City of Hoboken, NJ
Hudson County
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Table of Contents
Table of Contents
[Adopted by referendum by the voters of the City of Hoboken at the General Election of 11-2-2004; amended in its entirety 3-2-2011 by Ord. No. Z-89]
Large political contributions from those seeking or performing contracts with a municipality raise reasonable concerns on the part of taxpayers and residents as to their trust in government and its business practices.
Pursuant to N.J.S.A. 40:48-2, a municipality is authorized to adopt such ordinances, regulations, rules and bylaws as necessary and proper for good government, as well as the public health, safety and welfare.
Pursuant to P.L. 2005, c. 271 (codified at N.J.S.A. 40A:11-51), a municipality is authorized to adopt by ordinance measures limiting the awarding of public contracts to business entities that have made political contributions, and limiting the contributions that the recipient of such a contract can make during the term of a contract.
In the interest of good government, the people and the government of the City of Hoboken desire to establish a policy that will avoid the perception of improper influence in public contracting and local elections.
It shall be the policy of the City of Hoboken to create such a regulation which states that a business entity which makes political contributions to municipal candidates and municipal and county political parties in excess of certain thresholds shall be limited in its ability to receive public contracts from the City of Hoboken.
[Added 7-20-2011 by Ord. No. Z-116]
Whenever a term used in this section is not herein defined, the definition found in the New Jersey Campaign Contributions and Expenditures Report Act, N.J.S.A. 19:44A-1 et seq., or the definitions found in the regulations promulgated thereunder, known as "Regulations of the New Jersey Election Law Enforcement Commission," N.J.A.C. 19:25-1.1 et seq., shall govern for purposes of this chapter.
A. 
To the extent that it is not inconsistent with state or federal law, the City of Hoboken and any of its departments, instrumentalities or any independent authority created thereby shall not enter into any agreement or otherwise contract to procure "professional services" as such term is defined at N.J.S.A. 40A:11-2(6) and used at N.J.S.A. 40A:11-5(1)(a)(i) and/or banking, insurance brokerage or other consulting service (hereinafter "professional services"), nor "extraordinary unspecifiable services" as such term is defined at N.J.S.A. 40A:11-2(7) and used at N.J.S.A. 40A:11-59(1)(a)(ii) and/or media, public relations, lobbying, parking garage management or other consulting and/or management service (hereinafter "extraordinary unspecifiable services") from any entity, including nonemergency contracts awarded by N.J.S.A. 40A:11 et seq., or the fair and open process pursuant to N.J.S.A. 19:44A-20 et seq.), if such entity has solicited for or made any "contribution" reportable by the recipient under the New Jersey Campaign Contributions and Expenditures Reporting Act, P.L. 1973, c. 83 (N.J.S.A. 19:44A-1 et seq.), which definition includes loans and transfers of money or other thing(s) of value, all pledges or other commitments or assumptions of liability to make any such transfers (hereinafter "contribution"), to a candidate, candidate committee or joint candidates committee of any candidate for elective municipal office in Hoboken or any person serving in an elective municipal office in Hoboken or to any Hoboken or Hudson County political committee or political party committee or to any continuing political committee or political action committee that engaged in the support of Hoboken municipal or Hudson County elections and/or Hoboken municipal or Hudson County candidates, candidate committees, joint candidate committees, political committees, political parties, political party committees, (hereinafter "PAC"), in excess of the thresholds specified in Subsection D within one calendar year immediately preceding the date of the contract or agreement. Contributions will be considered to have occurred on the date of deposit, execution or transfer of rights.
B. 
No entity or vendor who submits a proposal for, enters into negotiations for or enters into any contract or agreement (including nonemergency contracts awarded by N.J.S.A. 40A:11-1 et seq., or the fair and open process pursuant to N.J.S.A. 19:44A-20 et seq.) with the City of Hoboken or any of its departments, instrumentalities or independent authorities created thereby for the rendition of professional services or extraordinary unspecifiable services shall knowingly solicit or make any contribution to a candidate, candidate committee or joint candidates committee of any candidate for elective municipal office in Hoboken or any person serving in an elective municipal office in Hoboken or to any Hoboken or Hudson County political committee or political party committee or any PAC which meets the requirements set forth in § 20A-12A between the time of first communication between that business entity or vendor and the municipality regarding a specific agreement for professional services or extraordinary unspecifiable services and the latest of the following: termination of negotiations: rejection of any proposal or the termination of the contract or agreement.
C. 
For purposes of this article, entities whose contributions are regulated by this article mean:
(1) 
An individual, including the individual's spouse, and any child or children; or
(2) 
Any sole proprietorship, firm, corporation, professional corporation, partnership and any partner thereof, limited-liability company, limited-liability partnership and any partner thereof, organization, association or any other legal commercial entity organized under the laws of the State of New Jersey or of any other state or foreign jurisdiction;
(3) 
Any principal, stakeholder, partner, or other person who owns or controls 10% or more of the equity, profits, assets, stock, ownership or income interests in a person or entity as defined in Subsection C(1) and (2) above, and any determination of percentage, ownership or control will combine the individual interests as well as those of the individual's spouses and child or children;
(4) 
All partners or officers of such an entity, in the aggregate, and their spouses and child or children; and
(5) 
Any subsidiaries directly or indirectly owned or controlled by the business entity, person or individual; or
(6) 
Any political organization organized under Section 527 of the Internal Revenue Code (26 U.S.C. § 527) that is directly or indirectly controlled by the business entity, person or individual, other than a candidate committee, election fund or political party committee.
D. 
The monetary thresholds of this article are a maximum of $300 each for any purpose to any candidate or candidate committee for elective municipal office in Hoboken or any holder of elective municipal office in Hoboken, or $500 to any joint candidates committee for elective municipal office in Hoboken or any holder of elective municipal office in Hoboken or $300 to any political committee or political party committee of the City of Hoboken; $500 to any Hudson County political committee or political party committee; $500 to any PAC which meets the requirements set forth in § 20A-12A. However, any individual or group of persons meeting the definition of "entity" provided in Subsection C above shall not annually contribute for any purpose in excess of $2,500 to all City of Hoboken candidates, candidate committees, joint candidate committees and holders of elective municipal office and all City of Hoboken or Hudson County political committees and political party committees and all PACs, combined, without violating Subsection A of this section.
Contributions or solicitations of contributions made prior to the effective date of the most recent amendment to this article shall be governed by the language of the article effective at the time of contribution. Contributions or solicitations of contributions made on or after the effective date of the most recent amendment to this article shall be governed by the current article. Any contract in effect at the time of any amendment to this article shall be governed by the current article.
A. 
Every contract, request for proposals, request for qualifications and bid specification covered by this article shall contain:
(1) 
A provision describing the requirements of this article or reference to this article and directions for obtaining the requirements of this article.
(2) 
A statement that compliance with this article shall be a material term and condition of any contract awarded.
(3) 
A statement indicating that the requirements of this article shall create a continuing obligation on the contractor.
(4) 
A description of the penalties for which the contractor will be liable in the event of a failure to comply with the provisions of this article; said description shall state that unless remedied in accordance with § 20A-15 of this article, a violation of this article shall be considered a material breach of the contract which shall result in enforcement of the penalties described in § 20A-17 of this article.
B. 
Prior to awarding any contract or agreement to procure professional services or extraordinary unspecifiable service from any entity, the City of Hoboken or its departments, instrumentalities or authorities, as the case may be, shall receive a written certification from the intended recipient of said contract, made under penalty of perjury, that he/she/it has not made any contributions in violation of this article. The City of Hoboken, its departments, instrumentalities or authorities shall be responsible for informing the City Council that the aforementioned written certification has been received and that the entity is not in violation of this article, prior to awarding the contract or agreement.
C. 
The recipient of said contract or agreement shall have a continuing duty to report any violations of this article that may occur during the proposal process, negotiations, duration of the contract period or the completion of the performance of that contract or agreement. The certification required under this section shall be made prior to entry into the contract or agreement with the City of Hoboken or prior to the provision of services or goods, as the case may be, and shall be in addition to any other certifications that may be required by any other provision of law.
A. 
A recipient of a contract for professional services or extraordinary unspecifiable services may cure a violation of § 20A-12 of this article if, within 45 days after the date of the contribution, the contract recipient notifies the municipality, in writing, and seeks and, within 45 days after the date of the contribution, receives reimbursement of the contribution from the recipient of such excess contribution.
B. 
Except that it shall be presumed that any contribution that violate this article, made within 60 days of an election of candidates for elective office in the City of Hoboken, was not made inadvertently, and such contributions shall not be eligible for reimbursement; thereby, the entity making such contributions cannot remedy the violation of § 20A-12 of this article.
The contribution limitations prior to entering into a contract in § 20A-12A do not apply to contracts which are awarded to the lowest responsible bidder after public advertising for bids and bidding therefor within the meaning of N.J.S.A. 40A:11-4 or are awarded in the case of emergency under N.J.S.A. 40A:11-6. There shall be no exemption for contracts awarded pursuant to a fair and open process under N.J.S.A. 19:44A-20 et seq.
A. 
It shall be a material breach, by the vendor, of the terms of the agreement or contract for professional services or extraordinary unspecifiable services, as the term is defined in § 20A-12, when a recipient of such agreement or contract.
(1) 
Makes or solicits a contribution in violation of this article;
(2) 
Knowingly conceals or misrepresents a contribution given or received;
(3) 
Makes or solicits contributions through intermediaries for the purpose of concealing or misrepresenting the source of the contribution;
(4) 
Makes or solicits any contribution on the condition or with the agreement that it will be recontributed to a candidate, candidate committee or joint candidates committee of any candidate for elective municipal office in Hoboken or any holder of elective municipal office in the City of Hoboken or any Hoboken or Hudson County political committee or political party committee or any PAC;
(5) 
Engages or employs a lobbyist or consultant with the intent or understanding that such lobbyist or consultant will make or solicit any contribution, which if made or solicited by the entity itself would subject that entity to the restriction of this article;
(6) 
Fund contributions made by third parties, including consultants, attorneys, family members and employees;
(7) 
Engages in any exchange of contributions to circumvent the intent of this article; or
(8) 
Directly or indirectly, through or by any other person or means, do any act which would subject that entity to the restrictions of this article.
B. 
Furthermore, any business entity that violates § 20A-17A(2) through (8) shall be disqualified from eligibility for future contracts with the City of Hoboken, its departments, instrumentalities or any independent authority created thereby for a period of four calendar years from the date of the violation.
Notwithstanding any other common right of law, any Hoboken citizen or citizen's group shall have the right to sue any or all entities in violation of this article, including the business entity awarded a contract or agreement to provide professional services or extraordinary unspecifiable services, as defined in § 20A-12, the candidate or committee as specified in § 20A-12A above and/or the City of Hoboken, in order to compel those entities to comply with this article.
If any provision of this article or the application of any such provision to any person or circumstances shall be held invalid, the remainder of this article, to the extent it can be given effect, or the application of such provision to persons or circumstances other than those which it is held invalid shall not be affected thereby, and to this extent the provisions of this article, are severable. The drafters of this article, the persons signing the petition in support of this article and the persons who cast votes in favor of the article declare that they would have supported the article and each section, subsection, sentence, clause, phrase or provision or application thereof irrespective of the fact that any one or more other sections, subsections, sentences, clauses, phrases or provisions or applications thereof may be held invalid.
All ordinances or parts of ordinances which are inconsistent with any provisions of this article are hereby repealed as to the extent of such inconsistencies.
This article, and any amendments thereto, shall take effect immediately upon passage and publication as provided by law.
A. 
There is hereby established the position of Compliance Officer, who shall be responsible for enforcement of the Public Contracting Reform Ordinance and Redevelopment Pay-to-Play Reform Ordinance.[1]
[1]
Editor's Note: See Ch. 20C, Redevelopment Pay-To-Play Reform.
B. 
The Compliance Officer shall create and update monthly a list of business entities engaged in professional services contracts or extraordinary unspecifiable service contracts as defined in § 20A-12A of the Public Contracting Reform Ordinance. Included on the list will be the names of any entity, partners, officers and/or any person who owns 10% or more of the equity or ownership or income interests of each entity. In any case where an entity is listed as having a 10% or greater interest in the entity, the interested entity shall provide a secondary list of the names of all entities, partners, officers, and/or any other person who owns 10% or more of the interested entity. The Compliance Officer shall provide an updated list to the City Council quarterly and shall make the list available to the public at the City Clerk's office and on the City's official website.
C. 
The Compliance Officer shall create and update monthly a list of redevelopers with redevelopment agreements with the City as defined in § 20C-2C of the Redevelopment Pay-to-Play Reform Ordinance. Included on the list will be the names of any entity, partners, officers and/or any person who owns 10% or more of the equity or ownership or income interests of each business entity. In any case where an entity is listed as having a ten-percent-or greater interest in the entity, the interested entity shall provide a secondary list of the names of all entities, partners, officers, and/or any other person who owns 10% or more of the interested entity. The Compliance Officer shall provide an updated list to the City Council quarterly and shall make the list available to the public at the City Clerk's office and on the City's official website.
D. 
All candidates for local municipal office in Hoboken submit to the Compliance Officer copies of all campaign financial activity reports they file with the New Jersey Election Law Enforcement Commission (ELEC) concurrently with the filing of those reports with ELEC. If a candidate does not submit the reports to the Compliance Officer, the Compliance Officer shall post the list of noncompliant candidates on the City's official website and submit the list of noncompliant candidates to the City Council and the City Clerk.
E. 
The Compliance Officer shall inspect all copies of campaign financial activity reports submitted by candidates or obtained from ELEC for compliance with the Public Contracting Reform Ordinance and Redevelopment Pay-to-Play Reform Ordinance.
F. 
The Compliance Officer shall be the designated official for receiving complaints alleging violations of the Public Contracting Reform Ordinance or Redevelopment Pay-to-Play Reform Ordinance.
G. 
The Compliance Officer shall submit quarterly reports to the City Council and the Mayor regarding all complaints of violations of the Public Contracting Reform Ordinance or Redevelopment Pay-to-Play Reform Ordinance. The reports shall include the following for each such complaint: the status of the investigation of the complaint; the outcome of the investigation if it has been completed; and the actions, if any, taken as a result of the investigation. The report shall also include the same information of any investigation taken by the Compliance Officer based upon his own review of campaign financial activity reports. The Compliance Officer shall create and make available to the public at the City Clerk's office and on the City's official website all final determinations made with respect to any complaints.