ASSEMBLY, No. 2655

STATE OF NEW JERSEY

INTRODUCED JANUARY 14, 1997

By Assemblymen LeFEVRE and BLEE

An Act concerning prohibited political contributions and amending P.L.1977, c.110.

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

    1. Section 138 of P.L.1977, c.110 (C.5:12-138) is amended to read as follows:

    138. No applicant for or holder of a casino license, nor any holding, intermediary or subsidiary company thereof, nor any officer, director, casino key employee or principal employee of an applicant for or holder of a casino license or of any holding, intermediary or subsidiary company thereof nor any person or agent on behalf of any such applicant, holder, company or person, shall directly or indirectly, pay or contribute any money or thing of value to any candidate for nomination or election to any public office in this State, or to any committee of any political party in this State, or to any group, committee or association organized in support of any such candidate or political party, or to any recall committee or recall defense committee organized pursuant to P.L.1995, c.105 (C.19:27A-1 et seq.).

(cf: P.L.1977, c.110, s.138)

    2. This act shall take effect immediately.

STATEMENT

    This bill extends the prohibition on political contributions by the casino industry, and certain individuals associated therewith, to include contributions to a recall committee or a recall defense committee organized in connection with an effort to recall an elected official.

    At present, the law prohibits an applicant for, or holder of, a casino license, as well as a holding, intermediary or subsidiary company thereof, from contributing to any candidate for nomination or election to public office in this State, to a political party or to any group supporting a candidate or party. Contributions by an officer, director, or high-level employee of an applicant or licensee, or of a related company, are also prohibited. These provisions were enacted in 1977 as part of the Casino Control Act, N.J.S.A.5:12-1 et seq., in order to prevent corruption or the appearance of corruption.

    At the general election held in November, 1993, the voters approved an amendment to the New Jersey Constitution which gave the people the power to recall elected officials. The Uniform Recall Election Law, N.J.S.A.19:27A-1 et seq., which implemented the constitutional amendment, was enacted in 1995. It allows a recall committee formed to promote a recall effort and a recall defense committee organized by a targeted official to raise and expend funds. Because the effort to recall an elected official, as well as the official's attempt to resist the recall, may present the same risk of actual or perceived corruption as in other campaigns for public office, it is desirable that the businesses and individuals associated with the casino industry which are currently prohibited from making political contributions also be prohibited from making recall-related contributions.

Prohibits applicant for, or holder of, casino license, and certain casino-related companies, as well as certain high-level employees thereof, from making contributions in connection with a recall election.