Bill Text: NJ S1668 | 2018-2019 | Regular Session | Introduced
Bill Title: Prohibits labor organizations that represent public employees from paying or contributing money or thing of value for political purposes to enhance protections against corruption of election practices.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-02-05 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S1668 Detail]
Download: New_Jersey-2018-S1668-Introduced.html
Sponsored by:
Senator GERALD CARDINALE
District 39 (Bergen and Passaic)
SYNOPSIS
Prohibits labor organizations that represent public employees from paying or contributing money or thing of value for political purposes to enhance protections against corruption of election practices.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning campaign contributions by labor organizations that represent public employees and amending R.S.19:34-45.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.19:34-45 is amended to read as follows:
19:34-45. a. No corporation carrying on the business of a bank, savings bank, co-operative bank, trust, trustee, savings indemnity, safe deposit, insurance, railroad, street railway, telephone, telegraph, gas, electric light, heat or power, canal or aqueduct company, or having the right to condemn land, or to exercise franchises in public ways granted by the state or any county or municipality, and no corporation, person, trustee or trustees, owning or holding the majority of stock in any such corporation, shall pay or contribute money or thing of value in order to aid or promote the nomination or election of any person, or in order to aid or promote the interests, success or defeat of any political party.
The provisions of this [section] subsection shall not apply to any corporation carrying on the business of a co-generation facility, as defined in subsection c. of section 1 of P.L.2000, c.156 (C.54:15B-2.2), or to any corporation carrying on the business of a retail seller that extends credit, pursuant to the provisions of the "Retail Installment Sales Act of 1960" P.L.1960, c.40 (C.17:16C-1 et seq.), or to any corporation, person, trustee or trustees, owning or holding the majority of stock in either such corporation.
b. No local, county, or State labor organization, union, or affiliate that represents public employees shall pay or contribute any money or other thing of value in order to aid or promote the nomination or election of any person, or in order to aid or promote the interests, success, or defeat of any political party.
(cf: P.L.2001, c.384, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill amends N.J.S.A.19:34-45 to prohibit local, county, or State labor organizations, unions, or affiliates that represent public employees from paying or contributing any money or other thing of value in order to aid or promote the nomination or election of any person, or in order to aid or promote the interests, success, or defeat of any political party.
Originally enacted as part of a comprehensive election corruption practices act, N.J.S.A.19:34-45 currently prohibits direct contributions of money or other thing of value by certain regulated corporations for political purposes. The Attorney General has issued two formal opinions evaluating N.J.S.A.19:34-45, which outline the justifications for the provisions of the act that prohibit political contributions by certain regulated corporations. The justifications articulated in the Attorney General opinions apply equally to political contributions by labor organizations, unions, or affiliates that represent public employees.
Attorney General Formal Opinion No. 14-1979 suggested that in enacting N.J.S.A.19:34-45, the Legislature sought to prevent corporate officials from using corporate funds for contributions to political parties without the consent of the shareholders. This prohibition protects minority interests within the corporation. Similarly, this bill would prevent union officials from using union funds for contributions to political parties without the consent of its members. Therefore, the bill protects minority interests within the union.
Attorney General Formal Opinion No. 4-1983 suggested that another objective of the current statute is to "insulate elective officials from the influence of regulated industries." The opinion further states,
Each business listed in the act may be characterized as of a type strongly affected with a public interest. Each business has been made the subject of extensive and pervasive government regulation. Comprehensive regulatory programs, vital to the protection of the public, could become prime targets of elected officials seeking to satisfy perceived debts to corporate benefactors affiliated with a regulated industry.
This reasoning applies equally to unions as well: Unions that represent public employees are strongly affected with a public interest. This bill insulates elected officials from the influence of such unions, which represent employees in occupations subject to comprehensive laws and regulations that elected officials could revise or repeal to satisfy perceived debts to union donors.
