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Bill > S1398
NJ S1398
NJ S1398Increases disclosure of political contributions by business entities with public contracts; creates uniform law for contributions by such entities; repeals local option to set contribution limits for business entities.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill modifies the current law regulating the awarding of public contracts to business entities that make campaign contributions, commonly referred to as the "pay to play" law. Specifically, the bill provides that political party committees, namely the State committee of a political party or any county or municipal committee of a political party, would no longer be barred from receiving a contribution from a business entity seeking to enter into or holding a contract with the State, or a State agency, a county or municipality. Instead, a business entity seeking to enter into or holding a public contract would be barred from making a contribution to a political committee, or continuing political committee, in addition to candidate committees and legislative leadership committees. In addition the bill would: 1) create one uniform "pay to play" law applicable at all levels of government, including the Executive Branch, State authorities, the Legislative Branch, counties, and municipalities, and to add sections covering local elective boards of education and fire districts; 2) 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; 3) increase the amount that may be contributed by business entities from the current $300 to $1,000; 4) modify the definition in the law of the term "business entity" to match the definition set forth in Governor Corzine's Executive Order No.117 of 2008; 5) modify the disclosure requirement for business entity that contracts with a single State agency, or a county, municipality, independent authority, board of education, or fire district for $17,500 or more and makes a contribution of money or other thing of value to an independent expenditure committee to disclose all such contributions; and 6) add a definition of "independent expenditure committee" for the purpose of the reports required to be made by business entities of their contributions. As part of these changes to create a uniform "pay to play" law, the bill repeals sections of law that: 1) prohibit a government aggregator that is a county or municipality from awarding a contract to a licensed power supplier if that supplier has made a contribution to the committee of any candidate for public office; 2) apply "pay to play" in the context of State Executive Branch contracting; and 3) allow local governments to adopt their own "pay to play" ordinances and policies.
AI Summary
This bill, aimed at increasing transparency in political contributions by businesses that hold public contracts, establishes a uniform "pay-to-play" law across all levels of government, including state agencies, counties, municipalities, local boards of education, and fire districts. It prohibits business entities from contributing to candidate committees, political committees, or continuing political committees if they are seeking or holding a public contract valued over $17,500, though contributions to political party committees are now permitted. The bill also raises the maximum allowable contribution from such entities to $1,000, modifies the definition of "business entity" to align with previous executive orders, and requires disclosure of contributions to independent expenditure committees for contracts of $17,500 or more. Importantly, it repeals existing laws that allowed for "fair and open" contract awards to bypass these contribution restrictions, now only exempting contracts valued at $17,500 or less, and eliminates local governments' ability to set their own contribution limits, thereby creating a statewide standard.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S1398 |
| BillText | https://pub.njleg.gov/Bills/2026/S1500/1398_I1.HTM |
| BillText | https://pub.njleg.gov/Bills/2024/S1500/1398_I1.HTM |
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