Bill

Bill > S4277


NJ S4277

Directs ELEC to raise value threshold of pay-to-play prohibition for certain State, county, municipal, school board, and fire district contracts to align with threshold for awarding certain public contracts utilizing qualified purchasing agent.


summary

Introduced
03/24/2025
In Committee
03/24/2025
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

Under current law, the State and its purchasing agents and agencies, and those of its independent authorities, and counties and municipalities, and their agencies and instrumentalities, and boards of education, and fire districts, are prohibited from engaging in a transaction or entering into a contract having an anticipated value in excess of $17,500 with a business entity, unless the contract is awarded pursuant to a fair and open process, if, during the preceding one-year period, that business entity has made a campaign contribution reportable to the Election Law Enforcement Commission (ELEC) to any candidate committee of any person serving in an elective public office in the applicable jurisdiction where the contract is awarded. Likewise, a business entity that has engaged in a transaction or entered into a contract having an anticipated value in excess of $17,500 with the State or any of its purchasing agents or agencies or those of its independent authorities, or any county or municipality, or agency or instrumentality thereof, or board of education, or fire district is prohibited from making a reportable campaign contribution to any candidate committee of any person serving in an elective public office of that jurisdiction where the contract is awarded, during the term of that contract, unless the contract is awarded pursuant to a fair and open process. This bill directs ELEC to adjust the applicable monetary threshold by December 1 of each year to be equivalent to the applicable public bidding threshold established by the Governor and the State Treasurer for purposes of allowing certain contracts in counties, municipalities, and school districts to be awarded by a qualified purchasing agent. The current adjusted public bidding threshold is $44,000, and it is adjusted every five years. Under the bill, the adjusted transaction and contract value thresholds will be applicable to the State and any of its purchasing agents or agencies or those of its independent authorities, and to any county or municipality, or agency or instrumentality thereof, or board of education, or fire district, which has designated a purchasing agent for purposes of engaging in transactions or entering into contracts below the value threshold. Any county or municipality, or agency or instrumentality thereof, or board of education, or fire district without a qualified purchasing agent will continue to be subject to the applicable transaction or contract value provided by law, without adjustment, which is currently $17,500.

AI Summary

This bill directs the Election Law Enforcement Commission (ELEC) to annually adjust the monetary threshold for pay-to-play prohibitions by December 1st, aligning it with the public bidding threshold established for counties, municipalities, and school districts. Currently set at $17,500, the threshold would be dynamically updated to match the public bidding threshold, which is currently $44,000 and adjusted every five years. The bill applies to contracts and transactions involving state agencies, counties, municipalities, independent authorities, boards of education, and fire districts. Entities with a qualified purchasing agent will be subject to the new adjusted threshold, while those without such an agent will continue to use the original $17,500 threshold. The goal is to standardize contract value limits and campaign contribution restrictions across different levels of government, helping to prevent potential conflicts of interest by limiting financial contributions from businesses seeking government contracts. ELEC is required to report its annual threshold adjustment to the Legislature by December 15th, ensuring transparency in the process. The bill aims to create a more consistent and fair approach to government contracting and campaign finance regulations.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 03/24/2025)

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