Category: Political and Campaign Finance Compliance

How the Elections Transparency Act Changes New Jersey’s Political Contribution Landscape

Governor Murphy signed into law one of the most sweeping campaign and political law reform bills since the enactment of The New Jersey Campaign Contributions and Expenditures Reporting Act in 1977. The Elections Transparency Act (“Act”) has been the focus of much attention due to the changes in the leadership and enforcement operations at the New Jersey Election Law Enforcement Commission (NJELEC). However, the Act’s most significant impacts will be felt in the areas of campaign contribution limits, reporting requirements, and the standardization of the state’s pay-to-play laws. Campaign Contributions Current law provides for contribution limits on a per election or per year basis, ranging from $2,600 to “no limit” contributions between leadership and party committees. These limits remain in effect until after the June 2023 Primary Election. Following the June 2023 Primary Election, the contribution limits dramatically increase to double, or in some instances, triple the current limits. For example, individuals, corporations, unions, associations, and groups will be subject to the following limits: $5,200 per election cycle to a Candidate Committee $14,400 per election cycle to a Political Committee $14,400 per year to a Continuing Political Committee or Municipal Political Party Committee $75,000 per year to a Legislative Leadership Committee, State Political Party Committee, or County Political Party Committee Contribution limits will also be...

New Jersey State Pay-to-Play Rules and Federal Elections

New Jersey has its own individual pay-to-play rules that do not apply to federal candidates regardless of the state office that the candidate holds. The two sets of New Jersey pay-to-play rules (“Pay to Play Rules”) of concern are: (i) New Jersey statutory rules for state contracts under N.J.S.A. 19:44A-20.13-20.25, and (ii) New Jersey regulations of the New Jersey State Investment Council (“SIC”) pursuant to N.J.A.C. 17:16-4.1 to 4.11. The New Jersey Election Law Enforcement Commission (“ELEC”) and the New Jersey State Treasurer have stated that contributions to a federal account that are to be used only in federal elections will not trigger the New Jersey pay-to-play rules. See Advisory Opinion No. 03-2006; Letter of Bradley I. Abelow, New Jersey State Treasurer, June 23, 2006. The SIC regulations are applicable to political contributions and payments to political parties. See N.J.A.C. 17:16-4.2. Political contribution is defined as a contribution for the purpose of influencing any election for New Jersey state office, and under certain circumstances, any election for New Jersey local office. Since candidate committee for President is a candidate committee for a federal office, contributions to the committee are not political contributions. The SIC regulations define a “political party” as one that does not include a federal or national campaign committee, or nonstate political committee,...