First, under the Commission's proposal there would be one State Pay-to-Play law that would apply to contractors receiving public contracts at both the State level as well as the local level. Current law allows for municipalities and counties to adopt their own ordinances that could be either more restrictive or less restrictive than the State law. In light of the concern for public corruption in New Jersey and the public's desire to end favoritism relative to the public bidding process, it is entirely understandable that local officials would enthusiastically embrace the idea of passing their own ordinances. Unfortunately, this has led to a myriad of different rules that has resulted in confusion and frustration.
One strong State law which emphasizes disclosure would go far toward ending the confusion and enhancing compliance with the law.
Second, the Commission has endorsed the idea that the "Fair and Open" loophole that applies to contracting at the local level be closed. Under current law if a municipality or county advertises publically for bids on a contract and has in place its own procedures or awarding said bids the Pay-to-Play law is not applicable. In other words, the $300 contribution limit to candidates and other local entities under the State Pay-to-Play law does not apply.
Third, the recommendations call for a strengthening of disclosure. In order for vendors to be required to disclose their public contracts and contributions, they must have received more than $50,000 in public contracts Statewide in any given year. When they exceed that threshold amount they are required to file a report with the Commission at the end of March.
The Commission would like to end that threshold and instead require every public contract over $17,500 to be subject to disclosure. Contribution information would also be subject to reporting. This change would greatly increase transparency over the procurement process and allow the public to observe any relationship between contributions and the awarding of contracts.
Finally, The Commission would like to see the Legislature consider raising the contribution limit above $300. While the Commission is mindful of the concern over money in politics it also realizes that in order for there to be competitive elections, candidates must be able to raise enough money to get their message to the voters. With the cost of media advertising in New Jersey this is particularly important. The $300 limit is a bit too low for a State like New Jersey. The Legislature may consider raising the limit to $1,000. These range from $2,600 to $37,000, depending on the type of donor and the receiving committee while still keeping it well below the level applicable to everyone but those bidding for public contracts. A higher limit will help immunize the law from any First Amendment-based court challenges inspired by the current U.S. Supreme Court.
Any increase in the contribution limit would be more than offset by the enhanced disclosure proposed by the Commission.
The recommendations made by the Commission represent a commonsense approach toward dealing with the important issue of Pay-to-Play. It standardizes the law, makes it understandable, strengthens disclosure and fosters greater transparency, and makes the law easier to enforce. It is hoped that the Legislature will be receptive to the Commission's proposal.
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