On Wednesday, September 24, 2008, New Jersey Governor Jon Corzine signed four Executive Orders regarding ethics reform, two of which impact business entities contracting with the State of New Jersey ("State") that make reportable, political contributions. Consequently, business entities affected by the Executive Orders need to amend the manner in which they make political contributions on or before November 15, 2008 when the Executive Orders takes effect. The Governor also intends to effectuate ethics reform through legislation. (http://www.saul.com/ePubs/2008/Business/reformsrequiringlegislation.pdf ).

Executive Order No. 117

Effective November 15, 2008, Executive Order 117 (http://www.saul.com/ePubs/2008/Business/EO_117.pdf ) expands the prohibitions of political contributions by business entities contracting with the State.

  • Applies to the business entity and any partner, shareholder, officer, member or sole proprietor, and any subsidiary controlled by the entity. The prohibition also applies to any spouse or civil union partner and any child, residing in the same household.

  • Affects business entities with contracts with the State in excess of $17,500.

  • Includes the State, the Executive Branch, any division, board, bureau, office, commission and any independent State authority, board, commission, instrumentality or agency.

  • Covers contracts for services and those for, "...materials, supplies or equipment or for the acquisition, sale or lease of any building."

  • Prohibits political contributions of $300 or more, as defined by the New Jersey Campaign Contributions and Expenditures Reporting Act, including in-kind contributions.

  • Affects contributions to a Governor, state, legislative leadership, county, municipal, political party, candidate and election fund committees.

Executive Order No. 118

Effective November 15, 2008, Executive Order 118 (http://www.saul.com/ePubs/2008/Business/EO_118.pdf ) proposes a new ban on "Pay to Play" for all state redevelopment contracts.

  • Prohibits a redeveloper that enters into a redevelopment agreement with a state redevelopment entity from making reportable, political contributions.

  • Affects contributions to Governor, state, legislative leadership, county, municipal, political party, candidate and election fund committees and to State legislative districts , counties or municipalities where property subject to the redevelopment agreement is situated.

  • Defines redeveloper as meaning a business entity and its subsidiaries that enter into a redevelopment agreement.

  • Affects business entities that contract with a redeveloper to perform professional, consulting or lobbying services in connection with the redevelopment project.

  • Construes a redevelopment agreement as a contract for the redevelopment or rehabilitation of an area or any work associated with the redevelopment or rehabilitation project.

  • Includes the State, the Executive Branch, any division, board, bureau, office, commission and any independent State authority, board, commission, instrumentality or agency authorized by law to implement a redevelopment project and carry out a redevelopment plan.

Executive Order No. 119

Effective September 24, 2008, Executive Order 119 (http://www.saul.com/ePubs/2008/Business/EO_119.pdf established the Governor's Local Government Ethics Task Force that will be composed of 11 individuals with expertise in local governance. The Task Force has been charged with:

  • Studying and making recommendations regarding the need for amendments to the local Government Ethics Law no later than 10 months from the date of its first organizational meeting, which has not yet been established;

  • Determining whether enforcement responsibility should be shifted from the local finance board to a different body that is solely focused on government ethics; and

  • Studying and making recommendations to implement a training and compliance program for local government ethics.

Executive Order No. 120

Effective September 24, 2008, Executive Order 120 (http://www.saul.com/ePubs/2008/Business/EO_120.pdf ) amended Executive Order No. 1 (http://www.saul.com/ePubs/2008/Business/EO_01.pdf ) to include the:

  • State Controller within the definition of public employee;

  • Members of the New Jersey Marine Sciences Consortium and the New Jersey Technology Governing Board within the definition of a public officer.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.