Bill
Bill > S1616
NJ S1616
NJ S1616Directs 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
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 on state, county, municipal, school board, and fire district contracts. Currently, businesses are prohibited from receiving contracts valued over $17,500 if they have made campaign contributions to local officials within the preceding year, unless the contract is awarded through a "fair and open process" (a competitive bidding process). This bill will align this $17,500 threshold with the higher threshold used for awarding certain public contracts by a qualified purchasing agent, which is currently $44,000 and adjusted every five years. This adjustment will apply to entities that have designated a purchasing agent, while those without a qualified purchasing agent will continue to be subject to the $17,500 limit. The bill also specifies that the adjusted thresholds will be applicable to the State and its agencies, as well as counties, municipalities, school boards, and fire districts that have designated a purchasing agent.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 01/13/2026)
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/2026/S1616 |
| BillText | https://pub.njleg.gov/Bills/2026/S2000/1616_I1.HTM |
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