A Victory for “Pay to Play” Reformers
This past week, the Appellate Division of the Superior Court of New Jersey issued a decision in In the Matter of the Appeal by Earle Asphalt Company, a case involving the owner of a road construction business and his political contribution to the Monmouth County Republican Committee in June 2007. Walter Earle III, owner of Earle Asphalt Company, made the contribution at the behest of former State Senate President John Bennett, failing to realize that the contribution could bar him from obtaining business from the State. After obtaining counsel and being advised that his contribution might violate “pay-to-play” laws, Mr. Earle requested that the contribution be returned. Meanwhile, Earle Asphalt Company submitted a bid to the New Jersey Department of Transportation for a roadwork contract involving Interstate 195. It was the low bid and therefore Earle Asphalt would have been awarded the State contract. However, the Department of Treasury informed the company that it was disqualified from award of the contract because of Mr. Earle’s June 2007 political contribution. Mr. Earle appealed this decision and took the matter to court.
At issue was a 2005 amendment to the Campaign Contributions and Expenditure Reporting Act, also known as Chapter 51, which prohibits the awarding of a contract of over $17,500 by a state agency to a business entity that has provided more than $300 in the preceding eighteen months to any State or county political party, the Governor, or a candidate for Governor. The company’s primary argument was that Chapter 51 violated its freedom of speech and association rights. Citing a decision by the United States Supreme Court, the Superior Court of New Jersey stated that a statute, like Chapter 51, that limits political contributions is appropriate if the State is able to show a sufficiently important interest and the statute is written in such a way as to avoid unnecessary restrictions to the freedom of association.
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Michael M. Shapiro, founder of ShapTalk.com, is an attorney who resides in New Providence,