Bill Text: NJ S2320 | 2010-2011 | Regular Session | Introduced
Bill Title: Concerns campaign contributions by business entities performing public contracts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-10-07 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S2320 Detail]
Download: New_Jersey-2010-S2320-Introduced.html
Sponsored by:
Senator THOMAS GOODWIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Concerns campaign contributions by business entities performing public contracts.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain campaign contributions by business entities performing public contracts and supplementing, amending, and repealing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) Notwithstanding the provisions of any other law to the contrary:
a State agency in the Executive 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 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 the Governor, serving when the contract is awarded, is a member or to any candidate committee of that Governor; 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 Executive Branch 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 the Governor, serving when the contract is awarded, is a member or to any candidate committee of that Governor, 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 Executive Branch.
2. Section 2 of P.L.2004, c.19 (C.19:44A-20.3) is amended to read as follows:
2. Notwithstanding the provisions of any other law to the contrary:
a State agency in the Legislative Branch shall not enter into a contract having an anticipated value in excess of $17,500, as determined in advance and certified in writing by the State agency, with a business entity, that requires approval by a presiding officer of either or both houses of the Legislature [, except a contract that is awarded pursuant to a fair and open process,] if, during the preceding one-year period, that business entity has made a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to the State committee of the political party of which that presiding officer, serving when the contract is awarded, is a member or to a legislative leadership committee or any candidate committee established by that presiding officer; and
a business entity that has entered into a contract having an anticipated value in excess of $17,500 with a State agency in the Legislative Branch, that requires approval by a presiding officer of either or both houses of the Legislature [, except a contract that is awarded pursuant to a fair and open process,] shall not make a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to the State committee of the political party of which that presiding officer is a member or to a legislative leadership committee or to any candidate committee established by that presiding officer, during the term of that contract.
No such committee shall accept such a contribution from a business entity during the term of its contract with a State agency in the Legislative Branch.
(cf: P.L.2004, c.19, s.2)
3. Section 3 of P.L.2004, c.19 (C.19:44A-20.4) is amended to read as follows:
3. Notwithstanding the provisions of any other law to the contrary:
a county, or any agency or instrumentality thereof, shall not enter into a contract having an anticipated value in excess of $17,500, as determined in advance and certified in writing by the county, agency or instrumentality, with a business entity [, except a contract that is awarded pursuant to a fair and open process,] if, during the preceding one-year period, that business entity has made a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any county committee of a political party in that county if a member of that political party is serving in an elective public office of that county when the contract is awarded or to any candidate committee of any person serving in an elective public office of that county when the contract is awarded; and
a business entity that has entered into a contract having an anticipated value in excess of $17,500 with a county, or any agency or instrumentality thereof [, except a contract that is awarded pursuant to a fair and open process,] shall not make such a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any county committee of a political party in that county if a member of that political party is serving in an elective public office of that county when the contract is awarded or to any candidate committee of any person serving in an elective public office of that county when the contract is awarded, during the term of that contract.
No such committee shall accept such a contribution from a business entity during the term of its contract with the county.
(cf: P.L.2004, c.19, s.3)
4. Section 4 of P.L.2004, c.19 (C.44A-20.5) is amended to read as follows:
4. Notwithstanding the provisions of any other law to the contrary:
a municipality, or any agency or instrumentality thereof, shall not enter into a contract having an anticipated value in excess of $17,500, as determined in advance and certified in writing by the municipality, agency or instrumentality, with a business entity [, except a contract that is awarded pursuant to a fair and open process,] if, during the preceding one-year period, that business entity has made a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any municipal committee of a political party in that municipality if a member of that political party is serving in an elective public office of that municipality when the contract is awarded or to any candidate committee of any person serving in an elective public office of that municipality when the contract is awarded; and
a business entity that has entered into a contract having an anticipated value in excess of $17,500 with a municipality, or any agency or instrumentality thereof [, except a contract that is awarded pursuant to a fair and open process,] shall not make such a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any municipal committee of a political party in that municipality if a member of that political party is serving in an elective public office of that municipality when the contract is awarded or to any candidate committee of any person serving in an elective public office of that municipality when the contract is awarded, during the term of that contract.
No such committee shall accept such a contribution from a business entity during the term of its contract with the municipality.
(P.L.2004, c.19, s.4)
5. (New section) Notwithstanding the provisions of any other law to the contrary:
a local board of education, or any agency or instrumentality thereof, shall not enter into a contract having an anticipated value in excess of $17,500, as determined in advance and certified in writing by the board, agency or instrumentality, with a business entity if, during the preceding one-year period, that business entity has made a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any candidate committee of any person serving on that board when the contract is awarded; and
a business entity that has entered into a contract having an anticipated value in excess of $17,500 with a local board of education, or any agency or instrumentality thereof, shall not make such a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any candidate committee of any person serving on that board when the contract is awarded, during the term of that contract.
No such committee shall accept such a contribution from a business entity during the term of its contract with the local board of education.
6. (New section) Notwithstanding the provisions of any other law to the contrary:
a board of fire commissioners of a fire district, or any agency or instrumentality thereof, shall not enter into a contract having an anticipated value in excess of $17,500, as determined in advance and certified in writing by the board, agency or instrumentality, with a business entity if, during the preceding one-year period, that business entity has made a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any candidate committee of any person serving on that board when the contract is awarded; and
a business entity that has entered into a contract having an anticipated value in excess of $17,500 with a board of fire commissioners of a fire district, or any agency or instrumentality thereof, shall not make such a contribution, reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any candidate committee of any person serving on that board when the contract is awarded, during the term of that contract.
No such committee shall accept such a contribution from a business entity during the term of its contract with the board.
7. Section 6 of P.L.2004, c.19 (C.19:44A-20.7) is amended to read as follows:
6. As used in sections 2 through 12 of this act:
"business entity" means any natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of this State or of any other state or foreign jurisdiction; business entity shall also include a redeveloper who enters into a redevelopment agreement with a public entity; "business entity" shall also include in regard to a natural person who is a business entity, the spouse, domestic partner, civil union partner or child of that person, residing therewith;
"interest" means the ownership or control of more than 10% of the profits or assets of a business entity or 10% of the stock in the case of a business entity that is a corporation for profit, as appropriate;
["fair and open process" means, at a minimum, that the contract shall be: publicly advertised in newspapers or on the Internet website maintained by the public entity in sufficient time to give notice in advance of the contract; awarded under a process that provides for public solicitation of proposals or qualifications and awarded and disclosed under criteria established in writing by the public entity prior to the solicitation of proposals or qualifications; and publicly opened and announced when awarded. The decision of a public entity as to what constitutes a fair and open process shall be final.]
"State agency in the Executive Branch" 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 and any independent State authority, board, commission, instrumentality or agency.
"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)
8. 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 Executive Branch, Legislative Branch, a county, [or] a municipality, a local board of education or a fire district shall require the business entity to which the contract is to be awarded to provide a written certification that it has not made a contribution that would bar the award of a contract [pursuant to this act].
b. A business entity shall have a continuing duty to report to the Election Law Enforcement Commission any contributions that constitute a violation of this act that are made during the duration of a contract.
(cf: P.L.2005, c.51, s.15)
9. Section 3 of P.L.2005, c.271 (C.19:44A-20.27) is amended to read as follows:
3. a. Any business entity making a contribution of money or any other thing of value, including an in-kind contribution, or pledge to make a contribution of any kind to a candidate for or the holder of any public office having ultimate responsibility for the awarding of public contracts, or to a political party committee, legislative leadership committee, political committee or continuing political committee, which has received in any calendar year [$50,000] $17,500 or more in the aggregate through agreements or contracts with a public entity, shall file an annual disclosure statement with the New Jersey Election Law Enforcement Commission, established pursuant to section 5 of P.L.1973, c.83 (C.19:44A-5), setting forth all such contributions made by the business entity during the 12 months prior to the reporting deadline.
b. The commission shall prescribe forms and procedures for the reporting required in subsection a. of this section which shall include, but not be limited to:
(1) the name and mailing address of the business entity making the contribution, and the amount contributed during the 12 months prior to the reporting deadline;
(2) the name of the candidate for or the holder of any public office having ultimate responsibility for the awarding of public contracts, candidate committee, joint candidates committee, political party committee, legislative leadership committee, political committee or continuing political committee receiving the contribution; and
(3) the amount of money the business entity received from the public entity through contract or agreement, the dates, and information identifying each contract or agreement and describing the goods, services or equipment provided or property sold.
c. The commission shall maintain a list of such reports for public inspection both at its office and through its Internet site.
d. When a business entity is a natural person, a contribution by that person's spouse 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.
As used in this section:
"business entity" means a for-profit entity that is a natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of this State or of any other state or foreign jurisdiction; and
"interest" means the ownership or control of more than 10% of the profits or assets of a business entity or 10% of the stock in the case of a business entity that is a corporation for profit, as appropriate.
e. Any business entity
that fails to comply with the provisions of this section shall be subject to a
fine imposed by the New Jersey Election Law Enforcement Commission in an amount
to be determined by the commission which may be based upon the
amount that the business entity failed to report.
(cf: P.L.2007, c.304, s.2)
10. P.L. c. (pending before the Legislature as this bill) supersedes and preempts any action heretofore or hereafter taken by a unit of local government in regard to limiting political contributions by business entities performing or seeking to perform government contracts.
11. a. Sections 1 through 13 of P.L.2005, c.51 (C.19:44A-20.13 et seq.) and section 1 of P.L.2005, c.271 (C.40A:11-51) are repealed.
b. Executive Orders Nos. 117 and 118 (Corzine) of 2006 are hereby superseded.
12. This act shall take effect immediately.
STATEMENT
This bill would revise the "pay-to-play" laws to implement certain recent recommendations made by the Election Law Enforcement Commission. Specifically, the bill would:
· create one uniform law applicable at all levels of government (Executive and Legislative Branches of State government, counties, municipalities, school districts and fire districts) to the awarding of public contracts to businesses that have made campaign contributions;
· include in the definition of "business entity" a redeveloper who enters into a redevelopment agreement with any public entity, as well as the spouse, domestic partner, civil union partner or child of a natural person who is a business entity;
· eliminate provisions of existing law that exclude contracts awarded pursuant to a "fair and open process" from pay-to-play proscriptions and provide instead that only contracts that are valued at $17,500 or less will be excluded;
· require a business to disclose information about public contracts received, and campaign contributions made, after the business has received public contracts valued at greater than $17,500, instead of after the business has received $50,000 or more in public contracts as provided by current law; and
· expressly supersede and preempt local government regulation of pay-to-play and supersede prior pay-to-play Executive Orders.
In addition, the bill repeals sections of law that currently address pay-to-play in the context of State Executive Branch contracting and that allow local governments to adopt their own pay-to-play policies.
