The 2009 Gubernatorial Election: Is Your Company Eligible for Contracts with the State of NJ?

December 3, 2009

Now that the 2009 gubernatorial election is over, companies that do business with the State of New Jersey and/or wish to remain eligible for contracts with the State need to take inventory of contributions that covered persons and/or entities made during the 2009 gubernatorial election cycle. New Jersey statewide pay-to-play restrictions cover contributions greater than $300 by certain persons and entities associated with a business entity.  Under Executive Order 117, contributions by officers, shareholders, partners and their spouses, resident children and civil union partners may affect a company’s eligibility for a contract with the State for a period ranging from 18 months up to 5 ½ years from the date on which a covered contribution was made. The applicable period of ineligibility is calculated by looking at the candidate or committee to which a contribution greater than $300 was made.  As the New Jersey Department of Treasury explains in response to Question No. 118 on its website, a contribution to the successful candidate (or party committee supporting that candidate) will have a longer term impact on a business entity’s eligibility for a state government contract than a contribution to an unsuccessful candidate (or party committee supporting that candidate).

Tag: New Jersey