From the NY Times:
A New York City law that limits campaign contributions from individuals and entities that have business dealings with the city survived another legal challenge on Wednesday, when a federal appeals panel ruled that the law did not violate the free-speech and equal-protection provisions of the United States Constitution.
Several plaintiffs had challenged the city’s “pay to play” regulations in a lawsuit filed in federal court in Manhattan in 2008. A district court judge upheld the constitutionality of the law in February 2009.
The plaintiffs, including former Councilman Tom Ognibene and the State Conservative Party, appealed that ruling, but their legal challenge has now been rejected by the United States Court of Appeals for the Second Circuit.