GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 859

Short Title:  Contributions to PACs.	(Public)
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Sponsors: Senator Goldston.
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Referred to:  Election Laws.
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April 12, 1989

A BILL TO BE ENTITLED
AN ACT TO ALLOW PERSONS OTHER THAN INDIVIDUALS TO MAKE LIMITED CONTRIBUTIONS TO POLITICAL ACTION COMMITTEES OF PROFESSIONAL ASSOCIATIONS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 163-278.9(a) reads as rewritten:
"(a)	The treasurer of each candidate and of each political committee shall file under verification with the Board the following reports:
(1)	Organizational Report. – The appointment of the treasurer as required by G.S. 163-278.7(a), the statement of organization required by G.S. 163-278.7(b), and a report of all contributions and expenditures not previously reported shall be filed with the Board no later than the tenth day following the day the candidate files his notice of candidacy or the tenth day following the organization of the political committee, whichever occurs first. Any candidate whose campaign is being conducted by a political committee which is handling all contributions and expenditures for his campaign shall file a statement with the Board stating such fact at the time required herein for the organizational report. Thereafter, the candidate's political committee shall be responsible for filing all reports required by law.
(1a)	Organizational Report of Professional Association Accepting Certain Contributions.  In addition to any other requirements of this Article, in order to lawfully accept any contribution permitted by G.S. 163-278.19(f), the organizational statement of the political committee of a professional association shall state that it is a political committee of a professional association and can accept contributions from persons other than individuals.  An organizational statement which does not so indicate can be amended to so show.  The State Board of Elections shall periodically make public a list of political committees designated under this subdivision.  No professional association may have more than one political committee designated under this subdivision.
(2)	Preprimary Report. – The treasurer shall file a report with the Board no later than the tenth day preceding the primary election.
(3)	Postprimary Report(s). – The treasurer shall file a report with the Board no later than the tenth day after the primary election if the candidate was eliminated in the primary. If there is a second primary, the treasurer shall file a report with the Board no later than the tenth day after the second primary election if the candidate was eliminated in the second primary.
(4)	Preelection Report. – The treasurer shall file a report with the Board not later than the tenth day preceding the general election.
(5)	Repealed by Session Laws 1985, c. 164, s. 1, effective January 1, 1986.
(6)	Annual Reports.– If contributions are received or expenditures made during a calendar year, for which no reports are otherwise required by this Article, any and all such contributions and expenditures shall be reported by the last Friday in January of the following year."
Sec. 2.  G.S. 163-278.15 reads as rewritten:
"§ 163-278.15. No acceptance of contributions made by corporations, foreign and domestic.
Except as provided by G.S. 163-278.19(f), no candidate, political committee, political party, or treasurer shall accept any contribution made by any corporation, foreign or domestic, regardless of whether such corporation does business in the State of North Carolina."
Sec. 3.  G.S. 163-278.19 reads as rewritten:
"§ 163-278.19. Violations by corporations, business entities, labor unions, professional associations and insurance companies.
(a)	Except as provided in subsections (b) or (f) of this section, it shall be unlawful for any corporation, business entity, labor union, professional association or insurance company directly or indirectly:
(1)	To make any contribution or expenditure (except a loan of money by a national or State bank or federal or State savings and loan association made in accordance with the applicable banking or savings and loan association laws and regulations and in the ordinary course of business) in aid or in behalf of or in opposition to any candidate or political committee in any election or for any political purpose whatsoever;
(2)	To pay or use or offer, consent or agree to pay or use any of its money or property for or in aid of or in opposition to any candidate or political committee or for or in aid of any person, organization or association organized or maintained for political purposes, or for or in aid of or in opposition to any candidate or political committee or for any political purpose whatsoever; and
(3)	To reimburse or indemnify any person or individual for money or property so used or for any contribution or expenditure so made;
and it shall be unlawful for any officer, director, stockholder, attorney, agent or member of any corporation, business entity, labor union, professional association or insurance company to aid, abet, advise or consent to any such contribution or expenditure, or for any person or individual to solicit or knowingly receive any such contribution or expenditure. Any officer, director, stockholder, attorney, agent or member of any corporation, business entity, labor union, professional association or insurance company aiding or abetting in any contribution or expenditure made in violation of this section shall be guilty of a misdemeanor as hereinafter set out, and shall in addition be liable to such corporation, business entity, labor union, professional association or insurance company for the amount of such contribution or expenditure, and the same may be recovered of him upon suit by any stockholder or member thereof.
(b)	It shall, however, be lawful for any corporation, business entity, labor union, professional association or insurance company to communicate with its employees, stockholders or members and their families on any subject; to conduct nonpartisan registration and get-out-the-vote campaigns aimed at their employees, stockholders, or members and their families; or for officials and employees of any corporation, insurance company or business entity or the officials and members of any labor union or professional association to establish, administer, contribute to, and to receive and solicit contributions to a separate segregated fund to be utilized for political purposes, except as provided in G.S. 163-278.20, and those individuals shall be deemed to become and be a political committee as that term is defined in G.S. 163-278.6(14) or a referendum committee as defined in G.S. 163-278.6(18b); provided, however, that it shall be unlawful for any such fund to make a contribution or expenditure by utilizing contributions secured by physical force, job discrimination, financial reprisals or the threat of force, job discrimination or financial reprisals, or by dues, fees, or other moneys required as a condition of membership or employment or as a requirement with respect to any terms or conditions of employment, including, without limitation, hiring, firing, transferring, promoting, demoting, or granting seniority or employment-related benefits of any kind, or by moneys obtained in any commercial transaction whatsoever.
(c)	A violation of this section is a misdemeanor. In addition, the acceptance of any contribution, expenditure, payment, reimbursement, indemnification, or anything of value under subsection (a) shall be unlawful and the defendant shall be subject to the same punishment as set forth in this subsection.
(d)	Whenever a candidate or treasurer is an officer, director, stockholder, attorney, agent, or employee of any corporation, business entity, labor union, professional association or insurance company, and by virtue of his position therewith uses office space and communication facilities of the corporation, business entity, labor union, professional association or insurance company in the normal and usual scope of his employment, the fact that the candidate or treasurer receives telephone calls, mail, or visits in such office which relates to activities prohibited by this Article shall not be considered a violation under this section.
(e)	Notwithstanding the prohibitions specified in this Article and Article 22 of this Chapter, a political committee organized under provisions of this Article shall be entitled to receive and the corporation, business entity, labor union, professional association, or insurance company designated on the committee's organizational report as the parent entity of the employees or members who organized the committee is authorized to give reasonable administrative support that shall include, but not be limited to, record keeping, computer services, billings, mailings to members of the committee, and such other support as is reasonably necessary for the administration of the committee.
The approximate cost of any record keeping, computer services, billings, mailings, office supplies, and office space provided on a continuing basis shall be submitted to the committee, in writing, and the committee shall include that cost on the annual report required by G.S. 163-278.9(a)(6). Also included in the report shall be the approximate allocable portion of the compensation of any officer or employee of the corporation, business entity, labor union, professional association, or insurance company who has devoted more than thirty-five percent (35%) of his time during normal business hours of the corporation, business entity, labor union, professional association, or insurance company during the period covered by the required report. The approximate cost submitted by the parent corporation, business entity, labor union, professional association, or insurance company shall be entered on the committee's annual report as the final entry on its list of ‘contributions' and a copy of the written approximate cost received by it shall be attached.
The administrative support given by a corporation, business entity, labor union, professional association, or insurance company shall be designated on the books of the corporation, business entity, labor union, professional association, or insurance company as such and may not be treated by it as a business deduction for State income tax purposes.
(f)	Notwithstanding any other provision of law, it is lawful for any corporation, business entity, labor union, professional association or insurance company to make a total contribution not in excess of five hundred dollars ($500.00) in any calendar year to the political committee of any professional association which has been designated under G.S. 163-278.9(a)(1a)."
Sec. 4.  This act shall become effective with respect to contributions made on or after September 1, 1989.