[HISTORY: Adopted by the Mayor and Council of the Borough
of Leonia as indicated in article histories. Amendments noted where
applicable.]
GENERAL REFERENCES
Code of Ethics — See Ch. 26.
[Adopted 11-13-2013 by Ord. No. 09-13]
As used in this chapter, the following terms shall have the
meanings indicated:
For purposes of this chapter, a business entity whose contributions
are regulated by this chapter means i) an individual, including the
individual's spouse, and any child/children; ii) a firm, corporation,
professional corporation, partnership, limited liability company,
organization, association, and any other manner and kind of business
entity; iii) any person who owns 10% or more of the equity or ownership
or income interests in a person or entity as defined in Items i) and
ii) above and their spouses and child/children; iv) all partners or
officers of such an entity, in the aggregate, and their spouses and
child/children; v) any person, subcontractor, subsidiary, corporation,
firm, partnership, limited liability company, organization or association
who has received or indefeasibly acquired the right to receive, from
a person described in Item i) above, more than $100,000 in compensation
or income of any kind (including, by way of illustration, and not
limitation, wages, salaries, sums paid to independent contractors,
benefits, dividends, profit-sharing, pension contributions, deferred
contributions, stock, stock options or gifts), in any twelve-month
period prior to the award of, or during the term of, a contract subject
to this chapter; and vi) all persons who are an "affiliate" of a "business
entity" as defined in Items i), ii) and v) above, as such term is
used in 11 U.S.C. § 101(2).
i) every candidate for Borough of Leonia elective municipal
office; ii) every candidate committee established by or for the benefit
of a candidate for Borough of Leonia elective municipal office; iii)
every joint candidate committee established in whole or in part by
or for the benefit of a candidate for Borough of Leonia elective municipal
office; iv) every political party committee of the Borough of Leonia;
v) every political party committee of the County of Bergen; and vi)
every political committee, continuing political committee, or other
form of association or organization that regularly engages in the
support of candidates for the Borough of Leonia municipal or County
of Bergen elective offices or Borough of Leonia municipal or County
of Bergen political parties or political party committees. The terms
in the foregoing definition have the meaning prescribed in N.J.A.C.
19:25-1.7.
All contracts for "professional services" and "extraordinary
unspecifiable services," as such term are used in N.J.S.A. 40A:11-5.
Has the meaning prescribed in N.J.A.C. 19:25-1.7. By way
of illustration and not limitation, this definition includes pledges,
loans, and in-kind contributions.
A.
To the extent that it is not inconsistent with state or federal law, the Borough of Leonia and any of its departments, instrumentalities or purchasing agents 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 or other consulting service (hereinafter "professional services"), nor "extraordinary unspecified services" as such term is defined at N.J.S.A. 40A:11-2(7) and used at N.J.S.A. 40A:11-5(1)(a)(ii), and/or media, public relations, lobbying, parking garage management or other consulting and/or management service (hereinafter "extraordinary unspecified services") from any business entity if such business entity has solicited or made any contribution to i) a candidate, candidate committee or joint candidates' committee of any candidate for elective municipal office in Borough of Leonia or a holder of public office having ultimate responsibility for the award of a contract, or ii) to any Borough of Leonia or County of Bergen political committee or political party committee, or iii) to any continuing political committee or political action committee that regularly engages in the support of Borough of Leonia municipal or County of Bergen elections and/or Borough of Leonia municipal or County of Bergen candidates, candidate committees, joint candidate committees, political committees, political parties, political party committees (hereinafter "PAC") in excess of the thresholds specified in Subsection C within one calendar year immediately preceding the date of the contract or agreement.
B.
No business entity which submits a proposal for, enters into negotiations
for, or agrees to any contract or agreement with the Borough of Leonia
or any of its departments or instrumentalities for the rendition of
professional services or extraordinary unspecified services shall
knowingly solicit or make any contribution to i) a candidate, candidate
committee or joint candidates' committee of any candidate for elective
municipal office in Borough of Leonia, or a holder of public office
having ultimate responsibility for the award of a contract, or ii)
to any Borough of Leonia or County of Bergen political committee or
political party committee, or iii) any PAC between the time of first
communication between that business entity and the municipality regarding
a specific agreement for professional services or extraordinary unspecified
services and the later of the termination of negotiations or rejection
of any proposal, or the completion of the performance or specified
time period of that contract or agreement.
C.
The monetary thresholds of this chapter are i) a maximum of $300 per calendar year each for any purpose to any candidate or candidate committee for mayor or governing body, or $500 per calendar year to any joint candidates' committee for mayor or governing body, or $300 per calendar year to a political committee or political party committee of the Borough of Leonia; ii) $500 maximum per calendar year to a County of Bergen political committee or political party committee; and iii) $500 maximum per calendar year to any PAC. However, for each business entity party to a contract for professional or extraordinary unspecified services as defined in Subsection A, or engaged in negotiations for a contract defined in Subsection A, when such business entity's contribution is aggregated with all "persons" defined in the definition of "business entity" in § 19-1, Definitions, above, by virtue of their affiliation to that business entity party, a maximum of $2,500 to all Borough of Leonia candidates, candidate committees, joint candidate committees, and holders of public office having ultimate responsibility for the award of a contract, all Borough of Leonia or County of Bergen political committees and political party committees as described herein combined, without violating Subsection A of this section.
D.
For purposes of this section, the office that is considered to have
ultimate responsibility for the award of the contract shall be i)
the Borough of Leonia Mayor or governing body, if the contract requires
approval or appropriation from the Mayor or governing body, or ii)
the Mayor of the Borough of Leonia, if the contract requires approval
of the Mayor, or if a public officer who is responsible for the award
of a contract is appointed by the Mayor.
E.
Rules regarding subcontractors. No person may be awarded a subcontract to perform under a contract subject to this chapter, if the subcontractor would be disqualified by Subsection A from receiving the contract at the time that the subcontract is awarded. Nor may any person who would be disqualified by Subsection A from receiving the contract perform substantially all of obligations described in a contract for professional or extraordinary services that is subject to this chapter.
No contribution or solicitation of contributions made prior
to the effective date of this chapter shall be deemed to give rise
to a violation of this chapter.
No contract subject to this chapter may be renewed, extended,
or materially modified unless the resulting renewal, extension, or
modification would be allowable under the provisions of this chapter
if it were an initial contract.
A.
Prior to awarding any contract or agreement to procure professional services or extraordinary unspecified services from any business entity, the Borough of Leonia or its purchasing agents and departments, as the case may be, shall receive a sworn statement from said business entity which is the intended recipient of said contract that he/she/it has not made a contribution in violation of § 19-2 of this chapter. The Borough of Leonia, its purchasing agents and departments shall be responsible for informing the Mayor and Council that the aforementioned sworn statement has been received and that the business entity is not in violation of this chapter, prior to awarding the contract or agreement.
B.
A business entity shall have a continuing duty to report to the Borough
of Leonia any contributions that constitute a violation of this act
that are made during the negotiation, proposal process or the duration
of a contract. The Borough of Leonia, its purchasing agents and departments
shall be responsible for informing the governing body within 10 business
days after receipt of said report from the business entity or at the
next Mayor and Council meeting following receipt of said report from
the business entity, or whichever comes first.
C.
The certification required under this subsection shall be made prior
to entry into the contract or agreement with the Borough of Leonia,
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 business entity that is a party to a contract for professional services or extraordinary unspecified services may cure a violation of § 19-2 of this chapter if, within 30 days after the date on which the applicable ELEC report is published, said business entity notifies the municipality in writing and seeks and receives reimbursement of the contribution from the recipient of such contribution.
The contribution limitations prior to entering into a contract in § 19-2A do not apply to contracts which i) 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 ii) are awarded in the case of emergency under N.J.S.A. 40A:11-6. There is 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 of the terms of a Borough of Leonia
agreement or contract for professional services or extraordinary unspecified
services when a business entity that is a party to such agreement
or contract has:
(1)
Made or solicited a contribution in violation of this chapter;
(2)
Knowingly concealed or misrepresented a contribution given or received;
(3)
Made or solicited contributions through intermediaries for the purpose
of concealing or misrepresenting the source of the contribution;
(4)
Made or solicited 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 Borough of Leonia, or a holder of public office
having ultimate responsibility for the award of a contract, or any
Borough of Leonia or County of Bergen political committee or political
party committee, or any PAC;
(5)
Engaged or employed a lobbyist or consultant with the intent or understanding
that such lobbyist or consultant would make or solicit any contribution,
which if made or solicited by the professional business entity itself
would subject that entity to the restrictions of this chapter;
(6)
Funded contributions made by third parties, including consultants,
attorneys, family members, and employees;
(7)
Engaged in any exchange of contributions to circumvent the intent
of this chapter; or
(8)
Directly or indirectly, through or by any other person or means,
done any act which if done directly would subject that entity to the
restrictions of this chapter.
C.
Any person who knowingly, purposely, or recklessly violates any provision
of this chapter, or who conspires with another person to violate any
provision of this chapter, or who, with the purpose of promoting or
facilitating a violation of this chapter, solicits another person
to commit it, or aids or agrees, or attempts to aid another person
in planning or committing it, shall be subject to punishment, including
fines and/or imprisonment as fixed by law for violations of the ordinances
of the Borough of Leonia.
In addition to any rights that were heretofore available, or
which may hereafter be available, to citizens, taxpayers, or associations,
to challenge violations of this chapter, every person aggrieved by
a violation of the chapter or any taxpayer or resident of the Borough
of Leonia has the right, consistent with the Rules of Court, to file
charges in a court of competent jurisdiction and/or to pursue a civil
action for a violation of this chapter in a court of competent jurisdiction,
and to seek and obtain declaratory, injunctive, or other legal or
equitable relief, including but not limited to attorneys fees and
costs, arising from or related to a violation of this chapter.
The monetary thresholds of § 19-1, definition of "business entity," and § 19-2C, of this chapter shall be increased effective March 1 of each calendar year by the percentage increase, in the prior calendar year, of the consumer price index for all urban consumers (CPI-U) for the New York-Northern New Jersey-Long Island region, rounded to the nearest $10. The Clerk of the Borough of Leonia shall, by no later than April 1 of each calendar year, prepare and publish the revised thresholds on the official municipal website and in an official municipal newspaper.
