Our last blog post focused on the reduced contribution limits to New Jersey gubernatorial candidates that apply to business entities that hold or seek to remain eligible for New Jersey Executive Branch contracts. But it is not only directly making a contribution to a gubernatorial candidate that can jeopardize eligibility for State of New Jersey contracts.
Instead, the pay-to-play laws governing eligibility for New Jersey Executive Branch contracts place limits on the contribution amount that a covered person may solicit in connection with a New Jersey gubernatorial election. While the definition of a solicitation may not be as clear cut as directly making a contribution, a covered solicitation would clearly include such activities as asking others to contribute to a gubernatorial candidate, serving as a host of a fundraiser for a gubernatorial candidate, and being listed on an invitation for an event for a gubernatorial candidate.
Thus, a business entity that wishes to remain eligible for New Jersey Executive Branch contracts must ensure that it and its covered owners, officers, and spouses do not solicit contributions of more than $300 per contributor per election for a gubernatorial candidate.
As New Jersey’s 2021 statewide elections are quickly approaching, now is the time to understand how solicitation of contributions may jeopardize eligibility for New Jersey Executive Branch contracts. For more information, please contact Partner and Chair of the Firm's Corporate Political Activity Law Practice Group Rebecca Moll Freed via email here, Senior Associate Avi D. Kelin via email here, or call 973.533.0777.