A statute, enacted January 5, permits school boards to place restrictions on the awarding of contracts to businesses that made campaign contributions to board members.  In addition, the new law requires certain businesses to file annual disclosure statements with the New Jersey Election Law Enforcement Commission.

Provisions of the statute—P.L. 2005, ch. 271 (ACS 3013/3421)—include the following:

• School boards may adopt policies that place limits on awarding contracts to businesses that contributed to board members’ election campaigns. The policies may also limit campaign contributions during the term of a contract.  The school board must file the resolution with the New Jersey Secretary of State.

• Businesses awarded contracts exempt from public bidding and valued at $17,500 or more must disclose certain political contributions made during the previous 12 months.  The disclosure must take place within ten days of entering into the contract.

• Failure to comply may result in penalties enforced by the New Jersey Election Law Enforcement Commission.

• Contracts for goods or services provided in emergency situations are exempt from these requirements.

It also appears the law’s requirements could apply to professional services contracts, such as those with architects and engineers, that are exempt from public bidding requirements. 

Boards are encouraged to discuss the implications of this new law with their attorneys.

NJSBA will develop a model policy on this subject and post it on www.njsba.org.  Districts that already have policies on this topic may submit them to NJSBA’s Policy Clearinghouse by contacting Lyndee Lalumiere at 1-888-886-5722, extension 5222 or by e-mail at llalumiere@njsba.org.