April 21, 2009

By: Laurence D. Laufer

New York to Follow New Jersey?

Since April 2007, the New Jersey State Investment Council has subjected firms seeking investment of state pension funds, and associated persons, to a ban on political contributions. The New Jersey regulation makes compliance with the ban a condition of eligibility for State investments. A proposal floated by New York Attorney General Andrew Cuomo appears intended to take New York State down the same path. New Jersey’s rules also prohibit solicitation of contributions – will that be a feature of AG Cuomo’s proposal? In contrast, New York City’s “doing business” limits restrict candidates from accepting large contributions from certain persons associated with firms seeking the investment of City pension funds, but do not make the firm's compliance a condition of eligibility for City investments. The New York City rules require candidates to disclose the intermediaries for particular contributions, which is defined to include successful solicitation, but do not restrict municipal finance professionals from soliciting contributions altogether.

Tags: New York CityNew JerseyNew York State