NJ court upholds 'pay to play' law on donations

A unanimous state appellate court upheld the constitutionality of a 2005 law aimed at curbing the practice, known as pay to play.

The three judges said state government has a legitimate and worthy interest in preventing corruption or the appearance of corruption, and noted that all high-level casino executives are also barred from making political donations to state candidates.

The ruling was a setback for a highway builder, Earle Asphalt Co., which argued the law violated its right to free speech and free association, and that the $300 limit inhibited effective advocacy. Its lawyer said the company had not yet determined whether to appeal.

"The potential impact of this is that Earle could be facing a period of ineligibility for state contracts that could be as long as 18 months," said the lawyer, Steven E. Brawer.

The state Attorney General's Office had urged the law be validated. "This is a significant ruling because it upholds the constitutionality of the law, which had not been challenged prior to this case," spokesman Leland Moore said.

The Campaign Contributions and Expenditure Report Act prohibits any state agency from awarding a contract over $17,500 to a business that gave more than $300 in the past 18 months to the governor, a candidate for governor, or any state or county political committee. The law includes an exemption for a contractor who receives a reimbursement within 30 days of making a donation.

The law was challenged Earle Asphalt, which had made a $1,500 donation on June 30, 2007, to the Monmouth County Republican Committee at the request of former state Senate President John O. Bennett III, R-Monmouth.

Earle soon realized the money might run afoul of the law, and requested reimbursement 20 days later. The refund came 21 days after that.

The president of the Freehold Township-based company, Walter Earle II, maintained he made numerous calls to Bennett to expedite the refund, and Bennett said he also tried, according to court records.