New Jersey has overhauled its pay-to-play and campaign finance laws, dramatically changing the rules for government contractors, nonprofits, and individual donors. The passage of the Elections Transparency Act has been accompanied by considerable controversy, including litigation and the resignation of all four members of the New Jersey Election Law Enforcement Commission (ELEC). In the meantime, some provisions have already taken effect. Others are slated to take effect after the June 2023 primary and apply to the 2023 general election and future elections.
Here are the most important things to know.
Since 2006, New Jersey’s complex state pay-to-play law has barred contributions over $300 by companies and nonprofits bidding for, or under contract with, state agencies, including colleges and universities. The contribution ban applies not only to bidding and contracting entities, but also to their principal owners, officers and directors, and even their spouses.
Over the years, New Jersey’s pay-to-play law has ensnared dozens of government contractors, resulting in disqualified bids and voided contracts. Adding to the compliance burden, the prior state law permitted local governments to enact their own pay-to-play laws provided they were at least as stringent as the state law. Dozens of localities adopted such ordinances. This patchwork of pay-to-play laws has drawn criticism from government contractors as well as ELEC’s executive director who has called the state pay-to-play regime “convoluted and complicated,” and cited its “stunning inconsistency.”