Democrat Phil Murphy was elected as New Jersey’s 56th governor.

Murphy, a former Goldman Sachs executive and U.S. Ambassador to Germany, may impact Congress if he appoints a replacement for U.S. Sen. Robert Menendez.

Menendez is currently on trial for corruption charges and the jury began deliberations on November 6, 2017.  If convicted, Menendez will face pressure to step down allowing a Democrat, opposed to exiting Republican Gov. Chris Christie, to appoint a replacement.

Murphy is set to take office on January 16, 2018.

Paterson Mayor Jose Torres will continue to serve in office despite recently being indicted on multiple corruption-related charges.

Indictments do not prevent him from serving, and city officials do not expect him to resign anytime soon.

An investigation revealed Torres asked city employees to work at a warehouse leased by his daughter and nephew; city employees were also found to have been performing various jobs around his home.

Torres denies the allegations, claiming the employees were doing work on their personal time. Torres has served as mayor of Paterson on and off since first elected in 2002.

The state Appellate Division recently upheld two state agency decisions related to contractor pay-to-play violations.

Della Pello Paving, Inc. lost two contracts totaling roughly $7 million and was barred from contracting with the state for the remainder of Gov. Chris Christie’s second term because it made a $500 contribution to Somerset County Republican Organization.

State pay-to-play laws prohibit a contractor from receiving a contract exceeding $17,500 if it contributed more than $300 during the previous 18 months to a county political party committee.

Della Pello Paving challenged the state agency decisions claiming the contribution was intended for Sheriff Frank Provenzano’s campaign and not for the county political committee. The inadvertent contribution needed to be returned within 30 days to avoid a pay-to-play violation. Della Pello did not request and receive reimbursement until more than a year after making the donation; moreover, Provenzano was not running for re-election the year the contribution was made.

Following the decision of the appellate court, Della Pello’s attorney sought emergency review by the state Supreme Court, but the court refused to hear the case.

Jersey City Councilman Michael Yun has proposed changes to the city’s pay-to-play laws.

The changes would broaden the laws to include the city’s autonomous agencies as well as restrict some vendors from contributing to city elected officials seeking higher office. The proposal would also extend the ban on no-bid city contracts, from one year to four years, for those who contribute more than $300 to a candidate.

Yun, a longtime critic of Mayor Steve Fulop, claims the changes are meant to close loopholes in the current law and not to target Fulop. In the past, Fulop’s donors have received large contracts with the city Municipal Utilities Authority, an autonomous agency not bound by current pay-to-play rules. Fulop is also rumored to be considering a 2017 gubernatorial run.

Yun submitted his proposal to corporation counsel for review and hopes to receive initial approval from council at its July 13 meeting.

Photo of Jersey City by David Jones on Wikimedia Commons.

New Jersey law requires every business receiving $50,000 in government contracts in a calendar year to file a Business Entity Annual Statement (Form BE) with the Election Law Enforcement Commission (ELEC) by March 30 of the following year. ELEC recently amended Form BE to require filers to certify the statements on the form as accurate, to acknowledge penalties for willfully filing a false statement, and to identify whether each contract was awarded pursuant to a fair and open process.

Businesses completing Form BE for 2015 can expect to spend more time filing, as determining if a contract was awarded pursuant to a fair and open process may not be as simple as it sounds. The term may be defined differently at the state, county, and municipal levels, and some long-term contracts to be listed on the form may have been awarded years ago.

The fair and open certification is just another addition to New Jersey’s notoriously complex pay-to-play rules. Because certain laws apply only to contracts not awarded through a fair and open process, identifying a contract awarded through any other process will likely highlight the contract for regulatory agencies.

Although the changes will certainly make filing more complicated, ELEC has yet to issue guidance on the new requirements.

The state Legislature adjourned on Monday, January 11.

Among the business handled the last day of the session was an amendment to the state constitution to change how redistricting is handled. Due to criticism and a lack of support, the measure was pulled, with state Sen. Nicholas Scutari, who had sponsored the bill, promising the measure would be studied further and reintroduced in next legislative session.

The Legislature passed bills allowing counties to impose a hotel tax, to expand the state’s DNA database, and to require nonprofit hospitals to pay “community service assessments” to the counties in which they are located.

Bills concerning required sick leave for employees and required licensing and insurance for ride-share service drivers, like those who work for Uber or Lyft, expired at the end of the session.

The New Jersey Election Law Enforcement Commission has approved the publication of a proposal amending lobbyist registration and reporting obligations. The proposal would require governmental affairs agents and represented entities to file all lobbying forms and reports electronically. A registration number and PIN supplied by the Commission would act as an electronic signature and acknowledgement for forms and reports submitted electronically.

Furthermore, when a group of individuals, each registered as a governmental affairs agent, together represents more than one entity, the group will be able to file a notice of representation for a represented entity on behalf of the group. Notice of termination filed by such a group would need to indicate whether termination applies the entire group or to a specific governmental affairs agent.

Additionally, the proposal would require any changes to the notice of representation to be made by electronically filing an amendment. Lastly, the proposal would also require an individual registering as a governmental affairs agent for the first time to personally appear in Commission offices to submit the annual fee and required photographs.

The proposed amendments were published in the New Jersey Register on October 19, 2015, and will be the subject of a public hearing on December 15. If approved following the public hearing, the amendments are expected to go into effect in early February.

On Monday, New Jersey Gov. Chris Christie conditionally vetoed bipartisan legislation designed to expand the state’s pay-to-play rules by requiring the state to disclose fees paid to outside investment managers. The decision was made while Christie’s administration faces a new investigation into New Jersey pension fees paid to financial firms contributing to Republican groups.

Christie argues the bill’s disclosure requirements would have had a chilling effect on the state’s ability to attract investment managers. Others criticize the governor’s decision and maintain he vetoed the bill because it would have complicated his ability to raise presidential campaign money from firms currently managing billions of dollars in the state’s public pension system.

Christie “removed the provisions that would prevent pay-to-play between state investors and national political organizations connected to state political figures, including the governor himself, and the changes he made to the disclosure requirements are far too weak” said state Sen. Sheila Turner, the Democrat who sponsored the bill.

Photo of Governor Christie by Bob Jagendorf on Wikimedia Commons.

The Election Law Enforcement Commission has published a proposed lobbyist registration fee increase in the New Jersey Register.

The proposed increase, which would change the registration fee from $425 to $575, is now subject to a 60-day comment period, followed by a public hearing scheduled for May 19, 2015.

The registration fee has not changed since 2004.

Executive Director Jeff Brindle of the New Jersey Election Law Enforcement Commission issued a statement urging the state Legislature to amend existing pay-to-play law. He claims constitutional challenges to federal laws may have ramifications on New Jersey’s law, and a complete overhaul is necessary.

Brindle argues state pay-to-play law is too complex and has unintended consequences. Contractors either stop making contributions altogether, seek ways to legally circumvent the law, or simply break the law. Moreover, donations to transparent entities such as candidates and parties have declined while the activity of PACs and anonymous independent groups has increased significantly.

Because pay-to-play law is worthwhile, Brindle suggests establishing one state law, ending the fair and open loophole, enhancing disclosure, raising the contribution limit, exempting political parties, and including restrictions on contractor contributions to PACs.

The statement represented the personal opinions of Jeff Brindle and not necessarily those of the Commission.

New Jersey Assemblyman Michael Patrick Carroll recently introduced Assembly Bill 3650 to abolish the Election Law Enforcement Commission, repeal New Jersey’s restrictions on campaign finance and lobbying, and end public financing of gubernatorial campaigns.

Carroll claims contribution limits do not actually limit contributions but simply encourage candidates to find money in other ways, such as through PACs or other non-profit issue advocacy organizations. He said he’s not wholly averse to reporting contributions, however, and suggested the creation of a website to which every candidate would periodically download contribution and expenditure data.

Executive Director Jeff Brindle of the Election Law Enforcement Commission is calling for comprehensive pay-to-play reform after critics revealed a loophole in Trenton’s laws. The loophole became apparent after a South Jersey law firm was awarded a contract with the city worth up to $20,000.

One of the firm’s founding partners was serving as the treasurer of a PAC when the PAC donated $8,200 to the election campaign of Trenton Mayor Eric Jackson. Because neither the law firm nor any of its partners made a donation to the PAC, the contract award was not deemed a violation of the city’s pay-to-play law.

Critics, however, want the law revised to include such contract awards. Part of Brindle’s recommendations for reform include simplifying complex laws, creating a single pay-to-play law to apply to all governments at the state, county, and local levels, and prohibiting the pay-to-play loophole for publicly bid contracts.

New Jersey Gov. Chris Christie has called a special legislative session for Thursday, July 31. The session will convene at noon with Christie detailing his recommendations for amendments to the state’s bail system.

Christie is asking the legislators to consider a constitutional amendment allowing judges to deny bail to defendants considered dangerous or a flight risk, as well as legislation offering a non-monetary option for pre-trial release based on a risk assessment.

A constitutional amendment requires voter approval, and the amendment must pass both houses with 60 percent majorities by Monday, August 4, to make it on the ballot in November.

On October 14, 2014, New Jersey will implement State of the Art Requisition Technology (NJSTART), a new eProcurement system designed to simplify the procurement process, drive efficiency, and promote competition. The system’s online business directory will be accessible by all state agencies, suppliers, and local governments. Vendors will be able to create individual profiles, receive email alerts for upcoming procurement opportunities, submit proposals, and access training manuals and reference guides.

NJSTART will replace the 25-year-old mainframe system and will allow vendors to access their profiles in real time at any time of day.

Early enrollment is available for vendors who would like to be properly registered when the new system goes live. Because vendors will only be paid if they are registered in the system, vendors on existing contracts are strongly encouraged to register in the system prior to October.