The Division of Local Government Services (DLGS) has issued Local Finance Notice 2023-14 (LFN 2023-14) identifying key changes to the state’s pay-to-play laws after the enactment of P.L. 2023, c. 30, known as the “Elections Transparency Act.”
Some of the highlighted changes identified within LFN 2023-14 include:
- Local government entities are now prohibited from imposing pay-to-play provisions that are more restrictive than those in state law. As such any local pay-to-play ordinance is null and void and should, as a housekeeping matter, be repealed.
- Candidates and committees are required to report contributions over $200, as opposed to the previous reportable threshold of $300.
- A municipality (or any agency or instrumentality thereof) may now award a non-fair and open contract over $17,500 to a business entity making reportable contributions under N.J.S.A. 19:44A-8 toward any municipal committee of a political party in that municipality.
- Business entities being awarded non-fair and open contracts are no longer prohibited from making reportable contributions under N.J.S.A. 19:44A-8 toward a political party’s county or municipal committee during the term of their contract.
- Clarification that the governing body of a municipality (or any agency or instrumentality thereof) may delegate authority to award a contract with an anticipated value of more than $17,500 but below the increased bid threshold in the Local Public Contracts Law contracting unit with a qualified purchasing agent to the QPA.
You should review LFN 2023-14 with your municipal attorney, purchasing agent and finance professionals for more information.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.