Today the New Jersey State Comptroller A. Matthew Boxer and the Election Law Enforcement Commission (ELEC) Executive Director Jeff Brindle called for a simpler pay-to-play system, tighter contracting rules, and more complete disclosure of contractor contributions.

Comptroller Boxer issued a report finding the state’s pay-to-play laws contain “a series of fatal flaws [that] have essentially rendered New Jersey’s Pay-to-Play law meaningless in the effort to prevent local governments from steering contracts to politically favored vendors.” Director Brindle stated, “Unfortunately, New Jersey’s political history is littered with examples of private contractors securing lucrative public contracts through targeted contributions.”

The comptroller’s report suggests several changes, such as eliminating the fair-and-open exception which has different regulatory systems at the state and local levels, strengthening fair-and-open guidelines to require more competitive contracting, and reforming New Jersey’s contract laws to allow a more competitive vendor-selection process.

Drawing on earlier recommendations from ELEC, Director Brindle also made calls for changes, including for one state pay-to-play law to apply “across the board” for all jurisdictions, emphasizing “the current maze of local and state laws is terribly confusing.” Additionally, ELEC proposes that any public contractor receiving a contract over $17,500 file an annual report with the agency, listing the contractor’s contributions and public contracts. The current disclosure threshold is $50,000. Director Brindle also stated the contribution limits for contractors should be raised to help address fundraising concerns and not discourage participation in the political process.

“Combined with competitive bidding reform as suggested by the Comptroller, together these changes would, I believe, constitute the strongest pay-to-play law in the nation,” Director Brindle said.

Comptroller Boxer’s press release is here. Director Brindle’s press release is here.

As The Joint Select Committee on Deficit Reduction holds its first public hearing today, a new bi-partisan bill introduced last week is circulating which would require its 12 members to disclose meetings with lobbyists and special interests between committee members and staff 48 hours after the meeting on the committee website.

The bill also requires the same disclosure before any meetings occur within 48 hours of the November 23 vote and the submission of legislative text on December 2, and disclosure of lobbyist and special interest contributions to committee member campaigns or leadership PACs, and any contributions over $500, all within 48 hours after the donation occurs.

The committee is streaming today’s meeting live, but the bill would also require committee hearings to be streamed live on its website and be televised.

Additionally, the committee’s report and proposed legislative language would have to be published online 72 hours before the vote occurs.

The bill is sponsored by House Representatives Jim Renacci, Dave Loebsack, and Mike Quigley. Representative Renacci’s press release can be found here.

A pay-to-play ordinance has been introduced in Montclair, New Jersey.

The ordinance would prohibit business entities which have made local political contributions from contracting with the township if the contributions were made within one year immediately preceding the date of the contract or agreement and are in excess of certain thresholds. Contribution thresholds include a maximum of $300 per calendar year each for any purpose to any candidate or candidate committee for mayor or governing body, $500 per calendar year to any joint candidates committee for mayor or governing body, and $500 maximum per calendar year to any PAC. Penalties for violating the ordinance include a four ban on contracting with the township.

A business entity may cure a violation of the ordinance, if, within 30 days after the date on which the applicable ELEC report is published, the business entity notifies the municipality in writing and seeks and receives reimbursement of the contribution from the recipient of such contribution.

Public comments will be accepted at the next Township Council meeting on September 20.

The Borough Council of New Milford, New Jersey has adopted a new pay-to-play ordinance.

Ordinance #2011:17 prohibits any business entity who submits a proposal for, enters into negotiations for, or agrees to any contract or agreement with the borough, from knowingly making any contribution to local candidates, candidate committee or joint candidates committees, PACs, or to holders of public office having ultimate responsibility for the award of a contract or agreement.

Certain threshold amounts apply to this prohibition, such as a maximum of $300 per calendar year for any purpose to any candidate or candidate committee for mayor or a governing body. In order to cure any violations in excess of the limits, a reimbursement of contributions is allowed if made within 30 days. The new ordinance also applies to renewal and material modifications of existing contracts. Prior to the awarding of a contract, vendors will be required to submit sworn statements attesting to compliance with the regulations.

Vendors found in violation could face disqualification from eligibility for future contracts with the Borough for four years from the date of the violation.

Some exceptions to the new ordinance are allowed, including contracts awarded in the case of emergencies

The Federal Election Commission has entered into a Stipulated Order and Consent Judgment with the National Defense PAC (NDPAC) agreeing not to enforce some provisions of law regarding contribution limits for political committees and candidates.

These provisions, 2 U.S.C. §§ 441a(a)(1)(c) and 441a(a)(3), were ruled unenforceable by the District Court in a prior decision, Carey v. FEC. Prior to the District Court’s decision, the FEC had been unable to issue a binding resolution for an earlier NDPAC advisory opinion request.

As a single committee, the NDPAC may now contribute directly to candidates and political committees, and make independent expenditures, separating the funds only by using two separate bank accounts. It must maintain the statutory limits on the solicitation of funds used for direct contributions while it may simultaneously seek unlimited funds for use in their independent expenditures. While the Stipulated Order and Consent Judgment specifically regards the FEC withholding enforcement of the law as it applies to NDPAC, it does not address other PACs utilizing the same procedures for solicitation and separation of funds.

This post updates a previous article by George Ticoras, “One PAC is Enough” from June 15, 2011.

Lorne Malkiewich, the director of the Nevada Legislative Counsel Bureau, has announced he is retiring before the next regular legislative session in 2013.

Malkiewich told the Reno Gazette-Journal, “I am applying for some jobs and if I get them, then obviously, it would be sooner,” he said. “But otherwise, it will probably be sometime next fall (of 2012). I just wanted to give leadership some notice so they will be able to work on recruiting a new director and things like that.” One of the duties of the Legislative Counsel Bureau is handling lobbyist registration, reporting, and information services.

Malkiewich has been with the Legislative Counsel Bureau since 1981.

Photo of the Nevada State Capitol by Dave Parker on Wikipedia.

Earlier this month, United States Representative Rob Woodall introduced House Resolution 2788 which amends the Federal Election Campaign Act of 1971 to prohibit a candidate for election to the congress from making campaign expenditures for the election from amounts that were not raised during the election cycle for that office.

Rep. Woodall argues the legislation, called the Competitive Elections Act, will reduce the power of incumbents and encourage more new candidates in Congressional elections.

Rep. Woodall said, “We see this voter frustration in all of the polls supporting term limits. Rather than amend our Constitution with term limits that protect incumbents for three, six or twelve terms, my bill restores power and choices to voters each and every term,” Woodall said. His press release can be found here.

The American Bar Association (ABA) has adopted a resolution urging the United States Congress to amend the Federal Lobbying Disclosure Act (LDA).

Recommendations made in “Resolution 104B Revised” by the ABA House of Delegates include narrowing the current time threshold required for registration and barring campaign fundraising for members of Congress lobbied within the previous two years.

Additional resolutions includes the following information be disclosed in a lobbyist’s quarterly reports: disclosure of lobbying support activities performed by retained entities; reporting of the identification of individuals “principally involved in planning, directing, or coordinating lobbying support activities”; identification of individuals with any level of involvement in the lobbying activities who have recently served as high-ranking federal officials; and all congressional offices, congressional committees, and federal agencies and offices contacted by lobbyists employed.

A Federal Court has ruled aliens who are in the United States on temporary work visas may not make political contributions to federal candidates or political parties.

In Bluman v FEC, the court upheld 2 U.S.C §441(e)(a), which prohibits contributions from individuals living in the U.S. but not admitted for permanent residency. The federal statute was challenged by two foreign citizens living in the United States who want to make direct contributions to candidates and political parties.

In upholding the law, the court wrote in its decision, “It is fundamental to the definition of our national political community that foreign citizens do not have a constitutional right to participate in, and thus may be excluded from, activities of democratic self-government.”

In response to this week’s legislation raising the federal debt limit ceiling and creating a new Joint Select Committee on Deficit Reduction, U.S. Senator David Vitter announced he is introducing a bill requiring 48-hour disclosure of campaign contributions over $1,000 to any appointed member of the committee or their leadership PACs.

“We need to see full transparency and accountability because these committee members will be making huge decisions with a lot on the line,” Senator Vitter said.

The 48-hour rule would continue until the committee expires on January 21, 2012.

The full press release can be found here.

The Frederick County Board of Commissioners voted to have a public hearing for a new ethics ordinance which, among other things, would no longer require lobbyists to disclose their annual income.

Based on one of the state’s recommended models for local ethics laws for counties and cities, the ordinance drew concerns by commissioners that the requirements for lobbyists could be weaker than those currently in place. As an example, Frederick County’s requirements for registration and reporting for grassroots lobbying are not included in the proposed ordinance, which would supersede the current law.

The public hearing has been scheduled for September 6.

U.S. Representative Anna G. Eshoo has sent a letter to President Obama in support of a proposed executive order requiring federal contractors to disclose their political expenditures. The letter was signed by more than sixty members of the House.

In part the letter reads, “[D]isclosure will not politicize the procurement process–it will improve it. Political expenditures are already well-known to those that make them and to the officials who benefit. With disclosure, the public will have access to this information as well, allowing them to judge whether contracts were awarded based on merit.”

The proposed executive order has received both support and opposition since its leak in the spring, and even sparked a house committee hearing in May.

For previous articles on Lobby Comply by George Ticoras on this topic, you can read posts from June 1, May 20, May 12, and May 10.

Attorneys for the Indiana Election Division have opined that a proposed local ban on political contributions from city contractors violates state law.

The proposed Fort Wayne, Indiana ordinance prohibits companies, including subcontractors and family members, from doing business with the city if political donations were made to candidates or officials during the previous year. If a violation were not remedied by having the contributions returned, the company would be banned for three years from contracting with the city.

As quoted by The Journal Gazette, the authors of the opinion, Dale Simmons and Leslie Barnes, co-counsels at the Indiana Election Division, write “We believe the proposed ordinance unlawfully attempts to exercise the ‘power to conduct elections,’ which is a power expressly withheld from municipalities by the General Assembly. If this were not so, it would be easy to anticipate the confusion wrought in the administration of elections by numerous and conflicting local campaign finance regulations.”

Utah Governor Gary Herbert has called a special session of the State Legislature for July 20. It is expected to last only one day.

“The items on the call are generally minor housekeeping items, some of which are time-sensitive,” the Governor is quoted as saying in his press release.

Photo of Governor Gary Herbert courtesy of Gw.hajduk on Wikipedia.