The Election Law Enforcement Commission (ELEC) proposed new rules this week (56 N.J.R. 1684(a) and 56 N.J.R. 1699(a)), finally implementing the legislature’s creation of reporting requirements for independent expenditure (IE) committees, which, as everyone knows, are becoming the major players in today’s policy debates in Trenton and Washington. These rules are the result of the Election Transparency Act enacted by Gov. Murphy last April. The new rules require political organizations (IRC section 527), social welfare groups (IRC 501(c)(4)), and business leagues/trade associations (IRC 501 (c)(6)) to register and report financial activity to ELEC after they authorize independent expenditures over $7,500 in an election. These organizations may accept contributions without limit from permissible contributors to independently support or oppose candidates or public questions. When the communications occur within 30 days of a primary election the committee must file one pre-election and one post-election report, and when done within 60 days of any other election, the committee must file two pre-election and one post-election reports, covering activity from the beginning of the year. Although full expenditure reporting is required, only contributors giving in excess of $7,500 in the aggregate are required to be reported in detail. These committees are prohibited from coordinating with a candidate or other political committees and may not make contributions to entities restricted by contribution limits. Independent expenditure committees are not required to file pre-election notices like all other committees within 72 or 24 hours of an election.
Also new are proposed rules that provide guidance for candidates seeking to transfer funds from an existing committee to a future election, regardless of office sought.
The remainder of the proposals are adjustments to contribution limits, fines and penalties, and financial reporting thresholds for candidates and committees. These adjustments will be performed by ELEC every two years. The amounts candidates and political committees can accept for 2025 elections and beyond are included in the proposed rules and vary by contributor type. (Candidates designated for a 2025 election and beyond can receive the higher limits.) The amount committees filing quarterly reports can accept beginning in year 2025 are also included in the proposal. Lastly, the contribution limit for all 2025 gubernatorial candidates was set at $5,800 for all contributor types.
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