Plainfield Repeals Local Pay-to-Play Ordinance

New Jersey is home to a multitude of overlapping pay-to play laws. The State has a default statute covering pay-to-play restrictions at the municipal level. In 2006, however, the State Legislature allowed municipalities to craft their own pay-to-play ordinances further restricting certain political contributions from vendors. Although these local ordinances are supposed to be “consistent with the themes” of New Jersey’s statewide pay-to-play restrictions, variations exist among the local ordinance in effect in more than 100 municipalities across the State.

As of last week, the number of municipalities with local pay-to-play ordinances in effect dropped by one when, in a 4-3 vote, the Plainfield Municipal Council voted to repeal its 2011 pay-to-play ordinance. Until recently, Plainfield had a stringent pay-to-play ordinance in effect. Under the old ordinance, covered contributors were subject to reduced contribution limits for municipal candidates and political party committees, as well as for county political party committees and PACs that regularly engage in the support of Plainfield municipal or Union county elections. Additionally, all contributions were prohibited once negotiations for a contract began. Without the ordinance, the State’s default pay-to-play laws will be in force in Plainfield. This means, if the City of Plainfield awards contracts pursuant to a “fair and open” process, vendors may contribute up to $2,600 per election to a candidate for Plainfield municipal office. If, however, the City of Plainfield does not use a “fair and open” process, vendors must adhere to the reduced pay-to-play limit of $300 per election to a candidate for or holder of Plainfield municipal office and $300 per calendar year to a Plainfield municipal party committee.

Proponents of the repeal argue that this will bring more transparency to the political process by encouraging direct contributions to candidates and party committees instead of PACs (a sentiment that echoes ELEC’s recent calls to revisit the State’s pay-to-play laws). The repeal of this ordinance is part of a trend of New Jersey counties and municipalities that have revised or rescinded local ordinances in an effort to simplify the government-contracting process. Will other municipalities follow Plainfield’s lead?