Establishes "Local Governmental Process Activities Disclosure Act."

A166

ASSEMBLY, No. 166

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

Assemblyman MICHAEL INGANAMORT

District 24 (Morris, Sussex and Warren)

SYNOPSIS

���� Establishes "Local Governmental Process
Activities Disclosure Act."

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
establishing the "Local Governmental Process
Activities Disclosure Act" and supplementing Title 52 of the New Jersey
Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� The Legislature affirms
that the preservation of responsible government requires that the fullest
opportunity be afforded to the people of the State to petition their local
governments for the redress of grievances and to express freely to individual
members of the local governing bodies, to governing bodies at all local
government levels, and to their local chief executives their opinion on local
measures and current issues; to local government officers and agencies their
opinion on local rules and regulations developed and promulgated by those
officers and agencies in the exercise of powers delegated to them by law; and
to the local chief executives and local government officers and agencies their
opinion on matters involving the administration of various local governmental
processes by the chief executives and those officers and agencies in the
exercise of powers delegated to them by law.

���� The Legislature finds,
however, that the preservation and maintenance of the integrity of the process
for the adoption of local measures, of the local regulatory process, and of the
local governmental process, including the development and promulgation of local
rules and regulations or the administration of various local governmental
processes to effectuate the implementation of law, requires the identification
in certain instances of persons and groups who seek to influence the content,
introduction, passage or defeat of local measures, the proposal, adoption,
amendment, or repeal of local rules and regulations or the administration of
various local governmental processes, and, where it is not otherwise apparent
or readily ascertainable, the nature of the interest which those persons and
groups seek to advance or protect through such activity.

���� It is in the public interest
to closely monitor the activities of governmental affairs agents and lobbyists
with respect to their involvement in influencing the adoption of local measures
and local regulatory and governmental processes to ensure the integrity of
government.

���� Therefore, it is the purpose
of this act, P.L.�� , c.�� (C.�� ) (pending before the Legislature as this
bill), to require adequate disclosure in certain instances in order to make
available to the Legislature, local governmental officials and the public information
relative to the activities of persons who seek to influence the content,
introduction, passage or defeat of local measures, the proposal, adoption,
amendment or repeal of local rules and regulations or the administration of
various local governmental processes by such means.

���� 2.��� This act shall be known
as the "Local Governmental Process Activities Disclosure Act."

���� 3.��� For the purposes of this
act, P.L.�� , c.�� (C.�� ) (pending before the Legislature as this bill),
unless the context clearly requires a different meaning:

���� a.���� The term
"person" includes an individual, partnership, committee, association,
corporation, and any other organization or group of persons.

���� b.��� The term "local
measure" includes all ordinances, resolutions, amendments, nominations and
appointments pending or proposed in a local governing body, and all ordinances
and resolutions which having been approved by the local governing body are
pending implementation.

���� c.���� The term "local
governing body" means:

���� (1)�� in the case of a
municipality, the commission, council, board or body, by whatever name it may
be known, having charge of the finances of the municipality;

���� (2)�� in the case of a county,
the board of chosen freeholders, or, in the case of a county having adopted the
provisions of the "Optional County Charter Law," P.L.1972, c.154
(C.40:41A-1 et seq.), as the governing body is defined in the form of
government adopted by the county under that act;

���� (3)�� in the case of an
authority, a body, public and corporate, created by one or more municipalities
or counties pursuant to any law authorizing that creation, which law provides
that the public body so created has at least the following powers: to adopt and
use a corporate seal; to sue and be sued; to acquire and hold real or personal
property for its purposes; and to provide for and secure the payment of its
bonds or other obligations, or to provide for the assessment of a tax on real
property within its district, or to impose charges for the use of its
facilities or any combination thereof; and

���� (4)�� in the case of a school
district, the board of education of any local school district, consolidated
school district, regional school district, county vocational school and any
other board of education or other similar local body established and operating
under the provisions of Title 18A of the New Jersey Statutes, and also
including the board of trustees of a charter school established under P.L.1995,
c.426 (C.18A:36A-1 et seq.).

���� d.��� The term
"lobbyist" means any person, partnership, committee, association,
corporation, labor union or any other organization that employs, engages or
otherwise uses the services of any governmental affairs agent to influence
local measures, local regulations or local governmental processes.

���� e.���� The term "local
chief executive" means:

���� (1)�� in the case of a
municipality, the mayor or chief executive of the municipality, whatever his
official designation may be;

���� (2)�� in the case of a county,
the chief executive of the county, whatever his official designation may be;

���� (3)�� in the case of an
authority, the chief executive of the authority, whatever his official
designation may be;

���� (4)�� in the case of a school
district, the chief executive of the school district, whatever his official
designation may be; and

���� (5)�� any person designated to
act in the role of the local chief executive, or elected or appointed to fill a
vacancy in that office.

���� f.���� The term
"communication with a member of the local governing body", "with
staff of the local governing body," "with the local chief
executive," "with staff of the local chief executive," or
"with a local government officer or employee" means any
communication, oral or in writing or any other medium, addressed, delivered,
distributed or disseminated, respectively, to a member of the local governing
body, to staff of the local governing body, to the local chief executive, to
staff of the local chief executive, or to a local government officer or
employee, as distinguished from communication to the general public including
but not limited to a member of the local governing body, to staff of the local
governing body, to the local chief executive, to staff of the local chief
executive, or to a local government officer or employee.� If any person shall
obtain, reproduce or excerpt any communication or part thereof which in its
original form was not a communication under this subsection and shall cause
such excerpt or reproduction to be addressed, delivered, distributed or
disseminated to a member of the local governing body, to staff of the local
governing body, to the local chief executive, to staff of the local chief
executive, or to a local government officer or employee, such communication,
reproduction or excerpt shall be deemed a communication with the member of the
local governing body, with staff of the local governing body, with the local
chief executive, with staff of the local chief executive, or with a local
government officer or employee by such person.

���� g.��� The term
"governmental affairs agent" means any person who receives or agrees
to receive, directly or indirectly, compensation, in money or anything of value
including reimbursement of his expenses where such reimbursement exceeds $100
in any three-month period, to influence a local measure, to influence local
regulation or to influence local governmental processes, or all of the above,
by direct or indirect communication with, or by making or authorizing, or
causing to be made or authorized, any expenditures providing a benefit to, a
member of the local governing body, staff of the local governing body, the
local chief executive, staff of the local chief executive, or any local
government officer or employee, or who holds himself out as engaging in the business
of influencing local measures, local regulations or local governmental
processes, by such means, or who incident to his regular employment engages in
influencing local measures, local regulations or local governmental processes,
by such means; provided, however, that a person shall not be deemed a
governmental affairs agent who, in relation to the duties or interests of his
employment or at the request or suggestion of his employer, communicates with a
member of the local governing body, staff of the local governing body, the
local chief executive, staff of the local chief executive, or a local
government officer or employee concerning any local measure, local regulation
or local governmental process, if such communication is an isolated, exceptional
or infrequent activity in relation to the usual duties of his employment.

���� h.��� The term "influence
a local measure" means to make any attempt, whether successful or not, to
secure or prevent the initiation of any local measure, or to secure or prevent
the passage, defeat, amendment or modification thereof by the local governing
body, or the approval, amendment or disapproval thereof by the local chief
executive in accordance with his authority.

���� i.���� The term
"statement" includes a notice of representation or a report required
by this act.

���� j.���� The term "member
of the local governing body" includes any member or member-elect of, or
any person who shall have been selected to fill a vacancy in, the local
governing body, and any other person who is a member or member-designate of any
committee or commission established by the local governing body.

���� k.��� The term "staff of
the local governing body" includes all staff, assistants and employees of
the local governing body or any of its members in the member's official
capacity, whether or not they receive compensation from public funds.

���� l.���� The term "staff of
the local chief executive" includes the heads of principal local
government departments and agencies, the secretary to the local chief
executive, the counsel to the local chief executive, and all professional
employees in the office of the counsel to the local chief executive, and all
other employees of the office of the local chief executive.

���� m.�� The term "local
government officer or employee" means any assistant or deputy heads of
principal local government departments or agencies, and any officer of a local
government department or agency who is not included among the foregoing or among
the staff of the local chief executive who is empowered by law to issue,
promulgate or adopt local administrative rules and regulations or to administer
local governmental processes, and any person employed in the office of such an
officer who is involved with the development, issuance, promulgation or
adoption of such local rules and regulations or administration of local
governmental processes in the regular course of employment.

���� n.��� The term "local
regulation" includes any local administrative rule or regulation affecting
the rights, privileges, benefits, duties, obligations, or liabilities of any
one or more persons subject by law to regulation as a class, but does not include
a local administrative action (1) to issue, renew or deny, or, in an
adjudicative action, to suspend or revoke, a license, order, permit or waiver
under any law or administrative rule or regulation, (2) to impose a penalty, or
(3) to effectuate an administrative reorganization within a single local
government department or agency.

���� o.��� The term "influence
local regulation" means to make any attempt, whether successful or not, to
secure or prevent the proposal of any local regulation or to secure or prevent
the consideration, amendment, issuance, promulgation, adoption or rejection
thereof by an officer or any local government department or agency empowered by
law to issue, promulgate or adopt local administrative rules and regulations.

���� p.��� The term
"expenditures providing a benefit" or "expenditures providing
benefits" means any expenditures for entertainment, food and beverage,
travel and lodging, honoraria, loans, gifts or any other thing of value, except
for (1) any money or thing of value paid for past, present, or future services
in regular employment, whether in the form of a fee, expense, allowance,
forbearance, forgiveness, interest, dividend, royalty, rent, capital gain, or
any other form of recompense, or any combination thereof, or (2) any dividends
or other income paid on investments, trusts, and estates.

���� q.��� The term
"commission" means the Election Law Enforcement Commission
established pursuant to section 5 of P.L.1973, c.83 (C.19:44A-5).

���� r.���� The term
"communication with the general public" means any communication:

���� (1)�� disseminated to the
general public through direct mail or in the form of a paid advertisement in a
newspaper, magazine, or other printed publication of general circulation or
aired on radio, television, or other broadcast medium, and

���� (2)�� which explicitly
supports or opposes a particular item or items of a local measure or local
regulation, or the content of which can reasonably be understood, irrespective
of whether the communication is addressed to the general public or to persons
in public office or employment, as intended to influence a local measure or to
influence local regulation.

���� s.���� The terms
"influence local governmental processes", "influencing local
governmental processes" or "influence local governmental
process" means to make any attempt, whether successful or not, to assist a
represented entity or group to engage in communication with, or to secure
information from, a local government officer or employee, or any local
government department or agency, empowered by law to administer a local
governmental process or perform other functions that relate to such processes.

���� t.���� The term "local
governmental process" means:

���� promulgation of local
administrative orders;

���� rate setting;

���� development, negotiation,
award, modification or cancellation of public contracts;

���� issuance, denial,
modification, renewal, revocation or suspension of permits, licenses or
waivers;

���� procedures for bidding;

���� imposition or modification of
fines and penalties;

���� procedures for purchasing;

���� rendition of local
administrative determinations; and

���� award, denial, modification,
renewal or termination of financial assistance, grants and loans.

���� u.��� The term "public
contract" means a contract the cost or price of which is to be paid with
or out of public funds or the funds of an independent local authority.

���� 4.��� a.� Any person who is
employed, retained or engages himself as a governmental affairs agent shall,
prior to any communication with, or the making of any expenditures providing a
benefit to, a member of the local governing body, staff of the local governing
body, the local chief executive, staff of the local chief executive, or a local
government officer or employee, and in any event within 30 days of the
effective date of this act, P.L.�� , c.��� (C.�� ) (pending before the
Legislature as this bill), or of such employment, retainer or engagement,
whichever occurs later, file a signed notice of representation with the
Election Law Enforcement Commission in such detail as the commission may
prescribe, identifying himself and persons by whom he is employed or retained,
and the persons in whose interests he is working, and the general nature of his
proposed services as a governmental affairs agent for such persons, which
notice shall contain the following information:

���� (1)�� his name, business
address and regular occupation;

���� (2)�� the name, business
address and occupation or principal business of the person from whom he
receives compensation for acting as a governmental affairs agent;

���� (3)�� (a)� the name, business
address and occupation or principal business of any person in whose interest he
acts as a governmental affairs agent in consideration of the aforesaid
compensation, if such person is other than the person from whom said compensation
is received; and

���� (b)�� if a person, identified
under paragraph (2) of this subsection as one from whom the governmental
affairs agent receives compensation, is a membership organization or
corporation whose name or occupation so identified does not, either explicitly
or by virtue of the nature of the principal business in which the organization
or its members, or the corporation or its shareholders, is commonly known to be
engaged, clearly reveal the primary specific economic, social, political, or
other interest which the organization or corporation may reasonably be
understood to seek to advance or protect through its employment, retainer, or
engagement of the governmental affairs agent, a description of that primary
economic, social, political, or other interest and a list of the persons having
organizational or financial control of the organization or corporation,
including the names, mailing addresses and occupations, respectively, of those
persons. The commission shall promulgate rules and regulations to govern the
content of any information required to be disclosed under this subparagraph and
shall take such steps as are reasonably necessary to ensure that all such
information is, in accordance with those rules and regulations, both accurate
and complete.

���� Any list of governmental
affairs agents and their principals required to be published quarterly under
subsection h. of section 16 of P.L.�� , c.��� (C.�� ) (pending before the
Legislature as this bill) shall include, for each such principal for whom it is
not otherwise apparent, the primary specific interest which the principal may
reasonably be understood to seek to advance or protect through its engagement
of the governmental affairs agent and the category of persons required to file
additional information, as that interest and such category shall have been
determined under subparagraph (b) of this paragraph;

���� (4)�� whether the person from
whom he receives said compensation employs him solely as a governmental affairs
agent, or whether he is a regular employee performing services for his employer
which include but are not limited to the influencing of local measures, local
regulations or local governmental processes;

���� (5)�� the length of time for
which he will be receiving compensation from the person aforesaid for acting as
a governmental affairs agent, if said length of time can be ascertained at the
time of filing; and

���� (6)�� the type of local
measure, local regulation or local governmental process or the particular local
measure, local regulation or local governmental process in relation to which he
is to act as governmental affairs agent in consideration of the aforesaid compensation,
and any particular local measure, local regulation or local governmental
process or type of local measure, local regulation or local governmental
process which he is to promote or oppose.

���� b.��� Any governmental affairs
agent who receives compensation from more than one person for his services as a
governmental affairs agent shall file a separate notice of representation with
respect to each such person; except that a governmental affairs agent whose fee
for acting as such in respect to the same local measure, local regulation or
local governmental process or type of local measure, local regulation or local
governmental process is paid or contributed to by more than one person may file
a single statement, in which he shall detail the name, business address and
occupation or principal business of each person so paying or contributing.

���� 5.��� Any governmental affairs
agent or lobbyist not a resident of this State, or not a corporation of this
State or authorized to do business in this State, shall file with the Election
Law Enforcement Commission, before attempting to influence a local measure,
local regulation or local governmental process, its consent to service of
process at an address within this State, or by regular mail at an address
outside this State.

���� 6.��� a.� No lobbyist or
governmental affairs agent shall offer or give or agree to offer or give,
directly or indirectly, any compensation, reward, employment, gift, honorarium
or other thing of value to a local government officer or employee or member of
the local governing body or staff of the local governing body, totaling more
than $250 in a calendar year.� The $250 limit on any compensation, reward,
gift, honorarium or other thing of value shall also apply to each member of the
immediate family of a member of the local governing body, which means a spouse,
child, parent, or sibling of the member residing in the same household as the
member of the local governing body.

���� b.��� The prohibition in
subsection a. of this section on offering or giving, or agreeing to offer or
give, any compensation, reward, gift, honorarium or other thing of value shall
not apply: (1) if it is in the course of employment, by an employer other than a
public employer, of an individual covered in subsection a. of this section or a
member of the immediate family; or (2) if receipt is from a member of the
immediate family when the family member received such in the course of his or
her employment; or (3) if it is in accordance with the terms of regulations
promulgated by the commission with regard to coworkers employed by the same
public employer and the governmental affairs agent is a fellow employee of that
public employer not acting as a governmental affairs agent with respect thereto
pursuant to the provisions of section 10 of this act, P.L.�� , c.�� (C.�� )
(pending before the Legislature as this bill).��

���� c.���� Subsection a. of this
section shall not apply if the local government officer or employee or member
of the local governing body or staff of the local governing body who accepted
any compensation, reward, gift, honorarium or other thing of value offered or
given by a lobbyist or governmental affairs agent makes a full reimbursement,
within 90 days of acceptance, to the lobbyist or governmental affairs agent in
an amount equal to the money accepted or the fair market value of that which
was accepted if other than money. As used in this subsection, "fair market
value" means the actual cost of the compensation, reward, gift, honorarium
or other thing of value accepted.

���� d.��� A violation of this
section shall not constitute a crime or offense under the laws of this State.

���� 7.��� Any person who knowingly
employs another person to serve as a governmental affairs agent who is not
registered as required by section 4 of this act, P.L.�� , c.�� (C.�� ) (pending
before the Legislature as this bill), except upon the condition that such person
register as a governmental affairs agent as provided by law or who continues to
employ any such person who has not registered within the time required by law,
shall, upon conviction, be guilty of a crime of the fourth degree.

���� 8.��� Any governmental affairs
agent who knowingly represents an interest adverse to any of� his employer's
without first obtaining such employer's written consent thereto, after full
disclosure to such employer of such adverse interest, shall, upon conviction,
be guilty of a� crime of the fourth degree.

���� 9.��� Any governmental affairs
agent who knowingly causes, influences, or otherwise secures the introduction
of any local measure or amendment thereto for the purpose of thereafter being
employed to prevent the passage thereof, shall upon conviction be guilty of a
crime of the fourth degree.

���� 10.� a.� As used in this
section, "person" means any member of the local governing body, the
local chief executive, or the head of a principal local government department
or agency.

���� b.��� No person shall act as a
"governmental affairs agent" as defined in section 3 of P.L.�� , c.��
(C.�� ) (pending before the Legislature as this bill) with respect to any local
measure, local regulation, or local governmental process of the municipality,
county, authority, or school district with which the person holds office or is
employed and for one year next subsequent to the termination of the office or
employment of the person.

���� c.���� Any person who
knowingly and willfully violates the provisions of subsection b. of this
section shall be subject to a penalty of not more than $10,000.

���� d.��� Upon receiving evidence
of any violation of this section, the Election Law Enforcement Commission shall
have the power to hold, or to cause to be held, hearings about the violation
and, upon finding any person to have committed a violation, to assess such
penalty, within the limits prescribed herein, as it deems proper under the
circumstances, which penalty may be collected in a summary proceeding pursuant
to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10
et seq.).

���� 11.� A governmental affairs
agent shall not enter into any agreement, arrangement, or understanding under
which the governmental affairs agent's compensation, or any portion thereof, is
made contingent upon the success of any attempt to influence a local measure,
local regulation or local governmental process.

���� 12.� a.� Every governmental
affairs agent shall file with the commission a signed quarterly report of his
activity in attempting to influence local measures, local regulations or local
governmental processes during each such quarter.

���� b.��� The quarterly reports
required under this section shall be made in the form and manner prescribed by
the commission and shall be filed between the first and tenth days of each
calendar quarter for such activity during the preceding calendar quarter. The commission
may, in its discretion, permit joint reports by persons subject to this act,
P.L.�� , c.��� (C.�� ) (pending before the Legislature as this bill).

���� c.���� Each such quarterly
report shall:

���� (1)�� describe the particular
items of local measure, local regulation or local governmental process, the
particular items in the annual local budget ordinance or resolution or any
measure that is supplemental to that ordinance or resolution, and any general category
or type of local measure, local regulation or local governmental process
regarding which the governmental affairs agent acted as a governmental affairs
agent during the quarter, and any particular items or general types of local
measures, local regulations, or local governmental processes which he actively
promoted or opposed during the quarter; and

���� (2)�� supply any information
necessary to make the notice of representation filed by the governmental
affairs agent pursuant to section 4 of P.L.�� , c.�� (C.�� ) (pending before
the Legislature as this bill), current and accurate as of the final day of the
calendar quarter covered by the report.

���� 13.� Each governmental affairs
agent or lobbyist shall make and certify the correctness of a full annual
report to the Election Law Enforcement Commission, of those moneys, loans, paid
personal services or other things of value contributed to it and those expenditures
made, incurred or authorized by it for the purpose of communication with or
providing benefits to any member of the local governing body, staff of the
local governing body, the local chief executive, staff of the local chief
executive, or a local government officer or employee, or a communication with
the general public, during the previous year.� The report shall include, but
not be limited to, the following expenditures which relate to communication
with, or providing benefits to, any a member of the local governing body, staff
of the local governing body, the local chief executive, staff of the local
chief executive, or a local government officer or employee, or communication
with the general public: media, including advertising; entertainment; food and
beverage; travel and lodging; honoraria; loans; gifts; and salary, fees,
allowances or other compensation paid to an agent.� The expenditures shall be
reported whether made to the intended recipient of the communication or
benefit, to a governmental affairs agent or a lobbyist, or in the case of a
communication to the general public, to the publisher of that communication.�
The expenditures shall be reported in the aggregate by category, except that if
the aggregate expenditures on behalf of the member of the local governing body,
staff of the local governing body, the local chief executive, staff of the
local chief executive, or a local government officer or employee exceed $25 per
day, they shall be detailed separately as to the name of the member of the
local governing body, member of the staff of the local governing body, the
local chief executive, member of the staff of the local chief executive, or a
local government officer or employee, date and type of expenditure, amount of
expenditure and to whom paid.� Where the aggregate expenditures for the purpose
of communication with or providing benefits to any one member of the local
governing body, member of the staff of the local governing body, the local
chief executive, member of the staff of the local chief executive, or a local
government officer or employee exceed $200 per year, the expenditures, together
with the name of the intended recipient of the communication or benefits, shall
be stated in detail including the type of each expenditure, amount of
expenditure and to whom paid.� Where those expenditures in the aggregate, or
where the aggregate expenditures for the purpose of communication with the
general public, with respect to any specific occasion are in excess of $100,
the report shall include the date and type of expenditure, amount of
expenditure and to whom paid.� The Election Law Enforcement Commission may, in
its discretion, permit joint reports by governmental affairs agents.� No
governmental affairs agent shall be required to file a report unless all
moneys, loans, paid personal services or other things of value contributed to
it for the purpose of communication with or making expenditures providing a
benefit to a member of the local governing body, staff of the local governing
body, the local chief executive, staff of the local chief executive, or a local
government officer or employee or for the purpose of communication with the
general public exceed $2,500 in any year or unless all expenditures made,
incurred or authorized by it for the purpose of communication with or providing
benefits to a member of the local governing body, staff of the local governing
body, the local chief executive, staff of the local chief executive, or a local
government officer or employee or for the purpose of communication with the
general public exceed $2,500 in any year.

���� Any lobbyist who receives
contributions or makes expenditures to influence a local measure or local
regulation shall be required to file and certify the correctness of a report of
such contributions or expenditures if the contributions or expenditures made,
incurred or authorized by it for the purpose of communication with or providing
benefits to a member of the local governing body, staff of the local governing
body, the local chief executive, staff of the local chief executive, or a local
government officer or employee exceed, in the aggregate, $2,500 in any year.
Any lobbyist required to file a report pursuant to this section may designate a
governmental affairs agent in its employ or otherwise engaged or used by it to
file a report on its behalf; provided such designation is made in writing by
the lobbyist, is acknowledged in writing by the designated governmental affairs
agent and is filed with the Election Law Enforcement Commission on or before
the date on which the report of the lobbyist is due for filing, and further
provided that any violation of this act shall subject both the lobbyist and the
designated governmental affairs agent to the penalties provided in this act.

���� Any person other than a
governmental affairs agent or lobbyist who receives contributions or makes
expenditures for the purpose of communication with the general public shall be
required to file and certify the correctness of a report of such contributions
or expenditures in the same manner as governmental affairs agents under the
provisions of this section if the contributions or expenditures made, incurred
or authorized by the person for the purpose of communication with the general
public exceed in the aggregate $2,500 in any year.

���� This section shall not be
construed to authorize any person to make or authorize, or to cause to be made
or authorized, any expenditure providing a benefit, or to provide a benefit,
the provision or receipt of which is prohibited under any current law or any
code of ethics promulgated thereunder, or under any other order, rule or
regulation.

���� 14.� A person who is
registered as a governmental affairs agent and who serves or shall serve as a
member of any independent State authority, county improvement authority or
municipal utilities authority, or as a member from New Jersey on an inter-state
or bi-state authority, or as a member of any board or commission established by
statute or resolution or by executive order of the Governor or by the
Legislature or by any agency, department or other instrumentality of the State,
or established by a local governing body or local chief executive, shall
disclose such service, including the name of the authority, board or commission
and the date upon which his term as a member thereof expires, in the annual
report required to be made under section 13 of P.L.�� , c.��� (C.�� ) (pending
before the Legislature as this bill).

���� 15.� a. Each governmental
affairs agent and lobbyist shall provide to each member of the local governing
body, staff of the local governing body, the local chief executive, staff of
the local chief executive, or a local government officer or employee who receives
a benefit that is required to be reported to the commission pursuant to section
13 of P.L.�� , c.��� (C.�� ) (pending before the Legislature as this bill), a
full written and certified report describing the benefit, including a
description of the benefit, the amount of the benefit, the date it was provided
and to whom it was paid.

���� b.��� The reports shall be
transmitted to the member of the local governing body, staff of the local
governing body, the local chief executive, staff of the local chief executive,
or the local government officer or employee by each governmental affairs agent
or lobbyist no later than February 1 of each year and shall cover benefits
provided in the immediately preceding calendar year.� In the event that a
governmental affairs agent or lobbyist provides more than one benefit to a
member of the local governing body, staff of the local governing body, the
local chief executive, staff of the local chief executive, or a local
government officer or employee during a calendar year, the reports describing
those benefits required pursuant to subsection a. of this section may be
combined into one report or filed as separate reports.

���� 16.� The commission shall:

���� a.���� permit public
inspection of all statements filed pursuant to this act, P.L.�� , c.�� (C.�� )
(pending before the Legislature as this bill);�

���� b.��� compile and summarize
information contained in statements filed pursuant to this act, and report the
same to the Legislature and the Governor;�

���� c.���� ascertain whether any
persons have failed to file statements as required by this act, or have filed
incomplete or inaccurate statements, and give notice to such persons to file
such statements as will conform to the requirements of this act;

���� d.��� investigate violations
of this act, report to the Legislature and the Governor thereon, and notify the
Attorney General of any possible criminal violations of this act, that may
warrant further investigation and action;

���� e.���� make such
recommendations to the Legislature and the Governor as will tend to further the
objectives of this act, and take such other action as shall be necessary and
proper to effectuate the purposes of this act;

���� f.���� report to the
Legislature and the Governor annually on the administration of this act;

���� g.��� develop and prescribe
methods and forms for statements required to be filed by this act, and require
the use of such forms by persons subject to this act;

���� h.��� compile and publish
quarterly a list of all governmental affairs agents then registered, together
with the information contained in their notices of representation and last
quarterly report, which compilation shall be distributed to all members of the
Legislature and the Governor, and published in the New Jersey Register;

���� i.���� prepare and publish a
summary and explanation of the registration and reporting requirements of this
act, for the use and guidance of those persons who may be required to file
statements under this act;

���� j.���� in accordance with a
fee schedule adopted by the commission as a rule or regulation, establish and
charge reasonable fees for the filing of notices of representation and
quarterly and annual reports pursuant to this act, provided that such fees
shall not apply to the organizations which qualify under subsection (b) of
section 9 of chapter 30 of the laws of 1966, as amended (C.54:32B-9), and
provided further that the amount of such fees shall not exceed the cost to the
commission of processing and maintaining those notices and reports and of
compiling, summarizing and publishing the information contained therein as
prescribed by this act; and

���� k.��� during periods when the
Legislature is in session, report monthly to the members of the Legislature and
the Governor and his staff all new notices of representation, notices of
termination and other notices filed pursuant to this act, during the preceding
month.

���� 17.� In addition to any fee
collected pursuant to subsection j. of section 16 of P.L.�� , c.�� (C.�� )
(pending before the Legislature as this bill), the commission shall establish
and collect no later than January 31 of each year a fee from each governmental
affairs agent, in an amount to be set by the commission through regulation, for
deposit into the General Fund.� Such moneys shall be allocated annually by the
Legislature for use by the commission.

���� 18.� Upon receiving evidence
of any violation of P.L.�� , c.�� (C.� ) (pending before the Legislature as
this bill), the commission shall have power to bring complaint proceedings, to
issue subpoenas for the production of witnesses and documents, and to hold or
to cause to be held by the Office of Administrative Law, hearings upon such
complaint.� In addition to any other penalty provided by law, any person who is
found to have committed such a violation shall be liable for a civil penalty
not in excess of $1,000, which penalty may be collected in a summary proceeding
pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274
(C.2A:58-10 et seq.).

���� 19.� The commission shall
adopt such rules and regulations as may be necessary to effectuate the purposes
of this act, P.L.�� , c. (C.�� ) (pending before the
Legislature as this bill).

���� 20.� Any person engaged in
activity which makes him subject to

filing a statement under this act,
P.L.�� , c.�� (C.�� ) (pending before the Legislature as this bill), shall keep
and preserve all records of his receipts, disbursements and other financial
transactions in the course of and as a part of his activities as a governmental
affairs agent.� Such records shall be preserved for a period of three calendar
years next succeeding the calendar year in which they were made.� The
provisions of this section shall not apply to any governmental affairs agent
with respect to any quarterly period within which the total of his compensation
including reimbursement of expenses is less than $500.00.

���� The commission shall conduct
random audits of records kept and preserved pursuant to this section.

���� 21.� a.� Every governmental
affairs agent shall file a notice of termination report within 30 days after
his activity shall cease, on such form as the commission shall prescribe, and
any person who engages a governmental affairs agent may file a notice of termination
after such agent ceases to represent such person.

���� b.��� A governmental affairs
agent who receives or agrees to receive compensation for acting as such from
any person not named in the notice of representation filed pursuant to section
4 of P.L.�� , c.�� (C.�� ) (pending before the Legislature as this bill) shall,
within 15 days of receiving or agreeing to receive such compensation, file an
appropriate notification thereof in writing with the commission.

���� c.���� A governmental affairs
agent shall notify the commission in writing of any material change in the
information supplied by him in the notice of representation filed pursuant to
section 4 of P.L.�� , c.�� (C.�� ) (pending before the Legislature as this bill)
within 15 days of the effective date of such change.

���� 22.� The statements required
by this act,
P.L. , c. (C. ) (pending before the Legislature as this bill), to
be filed with the commission (a) shall constitute part of the public records of
the office of the commission and shall be available for public inspection; and
(b) shall be preserved by the commission for a period of five years from the
date of filing.

���� 23.� This act shall not apply
to the following activities:

���� a.���� the publication or
dissemination, in the ordinary course of business, of news items, advertising
which does not constitute communication with the general public, editorials or
other comments by a newspaper, book publisher, regularly published periodical,
or radio or television station, including an owner, editor or employee thereof;

���� b.��� acts of an officer or
employee of the Government of this State or any of its political subdivisions,
or of the Government of the United States or of any state or territory thereof
or any of their political subdivisions, in carrying out the duties of their
public office or employment, except as provided in section 10 of P.L.2009,
c.308 (C.18A:3B-55);

���� c.���� acts of bona fide
religious groups acting solely for the purpose of protecting the public right
to practice the doctrines of such religious groups;

���� d.��� acts of a duly organized
national, State or local committee of a political party;

���� e.���� acts of a person in
testifying before a local governing body, at a public hearing duly called by
the local chief executive on a local measure, or before any officer or body
empowered by law to issue, promulgate or adopt administrative rules and
regulations in behalf of a nonprofit organization incorporated as such in this
State who receives no compensation therefor beyond the reimbursement of
necessary and actual expenses, and who makes no other communication with a
member of the local governing body, staff of the local governing body, the
local chief executive, staff of the local chief executive, or a local
government officer or employee in connection with the subject of his testimony;

���� f.���� acts of a person in
communicating with or providing benefits to a member of the local governing
body, staff of the local governing body, the local chief executive, staff of
the local chief executive, or a local government officer or employee if such
communication or provision of benefits is undertaken by him as a personal
expression and not incident to his employment, even if it is upon a matter
relevant to the interests of a person by whom or which he is employed, and if
he receives no additional compensation or reward, in money or otherwise, for or
as a result of such communication or provision of benefits;

���� g.��� with regard to
influencing local governmental processes as defined in subsections s. and t. of
section 3 of P.L.�� , c.�� (C.�� ) (pending before the Legislature as this
bill), any communications, matters or acts of an attorney falling within the
attorney-client privilege while engaging in the practice of law to the extent
that confidentiality is required in order for the attorney to exercise his
ethical duties as a lawyer; and

���� h.��� with regard to
influencing governmental processes as defined in subsections s. and t. of
section 3 of P.L.�� , c.�� (C.�� ) (pending before the Legislature as this
bill), any communications, matters or acts involving collective negotiations,
or the interpretation or violation of collective negotiation agreements, of a
labor organization of any kind which exists or is constituted for the purpose,
in whole or in part, of collective bargaining, or of dealing with employers
concerning the grievances, terms or conditions of employment, or of other
mutual aid or protection in connection with employment.

���� 24.� Every governmental
affairs agent who, for the purpose of influencing a local measure, is in a
public building or other location when and where an authorized meeting of a
local governing body is being held shall at all times wear a descriptive name
tag of a type prescribed by the commission.

���� 25.� All staff, assistants and
employees of the local governing body who receive for their services a stated
salary or similar compensation from public funds are forbidden to act as
governmental affairs agents, or to seek, receive or agree to receive, directly
or indirectly, compensation, in money or any thing of value, for influencing or
purporting to influence a local measure, local regulation, or local
governmental process of the municipality, county, authority, or school district
in which the office or employment is held.� Whoever violates this section is
guilty of a crime of the fourth degree.

���� 26.� Any person who knowingly
and willfully falsifies all or any part of any statement, notice or report
under this act, P.L.�� ,
c. (C. ) (pending before the
Legislature as this bill), shall, upon conviction, be guilty of a crime of the
fourth degree.

���� 27.� Any person who shall
transmit, utter or publish to the local governing body or the local chief
executive or his staff any communication relating to any local measure or be a
party to the preparation thereof, knowing such communication or any signature
thereto is false, forged, counterfeit, or fictitious, shall upon conviction, be
guilty of a crime of the fourth degree.

���� 28.� Upon the failure to
comply with any provisions of this act, P.L.�� , c.��� (C.�� ) (pending before
the Legislature as this bill), by any person subject thereto the commission may
institute a civil action to enjoin such person from engaging in activity covered
by this act until such time as he shall perform any duty imposed thereby and to
require him to file any statement required by this act, as amended and
supplemented, for the period he acted in violation thereof, and the court may
proceed in a summary manner.

���� 29.� Any governmental affairs
agent required to file a notice of representation or report or maintain any
record under this act, P.L. , c.��� (C.�� ) (pending before
the Legislature as this bill), who fails to file such a notice or report or maintain
such record shall, upon conviction, be guilty of a crime of the fourth degree.

���� 30.� Every officer, or person
performing the functions of an officer, of any person required by this act to
file any statement shall be under obligation to cause such person to file such
statement within the time prescribed by this act, P.L.�� , c.�� (C.�� ) (pending
before the Legislature as this bill).

���� The obligation of any person
to file any statement required by this act shall continue from day to day, and
discontinuance of the activity out of which the obligation arises shall not
relieve any person from the obligation to file any statement required for any
period of time prior to such discontinuance.

���� 31.� The commission shall make
provision to accept statements similar to statements required by this act,
P.L.�� , c.��� (C.�� ) (pending before the Legislature as this bill), from
persons who are not required by law to file such statements but who choose to make
reports upon their activities in influencing local measures.� The commission
shall have full discretion in prescribing the form and detail of such voluntary
statements and may by general rules delimit classes of voluntary filings which
it will or will not accept in order to further the purposes of this act, and
the efficient administration thereof.� The information contained in such
voluntary statements as are accepted by the commission shall be included in the
periodic reports and summaries which it is required to make.

���� 32.� a.� When it shall appear
to the commission that a person required to file any statement under this act,
P.L.�� , c.��� (C.�� ) (pending before the Legislature as this bill), has
failed to file such required statement, or has filed a statement false, inaccurate
or incomplete in any material matter, or has otherwise violated the provisions
of this act, or when the commission believes it to be in the public interest
that an investigation should be made to ascertain whether a person has in fact
violated any of the provisions of this act, it may apply to the Superior Court
for an order or orders directing:

���� (1)�� that any such person or
persons make available to the commission's inspection, or to the inspection of
any of its authorized deputies or agents, such records as are required to be
kept by that person pursuant to section 20 of P.L.�� , c.��� (C.�� ) (pending
before the Legislature as this bill); or

���� (2)�� that any such person
file a statement or report in writing under oath concerning the facts and
circumstances upon which the commission's belief in the necessity of an
investigation is based; or

���� (3)�� that any person submit
to examination under oath by the commission in connection with said
circumstances, and produce any and all records, books and other documents which
may be specified by order of the court; or

���� (4)�� that the commission may
impound any record, book or other documents specified by order of the court.

���� b.��� Such application by the
commission shall set forth all the facts and circumstances upon which its
belief in the necessity of an investigation is based.� The court may proceed on
such application in a summary manner; and if the court determines that from the
evidence submitted it appears that a person required to file any statement
under this act, has failed to file such statement, or has filed a statement
false, inaccurate or incomplete in any material respect, or has otherwise
violated any of the provisions of this act, or that it is in the public
interest that an investigation be held to determine whether such violation has
occurred, the court shall issue such order pursuant to subsection a. of this
section as it may deem necessary and proper.

���� c.���� The commission shall
hold as confidential all statements, books, records, testimony and other
information or sources of information coming into its possession or knowledge
as a result of an investigation pursuant to this section and shall not disclose
or divulge any such materials or information to anyone except the court under
whose order such material or information comes into its knowledge or
possession, unless the court shall order its disclosure to a grand jury of this
State or other appropriate authorities for the purposes of enforcing the
provisions of this act, or any other law.

���� d.��� If any person shall
refuse to testify or produce any book, paper or other document in any
proceeding under this section as ordered by the court on the grounds that the
testimony or evidence, documentary or otherwise, which is required of him may
tend to incriminate him, convict him of a crime, or subject him to a penalty or
forfeiture, and shall, notwithstanding, be directed to testify or to produce
such book, paper or document, he shall comply with such direction.� A person
who is entitled by law to assert such privilege, and does so assert, and
thereafter complies with such direction, shall not thereafter be prosecuted or
subjected to any penalty or forfeiture in any criminal proceeding which arises
out of and relates to the subject matter of the proceeding.� No person so
testifying shall be exempt from prosecution or punishment for perjury on false
swearing committed by him in giving such testimony.

���� e.���� In any action brought
under this section, the court may award to the State all costs of investigation
and trial, including a reasonable attorney's fee to be fixed by the court.� If
costs are awarded in such an action brought against a governmental affairs
agent, the judgment may be awarded against the governmental affairs agent, and
the governmental affairs agent's employer or employers joined as defendants,
jointly, severally, or both.� If the defendant prevails, he shall be awarded
all costs of trial, and may be awarded a reasonable attorney's fee to be fixed
by the court and paid by the State of New Jersey.

33.������ This act shall take
effect immediately.

STATEMENT

���� This bill extends the same
disclosure, reporting, and other requirements that govern the activities of
governmental affairs agents to their activities with respect to all local
government levels.

���� Under the bill, a governmental
affairs agent acting on behalf of a lobbyist who seeks to influence a local
measure, local regulations, the local governmental process, or to provide a
benefit to certain local officials, would be required to file a statement of
representation with the Election Law Enforcement Commission (ELEC) prior to
attempting to exercise such influence or provide such benefit.� These
activities would include communications with: (1)� the local governing body of
a municipality, a county, a local authority, or a school district, including a
charter school; (2) the local chief executive of the municipality, county,
authority, or school district; (3) their respective staffs, as defined in the
bill, which includes the heads of principal local government departments and
agencies; and (4) local government officers and employees, which includes the
deputy heads of principal local government departments and agencies.

���� The bill defines a �local
measure� as including all ordinances, resolutions, amendments, nominations and
appointments pending or proposed in a local governing body, and all ordinances
and resolutions which having been approved by the local governing body are
pending implementation.� A �local regulation� includes any local administrative
rule or regulation affecting the rights, privileges, benefits, duties,
obligations, or liabilities of any one or more persons subject by law to
regulation as a class, but does not include a local administrative action (1)
to issue, renew or deny, or, in an adjudicative action, to suspend or revoke, a
license, order, permit or waiver under any law or administrative rule or
regulation, (2) to impose a penalty, or (3) to effectuate an administrative
reorganization within a single local government department or agency. The
�local governmental process� includes the promulgation of local administrative
orders; rate setting; the development, negotiation, award, modification or cancellation
of public contracts; issuance, denial, modification, renewal, revocation or
suspension of permits, licenses or waivers; procedures for bidding; imposition
or modification of fines and penalties; procedures for purchasing; rendition of
local administrative determinations; and the award, denial, modification,
renewal or termination of financial assistance, grants and loans.

���� Among other provisions, the
bill:

���� (1)�� requires a governmental
affairs agent to file with ELEC a statement or signed notice of representation
prior to any communication with, or providing a benefit to, a member of the
local governing body, staff of the local governing body, the local chief executive,
staff of the local chief executive, or a local government officer or employee.�
The statement must disclose, among other information, the name and address of
the governmental affairs agent, the lobbyist retaining the services of that
agent, and the specific or general types of local measures, local regulations,
or local governmental processes that the agent is employed to influence
(section 4);

���� (2)�� prohibits a lobbyist or
a governmental affairs agent from offering or giving or agreeing to offer or
give, directly or indirectly, any compensation, reward, employment, gift,
honorarium or other thing of value to a local government officer or employee or
a member of the local governing body or staff of the local governing body,
totaling more than $250 in a calendar year.� This prohibition also applies with
respect to each member of the immediate family of a member of the local
governing body, which means a spouse, child, parent, or sibling of the member
residing in the same household as the member of the local governing body.� The
bill also provides for certain exemptions (section 6);

���� (3)�� prohibits a member of
the local governing body, the local chief executive, or the head of a principal
local government department or agency from acting as a governmental affairs
agent with respect to any local measure, local regulation, or local governmental
process of the municipality, county, authority, or school district with which
the person holds office or is employed and for one year next subsequent to the
termination of the office or employment of the person (section 10);

���� (4)�� requires the
governmental affairs agent to file with ELEC quarterly reports of his or her
activities (section 12); and requires the governmental affairs agent or
lobbyist to file a full annual report of the moneys or other things of value
received for, and of those amounts expended in, communications with or the
awarding of benefits to intended recipients, governmental affairs agents or
lobbyists, and the general public or publisher of the communication, when the
annual amounts either received or expended exceed $2,500 in any year (section
13);

���� (5)�� require each
governmental affairs agent or lobbyist to provide each recipient of benefits a
full written and certified report describing the benefit, including a
description of the benefit, the amount of the benefit, the date it was provided
and to whom it was paid by February 1 of each year (section 15);

���� (6)�� empower ELEC with
specific power and duties for its implementation of the various requirements in
the bill, including the ability to establish and collect reasonable fees for
the filing of statements of representation and quarterly and annual reports, and
an annual fee to be paid by each governmental affairs agent for allocation to
ELEC; and

���� (7)�� establish the due
process to be followed to prosecute violations of this bill, including the
penalties for violations.�

���� This bill is modeled upon the
�Legislative and Governmental Process Activities Disclosure Act,� P.L.1971,
c.183 (C.52:13C-18 et seq., which governs the activities and disclosures of
governmental affairs agents and lobbyists who seek to influence legislation,
regulations, and governmental processes at the State government level.� The
intent of this bill is to impose the same or substantially the same provisions
of current law on governmental affairs agents and lobbyists who seek to
influence local measures, regulations, and governmental processes at the
county, municipality, local authority, and school district level.