Bill

Bill > A5505


NJ A5505

NJ A5505
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
01/12/2026

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 in government contracts to align with the public bidding threshold established by the Governor and State Treasurer. Currently, government entities are prohibited from entering contracts over $17,500 with businesses that have made campaign contributions, unless the contract is awarded through a fair and open process. The bill requires ELEC to adjust this threshold by December 1st each year to match the public bidding threshold, which is currently $44,000 and adjusted every five years. The adjusted threshold will apply to state agencies, counties, municipalities, independent authorities, school boards, and fire districts that have designated a qualified purchasing agent. Entities without a qualified purchasing agent will continue to use the original $17,500 threshold. The purpose of this bill is to streamline and standardize the contract and campaign contribution restrictions across different levels of government, reducing potential conflicts of interest and providing more consistency in public procurement processes.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Introduced, Referred to Assembly State and Local Government Committee (on 03/24/2025)

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