NJ Says Contractor Ownership Rule Is Constitutional

Law360 (October 16, 2020, 5:10 PM EDT) -- The state of New Jersey urged a federal court Friday to end a challenge to a state licensing requirement that mechanical contractors have a 1% business ownership in a Garden State entity to conduct business, arguing that there's no evidence the law violates the U.S. Constitution.

The Mechanical Contractors Civil Action Association of New Jersey Inc. and national firm MMC Contractors claim the New Jersey rule runs counter to multiple constitutional clauses, yet haven't shown why, the state argued in a motion for summary judgment.

"There is no evidence presented to support plaintiffs' contention that [the law], as applied, will create...

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