New Jersey-2010-S2379-Amended

An Act concerning certain issue advocacy organizations, 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. a. As used in this section, "independent expenditure" means an expenditure that is made to support or defeat a candidate for election to public office without the cooperation or prior consent of, or without consultation with, or without the request or suggestion of, a candidate or any person or committee acting on behalf of a candidate, or an expenditure that is made to aide or defeat a public question without the cooperation or prior consent of, or without consultation with, or without the request or suggestion of, any person or committee supporting or opposing a public question; and

"issue advocacy organization" means an organization organized under section 527 of the federal Internal Revenue Code (26 U.S.C. s.527) or under paragraphs ¹[(3),]¹ (4), (5) or (6) of subsection c. of section 501 of the federal Internal Revenue Code (26 U.S.C. s.501), or any other organization organized under federal law that the Election Law Enforcement Commission determines is essentially similar to such organizations, that does not fall within the definition of any other committee subject to the provisions of P.L.1973, c.83 (C.19:44A-1 et seq.).

b. Each issue advocacy organization that engages in influencing or attempting to influence the outcome of any election or the selection, nomination, or election of any person to any State or local elective public office, or the passage or defeat of any public question, or in providing political information on any candidate or public question, and that makes an independent expenditure of at least $2,100 per calendar year for any such purpose, but does not coordinate its activities with any candidate or political party, shall register with the commission in accordance with section 21 of P.L.1993, c.65 (C.19:44A-8.1).

c. Each issue advocacy organization required to register with the commission pursuant to subsection b. of this section shall make a full cumulative report, upon a form prescribed by the commission, of all contributions in the form of moneys, loans, paid personal services, or other thing of value made to it, and of all independent expenditures made, incurred, or authorized by it during the period ending 48 hours preceding the date of the report and beginning on the date on which the first of those contributions was received or the first of those expenditures was made, whichever occurred first. The cumulative report, except as hereinafter provided, shall contain
the name and mailing address of each person or group from whom moneys, loans, paid personal services or other things of value have been contributed since 48 hours preceding the date on which the previous such report was made and the amount contributed by each person or group, and where the contributor is an individual, the report shall indicate the occupation of the individual and the name and mailing address of the individual's employer. In the case of any loan reported pursuant to this subsection, the report shall contain the name and mailing address of each person who has cosigned such loan since 48 hours preceding the date on which the previous such report was made, and where an individual has cosigned such loans, the report shall indicate the occupation of the individual and the name and mailing address of the individual's employer. The cumulative report shall also contain the name and address of each person, firm, or organization to whom expenditures have been paid since 48 hours preceding the date on which the previous such report was made and the amount and purpose of each such expenditure. The cumulative report shall be filed with the commission on the dates designated in section 16 of P.L.1973, c.83 (C.19:44A-16).

The treasurer of the issue advocacy organization reporting shall certify to the correctness of each report and shall maintain all records of contributions and independent expenditures for a period of not less than four years.

Each treasurer of an issue advocacy organization shall file written notice with the commission of a contribution in excess of $1,200 received during the period between the 13th day prior to an election and the date of an election, and of an independent expenditure of money or other thing of value in excess of $1,200 made, incurred, or authorized by the issue advocacy organization during the period between the 13th day prior to an election and the date of an election. The notice shall be filed in writing or by telegram within 48 hours of the receipt of the contribution and shall set forth the amount and date of the contribution, the name and mailing address of the contributor, and where the contributor is an individual, the individual's occupation and the name and mailing address of the individual's employer. The notice of an independent expenditure shall be filed in writing or by telegram within 48 hours of the making, incurring, or authorization of the independent expenditure and shall set forth the name and mailing address of the person, firm or organization to whom or which the independent expenditure was paid and the amount and purpose of the independent expenditure.

d. Each person or donor association that contributes $5,000 or more in the aggregate during a calendar year to an issue advocacy organization that is subject to the provisions of subsection b. of this section shall provide to the treasurer of the issue advocacy organization a written statement that includes the name, mailing address, and amount attributable to each person or member of the donor association that paid the dues or fees, or made contributions to the person or association that, in total, aggregate $2,100 or more of the contribution in a calendar year from the person or donor association to the issue advocacy organization. The statement shall also include the total amount of the contribution from persons or donor associations not subject to itemization under this section. The statement must be certified as true and correct by the person or an officer of the donor association and a copy of that statement shall be provided by the issue advocacy organization to the commission on the same schedule as required for the disclosure of contributions by other organizations pursuant to section 8 of P.L.1973, c.83 (C.19:44A-8).

To determine the membership dues or fees, or contributions made to a person or donor association that exceed $2,100 of the contribution made by the person or donor association to a issue advocacy organization in a calendar year, the person or donor association shall: (1) apply a pro rata calculation to all unrestricted dues, fees, and contributions received by the person or donor association in the calendar year; or (2) as provided in this subsection, identify the specific persons or associations whose dues, fees, or contributions are included in the contribution to the issue advocacy organization.

Dues, fees, or contributions to a person or donor association shall be identified as a contribution to an issue advocacy organization if: (1) the use of the dues, fees, or contributions was authorized for this purpose; or (2) the dues, fees, or contributions to the person or donor association are unrestricted and the person or donor association designates them as the source of the subject contribution to the issue advocacy organization. After a portion of the dues, fees, or contributions to the person or donor association have been designated as the source of a contribution to an issue advocacy organization, that portion of the dues, fees, or contributions to the person or donor association may not be designated as the source of any other contribution to an issue advocacy organization.

As used in this subsection, "donor association, organization or group" means the association, organization, or group of two or more persons acting jointly that have contributed to an issue advocacy organization that is required to provide a statement pursuant to this subsection.

e. No person serving as the chairman of a political party committee or a legislative leadership committee shall be eligible to serve as the head of an issue advocacy organization, or as its treasurer. No candidate shall establish, authorize the establishment of, maintain, or participate directly or indirectly in the management or control of, any issue advocacy organization. An issue advocacy organization shall appoint, not later than the date on which it first receives any contribution or makes, incurs or authorizes any independent expenditure, a single treasurer and designate a campaign depository. Not later than the tenth day after the initial designation of the depository, the organization shall file the name and address of the depository, and of the treasurer, with the Election Law Enforcement Commission.

f. Each issue advocacy organization that registers with the commission pursuant to subsection b. of this section shall comply with the campaign advertisement and disclosure requirements of section 2 of P.L.1995, c.391 (C.19:44A-22.3).

g. An issue advocacy organization that fails to comply with the provisions of this section shall, in addition to any other penalty provided by law, be liable to the applicable penalty provided by subsection a. of section 22 of P.L.1973, c.83 (C.19:44A-22).

2. This act shall take effect 120 days after enactment, but the Election Law Enforcement Commission may take such anticipatory administrative action in advance as may be necessary for the implementation of the act.