Lesson one for any student of state and local pay-to-play laws: just when you think you have a handle on them, they change.  Recent developments in a small New Jersey township provide a case-in-point.

Last month, Upper Township, New Jersey, adopted an ordinance that forbids the township from entering into certain kinds of contracts if, for example, an executive for the prospective contractor made a political contribution to a township political party or candidate with ultimate responsibility for the award of the contract within the last year.  The ordinance also prohibits contractors and key employees from making these political contributions during the life of the contract and during contract negotiations.  There was, however, a notable exception: the rules did not apply to small-dollar donations of $300 or less.

Before the proverbial ink has dried, however, this new ordinance appears ready for another change.  Last week, a township committee voted unanimously to ask the township solicitor to draft a new ordinance that gets rid of the $300 threshold.  Under the proposed change, an employee’s contribution of just one dollar may be enough to prevent a company from doing business with the township for four years.

The takeaway here is that it is not enough for government contractors to assume that their political activities comply with pay-to-play laws because they complied with the pay-to-play laws last year or even last month.  Prior to making or soliciting any contribution in jurisdictions in which they are active, government contractors should make sure that the contribution complies with current law.

Photo of Zachary G. Parks Zachary G. Parks

Zachary Parks advises corporations, trade associations, campaigns, and high-net worth individuals on their most important and challenging political law problems.

Chambers USA describes Zachary as “highly regarded by his clients in the political law arena,” noting that clients praised him as their “go-to outside…

Zachary Parks advises corporations, trade associations, campaigns, and high-net worth individuals on their most important and challenging political law problems.

Chambers USA describes Zachary as “highly regarded by his clients in the political law arena,” noting that clients praised him as their “go-to outside attorney for election law, campaign finance, pay-to-play and PAC issues.” Zachary is also a leading lawyer in the emerging corporate political disclosure field, regularly advising corporations on these issues.

Zachary’s expertise includes the Federal Election Campaign Act, the Lobbying Disclosure Act, the Ethics in Government Act, the Foreign Agents Registration Act, and the Securities and Exchange Commission’s pay-to-play rules. He has also helped clients comply with the election and political laws of all 50 states. Zachary also frequently leads political law due diligence for investment firms and corporations during mergers and acquisitions.

He routinely advises corporations and corporate executives on instituting political law compliance programs and conducts compliance training for senior corporate executives and lobbyists. He also has extensive experience conducting corporate internal investigations concerning campaign finance and lobbying law compliance and has defended his political law clients in investigations by the Federal Election Commission, the U.S. Department of Justice, Congressional committees, and in litigation.

Zachary is also the founder and chair of the J. Reuben Clark Law Society’s Political and Election Law Section.

Zachary also has extensive complex litigation experience, having litigated major environmental claims, class actions, and multi-district proceedings for financial institutions, corporations, and public entities.

From 2005 to 2006, Zachary was a law clerk for Judge Thomas B. Griffith on the United States Court of Appeals for the District of Columbia.

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