The Elections Transparency Act, enacted in April 2023, has brought significant changes to New Jersey's campaign-finance and pay-to-play laws. One aspect that might have been overlooked is set to take effect on January 1. Under this law, contribution limits for all candidates and committees will now be adjusted according to inflation in odd-numbered years. This is a new provision for recipients other than gubernatorial candidates; gubernatorial adjustments will continue on the regular four-year schedule.

Unveiling the Changes in New Jersey's Campaign Finance

Contribution Limits and Their Adjustments

Starting from January 1, essentially all contribution limits will see an increase. As shown in the following chart, the new limits for different recipients are as follows:For candidate committees, the limit per election will rise from $5,200 to $5,500. Political committees will see an increase from $14,400 per election to $15,200. Continuing Political Committees (PACs) will go from $14,400 per calendar year to $15,200. Legislative Leadership Committees and State and County Political Party Committees will also experience a boost from $75,000 per calendar year to $79,000. Municipal Political Party Committees will see a similar increase from $14,400 per calendar year to $15,200.For political party committees, PACs, and legislative leadership committees with a calendar year reporting period, their limits will simply be higher on January 1, 2025, as contributor limits reset to $0 for the new year. For those with housekeeping accounts, the limit will increase from $37,500 per calendar year to $39,500.For candidates, whose limits apply on a per-election basis, the increase will be applicable to the current or next election. For instance, an Assembly candidate running in the 2025 primary will be able to accept an additional $300 from a contributor who had reached the maximum in 2024 once the increase takes effect on January 1. This means candidates in the 2025 primary election can solicit all contributors again to reach the new maximum. Then, the new $5,500 limit will be in place from the start of the 2025 general election.In addition to these changes, the Elections Commission is also applying inflation adjustments to 24/72 hour reporting and independent-expenditure reporting for spenders using their own funds. In 2025, the threshold will increase from $200 to $300 for both categories.These new limits emphasize the importance for every individual, business, union, and political organization to maintain accurate and comprehensive records of their political contributions. Understanding election cycles, contribution dates, and the biennial shifts in contribution limits is crucial to ensure compliance with the law.

Compliance and Reporting Thresholds

Although the general campaign-finance limits are increasing in January, these adjustments do not apply to the reportable threshold of $200 per reporting period. This means that contributors who want to stay below the reportable threshold, which requires reporting detailed contributor information on a recipient's campaign-finance reports, must keep their contributions at $200 or less per election for a candidate and $200 or less per calendar year for a political party committee, PAC, or legislative leadership committee. This $200 threshold also has significant implications for pay-to-play compliance for business entities with New Jersey government contracts.Avi D. Kelin, a founding partner of PEM Law LLP and chair of the firm's Political Law and Non-Profit Law practices, emphasizes the need for businesses, organizations, individuals, and political organizations to influence policy while adhering to the law. This column is for educational and informational purposes only and is not intended to provide legal advice. It is advisable for readers to seek professional advice for individual matters.(Visited 30 times, 30 visits today)