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A1364
ASSEMBLY, No. 1364
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman ELLEN J. PARK
District 37 (Bergen)
SYNOPSIS
���� Prohibits business receiving State development
subsidies from making certain campaign contributions.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
prohibiting businesses receiving State development
subsidies from making certain campaign contributions and supplementing
P.L.1973,
c.83 (C.19:44A-1 et seq.)
.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� As used in P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill):
���� "Development
subsidy" means the authorizing of or providing to a recipient business an
amount of funds by or from a State agency with a value of not less than $25,000
for the purpose of stimulating economic development in New
Jersey, including, but not limited to, any bond, grant, loan, loan guarantee,
matching fund, or any tax expenditure.� "Development subsidy" shall
not mean: a. any contract under which a State agency purchases or otherwise
procures goods, services, or construction on an unsubsidized basis, including
any contract solely for the construction or renovation of a facility owned by a
State agency; b. any authorizing or providing of funds by or from a State
agency to a recipient business, including by means of a tax expenditure, for
the exclusive purpose of the development or production of affordable housing,
for the exclusive purpose of subsidizing site remediation, recycling, commuter
transportation assistance, pollution reduction, energy conservation, or other
programs to improve the environment, or for the exclusive purpose of providing
benefits to employees of the recipient business; or c. any authorizing or
providing of funds by or from a State agency to a non-profit organization,
including by means of a tax expenditure, for the exclusive purpose of
subsidizing the development of facilities used to provide recreational,
educational, arts, or cultural programs, or childcare or healthcare services.
���� �Person� shall have the same
meaning as provided in section 37 of P.L.1977, c.110 (C.5:12-37).
���� "State agency" means
the State of New Jersey or any agency, instrumentality, or authority of the
State that provides a development subsidy to a recipient business and, in the
case of a tax expenditure related to any tax paid to the State, �State agency�
means the State Treasurer or the New Jersey Economic Development Authority, as
applicable.� �State agency� shall not mean a political subdivision of the
State.
���� "Recipient business"
means any non-governmental person, business, corporation, association,
operation, firm, partnership, trust, or other form of business association or
other business entity during one or more calendar years in which the business
receives a development subsidy, or any benefit thereof, from a State agency.
���� "Tax expenditure"
means the amount of foregone tax collections due to any abatement, reduction,
exemption, or credit against any State tax, including, but not limited to,
taxes on raw materials, inventories or other assets, taxes on gross receipts,
income, or sales, and any use, excise, or utility tax.� "Tax
expenditure" shall not mean any credit against any tax liability of an
employee or any personal exemption, homestead rebate, credit, or deduction for
the expenses of a household or individual, or other reduction of the tax
liability of an individual or household.
���� 2.��� A recipient business, or
any holding, affiliate, or subsidiary company thereof, or any officer,
director, key employee, or principal employee of a recipient business or of any
holding, affiliate, or subsidiary company thereof, or any person or agent on
behalf of a recipient business, holding, affiliate, or subsidiary company
thereof, shall not directly or indirectly, pay or contribute any money or thing
of value to any candidate for nomination or election to any public office in
this State, or to any political party committee or legislative leadership
committee in this State, or to any group, committee, or association organized
in support of that candidate or political party, except that the provisions of
this section shall not be construed to prohibit any individual who is a
candidate for public office in this State from contributing to the individual's
own campaign.
���� 3.��� a.� Any person who is
determined by the Election Law Enforcement Commission to have made, or caused
to be made, a political contribution prohibited by the provisions of P.L. , c. (C. )
(pending before the Legislature as this bill) is guilty of a crime of the
fourth degree and subject to the penalties therefor, except that the amount of
a fine may be up to $200,000, and in the case of a person other than a natural
person, the amount of a fine may be up to $500,000.
���� b.��� A recipient business
which is determined by the Election Law Enforcement Commission to have
willfully and intentionally made a contribution or failed to reveal a
contribution in violation of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill) may be liable to a penalty of up to the value of its
development subsidy with the State agency, may be ineligible for any remaining
amount of the development subsidy, and may be debarred by the State Treasurer
from contracting with a State agency or receiving a development subsidy for up
to five years from the date of the violation.
���� 4.��� Any candidate for
nomination or election to any public office in this State, who is determined by
the Election Law Enforcement Commission to have willfully and intentionally
solicited or accepted a contribution in violation of the provisions of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill)
shall be liable to a penalty for
each violation equal to the penalties set forth in subsection e. of section 22
of P.L.1973, c.83 (C.19:44A-22).
���� 5.��� The Election Law
Enforcement Commission shall promulgate rules and regulations pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.)
to effectuate the purposes of this act.
���� 6.��� This act shall take
effect immediately.
STATEMENT
���� This bill prohibits a
business, or any holding company or affiliate of the business, or an officer,
director, or key or principal employee of the business, from making campaign
contributions to candidates for nomination or election to any public office in
the State during a period when the business is receiving a development subsidy
totaling $25,000 or more from a State agency or authority.� The prohibition
does not prohibit any individual who is a candidate for public office in this
State from contributing to the individual's own campaign.
���� A violation of this
prohibition would be a crime of the fourth degree, except that the amount of a
fine may be up to $200,000, and in the case of a person other than a natural
person, the amount of a fine may be up to $500,000.� Further, a recipient
business found to have willfully and intentionally made a contribution or
failed to reveal a contribution may be liable to a penalty of up to the value
of its development subsidy with the State agency, may be ineligible for any remaining
amount of the development subsidy, and may be debarred by the State Treasurer
from contracting with any State agency or receiving a development subsidy for
up to five years.
���� The bill provides that a candidate
for nomination or election to any public office in this State who solicits or accepts
a political contribution prohibited by the bill is liable to a penalty for each
violation as set forth in current law in N.J.S.A.19:44A-22.