GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

S	1 

SENATE BILL 1040

Short Title:  Positive Campaigns.	(Public)

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Sponsors: Senator Gulley.

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Referred to:  Judiciary II/Election Laws

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May 4, 1995

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH NORTH CAROLINIANS FOR POSITIVE CAMPAIGNS AND MAKE RELATED CHANGES.
The General Assembly of North Carolina enacts:
Section 1.  Article 22C of Chapter 163 is repealed.
Sec. 2.  Chapter 163 of the General Statutes is amended to add Article 22D to read as follows:
"ARTICLE 22D.
"North Carolinians for Positive Campaigns.
"§ 163-278.60.  Definitions.
(1)	'Board' means the Board of Directors for North Carolinians for Positive Campaigns.
(2)	'Candidate' means that as defined in G.S. 163-278.6(4).
(3)	'Communications media' means that as defined in G.S. 163-278.6(5).
(4)	'Committee' means the Media Access Advisory Committee, as established in G.S. 163-278.66.
(5)	'Competitive election' means a contested election for a political office in North Carolina in which two or more candidates received in excess of twenty-five percent (25%) of the votes cast in that election.
(6)	'Contribute' and 'contribution' means those as defined in G.S. 163-278.6(6).
(7)	'Fund' means the Fund of North Carolinians for Positive Campaigns.
(8)	'Participating candidate' means a candidate who signs the affidavit and the 'standard of conduct' pledge in G.S. 163-278.63(b) and G.S. 163-278.64(b).
(9)	'Public office' means that as defined in G.S. 163-278.6(18).
(10)	'Qualifying candidate' means a participating candidate who meets the requirements for public financing in a primary election in accordance with G.S. 163-278.64 or in a general election in accordance with G.S. 163-278.63.
(11)	'Refusing candidate' means a candidate who refuses to follow the campaign finance practices in G.S. 163-278.64.
"§ 163-278.61.  Establishment of North Carolinians for Positive Campaigns.
(a)	Establishment of Corporation. –  There is established North Carolinians for Positive Campaigns (NCPC).  NCPC shall operate as a State-chartered, not-for-profit corporation and shall be governed by a Board of Directors.
(b)	Appointment of Membership. – The Board shall consist of 12 members as follows:
(1)	Three members appointed by the Majority Leader of the North Carolina House of Representatives, of whom one member must be registered 'unaffilated'.
(2)	Three members appointed by the Minority Leader of the North Carolina House of Representatives, of whom one member must be registered 'unaffiliated'.
(3)	Three members appointed by the Majority Leader of the North Carolina Senate, of whom one member must be registered 'unaffilated'.
(4)	Three members appointed by the Minority Leader of the North Carolina Senate, of whom one member must be registered 'unaffiliated'.
(c)	Terms. – Members shall serve four-year terms, except in the case of initial terms as follows:
(1)	Two members appointed by the Majority Leader of the House of Representatives, two members appointed by the Minority Leader of the Senate, one member appointed by the Minority Leader of the House of Representatives, and one member appointed by the Majority Leader of the Senate, shall expire July 1, 1997.
(2)	Two members appointed by the Minority Leader of the House of Representatives, two members appointed by the Majority Leader of the Senate, one member appointed by the Majority Leader of the House of Representatives, and one member appointed by the Minority Leader of the Senate, shall expire July 1, 1999.
(d)	Holding Over. – At the end of a term, a member shall continue to serve until a successor is appointed.  A member who is appointed after a term has begun serves only for the remainder of the term and until a successor is appointed.   A member who serves two consecutive full four-year terms shall not be reappointed until four years after completion of those terms.  A vacancy in a legislative appointment shall be filled in accordance with G.S. 120-122.
(e)	Officers. – The Board shall elect officers biennially.  Officers shall serve no more than two consecutive terms in an office.
(f)	Executive-Director. – The Board shall appoint an executive director who shall serve at the pleasure of the Board.  The executive director shall administer the affairs of the Board.  The executive director may employ and direct staff necessary to carry out the provisions of this Article.
(g)	Meetings. – The Board shall meet as needed at the times and places it determines.  Such meetings and procedures shall be governed by the procedures and policies set forth in the North Carolina Open Meetings Law, Article 33C of Chapter 143 of the General Statutes.  A majority of the fully authorized membership of the Board is a quorum.
(h)	Causes of Ineligibility. –  An individual shall not be eligible to serve on the Board if the individual or the individual's spouse:
(1)	Has contributed more than two hundred fifty dollars ($250.00) to a single candidate for political office in North Carolina or any political action committee in North Carolina for a period of five years preceding the date of his or her appointment;
(2)	Filed as a candidate for public office during the 10 years prior to appointment to the Board; or
(3)	Is an employee of the federal or State government or any local government in North Carolina.
(i)	Requirement That Candidates Resign. – Any Board member who files for public office or publicly declares an intent to run for public office shall resign or be removed from the Board.
"§ 163-278.62.  Candidate participation requirements in a general election.
(a)	Affidavit and Pledge. – All candidates who desire to qualify for the benefits of public financing provided by NCPC in a general election shall establish their willingness to participate by signing and submitting, at the same time that their campaign's initial organizational report is filed with the State Board of Elections, the following two documents:
(1)	An affidavit prepared by the State Board of Elections, stating that the candidate agrees to follow the campaign finance practices established under G.S. 163-278.65 in exchange for receiving the media access services provided by NCPC.  The affidavit shall be sworn and subscribed to by the candidate and notarized.
(2)	A 'standard of conduct' pledge which shall read as follows:
	'I will neither engage in or condone advertising or public statement that personally attacks my opponent.  If such is promulgated by my supporters, I will promptly and publicly disavow it.'
	The pledge will recognize that it is a moral obligation, and its terms are not legally enforceable.  The pledge will also make the stated assumption that the candidate's opponent will follow the same standard of conduct.
Candidates who have existing campaign committees for public office shall be notified of the requirements of qualifying for the benefits of public financing provided by NCPC in a manner prescribed by the State Board of Elections.
(b)	Threshold Showing of Support. –  A participating candidate will be qualified to receive the benefits of public financing provided by the Board if the candidate:
(1)	Is the nominee of a party whose nominee in the last gubernatorial election won at least thirty percent (30%) of the votes cast and agreed to participate in accordance with G.S. 163-278.64; or
(2)	Demonstrates substantial popular support by filing with the State Board of Elections, on or before the thirtieth  calendar day after the primary election day for the office, an officially authorized petition containing the signatures totaling no less than ten percent (10%) of the number of votes cast in the last competitive general election for the office.
"§ 163-278.63.  Candidate participation requirements in a primary election.
(a)	Affidavit and Pledge. – All candidates who want to qualify for the benefits of public financing provided by NCPC in a primary election shall establish their willingness to participate by signing and submitting, at the same time that their campaign's initial organizational report is filed with the State Board of Elections, the following two documents:
(1)	An affidavit prepared by the State Board of Elections, stating that the candidate agrees to follow the campaign finance practices established under G.S. 163-278.67 in exchange for receiving the media access services provided by the NCPC.  The affidavit shall be sworn and subscribed to by the candidate and notarized.
(2)	A 'standard of conduct' pledge which shall read as follows:
	'I will neither engage in or condone advertising or public statement that personally attacks my opponent.  If such is promulgated by my supporters, I will promptly and publicly disavow it.'
	The pledge will recognize that it is a moral obligation, and its terms are not legally enforceable.  The pledge will also make the stated assumption that the candidate's opponent will follow the same standard of conduct.
(b)	Threshold Showing of Support. – A participating candidate will be qualified to receive the benefits of public financing provided by the Board if the candidate:
(1)	Presents proof to the State Board of Elections, on or before the thirtieth day preceding the primary election day for the office, that he or she has met the threshold of raising ten percent (10%) of the expenditure limit for that office during the primary election from no less than 1,000 individual residents of North Carolina.  Only the first two hundred fifty dollars ($250.00) of a contribution shall be applicable for the purposes of meeting this threshold.  Contributions from out-of-state residents, political committees, or any other person or entity besides an individual resident of North Carolina shall not count toward the purposes of meeting this threshold, or
(2)	Demonstrates substantial popular support by filing with the Board of Elections, on or before the thirtieth calendar day after the primary election day for the office, an officially authorized petition containing the signatures totaling no less than ten percent (10%) of the number of votes cast in the last competitive primary election for the office.
"§ 163-278.64.  Designation of participating candidates.
Within 15 days of the receipt of a participating candidate's contribution report or petitions pursuant to G.S. 163-278.62 or G.S. 163-278.63, the State Board of Elections shall review and, upon determining the report or petitions fulfill the appropriate requirement, shall designate such a candidate as qualified for NCPC benefits.
"§ 163-278.65.  Campaign finance practices of participating candidates.
(a)	Applicability to Election Races. – The provisions of this section pertaining to election races for Governor and Lieutenant Governor shall apply beginning in the year 2000.
(b)	Campaign Expenditures. –
(1)	A participating candidate in a gubernatorial election (primary, second primary, or general election) shall agree to expend a base amount maximum equal to one dollar ($1.00) per the total number of votes cast in the same type of election pertaining to that office which occurred most recently in time and qualifies as a competitive election.  The base amount maximum shall be computed in the same way for races pertaining to the Office of Lieutenant Governor, except the per voter rate shall be fifty cents (50¢).  For the purposes of this subsection, the following rules for computing total expenditures for an election shall be as follows:
a.	Any expenditure to further the candidate's candidacy made before a first or only primary shall be counted toward the total expenditures for that primary, regardless of whether the expenditure was made before or after the candidate's notice of candidacy or before or after the beginning of the calendar year in which the election is held.
b.	Any expenditure made on the day of any election shall be counted toward the total expenditures for that election.
c.	Any expenditures made after a primary shall be counted toward that primary if the candidate was defeated in the primary and toward the next election in the election year if the candidate will be entitled to have votes counted in that election.
d.	Any expenditure made after the general election but before the end of that year shall be counted toward the total expenditures of the general election.
e.	An expenditure is made at the time a contractual obligation is reached between the candidate's campaign and the recipient that the expenditure will be made, regardless of when the payment is delivered.
(2)	In addition to the base amount maximum, the actual maximum amount for the campaign of a participating candidate in an election race pertaining to the Governor or Lieutenant Governor shall be increased by a 'cost-of-election' index rate, which takes into account changes in the State's population, the actual maximum amount for previous elections and the consumer price index for North Carolina.  The State Board of Elections shall be responsible for formulating this cost-of-election index and establishing the actual maximum amount for each election race, which shall be rounded to the nearest one thousand dollars ($1,000).  The State Board of Elections shall publish this maximum amount pertaining to each election race at least two years before the day of that election.
(c)	Contribution Amounts. –
(1)	A participating candidate shall agree that that candidate's campaign will accept a total of no more than two thousand dollars ($2,000) per election in money or in-kind contributions from any individual (including members of the candidate's family, other than the candidate's spouse) or political committee, including a political party committee.  Refusing candidates may not exceed contributions limits beyond those established in G.S. 163-278.13.
(2)	Participating candidates shall agree to contribute or loan a total of no more than thirty thousand dollars ($30,000) per election in money or in-kind contributions to their own campaign.
"§ 163-278.66.  Reporting requirements.
In order to fulfill the purposes of this act regarding expenditure and contribution practices in G.S. 163-278.66, the State Board of Elections shall promulgate rules regarding disclosure to the Board, State Board of Elections, and the public of contributions and expenditures, including special reporting during the final 15 days before an election.
"§ 163-278.67.  Financing.
(a)	Receipt of Monies. –
(1)	The Fund is authorized to accept funds received through grants, private contributions, General Fund appropriations made by the General Assembly, General Fund monies earmarked by taxpayers as provided in G.S. 105-163-16(f) and G.S. 105-163.16(g), and through other appropriate and lawful means.
(2)	The Fund may accept grants or other contributions in any amount from corporations, labor unions, foundations, or any other person.
(3)	The State Board of Elections shall promulgate rules requiring on a periodic basis the Fund's disclosure of the source and amount of each grant and private contribution, in excess of one hundred dollars ($100.00).
(b)	Expenditure of Monies. –
(1)	In the 1996 general election for Governor, NCPC is authorized to expend all monies transferred to the Fund from the North Carolina Candidates Financing Fund pursuant to G.S. 105-163-16(f) and monies that the Fund otherwise receives up to a maximum of five hundred thousand dollars ($500,000) from its media account in order to purchase media access for participating candidates in the forms established pursuant to G.S. 163-278.68.
(2)	In elections for Governor and Lieutenant Governor after 1996, NCPC is authorized to expend monies from its media account to purchase media access for participating candidates in the forms established pursuant to G.S. 163-278.63 and G.S. 163-278.64 according to the following order of priority:
a.	The first two million dollars ($2,000,000) in the general election cycle for Governor;
b.	The next four hundred thousand dollars ($400,000) in the second primary for Governor if there are at least two second primary contests which both include one or more participating candidates, or two hundred thousand dollars ($200,000) if there is only a single second primary including one or more participating candidates;
c.	The next one million dollars ($1,000,000) in the primary cycle for Governor;
d.	The next one million dollars ($1,000,000) in the general election cycle for Lieutenant Governor;
e.	The next two million dollars ($2,000,000) in the second primary for Lieutenant Governor if there are at least two second primary contests which both include one or more participating candidates, or one hundred thousand dollars ($100,000) if there is only a single second primary including one or more participating candidates; and
f.	The next five hundred thousand dollars ($500,000) in the primary election cycle for Lieutenant Governor.
(3)	In each of the primary and general elections listed above in subdivision (2) of this subsection, NCPC shall allocate money value to all participating candidates for an office in equal proportions.
(4)	None of the money value that NCPC allocates to participating candidates shall be included in the expenditure limits under G.S. 163-278.66(b).
(5)	In addition to its media account, NCPC shall establish a separate administrative account for all monies to be used for operation of the NCPC.  The amount of money placed in the administrative account shall not exceed one hundred fifty thousand dollars ($150,000) in the aggregate during a calendar year through 1999.  In the year 2000, the Board may vote to increase this maximum amount up to three hundred thousand dollars ($300,000).  No taxpayer money allocated to the Fund under G.S. 105-269.6 and G.S. 105-269.7 nor any appropriations from the General Fund shall be placed in the administrative account.
(6)	Upon request by NCPC after 2000, the State Board of Elections shall recommend to the General Assembly an expansion of the elections for offices in which NCPC should provide media access for eligible candidates.  The recommendations of the State Board of Elections shall specify the offices, the base amount maximum, the maximum expenditure amount, and each office's position in NCPC's spending priority.
(7)	In any election cycle for an office listed in subdivision (2) of this subsection, NCPC shall expend at least one-half of the spending maximum or forego spending any monies in that election cycle for the office.
(8)	For the election cycle in the year 2000, NCPC shall disclose to the State Board of Elections by July 1, 1999, the elections for office and the specific amounts in which it shall provide media access services for participating candidates pursuant to subdivision (2) of this subsection.  At the same time, the NCPC shall also establish its financial capacity to expend these amounts by demonstrating that its media account contains at least one hundred fifty percent (150%) of the total amount to be expended pursuant to subdivision (2) of this subsection.  The State Board of Elections shall establish a reasonable date for these same disclosures by NCPC in subsequent election cycles.
"§ 163-278.68.  NCPC sponsored activities.
(a)	1996 General Election for Governor. –
(1)	NCPC shall concentrate its purchase of media access for participating candidates exclusively during the 15 days immediately preceding the day of the general election.
(2)	NCPC shall purchase or otherwise negotiate access to television time for a one-hour debate involving all participating candidates.
(3)	With any additional monies remaining after expenditure for the debate in subdivision (2) of this subsection, NCPC shall purchase or otherwise negotiate access for as many one-minute positive advertisement opportunities as possible pursuant to the expenditure maximums outlined in G.S. 163-278.67 for eligible candidates.
(4)	The format of the debate as well as positive advertisements, their purchase and placement, and other aspects of the debate and positive-issue advertisements will follow the rules established in subsections (c) and (d) of this section respectively.
(b)	Elections After 1996. –
(1)	NCPC shall concentrate its purchase of media access or other negotiated access for qualifying candidates for Governor and Lieutenant Governor exclusively during the last 30 calendar days preceding the day of election.
(2)	NCPC shall purchase or otherwise negotiate access to television time for two one-hour debates involving all qualifying candidates in the general election for Lieutenant Governor, and one debate between the eligible candidates in each primary for Governor and Lieutenant Governor.
(3)	Regarding any subsequent election for any other office that the General Assembly authorizes money value to be allocated, NCPC shall purchase or otherwise negotiate access for one debate per each primary and general election contest involving qualifying candidates.
(4)	The format of the debates as well as positive advertisements, the purchase and placement of the debates, and other aspects will follow the rules established in subsections (c) and (d) of this section.
(c)	Debate Rules. –
(1)	NCPC may cosponsor any election debate with any nonprofit organization that it deems to be appropriate.
(2)	During each debate, it shall be announced to the television audience that each candidate has been requested to refrain from mentioning an opponent's name or engage in any critical reference to an opponent.  This information shall be announced at the beginning and end of each debate as well as at least three additional times during each debate.
(3)	NCPC shall make its best effort to gain live television coverage of each debate on the affiliate of at least one national television network in every television market in the State.  NCPC shall seek negotiations with all such network affiliates and other television stations to carry live coverage of each debate at the least possible rate of change.
(4)	NCPC may decide to announce the names of particular financial supporters of the funding for any debate.
(5)	Qualifying candidates are not precluded from participating in a debate other than one not sponsored by NCPC.
(6)	For recommendations regarding debate format, NCPC shall seek to appoint an advisory committee composed of two designees of the president of the North Carolina Association of Broadcasters (NCAB), and two designees of the North Carolina Press Association (NCPA).  If the President of either organization fails to make such designations, the Board shall make its own designations from members of these organizations.  NCPC shall either accept or reject a recommended debate format of the advisory committee in total.  NCPC shall adopt format(s) for debates between qualifying candidates in the 1996 general election for Governor within 10 calendar days of the date of the primary election.  NCPC shall request the Presidents of NCAB and NCPA on October 1, 1995, to designate members of the 1996 advisory committee.  For subsequent election cycles, NCPC shall adopt debate formats for elections at least two years in advance of the date of the general election for that election cycle.
(7)	Regarding any election for which NCPC allocates money value to qualifying candidates, and which contains only one qualifying candidate, NCPC shall forego the format of a debate and purchase or otherwise negotiate access for the qualifying candidate to obtain two 30-minute advertising segments.
(d)	Positive Issue Advertisement Rules. –
(1)	The advertisements for which NCPC purchases or otherwise negotiates access shall be one minute in length.  Such advertisements shall contain the following:
a.	An introduction lasting up to 10 seconds in which an issue question shall be posed to a candidate and it shall be announced that the candidate has been requested to answer the question without mentioning an opponent or otherwise making any critical reference to an opponent or an opponent's supporter;
b.	A middle segment lasting at least 30 seconds casting a candidate's answer whose content and format shall be produced according to the candidate's discretion; and
c.	A conclusion lasting up to five seconds in which the issue question is repeated and it is announced again that the candidate was requested to avoid any criticism of an opponent or an opponent's supporters.
(2)	The advisory committee designated to recommend debate rules shall also recommend the content of the questions and other specific aspects of the format outlined above in subdivision (1) of this subsection.
(3)	NCPC shall contract with a single corporate organization experienced in purchasing access for advertisements on television in North Carolina.  The contracting process shall occur on an open and competitive basis.  The selected organization shall prepare a plan which will recommend a statewide schedule for the broadcast of the positive-issue advertisements in each election.  NCPC shall accept or reject a recommended plan in total.  A plan recommended by the selection organization and adopted by the Board shall require the placement of some but not all positive-issue advertisements featuring an eligible candidate in particular time periods and in particular media markets.  The plan shall provide some options so that the campaigns of qualifying candidates can choose some time slots in particular markets for certain positive issue advertisements.
"§ 163-278.69.  Withdrawal.
(a)	Early Withdrawal. – Participating and qualified candidates may withdraw from participation without penalty within 10 days of the candidate filing period.  Any contributions received in excess of one thousand dollars ($1,000) from individuals or political committees shall be returned within 25 days of the candidate's withdrawal.
(b)	Withdrawal by Participating Candidates. – A participating candidate who has not qualified for NCPC benefits may withdraw from participation by filing a notice of withdrawal with the State Board of Elections, provided no violations of G.S. 163-278.65 have occurred.  Any contributions received in excess of one thousand dollars ($1,000) from individuals or political committees shall be returned to the State Board of Elections for distributions within 24 hours of the candidate's withdrawal with a complete listing of contributors who would receive the refunded contributions.
(c)	Withdrawal by Qualified Candidates. – A qualified candidate may withdraw from participation by filing a notice of withdrawal with the State Board of Elections, provided no violations of G.S. 163-278.65 have occurred.  Any contributions received in excess of one thousand dollars ($1,000) from individuals or political committees shall be returned to the State Board of Elections for distributions within 24 hours of the candidate's withdrawal with a complete listing of contributors who would receive the refunded contributions.  In the event benefits were received by the candidate from the Fund, the Board shall determine the monetary value of those benefits.  Following determination of the cost of these benefits, the candidate shall submit to the Board a cashier's check for the amount determined by the Board within 24 hours of the Board's determination.
"§ 163-278.70.  Enforcement.
(a)	Felonies. – For candidates and campaign committees that sign an affidavit as outlined in G.S. 163-278.64, any individual, person, candidate, political committee, or treasurer who willfully and intentionally violates any of the provisions of this Article, shall be guilty of a Class I felony.
(b)	Misdemeanors. – For participating and qualifying candidates who choose to withdraw under G.S. 163-278.69, violation of the provisions of G.S. 163-278.65 prior to their withdrawal shall be punishable as a Class 1 misdemeanor."
Sec. 3.  G.S. 105-269.6 is amended to read as follows:
"§ 105-269.6.  Contribution of individual income tax refund to the Fund of North Carolinians for Positive Campaigns Fund.
An individual entitled to a refund of income taxes under Division II of Article 4 of this Chapter may elect to contribute all or part of the refund to the Fund of North Carolinians for Positive Campaigns as provided in Article 22D of Chapter 163 of the General Statutes.  The Secretary of Revenue shall provide appropriate language and space on the individual income tax form in which make the election.  The election becomes irrevocable upon filing the individual's income tax return for the taxable year.  The Secretary of Revenue shall, on a quarterly basis, transmit the contributions made pursuant to this section to the State Treasurer for credit to the Fund of North Carolinians for Positive Campaigns.  Any interest earned on funds so credited shall be credited to the Fund of North Carolinians for Positive Campaigns.  Any monies transferred to the North Carolina Candidates Financing Fund shall be transferred to the North Carolinians for Positive Campaigns Fund."
Sec. 4.  Chapter 105 of the General Statutes is amended to create a section to read as follows:
"§ 105-269.7.  Designation of tax by individual to the Fund of North Carolinians for Positive Campaigns.
(a)	Every individual whose income tax liability for the taxable year is five dollars ($5.00) or more may designate on his or her income tax return that five dollars ($5.00) of the tax shall be credited to the  Fund of North Carolinians for Positive Campaigns.  In the case of a married couple filing a joint return whose income tax liability for the taxable year is ten dollars ($10.00) or more, each spouse may designate on the income tax return that five dollars ($5.00) of the tax shall be credited to the Fund of North Carolinians for Positive Campaigns.
(b)	Amounts designated under subsection (a) of this section shall be credited to the Fund of North Carolinians for Positive Campaigns on a quarterly basis.  Interest earned by the Fund shall be credited to the Fund.  The Board of Directors of North Carolinians for Positive Campaigns, which administers the Fund, shall make a quarterly report to the State Board of Elections and the Joint Legislative Commission on Governmental Operations stating the amount of funds received by the Fund for that quarter, the cumulative total of funds received to date for the year, and an estimate of the probable total amount to be received for that calendar year.
(c)	The Secretary shall amend the income tax return in order that all taxpayers desiring to make the political contributions authorized in this section may do so by designating on the front face of the tax return.  The line of authorization for the designation shall be color contrasted with the color scheme of the remainder of the income tax return.  The return or its accompanying explanatory instruction shall readily indicate that any such designations neither increases nor decreases an individual's tax liability.
(d)	A paid preparer of tax returns may not designate on a return that the taxpayer does or does not desire to make the political contribution authorized in this section unless the taxpayer or the taxpayer's spouse has consented to the designation."
Sec. 5.  G.S. 163-278.13 reads as rewritten:
"§ 163-278.13.  Limitation on contributions.
(a)	No individual or political committee shall contribute to any candidate or other political committee any money or make any other contribution in any election in excess of one thousand dollars ($1,000) for that election.  For participating candidates as defined in G.S. 163-278.60(8) no individual or political committee shall contribute any money or make any other contribution in any election in excess of two thousand dollars ($2,000) for that election.
(b)	No candidate or political committee shall accept or solicit any contribution from any individual or other political committee of any money or any other contribution in any election in excess of one thousand dollars ($1,000) for that election.  No participating candidate, as defined in G.S. 163-278.60(8) shall accept or solicit any contribution from any individual or political committee of any money or any other contribution in excess of two thousand dollars ($2,000) for that election.
(c)	Notwithstanding the provisions of subsections (a) and (b) of this section, it shall be lawful for a candidate or a candidate's spouse to make a contribution to the candidate or to the candidate's treasurer of any amount of money or to make any other contribution in any election in excess of one thousand dollars ($1,000) for that election.  A participating candidate as defined in G.S. 163-278.60(8) or participating candidate's spouse may not make a contribution to the candidate or to the candidate's treasurer of any amount of money or to make any other contribution or loan in excess of thirty thousand dollars ($30,000) for that election.
(d)	For the purposes of this section, the term 'an election' means any primary, second primary, or general election in which the candidate or political committee may be involved, without regard to whether the candidate is opposed or unopposed in the election.
(e)	This section shall apply to national, State, district, county, precinct, or other executive committees of any political party.  The limitation in this section on contributions to or from political party executive committees shall apply collectively to all executive committees of the same political party nationally or within the State.  " Contributions by political party executive committees under G.S. 163-278.42 are subject to the limitations of this section.
(e1)	No referendum committee which received any contribution from a corporation, labor union, insurance company, business entity, or professional association may make any contribution to another referendum committee, to a candidate or to a political committee.
(f)	Any individual, candidate, political committee, or referendum committee who violates the provisions of this section is guilty of a Class 2 misdemeanor."
Sec. 6.  This act is effective upon ratification.