The 2009 Gubernatorial Election: Is Your Company Eligible for Contracts with the State of NJ?

Now that the 2009 gubernatorial election is over, companies that do business with the State of New Jersey and/or wish to remain eligible for contracts with the State need to take inventory of contributions that covered persons and/or entities made during the 2009 gubernatorial election cycle. New Jersey statewide pay-to-play restrictions cover contributions greater than $300 by certain persons and entities associated with a business entity.  Under Executive Order 117, contributions by officers, shareholders, partners and their spouses, resident children and civil union partners may affect a company’s eligibility for a contract with the State for a period ranging from 18 months up to 5 ½ years from the date on which a covered contribution was made. The applicable period of ineligibility is calculated by looking at the candidate or committee to which a contribution greater than $300 was made.  As the New Jersey Department of Treasury explains in response to Question No. 118 on its website, a contribution to the successful candidate (or party committee supporting that candidate) will have a longer term impact on a business entity’s eligibility for a state government contract than a contribution to an unsuccessful candidate (or party committee supporting that candidate).