ASSEMBLY, No. 3833

STATE OF NEW JERSEY

210th LEGISLATURE

INTRODUCED JUNE 23, 2003

Sponsored by:

Assemblyman MATT AHEARN

District 38 (Bergen)

SYNOPSIS

    "The New Jersey Clean and Fair Elections For Legislative Candidates Act;" appropriates $2 million.

CURRENT VERSION OF TEXT

    As introduced.

An Act establishing a procedure for the public financing of the campaigns of candidates seeking election to the Legislature, supplementing Title 19 of the Revised Statutes and making an appropriation.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. This act shall be known and may be cited as "The New Jersey Clean and Fair Elections for Legislative Candidates Act."

    2. The Legislature finds and declares that:

    a. The current system of privately-financed campaigns for the Legislature undermines democracy in New Jersey and diminishes the meaning of the fundamental right to vote in this State by allowing large contributions to have a deleterious influence on the political process.

    b. The current system also diminishes the free-speech rights of those candidates and voters who are not wealthy, because their voices and influence are overwhelmed by those in the political process who can afford to monopolize the arena of paid political communications.

    c. The result is a public perception of corruption that insidiously undermines public confidence in the democratic process and democratic institutions, leaving much of the electorate with the belief that their elected officials are accountable mostly to the major contributors who finance their campaigns.

    d. A voluntary clean money campaign finance system for legislative candidates would enhance democracy in New Jersey by removing access to wealth as a major determinant of a citizen's influence within the political process and thus strengthening the principle of "one man, one vote."

    e. Establishment of such a system would provide candidates with equal resources with which to communicate with voters, reverse the escalating cost of elections and free candidates from the incessant rigors of raising money, thus allowing them more time to conduct their official duties.

    f. Enactment of a clean money public finance system, similar to ones currently in effect in Maine and Arizona, would represent a big step towards diminishing the public perception of corruption in the current political process and strengthen public confidence in this State's democratic processes and institutions.

    3. As used in this act:

    "Certified candidate" means a candidate seeking nomination for election or for election to the office of member of the State Senate or General Assembly who chooses to seek office pursuant to the provisions of "The New Jersey Clean and Fair Elections for Legislative Candidates Act" and who is certified pursuant to section 9 of P.L. , c. (C. )(now pending before the Legislature as this bill).

    "Commission" means the Election Law Enforcement Commission, established pursuant to section 5 of P.L.1973, c.83 (C.19:44A-5).

    "Contribution" and "expenditure" have the same meaning as provided in subsection d. of section 3 of P.L.1973, c.83 (C.19:44A-3), except that the terms shall not include money or other thing of value received from a candidates committee, joint candidates committee, political committee, continuing political committee, political party committee or legislative leadership committee, as those terms are defined in section 3 of P.L.1973, c.83 (C.19:44A-3), or any other person, association or group.

    "Fund" means the New Jersey Clean and Fair Elections for Legislative Candidates Fund established pursuant to section 5 of P.L., c. (C. ) (now pending before the Legislature as this bill).

    "New Jersey Clean and Fair Elections candidate" means a candidate who is a certified candidate, as defined by this section.

    "Nonparticipating candidate" means a candidate seeking nomination for election or for election to the office of member of the State Senate or General Assembly who chooses not to seek office pursuant to the provisions of "The New Jersey Clean and Fair Elections Act," and who is not certified as a New Jersey Clean and Fair Elections candidate pursuant to section 9 of P.L. , c. (C. )(now pending before the Legislature as this bill).

    "Participating candidate" means a candidate seeking nomination for election or for election to the office of member of the State Senate or General Assembly who chooses to seek office pursuant to the provisions of "The New Jersey Clean and Fair Elections Act," and is seeking to be certified as a New Jersey Clean and Fair Elections candidate pursuant to section 9 of P.L. , c. (C. )(now pending before the legislature as this bill).

    "Qualifying contribution" means any contribution of money or other thing of value made to a participating candidate by any individual, but shall not include any such contribution made by a candidate committee, joint candidates committee, political committee, continuing political committee or legislative leadership committee, as those terms are defined in section 3 of P.L.1973, c.83 (C.19:44A-3), or any other person, association or group:

    a. in the amount of five dollars in the form of a check or money order payable to the fund in support of a participating candidate;

    b. made by a voter registered to vote in the legislative district the candidate represents or seeks to represent;

    c. made during the designated qualifying period and received with the knowledge and approval of the candidate; and

    d. that is acknowledged by a written receipt that identifies the name and mailing address of the donor, plus the occupation of that person and the name and mailing address of the person's employer on forms provided by the commission.

    "Qualifying period" means the period of time beginning January 1 of the year in which elections are held to fill the office of member of the Senate or General Assembly or both, as the case may be, and ending at 4 p.m. on 54th day prior to the day of the primary election for the general election to nominate candidates for those offices, unless the candidate seeks direct nomination by petition, in which case the period ends at 4 p.m. on the day that the primary election for the general election occurs.

    "Seed money contribution" means a contribution of money or other thing of value of no more than $100 per individual made to a participating candidate and includes a contribution from the candidate or from a member of the candidate's immediate family.

    4. There is hereby established an alternative system for the public financing of the campaign of candidates seeking nomination for election or for election to the office of member of the Legislature, including a candidate nominated by petition. The commission shall administer the fund and all other provisions of P.L. , c. (C. )(now pending before the Legislature as this bill). Candidates selecting this alternative system for the public financing of their campaigns for public office shall comply with all applicable provisions of the "The New Jersey Campaign Contributions and Expenditures Reporting Act," P.L.1973, c.83 (C.19:44A-1 et seq.), unless specified otherwise by P.L. , c. (C. )(now pending before the Legislature as this act).

    5. a. There is established in the Department of Law and Public Safety a non-lapsing revolving fund to be known as the "New Jersey Clean and Fair Elections for Legislative Candidates Fund," hereafter referred to as the fund, to be held separate and apart from all other funds of the State. The commission shall administer the fund and monies in the fund shall be used to finance the election campaigns of New Jersey Clean and Fair Elections candidates, certified as such by the commission pursuant to section 9 of P.L. , c. (C. )(now pending before the Legislature as this act), seeking nomination for election or for election to the office of member of the Legislature. All moneys collected pursuant to subsection b. of this section shall be appropriated by the Legislature for the fiscal year in which there is an election to fill the office of member of the Legislature and be based on estimates of the amount of money in the fund provided annually to the commission by the Director of Budget and Accounting in the Office of Management and Budget.

    b. Moneys from the following sources shall be deposited in the fund:

    (1) the qualifying contributions required to be submitted to the commission pursuant to section 8 of P.L. , c. (C. )(now pending before the Legislature as this bill);

    (2) an annual appropriation of $2,000,000 from the General Fund on or before January 1 of each year, beginning the year following the effective date of this P.L. , c. (C. )(now pending before the Legislature as this bill), with the amount of this appropriation offset in an equitable manner by an equivalent reduction in funds from the administrative divisions of the Legislature and the Executive branch of the State government;

    (3) revenue deposited in the fund by voluntary election by a taxpayer from that taxpayer's tax refund or an enclosed contribution contributed to the fund that the taxpayer has, by statute, the opportunity to contribute on the taxpayer's New Jersey gross income tax return, pursuant to section 6 of P.L. , c. (C. )(now pending before the Legislature as this bill);

    (4) seed money contributions remaining unspent after a candidate has become a certified candidate;

    (5) fund revenues that were distributed to a certified candidate and that remain after the candidate has lost a primary election for the general election or after all moneys required to be distributed for the general elections in a given year have been distributed;

    (6) other unspent fund revenues distributed to any certified candidate who does not continue to be a candidate for nomination for election or for election;

    (7) voluntary donations made directly to the fund;

    (8) all earnings received from the investment or deposit of money in the fund; and

    (9) fines and penalties collected by the commission pursuant to section 17 of P.L. , c. (C. )(now pending before the Legislature as this bill).

    c. No later than September 1 preceding each year in which there is an election to fill the office of member of the Legislature, the commission shall publish an estimate of the revenue in the fund available for distribution to certified candidates during the following year's elections.

    6. Each taxpayer shall have the opportunity to indicate on the taxpayer's New Jersey gross income tax return that a portion of the taxpayer's tax refund, or an enclosed contribution, shall be deposited in the New Jersey Clean and Fair Elections for Legislative Candidates Fund, established pursuant to section 5 of P.L. , c. (C. ) (now pending before the Legislature as this bill).

    Any costs incurred by the Division of Taxation for collection or administration attributable to this act may be deducted from receipts collected pursuant to this act, as determined by the Director of the Division of Budget and Accounting. The State Treasurer shall deposit net contributions collected pursuant to P.L. , c. (C. )(now pending before the Legislature as this bill) into the New Jersey Clean and Fair Elections for Legislative Candidates Fund.

    7. Each participating candidate shall sign and file a declaration of intent to seek certification as a New Jersey Clean and Fair Elections candidate and to comply with the requirements of section 9 of P.L. , c. (C. )(now pending before the Legislature as this bill). The declaration of intent shall be filed with the commission prior to or during the qualifying period, except as provided in section 20 of P.L., c. (C. ) (now pending before the Legislature as this bill), using the forms and procedures developed by the commission pursuant to section 13 of P.L. , c. (C. ) (now pending before the Legislature as this bill). A participating candidate shall submit a declaration of intent prior to collecting qualifying contributions under section 8 of P.L. , c. (C. )(now pending before the Legislature as this bill).

    8. a. Subsequent to becoming a participating candidate, as defined in section 3 of P.L. , c. (C. )(now pending before the Legislature as this bill), and prior to certification as a certified candidate, a participating candidate shall not accept contributions, except for seed money contributions, that are greater than the following amounts:

    (1) $1,500 for a candidate seeking nomination for election or for election to the office of member of the State Senate; and

    (2) $500 for a candidate seeking nomination for election or for election to the office of member of the General Assembly.

    b. Participating candidates shall obtain qualifying contributions during the qualifying period as follows:

    for a candidate for nomination for election or for election to the office of member of the State Senate or General Assembly, no fewer than 150 voters registered to vote in the legislative district the candidate represents or seeks to represent shall show support for the candidate by providing a qualifying contribution to that candidate.

    No payment, gift or other thing of value shall be given in exchange for a qualifying contribution.

    c. A participating candidate shall submit qualifying contributions to the commission in accordance with procedures developed by the commission, except as provided by section 20 of P.L. , c. (C. )(now pending before the Legislature as this bill).

    9. Upon receipt of a final submittal of qualifying contributions by a participating candidate, the commission shall certify that candidate as a New Jersey Clean and Fair Elections candidate if the candidate has:

    a. signed and filed a declaration of intent to participate in the election as a New Jersey Clean and Fair Elections candidate, pursuant to section 7 of P.L. , c. (C. )(now pending before the Legislature as this bill);

    b. received the appropriate number of valid qualifying contributions, pursuant to section 8 of P.L. , c. (C. )(now pending before the Legislature as this bill);

    c. submitted to the Attorney General a petition of nomination with the required number of valid signatures, as required for direct nomination by petition by chapter 13 of Title 19 of the Revised Statutes, or as required to participate in the primary election for the general election as required by chapter 23 of Title 19 of the Revised Statutes;

    d. not accepted contributions, except for seed money contributions, and otherwise complied with the seed money contributions restrictions provided for in sections 3 and 8 of P.L. , c. (C. )(now pending before the Legislature) and this section; and

    e. otherwise met the requirements to be considered a New Jersey Clean and Fair Elections candidate pursuant to P.L. , c. (C. )(now pending before the Legislature as this bill).

    The commission shall so certify an eligible candidate as soon as possible, and in any case no later than three days, after the candidate makes his or her final submission of qualifying contributions. Upon certification, a candidate shall transfer to the fund any unspent seed money contributions. A certified candidate shall comply with the provisions of P.L. , c. (C. )(now pending before the Legislature as this bill) after the candidates has been certified and through the primary election for the general election and the general election period. A candidate who has been certified prior to the primary election for the general election shall remain certified for the general election and cannot become a nonparticipating candidate.

    To be eligible for certification, a candidate shall collect and spend only seed money contributions after becoming a participating candidate and throughout the qualifying period. A participating candidate shall not collect or spend seed money contributions after certification as a New Jersey Clean and Fair Elections candidate. All seed money contributions shall be reported to the commission in accordance with procedures developed thereby pursuant to section 13 of P.L. , c. (C. )(now pending before the Legislature as this bill).

    After certification, a candidate shall limit his or her campaign expenditures and obligations, including outstanding obligations, to the moneys distributed to the candidate from the fund and shall not accept any other contributions unless specifically authorized by the commission. All revenues distributed to certified candidates from the fund shall be used only for the purposes provided in section 17 of P.L.1993, c.65 (C.19:44A-11.2).

    10. a. In amounts determined pursuant to subsection b. of this section, the commission shall distribute moneys from the fund as follows:

    (1) Within three days after certification, for candidates certified prior to the 54th day prior to the day of the primary election for the general election in the year in which elections are held for the office of member of the Legislature, moneys from the fund must be distributed as if the candidates are in an uncontested primary election.

    (2) Between the 54th day and the 53rd day prior to the day of the primary election for the general election in the year in which elections are held for the office of member of the Legislature, for certified candidates seeking nomination for public office in a primary election, moneys from the fund shall be distributed according to whether the candidate is in a contested or uncontested primary election and shall be reduced by any amounts distributed previously pursuant to paragraph (1) of this subsection.

    (3) Within three days after the primary election for the general election, for certified candidates seeking election to the office of member of the Legislature in the general election, moneys from the fund shall be distributed according to whether the candidates are in a contested general election. No moneys shall be distributed from the fund to any certified candidate who is unopposed in a general election.

    Moneys shall be distributed from the fund by the commission to certified candidates pursuant to this section in accordance with such procedures as the commission shall establish pursuant to section 20 of P.L. , c. (C. )(now pending before the Legislature as this bill) to ensure accountability and safeguard the integrity of the fund.

    b. No later than the July 1 following the enactment of P.L. , c. (C. )(now pending before the Legislature as this bill) and no later than the fourth year following that date, the commission shall determine the amount of moneys to be distributed to certified candidates as follows:

    (1) For a primary election for the general election in which two or more candidates are seeking nomination to the same public office, the amount of moneys to be distributed from the fund to each candidate shall be the average amount of campaign expenditures made by each candidate during all such election contests for the immediately preceding two primary elections for the general election, as reported in the initial filing period subsequent to those elections for the offices of member of the State Senate and member of the General Assembly.

    (2) For a primary election for the general election in which no more than one candidate seeks nomination for each public office for which nominations are being made at that election, the amount of money to be distributed from the fund to each candidate shall be the average amount of campaign expenditures made by each candidate during all such election contests during the immediately preceding two primary elections for the general election, or the average amount of campaign expenditures made in a primary election for the general election in which two or more candidates are seeking nomination to the same public office for the immediately preceding two primary elections for the general election if less than the former amount, as reported in the initial filing period subsequent to those elections for the offices of member of the State Senate and member of the General Assembly.

    (3) For a general election in which two or more candidates are seeking the same public office, the amount of moneys to be distributed from the fund to each candidate shall be the average amount of campaign expenditures made by each candidate during all such election contests for the immediately preceding two general elections, as reported in the initial filing period subsequent to those elections for the offices of member of the State Senate and member of the General Assembly.

    If only insufficient electoral data is available for the two election cycles immediately preceding the enactment of P.L. , c. (C. )(now pending before the Legislature as this bill), the commission shall use information from the most recent applicable election from which data are available.

    For the computations required pursuant to subsection b. of this section for only the election held immediately following the enactment of P.L. , c. (C. )(now pending before the Legislature as this bill), the commission shall reduce by 25 percent the amount to be distributed from the funds to each participating candidate.

    11. Whenever the campaign report of a nonparticipating candidate for the nomination for election or for election to the office of member of the Legislature shows that the aggregate amount of the contributions, expenditures or obligations, alone or in conjunction with independent expenditures reported pursuant to section 11 of P.L.1973, c.83 (C.19:44A-11), exceeds the distribution amount provided pursuant to section 10 of P.L. , c. (C. )(now pending before the Legislature as this bill) to a New Jersey Clean and Fair Elections candidate, the commission shall issue to that candidate, as soon as practicable, an additional amount of money from the fund equivalent to the excess amount spent by that nonparticipating candidate. The amount of such matching moneys shall be limited to no more than twice the amount of moneys distributed originally to the certified candidate pursuant to section 10 of P.L. , c. (C. )(now pending before the Legislature as this bill).

    12. a. A candidate seeking the office of member of the Legislature by means of direct nomination by petition, pursuant to chapter 13 of Title 19 of the Revised Statutes, that is certified by the commission no later than the 54th day prior to the day of the primary election for the general election shall be eligible for moneys from the fund in the same amounts and at the same time as a candidate in a primary election in which no more than one candidate seeks each public office for which nominations are being made at that election, as provided in paragraph (2) of subsection a. of section 10 of P.L. , c. (C. )(now pending before the Legislature as this bill), and as a candidate in a general election in which two or more candidates are seeking the same public office, as provided in paragraph (3) of subsection a. of section 10 of P.L. , c. (C. ) (now pending before the Legislature as this bill).

    b. For a candidate seeking the office of member of the Legislature by means of direct nomination by petition, pursuant to chapter 13 of Title 19 of the Revised Statutes, who has not been certified by the commission later than 4:00 p.m. of the 54th day preceding the day of the primary election for the general election, the deadline for filing qualifying contributions is 4:00 p.m. on the day of the primary election for the general election.

    c. A candidate seeking the office of member of the Legislature by means of direct nomination by petition, pursuant to chapter 13 of Title 19 of the Revised Statutes, that is certified by the commission after 4:00 p.m. on the 54th day prior to the day of the primary election for the general election shall be eligible for moneys from the fund in the same amount as a general election, as provided for in paragraph (3) of subsection b. of section 10 of P.L. , c. (C. ) (now pending before the Legislature as this bill).

    13. Notwithstanding the provisions of section 16 of P.L.1973, c.83 (C.19:44A-16) or any other law, rule or regulation relating to the reporting of campaign contributions by a candidate to the contrary, certified candidates shall report all contributions and expenditures, obligations and related activities to the commission on a schedule and according to procedures developed by the commission. In developing such schedule and procedures, the commission shall use to the greatest extent possible the existing campaign reporting schedule and procedures established in section 16 of P.L.1973, c.83 (C.19:44A-16) for candidates committees and joint candidates committees.

    Each such certified candidate who is defeated in a primary election for a general election and each certified candidate who is defeated in a general election shall, upon the filing of a final report relative to the election, return to the commission for deposit into the fund all unspent fund moneys.

    The commission shall insure public access to the campaign finance reports required pursuant to this section and, wherever possible, shall use electronic means for the reporting, storing and display of such information.

    14. The commission shall not distribute to certified candidates moneys in excess of the total amount of money deposited in the fund pursuant to section 5 of P.L. , c. (C. ) (now pending before the Legislature as this bill) or remaining therein from previous fiscal years as estimated by the Director of Budget and Accounting in the Office of Management and Budget. Notwithstanding any other provisions of P.L. , c. (C. ) (now pending before the Legislature as this bill) to the contrary, if the commission determines that the moneys in the fund are insufficient to meet the distributions required by section 5 of P.L. , c. (C. ) (now pending before the Legislature as this bill), the commission shall permit certified candidates to accept and spend contributions of money and other thing of value, less any seed money contributions received prior to becoming a certified candidate, that aggregate no more than $250 per contributor for the primary election for the general election and the same for the general election occurring in the same calendar year for candidates seeking the office of member of the Legislature, up to the limits for the candidates for those offices established by section 10 of P.L. , c. (C. )(now pending before the Legislature as this bill).

    15. A candidate who has been denied certification by the commission as a New Jersey Clean and Fair Elections candidate or the opponent of a candidate who has been certified as a New Jersey Clean and Fair Elections candidate may challenge a certification decision by the commission as follows.

    a. A candidate or a challenger may appeal to the commission within three days of the decision to grant certification. The appeal shall be in writing and shall set forth the reasons for the appeal.

    b. Within five days after an appeal is filed, the commission shall hold a hearing thereon after notice is given of the hearing to the challenger and any opponent. The challenger has the burden of providing evidence to demonstrate that the decision of the commission to certify the candidate was improper. The commission shall rule on the appeal within three days after the completion of the hearing.

    c. A challenger may appeal to Superior Court a decision on an appeal rendered by the commission pursuant to this section and the court shall hear the appeal and render a decision thereon in an expedited manner.

    d. Any candidate whose certification by the commission is revoked as a result of an appeal to Superior Court shall return to the commission for deposit in the fund any unspent moneys received to date from the fund.

    e. If the commission or the court finds that an appeal was made frivolously or to cause delay or hardship, the commission or court may require the challenger to pay the expenses of the commission, the court and the challenged candidate, if any such expenses have been incurred.

    16. In order for an individual who sought election, was elected or failed of election to a public office as a candidate, as defined pursuant to "The New Jersey Campaign Contributions and Expenditures Reporting Act" P.L.1973, c.83 (C.19:44A-1 et seq.), to seek nomination for election, election or re-election to the office of member of the Legislature as a New Jersey Clean and Fair Elections candidate pursuant to P.L. , c. (C. )(now pending before the Legislature as this bill), the individual shall:

    a. close up or cause to be closed up the affairs of any candidate committee, joint candidates committee, or both, or legislative leadership committee, with which the individual was involved as a candidate in accordance with the provisions of section 16 of P.L.1973, c.83 (C.19:44A-16) before signing and filing a declaration of intent to seek certification as a New Jersey Clean and Fair Elections candidate pursuant to section 7 of P.L. , c. (C. )(now pending before the Legislature as this bill); and

    b. make every effort to repay or satisfy any debts that remain outstanding from a previous campaign.

    In addition to using the contributions received by such committees for the purposes provided for in section 17 of P.L.1973, c.65 (C.19:44A-11.3), an individual who sought election, was elected or failed of election to a public office as a candidate pursuant to P.L.1973, c.83 (C.19:44A-1 et seq.) may use funds raised while such a candidate as the seed money required of a participating candidate, but only to the extent that such moneys can be traceable to contributions of $100 or less from other individuals.

    The individual who sought election, was elected or failed of election to a public office as a candidate pursuant to P.L.1973, c.83 (C.19:44A-1 et seq.) shall also be permitted to carry forward and use any signs, supplies, computer or office equipment or other campaign property while a New Jersey Clean and Fair Elections candidate, provided that such use is reported to the commission pursuant to section 13 of P.L. , c. (C. )(now pending before the Legislature as this bill).

    17. a. (1) Any person, including any candidate, treasurer or other official associated with the campaign of a certified or participating candidate, charged with the responsibility under P.L. , c. (C. )(now pending before the Legislature as this bill) for the preparation, certification, filing or retention of any reports, records, notices or other documents in paper or electronic form, who fails, neglects or omits to prepare, certify, file or retain any such report, record, notice or document at the time or during the time period, as the case may be, and in the manner prescribed by law, or who omits or incorrectly states or certifies any of the information required by law to be included in such report, record, notice or document, and any other person who in any way violates any of the provisions of this act shall, in addition to any other penalty provided by law, be liable to a penalty of not more than $3,000.00 for the first offense and not more than $6,000.00 for the second and each subsequent offense. Upon receiving evidence of a violation of this paragraph, the commission shall use the procedure provided for in section 22 of P.L.1973, c.83 (C.19:44A-22) for investigating the possible violation and assessing a penalty, if deemed appropriate.

    (2) The fine imposed on any certified candidate who is found to be in violation of paragraph (1) of this subsection shall, upon payment to the commission by that certified candidate, be deposited in the fund.

    b. (1) Any person, including any candidate, treasurer or other official associated with the campaign of a certified or participating candidate, who knowingly and willfully makes a false statement or files a false report, record, notice or document in paper or electronic form or so violates any other provision of P.L. , c. (C. )(now pending before the Legislature as this bill) is guilty of a crime of the third degree.

    (2) Any participating candidate who is found to be in violation of paragraph (1) of this subsection shall pay in an expedited manner to the commission for deposit into the fund any fine or penalty resulting from conviction for such a violation.

    (3) Any certified candidate who is found to be in violation of paragraph (1) of this subsection shall (i) pay in an expedited manner to the commission for deposit into the fund any fine or penalty resulting from conviction for such a violation; and (ii) return in an expedited manner to the commission for deposit into the fund all moneys distributed to the candidate since he or she was certified as a New Jersey Clean and Fair Elections candidate for the election cycle in which the offense occurred.

    18. a. Not later than December 1 of each year preceding any year in which a general election is to be held to fill the office of Governor for a four-year term, the commission shall adjust the amounts, set forth in subsection b. of this section, which shall be applicable under P.L. , c. (C. )(now pending before the Legislature as this bill) to a certified candidate or a participating candidate, with respect to limitations on contributions from individuals and to other amounts, at a percentage which shall be the same as the percentage of change that the commission applies to the amounts used for the primary election for the general election and the general election for the office of Governor held in the third year preceding the year in which that December 1 occurs, pursuant to section 19 of P.L.1980, c.74 (C.19:44A-7.1). Any amount so adjusted shall be rounded in the same manner as provided in that section.

    b. The amounts subject to adjustment as provided under this section shall be:

    (1) the maximum amount of a qualifying contribution permitted to be made by a voter registered to vote in the legislative district the candidate represents or seeks to represent to a participating candidate for nomination for election or for election to the office of member of the Legislature pursuant to section 3 of P.L. , c. (C. )(now pending before the Legislature as this bill);

    (2) the maximum amount of a seed money contribution that an individual, a participating candidate or the candidate's immediate family may make to that candidate for nomination for election or for election to the office of member of the Legislature pursuant to section 3 of P.L. , c. (C. )(now pending before the Legislature as this bill);

    (3) the annual appropriation from the General Fund to the "New Jersey Clean and Fair Elections Fund" which shall be used to finance the election campaigns of New Jersey Clean and Fair Elections candidates pursuant to section 5 of P.L. , c. (C. )(now pending before the Legislature as this bill); and

    (4) the maximum amount of contributions, except for seed money contributions, that a participating candidate for nomination for election or for election to the office of member of the State Senate or a participating candidate for nomination for election or for election to the office of member of the General Assembly can accept from individuals registered to vote in this State or registered to vote in a particular legislative district, as the case may be, pursuant to section 8 of P.L. , c. (C. )(now pending before the Legislature as this bill);

    c. Not later than December 15 of each year preceding any year in which a general election is to be held to fill the office of Governor for a four-year term, the commission shall report to the Legislature and make public its adjustment of limits in accordance with the provisions of this section. Whenever, following the transmittal of that report, the commission shall have notice that an individual wishes to be a participating candidate or a certified candidate in a forthcoming primary election for the general election or the general election, it shall promptly notify that candidate of the amounts of those adjusted limits.

    19. On or before January 1 of the fourth year following the enactment of P.L. , c. (C. )(now pending before the Legislature as this bill) and on or before that date every four years thereafter, the commission shall prepare and distribute to the Legislature a report documenting, evaluating and making recommendations relating to the administration, implementation and enforcement of "The New Jersey Clean and Fair Elections for Legislative Candidates Act" P.L. , c. (C. )(now pending before the Legislature as this bill).

    20. The commission shall promulgate such rules and regulations as it deems necessary to implement the provisions of P.L. , c. (C. )(now pending before the Legislature as this bill). These rules and regulations shall include, but not be limited to, procedures for obtaining qualifying contributions, obtaining certification as a New Jersey Clean and Fair Elections candidate, the collection of moneys for the fund, the disbursement of fund moneys to certified candidates, the return of unspent fund revenues from certified candidates defeated in a primary election for the general election or in the general election, or involved in special elections, and certified candidates involved in recounts, withdrawals or other types of vacancies that may occur whenever a candidates seeks nomination for election or election to the office of member of the Legislature.

    21. There is appropriated from the General Fund to the New Jersey Clean and Fair Elections for Legislative Camdidates Fund, established in the Department of Law and Public Safety pursuant to section 5 of this act, the amount of $2,000,000.

    22. This act shall take effect on January 1 next following the day of enactment.

STATEMENT

    The purpose of this bill, entitled "The New Jersey Clean and Fair Elections for Legislative Candidates Act," is to establish a procedure for the public financing of the candidates for nomination for election and for election to the office of member of the State Senate and the office of member of the General Assembly.

    Specifically, the bill

    1) requires candidates interested in seeking such office pursuant to the bill, defined as participating candidates, to initially raise money in contributions of no greater than $100, defined as seed money contributions, from the candidate, the candidate's family or other individuals but not from a committee, continuing political committee, political party committee, or legislative leadership committee, up to a limit of $1,500 for candidates for the State Senate and $500 for candidates for the General Assembly;

    2) next requires participating candidates to raise contributions of no more than five dollars, defined as qualifying contributions, from any single individual living in the electoral division of the candidate seeking office, with candidates for nomination or for election to the State Senate or General Assembly required to collect at least $750 from at least 150 voters registered to vote in the legislative district the candidate represents or seeks to represent;

    3) requires such all qualifying contributions to be raised for candidates for the office of member of the Legislature, during the period between January 1 of the year in which elections are held to fill the office of member of the State Senate or General Assembly, or both, and ending at 4 p.m. on the 54th day prior to the day of the primary election, unless the candidate seeks direct nomination by petition in which case the period ends at 4 p.m. of the day of the primary election;

    4) establishes The New Jersey Clean and Fair Election for Legislative Candidates Fund, a non-lapsing revolving fund into which is deposited qualifying contributions, voluntary contributions from taxpayers who elect to contribute part of their State income tax refund, an annual appropriation of $2,000,000 from the General Fund, certain unspent campaign funds, voluntary donations, and fines and penalties collected for violations of the act, with these moneys used to finance the campaigns of New Jersey Clean and Fair Elections candidates;

    5) establishes administrative responsibilities for the fund and all other provisions of the bill with the Election Law Enforcement Commission (ELEC) in the Department of Law and Public Safety;

    6) enables participating candidates to be certified as New Jersey Clean and Fair Elections candidates, and therefore eligible for public money from the fund, if such candidates: a) sign and file with ELEC a declaration of intent to participate in the election as such a candidate; b) receive the appropriate number of valid qualifying contributions; c) submit a valid petition of nomination to the Attorney General; and d) have not accepted contributions, except for seed money contributions;

    7) provides certified candidates for nomination in a primary election and candidates in a general election an amount of money equal to the average campaign expenditures made by each candidate during all such election contests for the immediately preceding two primary elections for the general election or general elections, respectively, except that no money will be distributed to any certified candidate who is unopposed in a general election;

    8) provides that whenever a certified candidate is opposed in an election by an individual who is not a New Jersey Clean and Fair Elections candidate, defined as a nonparticipating candidate, and that candidate receives and spends more money than a certified candidate, the certified candidate would receive an additional amount of money equivalent to the amount spent by the nonparticipating candidate, up to a limit of twice the amount originally received;

    9) provides that if the Director of Budget and Accounting estimates that the amount of money in the fund is not sufficient to meet the distributions required by the act, ELEC may permit a certified candidate for the office of member of the Legislature to accept contributions of no more than $250 per contributor per election up to the limits established by the bill;

    10) establishes a procedure whereby a candidate who has been denied certification by ELEC or the candidate's opponent may challenge that decision;

    11) provides that any person found to be in violation of the act will be liable to a penalty of not more than $3,000 for the first offense and $6,000 for the next and each subsequent offense and that any person, candidate or official associated with the campaign of a participating or certified candidate who knowingly and willfully makes false statements or files false reports is guilty of a crime of the third degree and is required to pay into the fund any fine or penalty resulting from a conviction for such a crime;

    12) provides that no later that December 1 of the year preceding the year in which a general election is held to fill the office of Governor, the dollar amounts and limits provided for in the bill would be subject to the same adjustment as the dollar amounts and limits established in "The New Jersey Campaign Contributions and Expenditures Reporting Act;"

    13) requires ELEC, on or before January 1 of the fourth year following the enactment of the bill and on or before that date every four years thereafter, to prepare and distribute to the Legislature a report documenting, evaluating and making recommendations relating to the administration, implementation and enforcement of "The New Jersey Clean and Fair Elections for Legislative Candidates Act;" and

    14) appropriates from the General Fund to the New Jersey Clean and Fair Elections for Legislative Candidates Fund, the amount of $2,000,000.

    The bill is based on clean and fair elections laws currently in effect in Maine and Arizona.