The bill would mandate disclosure of contributors who give more than $10,000 to nonprofit 501(c)4s, super PACs and other similar groups that engage in political activities, ban elected officials and candidates from managing such groups and boost contribution limits to state and county political committees.

TRENTON — Legislation to require so-called “dark money” groups operating in New Jersey to reveal their spending and donors cleared another key hurdle Thursday when the full Senate voted to approve it.

The legislation — which some supporters have described as the most significant campaign finance reform undertaken by the Legislature in years — was approved by a vote of 31-0.

The bill would mandate disclosure of contributors who give more than $10,000 to nonprofit 501(c)4s, super PACs and other similar groups that engage in political activities, ban elected officials and candidates from managing such groups and boost contribution limits to state and county political committees.

But it would not apply to groups spending on federal races for Congress or the White House. Disclosure for those races is the responsibility of the Federal Election Commission.

State Sen. Troy Singleton, D-7th of Delran, who is the prime sponsor of the bill, said the measure would still bring some long-sought transparency to the outside groups and help address “real and growing cynicism” that members of the public feel about government.

Jeff Brindle, executive director of the New Jersey Election Law Enforcement Commission, has also repeatedly called for legislative action to require disclosure of donors by nonprofits that spend independently of candidates or campaigns. He said those groups have become a force in state politics and elections.

“The overarching sentiment of this legislation is not a Democrat or Republican issue. I think each of us have been affected in some way by those outside groups with benign sounding names that have pumped millions of dollars to try to shape our legislative, regulatory and election process,” Singleton said before the vote. “We’re trying to shed a little light, a little transparency on that and it’s my hope we’ll be able to move that forward today.”

Singleton first penned the bill in 2016 when he was serving in the state Assembly but received little attention until this year when it gained traction in the wake of news reports about groups that have aided both Gov. Phil Murphy and Senate President Stephen Sweeney.

Murphy has been aided by New Direction New Jersey, a 501(c)4 that has paid for advertising promoting the governor’s agenda and one that Murphy has admitted to helping raise funds for. The group originally promised to voluntarily release its donors, but announced earlier this year it would not do so.

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.

The legislation would be 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 bill’s restriction on elected officials managing or directing such “dark money” groups could also impact New Direction New Jersey’s founder, Brendan Gill, who managed Murphy’s successful gubernatorial campaign and is also an elected Essex County freeholder.

State Sen. Nia Gill, D-34th of Montclair, voiced opposition to the bill being retroactive on the Senate floor, arguing that it was likely to be challenged in court because donors and nonprofit groups complied with the law at the time the contributions were accepted.

“Citizens have the right to rely on the law at the time they participated,” said Gill, who abstained during the vote.

Singleton cited case law that he believes allows the retroactive change and urged his colleagues to advance the bill forward.

In order to become law, the bill must still be approved by the Assembly and be signed by the governor.

A version of the bill in the Assembly is still pending before the chamber’s State and Local Government Committee.

Original Article