Political Contributions (M)

P 6360

 

 

Political Contribution Disclosure Requirements

 

In accordance with the requirements of Section 2 of P.L. 2005, Chapter 271 (N.J.S.A. 19:44A-20.26), the Board of Education shall have on file, to be maintained with other documents related to a contract, the following documents to award a contract to any business entity receiving a contract with an anticipated value in excess of $17,500, regardless of the basis upon which the contract is awarded:

“Business entity” means a for-profit entity that is a natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of New Jersey or any other State or foreign jurisdiction.

 

The $17,500 contract amount is not related to the Board’s bid threshold and does not exempt the district from the requirements of the Public School Contracts Law or other applicable purchasing statutes.

 

The $17,500 contract amount threshold is subject to the principle of aggregation rules in accordance with the Division of Local Government Services guidance. Unlike the Public School Contracts Law, aggregation thresholds for this Policy and Chapter 271 purposes shall be calculated at the vendor level – meaning, when a vendor receives more than $17,500 in a school district’s fiscal year, a PCD form shall be required.

 

The disclosure provisions of N.J.S.A. 19:44A-20.26 do not apply in cases where there is a “public emergency” that requires the immediate delivery of goods or services.

 

Insurance companies and banks are prohibited under State law from making political contributions. However, because the PCD form reflects contributions made by partners, Boards of Directors, spouses, etc., PCD forms are required ten days prior to the approval of a depository designation resolution or insurance company contract awarded by the Board. A PCD form is also required when a contract in excess of $17,500 is made to an
insurance broker. A PCD form is required from the company receiving the contract, regardless of the entity issuing an insurance policy.

 

PCD forms are required for Board of Education contracts in excess of $17,500 with a New Jersey Department of Education “Approved In-State Private School for the Disabled.” Chapter 271 also applies to in-State private special education schools, educational services under any Federally funded program, early childhood school
providers – DHS approved, and other similar programs.

 

If the school district spends more than $17,500 in a school year with a newspaper, the
selection of the newspaper is subject to the provisions of Chapter 271.

 

PCD forms are not required for regulated public utility services, as the Board is required by the Board of Public Utilities to use a specific utility. This exception does not apply to non-regulated public utility services, such as generated energy (not tariffed), or long-distance telephone services where other procurement practices are used.
PCD forms are not required for membership to the New Jersey School Boards Association.

 

A non-profit organization having proper documentation from the Internal Revenue Service (IRS) showing it is registered with the IRS as a 501(c) type corporation is not required to file a PCD form.

 

A PCD form is not required for contracts with governmental agencies, including State colleges and universities.

 

If the original contract provided for the possibility of an extension(s), Chapter 271 compliance is not required if the extension/continuation is based on that original contract.

 

N.J.S.A. 19:44A-1 et seq.
N.J.A.C. 6A:23A-6.3
New Jersey Department of Community Affairs Local Finance Notices - 6/4/07 & 1/15/10

 

Revised: 25 February 2021