcement Commission will have to be made under certain circumstances; and the agencies and authorities responsible for monitoring compliance with the provisions of the bill must give notice of its content as soon as it becomes law to all public entities affected thereby.

This bill also establishes limits on the amount of money and other thing of value that a county committee of a political party and a municipal committee of a political party can give per election or per year to candidates and certain political committees. Specifically, the bill limits a county committee of a political party:

1) other than the county committee of the county in which the candidate or candidates resides, from giving to a candidate committee, a joint candidates committee or both a contribution, which in the aggregate exceeds $7,200 per election;

2) from giving to a political committee a contribution, which in the aggregate exceeds $7,200 per election;

3) from giving to a continuing political committee a contribution, which in the aggregate exceeds $7,200 per year;

4) from giving to a legislative leadership committee or the State committee of a political party a contribution, which in the aggregate exceeds $25,000 per year;

5) from giving to another county committee a contribution, which in the aggregate exceeds $7,200 per year; and

6) from giving to a municipal committee of a political party, other than the municipal committee of a municipality located in the same county as the county committee, a contribution, which in the aggregate exceeds $7,200 per year.

In regard to a municipal committee of a political party, the bill limits a committee:

1) other than a municipal committee of the county in which the candidate or candidates reside, from giving to a candidate committee, a joint candidates committee or both a contribution, which in the aggregate exceeds $7,200 per election;

2) from giving to a political committee a contribution, which in the aggregate exceeds $7,200 per election;

3) from giving to a continuing political committee a contribution, which in the aggregate exceeds $7,200 per year;

4) from giving to a legislative leadership committee or the State committee of a political party a contribution, which in the aggregate exceeds $25,000 per year;

5) from giving to another municipal committee a contribution, which in the aggregate exceeds $7,200 per year; and

6) from giving to a county committee of a political party, other than the county committee of the county in which the municipality is located, a contribution, which in the aggregate exceeds $7,200 per year.

Finally, the bill provides that the limits it establishes on giving by a county committee and a municipal committee would be subject to the same quadrennial adjustment by the Election Law Enforcement Commission as provided in current law for other contribution and expenditure amounts.

The bill contains a severability clause.

The bill takes effect immediately, but is to remain inoperative until the 30th day following the date of enactment for any public entity, as defined under the bill, except for the Executive Branch of State government, the Legislative branch, the Judicial branch, or the departments, agencies or instrumentalities thereof, and independent State authorities and the agencies or instrumentalities thereof.