S1408

An Act concerning campaign contributions made by certain political committees and other entities, amending and supplementing various parts of the statutory law, and repealing section 1 of P.L.2005, c.271.

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

1. (New section) As used in this act:

“Business entity” means the same as that term is used and provided in section 5 of P.L.2005, c.51 (C.19:44A-20.17).

“Contribution” means a contribution reportable by the recipient under “The New Jersey Campaign Contributions and Expenditures Reporting Act,” P.L.1973, c.83 (C.19:44A-1 et seq.) made on or after the effective date of this act.

“Redeveloper” means any business entity that enters into or proposes to enter into a redevelopment agreement, and includes:

a. any subsidiary business entity directly or indirectly controlled by the redeveloper; and

b. any business entity that contracts with the redeveloper to perform professional, consulting, or lobbying services in connection with the redevelopment project.

“Redevelopment agreement” means an agreement or contract with a redevelopment entity for the redevelopment or rehabilitation of an area in need of redevelopment, or an area in need of rehabilitation, or any part thereof, or other work forming a part of a redevelopment or rehabilitation project.

“Redevelopment entity” means:

a. any State agency, including any principal department in the Executive Branch and any division, board, bureau, office, commission, or other instrumentality within or created by such department, and any independent State authority, board, commission, instrumentality, or agency that is authorized by law to implement a redevelopment project and carry out a redevelopment plan. The State Treasurer shall prepare and publish annually a list of the State entities included under this definition.

b. any county or municipal entity, including any division, board, bureau, office, commission, or other instrumentality within or created by such entity and any independent authority, board, commission, instrumentality, or agency that is created by the entity to implement a redevelopment project or carry out a redevelopment plan. The Local Government Finance Board in the Department of Community Affairs shall prepare and publish annually a list of the entities included under this definition.

2. (New section) All redevelopment entities shall use a competitive process, to include public issuance of a request for proposal, a request for qualifications, or similar solicitation, for selecting a redeveloper.

3. (New section) A redevelopment entity shall not enter into or propose to enter into a redevelopment agreement with any redeveloper if, beginning after the public issuance of a request for proposal, a request for qualifications, or similar solicitation in accordance with section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), that redeveloper has made a contribution to:

a. any candidate committee of any candidate for or holder of the public office of Governor or Lieutenant Governor;

b. any political party committee or a legislative leadership committee; or

c. any candidate committee of any candidate for or holder of a State legislative, county, or municipal elective public office in a State legislative district, county, or municipality in which any property subject to the redevelopment agreement is situated.

4. (New section) A redeveloper that enters into a redevelopment agreement with a redevelopment entity shall not make a contribution during the term of the redevelopment agreement to any committee identified in section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. (New section) Prior to entering into a redevelopment agreement, a redevelopment entity shall require the redeveloper to report all contributions the redeveloper made during the preceding four years to any political organization organized under section 527 of the Internal Revenue Code (26 U.S.C.A. §527) that also meets the definition of a “continuing political committee” within the meaning of section 3 of P.L.1973, c.83 (C.19:44A-3), and, in the event the redeveloper enters into a contract with a business entity to perform professional, consulting, or lobbying services in connection with the redevelopment project after entering into the redevelopment agreement, the redeveloper shall supplement its report to include such contributions by that business entity. Such reports shall be subject to review by the State Treasurer or the Commissioner of the Department of Community Affairs, as may be appropriate. If the State Treasurer determines that any such contribution or any other act by the redeveloper would constitute a violation of P.L. , c. (C. )(pending before the Legislature as this bill), the State Treasurer or the commissioner, as may be appropriate, shall disqualify the redeveloper from being awarded the redevelopment agreement.

6. (New section) Prior to entering into a redevelopment agreement, a redevelopment entity shall require the redeveloper to provide a written certification that it has not made a contribution that would bar the award of the redevelopment agreement pursuant to P.L. , c. (C. )(pending before the Legislature as this bill). The redeveloper shall have a continuing duty to report any contribution it makes during the term of the redevelopment agreement. Such reports shall be subject to review by the State Treasurer or the commissioner, as may be appropriate.

7. (New section) A redeveloper shall not:

a. make a contribution in violation of P.L. , c. (C. ) (pending before the Legislature as this bill), unless such violation is remedied in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill);

b. conceal or misrepresent a contribution given or received;

c. make a contribution through an intermediary for the purpose of concealing or misrepresenting the source of the contribution;

d. make a contribution on the condition or with the agreement that the recipient will in turn make a contribution that if made by the redeveloper itself would subject the redeveloper to the restrictions of sections 2 through 6 of P.L. , c. (C. ) (pending before the Legislature as this act);

e. engage or employ a lobbyist, governmental affairs agent, or consultant with the intent or understanding that the lobbyist, governmental affairs agent, or consultant would make a contribution that if made by the redeveloper itself would subject the redeveloper to the restrictions of sections 2 through 6 of P.L. , c. (C. ) (pending before the Legislature as this bill);

f. fund or direct contributions made by third parties, including consultants, attorneys, family members, and employees;

g. engage in any exchange or contributions to circumvent the intent of sections 2 through 6 of P.L. , c. (C. )(pending before the Legislature as this bill); or

h. directly or indirectly, through or by any other person or means, do any act which would subject the redeveloper to the restrictions of sections 3 through 6 of P.L. , c. (C. )(pending before the Legislature as this bill).

Unless remedied in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill), a violation of the provisions of sections 2 through 6 this act shall:

(1) be considered a material breach of the redevelopment agreement; and

(2) result in the redeveloper being banned for a period of five years from entering into a subsequent redevelopment agreement with the State, any agency or department thereof or an independent State authority or board thereof, if the developer is found to have knowingly violated the law.

8. (New section) Except for contributions made within 60 days of a primary or a general election, if a redeveloper makes a contribution that would otherwise bar it from entering into a redevelopment agreement with a redevelopment entity or makes a contribution during the term of a redevelopment agreement in violation of sections 3 through 5 of P.L. , c. (C. )(pending before the Legislature as this bill), the redeveloper may request a full reimbursement from the recipient and, if such reimbursement is received within 30 days after the date on which the contribution was made, the redeveloper would again be eligible to enter into the redevelopment agreement or would no longer be in violation, as appropriate. It shall be presumed that contributions made within 60 days of a primary or general election were not made inadvertently and shall not be eligible for full reimbursement and the entity making the contribution would no longer be eligible to receive a contract.

9. (New section) Every request for qualifications, request for proposals, or any similar solicitation issued by a redevelopment entity in connection with a redevelopment project shall contain:

a. a provision describing the requirements of sections 1 through 8 of P.L. , c. (C. )(pending before the Legislature as this bill)

b. a statement that compliance with that act shall be a material term and condition of any redevelopment agreement with the redevelopment entity and binding upon the parties thereto upon the execution of the redevelopment agreement; and

c. a description of the penalties for which the redeveloper would be liable in the event of a breach of the redevelopment agreement or the failure of the redeveloper to comply with the provisions of this act.

The description shall state that unless remedied in accordance with section 8 of P.L. , c. (C. )(pending before the Legislature as this bill), a violation of the provisions of sections 2 through 6 this act shall:

(1) be considered a material breach of the redevelopment agreement; and

10. Section 13 of P.L.2004, c.19 (C.19:44A-11.3a) is amended to read as follows:

13. [In addition to any other applicable limit prescribed by law, between January 1 and June 30 of each year,]

a. (1) A county committee of a political party shall not make a contribution to any other county committee of a political party, nor shall any such county committee accept a contribution from any other county committee [during that time period]. In addition to any other penalty provided by law, a county committee that willfully and intentionally violates this [section] subsection, or willfully and intentionally makes a contribution to any candidate or committee with the intent, condition, understanding or belief that the candidate or committee has made or shall make a contribution to another county committee, shall be liable to a penalty equal to four times the amount of the contribution.

(2) A county committee of a political party shall not make a contribution to the State committee of a political party or to a legislative leadership committee that in the aggregate exceeds $25,000 per year. No State committee of a political party and no legislative leadership committee shall accept a contribution from the county committee of a political party that exceeds $25,000 per year.

b. A county committee of a political party shall not make a contribution to a municipal committee of a political party in a municipality located in a county other than the county of that county committee, nor shall any such municipal committee accept a contribution from any such county committee. In addition to any other penalty provided by law, a municipal committee that willfully and intentionally violates this subsection, or willfully and intentionally makes a contribution to any candidate or committee with the intent, condition, understanding or belief that the candidate or committee has made or shall make a contribution to a municipal committee in a municipality located in a county other than the county of that county committee, shall be liable to a penalty equal to four times the amount of the contribution.

c. A municipal committee of a political party shall not make a contribution to any other municipal committee of a political party, nor shall any such municipal committee accept a contribution from any other municipal committee. In addition to any other penalty provided by law, a municipal committee that willfully and intentionally violates this subsection, or willfully and intentionally makes a contribution to any candidate or committee with the intent, condition, understanding or belief that the candidate or committee has made or shall make a contribution to any other municipal committee, shall be liable to a penalty equal to four times the amount of the contribution.

(cf: P.L.2004, c.19, s.13)

11. 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.

(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 $72,000 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 $72,000 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 $37,000 per year, or in the case of a joint candidates committee when that is the only committee established by the candidates, $37,000 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, $37,000 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 $37,000 per year, or in the case of a joint candidates committee when that is the only committee established by the candidates, $37,000 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, $37,000 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 $7,200 per year, or in the case of a joint candidates committee when that is the only committee established by the candidates, $7,200 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, $7,200 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 $7,200 per year, or in the case of a joint candidates committee when that is the only committee established by the candidates, $7,200 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, $7,200 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.2004, c.174, s.4)

12. 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 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)

13. 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, including any independent authority created thereby or regional school district, 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 in the aggregate exceeds $300 per year to an individual within the area affected by the contract, or that in the aggregate exceeds $1,000 per year to an entity within the area affected by the contract, and 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,] including any independent authority created thereby or regional school district, 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.]

As used in this section, “individual in the area affected by the contract” means all candidates for county public office and holders of such offices in the county with the contract; and “entity within the area affected by the contract” means each county committee of a political party in the county, and each political committee, continuing political committee and legislative leadership committee that that makes a contribution to a candidate or a holder of a public officer or to a county committee of the county with a contract.

(cf: P.L.2004, c.19, s.3)

14. 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, including any independent authority created thereby or any school or fire district within the municipality, 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 in the aggregate exceeds $300 per year to an individual within the area affected by the contract, or that in the aggregate exceeds $1,000 per year to an entity within the area affected by the contract, and 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,] including any independent authority created thereby or any school or fire district within the municipality, 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.]

As used in this section, “individual within the area affected by the contract” means all candidates for public office in the municipality and holders of such offices in the municipality with a contract; and “entity within the area affected by the contract” means each municipal committee of a political party in the municipality with the contract, each county committee of a political party in the county with the contract, and each political committee, continuing political committee and legislative leadership committee that makes a contribution to a candidates or holder of a public office or to a municipal or county committee located in the municipality or county with the contract.

(cf: P.L.2004, c.19, s.4)

15. (New section) Every contract and bid application and specifications promulgated in connection therewith covered by this act shall contain:

a. a provision describing the requirements of this act;

b. a statement that compliance with this act shall be a material term and condition of said contract or bid application and binding upon the parties thereto upon the entry of all applicable contracts; and

c. a description of the penalties for which the signer of a contract would be liable in the event of a breach of a government contract or for failure to comply with the provisions of this act.

The description shall state that unless remedied in accordance with section 8 of P.L.2004, c.19 (C.19:44A-20.9), a violation of the provisions this act shall:

(1) be considered a material breach of the contract; and

(2) result in the contractor being banned for a period of five years from entering into a subsequent contracting agreement with the county or municipality, any agency or department thereof or an independent authority or board thereof, if the developer is found to have knowingly violated the law.

16. 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 11 of [this act] P.L.2004, c.19 (C.19:44A-20.2 through C.19:44A-20.12):

"business entity" means any natural or legal person, sole proprietorship, business corporation, professional services corporation, limited liability company, partnership and any partner thereof, limited partnership and any partner thereof, limited liability partnership and any partner thereof, business trust, association or any other legal commercial entity organized under the laws of this State or of any other state or foreign jurisdiction including any principal, officer or partner thereof. The definition of a business entity includes: (i) any subsidiaries directly or indirectly controlled by the business entity; (ii) any political organization organized under section 527 of the Internal Revenue Code (26 U.S.C.A. §527) that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee; and (iii) if a business entity is a natural person, that person's spouse or child, residing therewith, are also included within this definition, except that: a) such individuals shall not be so included if the natural person complies with section 7 of P.L. 2005, c.51 (C.19:44A-20.19); and b) the spouse or child residing with a natural person who is a business entity shall be permitted to make a reportable contribution to a candidate, holder of elective public office or committee in the county or municipality, provided such an individual may vote for the individual responsible for awarding the contract;

"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)

17. 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 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.

c. All provisions adopted prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) by a unit of local government limiting the awarding of public contracts by such a unit to business entities that have made a contribution pursuant to P.L.1973, c.83 (C.19:44A-1 et seq.) and limiting the contributions that the holders of a contract can make during the terms of a contract shall be void on that effective date and the unit shall henceforth be prohibited from adopting any ordinance, resolution or regulation, as may be appropriate, that supplements, alters, supersedes or preempts the provisions of P.L.2004, c.19 (C.19:44A-20.3 et seq.), as amended or supplemented.

(cf: P.L.2005, c.51, s.15)

18. Section 8 of P.L.2004, c.19 (C.19:44A-20.9) is amended to read as follows:

8. If a business entity makes a contribution that would cause it to be ineligible to receive a public contract or, in the case of a contribution made during the term of a public contract, that would constitute a violation of this act, the business entity may request, in writing, within [60] 30 days of the date on which the contribution was made, that the recipient thereof repay the contribution and, if repayment is received within those [60] 30 days, the business entity would again be eligible to receive a contract or would no longer be in violation, as appropriate. It shall be presumed that contributions made within 60 days of a election of candidates for elective public office in a county or municipality were not made inadvertently and shall not be eligible for full reimbursement and the entity making the contribution would no longer be eligible to receive a contract.

(cf: P.L.2004, c.19, s.8)

19. Section 10 of P.L.2004, c.19 (C.19:44A-20.11) is amended to read as follows:

10. Any person who is determined by the Election Law Enforcement Commission to have willfully and intentionally accepted a contribution in violation of the provisions of sections 1 through 4 of this act shall be liable to a penalty for each such violation equal to the penalties set forth in subsection e. of section 22 of P.L.1973, c.83 (C.19:44A-22).

Unless remedied in accordance with section 8 of P.L.2004, c.19 (C.19:44A-20.9), a violation of the provisions this act shall:

(1) be considered a material breach of the contract; and

(2) result in the contractor being banned for a period of five years from entering into a subsequent contracting agreement with the county or municipality, any agency or department thereof or an independent authority or board thereof, if the contractor is found to have knowingly violated the law.

(cf: P.L.2004, c.19, s.10)

20. Section 11 of P.L.2004, c.19 (C.19:44A-20.12) is amended to read as follows:

11. Nothing contained in this act shall be construed as prohibiting the awarding of a contract when the public exigency requires the immediate delivery of goods or performance of emergency services as determined in writing by the State Treasurer, county or municipal administrator, school district superintendent or fire district administrator, as may be appropriate, explaining the specific reason for the emergency, the finding of facts upon which the reasoning is based, and any limitations of the waiver.

(cf: P.L.2004, c.19, s.11)

21. Section 2 of P.L.2005, c.51 (C.19:44A-20.14) is amended to read as follows:

2. The State or any of its purchasing agents or agencies or those of its independent authorities, as the case may be, shall not enter into an agreement or otherwise contract to procure from any business entity services or any material, supplies or equipment, or to acquire, sell, or lease any land or building, where the value of the transaction exceeds $17,500, if that business entity has solicited or made any contribution of money, or pledge of contribution, including in-kind contributions to a candidate committee or election fund of any candidate or holder of the public office of Governor or of Lieutenant Governor, or to any [State or county] political party committee or legislative leadership committee [:] that in the aggregate exceeds $300 per year to an individual within the area affected by the contract, or that in the aggregate exceeds $5,000 per year to an entity within the area affected by the contract.

The provisions of this section shall apply: (i) within the eighteen months immediately preceding the commencement of negotiations for the contract or agreement; (ii) during the term of office of a Governor and a Lieutenant Governor, in the case of contributions to a candidate committee or election fund of the holder of one of those offices, or to any [State or county] political party committee [of a political party] nominating such Governor and Lieutenant Governor in the last gubernatorial election preceding the commencement of such term; or (iii) within the eighteen months immediately preceding the last day of the term of office of Governor and Lieutenant Governor, in which case such prohibition shall continue through the end of the next immediately following term of the office of Governor and Lieutenant Governor, in the case of contributions to a candidate committee or election fund of the holder of one of those offices, or to any [State or county] political party committee [of a political party] nominating such Governor and Lieutenant Governor in the last gubernatorial election preceding the commencement of the latter term.

As used in this section, “individual within the area affected by the contract” means all candidates for the office of Governor or Lieutenant Governor and holders of such offices; and “entity within the area affected by the contract” means every political party committee and every legislative leadership committee that makes a contribution to a candidate for the office of Governor or Lieutenant Governor and the holders of such offices.

(cf: P.L.2009, c.66, s.34)

22. Section 3 of P.L.2005, c.51 (C.19:44A-20.15) is amended to read as follows:

3. No business entity which agrees to any contract or agreement with the State or any department or agency thereof or its independent authorities either for the rendition of services or furnishing of any material, supplies or equipment or for the acquisition, sale, or lease of any land or building, if the value of the transaction exceeds $17,500, shall knowingly solicit or make any contribution of money, or pledge of a contribution, including in-kind contributions, to a candidate committee or election fund of any candidate or holder of the public office of Governor or Lieutenant Governor or to any [State or county] political party committee or legislative leadership committee prior to the completion of the contract or agreement.

(cf: P.L.2009, c.66, s.35)

23. Section 5 of P.L.2005, c.51 (C.19:44A-20.17) is amended to read as follows:

5. For the purposes of this act, a "business entity" means any natural or legal person, sole proprietorship, business corporation, professional services corporation, limited liability company, partnership and any partner thereof, limited partnership and any partner thereof, limited liability partnership and any partner thereof, business trust, association or any other legal commercial entity organized under the laws of this State or any other state or foreign jurisdiction including any principal, officer or partner thereof. The definition of a business entity includes: (i) [all principals who own or control more than 10 percent of the profits or assets of a business entity or 10 percent of the stock in the case of a business entity that is a corporation for profit, as appropriate; (ii)] any subsidiaries directly or indirectly controlled by the business entity; [(iii)] (ii) any political organization organized under section 527 of the Internal Revenue Code (26 U.S.C.A. §527) that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee; and [(iv)] (iii) if a business entity is a natural person, that person's spouse or child, residing therewith, are also included within this definition, except that: a) such individuals shall not be so included if the natural person complies with section 7 of P.L.2005, c.51 (C.19:44A-20.19); and b) the spouse or child residing with a natural person who is a business entity shall be permitted to make a reportable contribution to a candidate for or holder of the public office of Governor or Lieutenant Governor or to any State or county political party committee, provided such an contributor may vote for the individual responsible for awarding the contract.

(cf: P.L.2005, c.51, s.5)

24. Section 8 of P.L.2005, c.51 (C.19:44A-20.20) is amended to read as follows:

8. If a business entity inadvertently makes a contribution that would otherwise bar it from receiving a contract or makes a contribution during the term of a contract in violation of this act, the entity may request a full reimbursement from the recipient and, if such reimbursement is received within 30 days after the date on which the contribution was made, the business entity would again be eligible to receive a contract or would no longer be in violation, as appropriate. It shall be presumed that contributions made within 60 days of a gubernatorial primary or general election were not made inadvertently and shall not be eligible for full reimbursement and the entity making the contribution would no longer be eligible to receive a contract.

(cf: P.L.2005, c.51, s.8)

25. Section 9 of P.L.2005, c.51 (C.19:44A-20.21) is amended to read as follows:

9. It shall be a breach of the terms of the government contract for a business entity to: (i) make or solicit a contribution in violation of this act; (ii) knowingly conceal or misrepresent a contribution given or received; (iii) make or solicit contributions through intermediaries for the purpose of concealing or misrepresenting the source of the contribution; (iv) make or solicit any contribution on the condition or with the [agreement] understanding that it will be contributed to a campaign committee of any candidate or holder of the public office of Governor or Lieutenant Governor, or to any [State or county] political party committee or legislative leadership committee; (v) engage or employ a lobbyist or consultant with the intent or understanding that such lobbyist or consultant would make or solicit any contribution, which if made or solicited by the business entity itself, would subject that entity to the restrictions of this act; (vi) fund contributions made by third parties, including consultants, attorneys, family members, and employees; (vii) engage in any exchange or contributions to circumvent the intent of this act; or (viii) directly or indirectly, through or by any other person or means, do any act which would subject that entity to the restrictions of this act.

(cf: P.L.2009, c.66, s.36)

26. Section 12 of P.L.2005, c.51 (C.19:44A-20.24) is amended to read as follows:

12. Every contract and bid application and specifications promulgated in connection therewith covered by this act shall contain:

a. a provision describing the requirements of this act [and];

c. a description of the penalties for which the signer of a contract would be liable in the event of a breach of a government contract or for failure to comply with the provisions of this act.

Unless remedied in accordance with section 8 of P.L.2005, c.51 (C.19:44A-20.20), a violation of the provisions this act shall:

(1) be considered a material breach of the contract, pursuant to section 9 of P.L.2005, c.51 (C.19:44A-20-21); and

(2) result in the contractor being banned for a period of five years from entering into a subsequent contracting agreement with the State, any agency or department thereof or an independent State authority or board thereof, if the developer is found to have knowingly violated the law.

(cf: P.L.2005, c.51, s.12)

27. 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 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; 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, sole proprietorship, business corporation, professional services corporation, limited liability company, partnership and any partner thereof, limited partnership and any partner thereof, limited liability partnership and partner thereof, business trust, association or any other legal commercial entity organized under the laws of this State or of any other state or foreign jurisdiction including any principal, officer or partner thereof. The definition of a business entity includes: (i) any subsidiaries directly or indirectly controlled by the business entity; (ii) any political organization organized under section 527 of the Internal Revenue Code (26 U.S.C.A. §527) that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee; and (iii) if a business entity is a natural person, that person's spouse or child, residing therewith, are also included within this definition, except that: a) such individuals shall not be so included if the natural person complies with section 7 of P.L.2005, c.51 (C.19:44A-20.19); and b) the spouse or child residing with a natural person who is a business entity shall be permitted to make a reportable contribution to the appropriate candidate, holder of elective public office or committee, provided such an individual may vote for the individual responsible for awarding the contract;

"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)

28. 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: (1) 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[,]; or (2) any political organization organized under section 527 of the Internal Revenue Code (26 U.S.C.A. §527) that also meets the definition of a "continuing political committee" within the meaning of section 3 of P.L.1973, c.83 (C.19:44A-3) 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 or political organization organized under section 527 of the federal Internal Revenue Code (26 U.S.C.A. §527) 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 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; any subsidiaries directly or indirectly controlled by the business entity; or any political organization organized under section 527 of the Internal Revenue Code (26 U.S.C.A. §527) 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, sole proprietorship, business corporation, professional services corporation, limited liability company, partnership and any partner thereof, limited partnership and any partner thereof, limited liability partnerships and any partner thereof, business trust, association or any other legal commercial entity organized under the laws of this State or of any other state or foreign jurisdiction including any principal, officer or partner thereof. The definition of a business entity includes: (i) any subsidiaries directly or indirectly controlled by the business entity; (ii) any political organization organized under section 527 of the Internal Revenue Code (26 U.S.C.A. §527) that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee; and (iii) if a business entity is a natural person, that person's spouse or child, residing therewith, are also included within this definition, except that: a) such individuals shall not be so included if the natural person complies with section 7 of P.L.2005, c.51 (C.19:44A-20.19); and b) the spouse or child residing with a natural person who is a business entity shall be permitted to make a reportable contribution to a candidate, holder of elective public office or committee in the county or municipality, provided such an individual may vote for the individual responsible for awarding the contract; and

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)

29. (New section) No individual or business entity shall knowingly make a contribution of money or any other thing of value to a political committee, continuing political committee, or legislative leadership committee that has knowingly made a contribution of money or any other thing of value to another political party committee, a candidate committee or a joint candidates committee or legislative leadership committee that is prohibited from making contributions to the holders of or candidates for elective public office pursuant to P.L.2004, c.19 (C.19:44A-20.3 et seq.) or P.L.2005, c.51 (19:44A-20.13 et seq.). No political committee, continuing political committee or legislative leadership committee that has knowingly made a contribution of money or any other thing of value to another political party committee, a candidate committee or a joint candidates committee or legislative leadership committee that is prohibited from making contributions to the holders of or candidates for elective public office pursuant to P.L.2004, c.19 (C.19:44A-20.3 et seq.) or P.L.2005, c.51 (19:44A-20.13 et seq.) shall knowingly accept a contribution of money or any other thing of value from an individual or a business entity.

30. Section 1 of P.L.2005, c.271 (C.40A:11-51) is repealed.

31. This act shall take effect on January 1 next following the day of enactment.

STATEMENT

The purpose of this bill is to modify the current law regarding the regulation of and restrictions on business entities that are awarded public contracts and make campaign contributions to certain holders of public offices, candidates and political organizations. Specifically, the bill:

· codifies and expands the provisions of Executive Order #118 of 2008, to limit redevelopers from eligibility for participation in a State or local redevelopment project if the redeveloper has made a campaign contribution to any candidate for the office of Governor or Lieutenant Governor, a political party committee, a legislative leadership committee, a candidate for or the holder of a State legislative, county or municipal elective public office in a State legislative district, county or municipality in which any property subject to a redevelopment is situated;

· codifies the provisions of Executive Order #117 of 2008 to provide that legislative leadership committees and municipal political party committees would be unable to receive contributions from entities seeking public contracts with government entities in the municipalities affected by the contract;

· removes the exception for contracts with a State agency in the Legislative Branch, a county or a municipality awarded pursuant to “a fair and open process;”

· includes sole proprietorship and any partner in any type of partnership, including a limited liability partnership, in the definition of business entity;

· expands definition of business entity to include: a) any subsidiaries directly or indirectly controlled by the business entity; b) any political organization organized under section 527 of the Internal Revenue Code (26 U.S.C.A. §527) that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee; and c) if a business entity is a natural person, that person's spouse or child, residing therewith, with certain exceptions;

· establishes limits on the amount of contributions that an individual or business can make to candidates, office holders and political party committees who have ultimate decision-making authority over the awarding of public contracts to State, county or municipal government, respectively, with a limit of $300 per year on individuals involved with State or local government contracts, a limit of $1,000 per year on business entities involved with local government contracts, and a limit of $5,000 per year on business entities involved with State government contracts;

· requires any business entities that makes a contribution to any political organization organized under section 527 of the federal Internal Revenue Code that also meets the definition of continuing political committee under current law to file an annual disclosure statement with the Election Law Enforcement Commission;

· requires all contract and bid specifications to contain: (1) a description of the requirements of N.J.S.A.19:44A-20.7 et seq. or N.J.S.A.19:44A-20.13 et seq., as may be appropriate; (2) a statement that compliance with those acts are binding; and (3) a description of the penalties for which the signer of a contract would be liable in the event of a breach of a government contract or failure to comply with either act, as may be appropriate, including a notice that provides that unless cured, a violation of the law would: 1) be considered a material breach of the contract; and 2) result in the contractor being banned for a period of five years from entering into a subsequent contracting agreement with the State, county or municipality, any agency or department thereof or an independent authority or board thereof, if the contractor is found to have knowingly violated the law;

· bans a county committee of a political party from making a contribution to any other county committee of a political party;

· bans a county committee of a political party from making a contribution to the State committee of a political party that in the aggregate exceeds $25,000 per year;

· bans a county committee of a political party from making a contribution to a municipal committee of a political party located outside of the county;

· bans a municipal committee of a political party from making a contribution to any other municipal committee;

· prohibits contributions by individuals and business entities to a political committee, continuing political committee or a legislative leadership committee that has made a contribution to a political party committee, a candidate committee or a joint candidates committee or legislative leadership committee that is prohibited from making contributions to the holders of or candidates for elective office by current law; and

· repeals N.J.S.40A:11-51, which permitted a county, municipality, independent authority, board of education or fire district from establishing measures limiting the awarding of public contracts from such a local government unit to business entities that have made a campaign contribution and limiting the contributions that the holders of a contract can make during the term of a contract.