Legislation to require nonprofit 501(c)4s, super PACs and other similar groups that engage in political activities to disclose their contributors was approved Thursday by the Senate Budget and Appropriations Committee. The vote was unanimous and marked the first time in three years that the bill advanced from a committee.

TRENTON — New Jersey lawmakers have advanced legislation intended to shine light on so-called “dark money” groups that raise money to influence elections and policy in the state.

Legislation to require nonprofit 501(c)4s, super PACs and other similar groups that engage in political activities to disclose their contributors was approved Thursday by the Senate Budget and Appropriations Committee. The vote was unanimous and marked the first time in three years that the bill advanced from a committee.

The legislation would also boost the limits for contributions to state and county political committees. It was first penned by Sen. Troy Singleton, D-7th of Delran, in 2016 when he was serving in the state Assembly but received little attention until this month when it gained traction in the wake of news reports about groups that have aided Gov. Phil Murphy and Senate President Stephen Sweeney.

New Direction New Jersey, a 501(c)4, has paid for advertising promoting Murphy’s agenda, and the governor has admitted to raising funds to support its activities. The group has declined to voluntarily release its donors after originally pledging to do so last year.

The issue gained even more attention after the website Politico reported that PSEG, which is the parent company of New Jersey utility Public Service Electric & Gas, mistakenly sent a $55,000 contribution to General Majority PAC, which is a super PAC linked to George Norcross, a Democratic powerbroker and close ally to Sweeney.

Politico reported the contribution was intended to go to the General Growth Fund, which is a 501(c)4 linked to Norcross.

Both groups are permitted to spend unlimited amounts in support or opposition of political candidates or causes. But unlike super PACS, which are required to report their contributors to the Federal Election Commission, 501(c)4s, or “social interest” groups, are not required to reveal their donors.

Murphy has said New Direction New Jersey should voluntarily disclose its contributors but he has not cut ties with the group’s leaders.

Sweeney, D-3rd of West Deptford, has endorsed Singleton’s bill, saying it would “bring greater transparency and accountability to the organizations that work to influence the actions of government that have an impact on the lives of the people of New Jersey.” But he also asked for it to be amended to become retroactive to Jan. 1, 2018, and include groups that spend to advocate for or against existing legislation and proposed or existing regulations.

By making the measure retroactive, it ensures that New Direction New Jersey’s donors during last year’s budget battle between Murphy and legislative leaders are revealed.

The amendments were approved during Thursday’s hearing, along with another amendment raising the donor disclosure threshold from $300 to $10,000.

Singleton said the legislation is a first step to restore the public’s trust in government and to hold elected officials accountable.

“Voters deserve to know who is trying to influence their elected representatives’ vote. As each of us as candidates for office are legally required to disclose who contributes to our campaigns, so should those who operate in the world of independent expenditure committees who seek to influence those campaigns and public policy,” Singleton said during the hearing.

Jeff Brindle, executive director of the New Jersey Election Law Enforcement Commission, said the legislation conforms with free speech protections and Supreme Court decisions such as Citizens United, which ruled that the federal government cannot put limits on groups’ political spending.

“It merely seeks disclosure by groups similar to what’s required by political candidates,” he said, noting that independent expenditure groups have become a growing force in both state and local elections.

Sixteen years ago, these groups spent little or nothing in New Jersey elections, Brindle said. But in 2017, they spent more than $47 million, while state and county political committees, which must disclose contributions and expenditures, spent about $27 million.

“These groups are becoming increasingly influential. Without reform, New Jersey’s election landscape will be transformed in a way that undermines the public’s interests,” Brindle said.

While most of the testimony during the hearing was in support of the legislation, there was some push back against a provision in the bill that would repeal the current ban on transferring funds between county political committees during the first six months of the year.

Some speakers also expressed concerns that the bill was too broad and could jeopardize the privacy of people who donate to nonpartisan groups like the NAACP and ACLU that advocate for and against legislation and policies but aren’t spending independently on political elections.

Amol Sinha, executive director of the ACLU, said the measure could unintentionally have a “chilling affect” on the ACLU and other groups.

“We advocate for transparency but we also advocate for privacy,” he said, adding that a distinction should be made between independent expenditure groups and nonpartisan groups.

Singleton said he’s willing to discuss changes to the bill but he stressed that all groups seeking to influence legislation and policy should be subject to disclosure requirements.

“If there’s an opportunity for anyone to influence legislation or policy, that needs to be as transparent as possible,” he said. “I can’t bifurcate between groups I like and don’t.”

The legislation still has several more hurdles to clear in order to become law. It must be approved by the full Senate and also the Assembly, where it still is pending before the chamber’s State and Local Government Committee. It also must be signed by the governor.

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