Bill Text: NJ A102 | 2012-2013 | Regular Session | Introduced
Bill Title: Prohibits loans as political contributions by certain persons; prohibits certain inducements for political contributions; reduces permitted amount of outstanding loans in certain cases.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly State Government Committee [A102 Detail]
Download: New_Jersey-2012-A102-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblywoman AMY H. HANDLIN
District 13 (Monmouth)
SYNOPSIS
Prohibits loans as political contributions by certain persons; prohibits certain inducements for political contributions; reduces permitted amount of outstanding loans in certain cases.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning certain political contributions by certain persons and amending P.L.1993, c.65 and P.L.1973, c.83 and amending 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. (New section) When not otherwise prohibited by law from making a contribution in aid of any candidate for nomination or election to any public office in this State, or to any candidate committee, joint candidates committee, political committee, continuing political committee, political party committee or legislative leadership committee, a person as defined in this section shall not make a contribution consisting of a loan from the personal funds of that person to any candidate committee, joint candidates committee, political committee, continuing political committee, political party committee or legislative leadership committee for any purpose.
A candidate committee, joint candidates committee, political committee, continuing political committee, political party committee or legislative leadership committee shall not accept a contribution consisting of a loan from the personal funds of any such person as defined in this section.
As used in this section,
"person" means a director, officer, or employee of a business entity that is prohibited by any other law including R.S.19:34-32, R.S.19:34-45, and section 138 of P.L.1977, c.110 (C.5:12-138) from making a contribution, or any individual or entity with an interest in such business entity, or the immediate family member of such director, officer, employee or individual.
"immediate family member" means the spouse and child, and any other relative by blood, marriage or adoption, who is residing in the same household of a director, officer, or employee of a business entity that is prohibited by law from making a contribution, or of an individual with an interest in such entity.
"interest" means the ownership or control of more than 10% of the profits or assets or more than 10% of the stock of a business entity.
2. Section 23 of P.L.1993, c.65 (C.19:44A-11.6) is amended to read as follows:
23. Any person, partnership,
association, political committee or continuing political committee may make a
loan or loans to any
person, partnership, association, political committee or continuing political
committee with knowledge or reason to know that the prospective recipient of
the loan intends to use the proceeds thereof to make a contribution in aid of
any candidate or the candidate committee or joint candidates committee of any
candidate, provided that, at any time, the aggregate total of the unrepaid
portion of all such loans by that lender shall not exceed an amount equal to [twice] the maximum
amount of contributions in the aggregate which, under subsection a. of section
18 of P.L.1993, c.65 (C.19:44A-11.3), the lender is permitted to make to such a
candidate. The provisions of this subsection shall not apply to any bank,
savings bank, savings and loan association or credit union, whether chartered by
the United States, this State, or any other state or territory of the United
States, or by a foreign country.
(cf: P.L.1993, c.65, s.23)
3. Section 20 of P.L.1973, c.83 (C.19:44A-20) is amended to read as follows:
20. No contribution of money or other thing of value, nor obligation therefor, shall be made, and no expenditure of money or other thing of value, nor obligation therefor, shall be made or incurred whether anonymously, in a fictitious name, or by one person or group in the name of another, to support or defeat a candidate in an election or to aid the passage or defeat of any public question or to provide political information on any candidate or public question or to seek to influence the content, introduction, passage or defeat of legislation. No individual, either alone or jointly with one or more other individuals, and no corporation, partnership, membership organization or other incorporated or unincorporated association shall loan or advance to any individual, group of individuals, corporation, partnership, membership organization or other incorporated or unincorporated association any money or other thing of value expressly for the purpose of inducing the recipient thereof, or any other individual, group, corporation, partnership, organization or association, to make a contribution, either directly or indirectly, of money or other thing of value to a candidate or the candidate committee or joint candidates committee of a candidate, or to a political committee, continuing political committee, political party committee or leadership committee.
No person shall contribute, or purport to contribute, to any candidate, candidate committee or joint candidates committee, political committee, continuing political committee, political party committee or legislative leadership committee funds or property which does not actually belong to him and is not in his full custody and control; which has been given or furnished to him by any other person or group for the purpose of making a contribution thereof, except in the case of group contributions by persons who are members of the contributing group; or which has been loaned or advanced expressly for the purpose of inducing the making of a contribution to a candidate, candidate committee or joint candidates committee, or to a political committee, continuing political committee, political party committee or legislative leadership committee.
No treasurer, candidate or member of a candidate committee, joint candidates committee, political committee, continuing political committee, political party committee or legislative leadership committee shall solicit or knowingly accept, agree to accept or concur in or abet the solicitation or acceptance of any contribution contrary to the provisions of this section.
(cf: P.L.1993, c.65, s.11)
4. Section 22 of P.L.1973, c.83 (C.19:44A-22) is amended to read as follows:
22. a. (1) Except as provided in subsection e. or f., any person, including any candidate, treasurer, candidate committee or joint candidates committee, political committee, continuing political committee, political party committee or legislative leadership committee, charged with the responsibility under the terms of this act for the preparation, certification, filing or retention of any reports, records, notices or other documents, who fails, neglects or omits to prepare, certify, file or retain any such report, record, notice or document at the time or during the time period, as the case may be, and in the manner prescribed by law, or who omits or incorrectly states or certifies any of the information required by law to be included in such report, record, notice or document, any person who proposes to undertake or undertakes a public solicitation, testimonial affair or other activity relating to contributions or expenditures in any way regulated by the provisions of this act who fails to comply with those regulatory provisions, and any other person who in any way violates any of the provisions of this act shall, in addition to any other penalty provided by law, be liable to a penalty of not more than $3,000.00 for the first offense and not more than $6,000.00 for the second and each subsequent offense.
(2) No person shall willfully and intentionally agree with another person to make a contribution to a candidate, candidate committee, joint candidates committee, political committee, continuing political committee, political party committee, or legislative leadership committee with the intent, or upon the condition, understanding or belief, that the recipient candidate or committee shall make or have made a contribution to another such candidate or committee, but this paragraph shall not be construed to prohibit a county or municipal committee of a political party from making a contribution or contributions to any candidate, candidate committee, joint candidates committee, political committee, continuing political committee, political party committee, or legislative leadership committee. A finding of a violation of this paragraph shall be made only upon clear and convincing evidence. A person who violates the provisions of this paragraph shall be liable to a penalty equal to three times the amount of the contribution which that person agreed to make to the recipient candidate or committee.
b. Upon receiving evidence of any violation of this section, the Election Law Enforcement Commission shall have power to hold, or to cause to be held under the provisions of subsection d. of this section, hearings upon such violation and, upon finding any person to have committed such a violation, to assess such penalty, within the limits prescribed in subsection a. of this section, as it deems proper under the circumstances, which penalty shall be paid forthwith into the State Treasury for the general purposes of the State.
c. In assessing any penalty under this section, the Election Law Enforcement Commission may provide for the remission of all or any part of such penalty conditioned upon the prompt correction of any failure, neglect, error or omission constituting the violation for which said penalty was assessed.
d. The commission may designate a hearing officer to hear complaints of violations of this act. Such hearing officer shall take testimony, compile a record and make factual findings, and shall submit the same to the commission, which shall have power to assess penalties within the limits and under the conditions prescribed in subsections b. and c. of this section. The commission shall review the record and findings of the hearing officer, but it may also seek such additional testimony as it deems necessary. The commission's determination shall be by majority vote of the entire authorized membership thereof.
e. Any person who willfully and intentionally makes or accepts any contribution in violation of section 4 of P.L.1974, c.26 (C.19:44A-29) or section 18, 19 or 20 of P.L.1993, c.65 (C.19:44A-11.3, C.19:44A-11.4 or C.19:44A-11.5) , or section 1 of P.L. , c. (C. )(now pending before the Legislature as this bill), shall be liable to a penalty of:
(1) Not more than $5,000.00 if the cumulative total amount of those contributions is less than or equal to $5,000.00;
(2) Not more than $75,000.00 if the cumulative total amount of those contributions was more than $5,000.00 but less than $75,000; and
(3) Not more than $100,000.00 if the cumulative total amount of those contributions is equal to or more than $75,000.00.
f. In addition to any penalty imposed pursuant to subsection e. of this section, a person holding any elective public office shall forfeit that public office if the Election Law Enforcement Commission determines that the cumulative total amount of the illegal contributions was more than $50,000.00 and that the violation had a significant impact on the outcome of the election.
g. Any penalty prescribed in this section shall be enforced in a summary proceeding under ["the penalty enforcement law," N.J.S.2A:58-1 et seq] "The Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
(cf: P.L.1993, c.65, s.13)
5. This act shall take effect immediately.
STATEMENT
This bill would prohibit the making of loans by certain person to any candidate committee, joint candidates committee, political committee, continuing political committee, political party committee or legislative leadership committee by certain persons. The persons prohibited from making such loans are (1) directors, officers, or employees of business entities that are prohibited by law including N.J.S.A.19:34-32, 19:34-45, and 5:12-138 from making political contributions, (2) any individual or entity with an interest in such business entity, and (3) the immediate family member of such director, officer, employee or individual. N.J.S.A.19:34-32 prohibits insurance companies, N.J.S.A.19:34-45 prohibits certain financial institutions, and railroad and utility companies, and their major stockholders, and N.J.S.A.5:12-138 prohibits casinos, and the directors, officers, principal employees, subsidiaries and agents of casinos, from making political contributions.
The bill, prohibits an individual, either alone or jointly with one or more other individuals, and a corporation, partnership, membership organization or other incorporated or unincorporated association, from loaning or advancing to any individual, group of individuals, corporation, partnership, membership organization or other incorporated or unincorporated association any money or other thing of value expressly for the purpose of inducing the recipient, or any other individual, group, corporation, partnership, organization or association, to make a contribution, either directly or indirectly, to a political committee, continuing political committee, political party committee or leadership committee. The law already prohibits such loans or advances for the purpose of inducing a contribution to a candidate, the candidate committee or joint candidates committee of a candidate.
The bill prohibits the contribution to any candidate, candidate committee or joint candidates committee, political committee, continuing political committee, political party committee or legislative leadership committee of funds or property which does not actually belong to the contributor and is not in the contributor's full custody and control, or which has been given or furnished by any other person or group for the purpose of making a contribution, or which has been loaned or advanced expressly for the purpose of inducing the making of a contribution to a political committee, continuing political committee, political party committee or legislative leadership committee. The law already prohibits such contributions to a candidate, candidate committee or joint candidates committee.
The bill also reduces the permitted amount of outstanding loans a lender can have from twice the maximum amount of a permitted contribution to only the maximum amount when a person, partnership, association, political committee or continuing political committee makes a loan to any person, partnership, association, political committee or continuing political committee with knowledge or reason to know that the prospective recipient of the loan intends to use the proceeds thereof to make a contribution in aid of any candidate or the candidate committee or joint candidates committee of any candidate.
