On January 1, 2006, N.J.S.A. 19:44A-20.4 et seq. took effect. Known as the “Pay-to-Play” law, these statutes make important and wide-ranging changes the way New Jersey municipal and county government agencies acquire certain goods and services for contracts awarded in excess of $17,500.

The Law reflects the following principles for contracts having an anticipated value in excess of $17,500:

• A municipal or county government agency cannot award a contract without using a “fair and open” process if the contractor…
  • … is a contributor to a candidate committee or a political party committee where a member of the party is servicing in an elective public office of that municipality or county, and , either…
  • …made “reportable” contributions (those in excess of $300) during the year prior to the award, and/or…
  • …makes contributions during the life of the contract.