GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1700

Short Title:  Campaign Finance Changes/Funds.	(Public)

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Sponsors: Representatives Michaux; Adams, Baddour, Blue, Boyd-McIntyre, Easterling, Goodwin, Hackney, H. Hunter, R. Hunter, Jeffus, Luebke, McAllister, Mosley, Rogers, Wainwright, Warner, Womble, and Wright.

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Referred to:  Election Law and Campaign Reform, if favorable, Appropriations.

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June 1, 1998

A BILL TO BE ENTITLED
AN ACT TO MAKE CHANGES IN THE CAMPAIGN FINANCE LAWS AND TO APPROPRIATE FUNDS FOR ADMINISTRATION.
The General Assembly of North Carolina enacts:
–-LOWER THE CONTRIBUTION LIMIT AND CLOSE THE LOOPHOLES FOR PARTY CONTRIBUTIONS AND FAMILY CONTRIBUTIONS.
Section 1. (a) 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 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 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 two thousand dollars ($2,000) 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, except that where a candidate is not on the ballot in a second primary, that second primary is not ‘an election' with respect to that candidate.
(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."
(b) This section becomes effective January 1, 1999, and applies to all elections occurring on or after that date.
–- CONFORM THE CAMPAIGN FINANCE LAW TO FEDERAL COURT OPINIONS.
Section 2. (a) G.S. 163-278.6(14) reads as rewritten:
"(14)	The term ‘political committee' means a combination of two or more individuals, or any person, committee, association, or organization that has one or more of the following characteristics:
a.	Is controlled by a candidate;
b.	Makes contributions to a candidate or political committee; or
c.	Has as a nonincidental purpose making expenditures to support or oppose the nomination or election or defeat of a clearly identified candidate at any election.
If the group qualifies as a ‘political committee' under sub-subdivision a., b., or c. of this subdivision, it continues to be a political committee if it receives contributions to repay loans or cover a deficit, or makes expenditures to satisfy obligations of an election already held.  The term includes, without limitation, any political party's State, county or district executive committee."
(b)	G.S. 163-278.6(6) reads as rewritten:
"(6)	The terms 'contribute' or 'contribution' mean any advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift, pledge or subscription of money or anything of value whatsoever, to a candidate, political committee, political party, or referendum committee from any person or individual, whether or not made in an election year, and any contract, agreement, promise or other obligation, whether or not legally enforceable, to make a contribution, in support of or in opposition to any candidate, political committee, referendum committee, or political party. These terms include, without limitation, such contributions as labor or personal services, postage, publication of campaign literature or materials, in-kind transfers, loans or use of any supplies, office machinery, vehicles, aircraft, office space, or similar or related services, goods, or personal or real property. These terms also include, without limitation, the proceeds of sale of services, campaign literature and materials, wearing apparel, tickets or admission prices to campaign events such as rallies or dinners, and the proceeds of sale of any campaign-related services or goods. Notwithstanding the foregoing meanings of 'contribution,' the word shall not be construed to include services provided without compensation by individuals volunteering a portion or all of their time on behalf of a candidate, political committee, or referendum committee. The term ‘contribution' does not include an ‘independent expenditure.'"
(c)	G.S. 163-278.6(9) reads as rewritten:
"(9)	The terms 'expend' or 'expenditure' mean any contribution, purchase, advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift, pledge or subscription of money or anything of value whatsoever, from any person or individual, whether or not made in an election year, and any contract, agreement, promise or other obligation, whether or not legally enforceable, to make an expenditure, to support or oppose the nomination or election or defeat of any clearly identified candidate.  The term ‘expenditure' also includes any payment made by a candidate, political committee, or referendum committee."
(d)	G.S. 163-278.6 is amended by adding a new subdivision to read:
"(9A)	The term ‘independently expend' or ‘independent expenditure' mean an expenditure made without consultation or coordination with any candidate, political committee, or political party that benefits or would benefit electorally from the expenditure."
(e)'G.S. 163-278.6(16) reads as rewritten:
"16)	The term 'political purpose' means to support or oppose the nomination or election or defeat of a clearly identified political party or candidate."
(f) 	G.S. 163-269 and G.S. 163-270 are repealed.
(g)	G.S. 163-278.19 is amended by adding a new subsection to read:
"( f) This section does not prohibit an independent expenditure by an entity that:
(1)	Was formed for the express purpose of promoting political ideas and does not engage in business activities;
(2)	Does not have shareholders or other persons which have an economic interest in its assets and earnings; and
(3)	Was not established by a business corporation, included, but not limited to, those chartered under Chapter 55 or Chapter 55A, by an insurance company, by a business entity, by a professional association, or by a labor union and does not receive a significant portion of its revenues from such entities."
(h)	G.S. 163-278.12 reads as rewritten:
"§ 163-278.12.  Independent expenditures.
Subject to G.S. 163-278.16(f)	and 163-278.14, it shall be permissible for an individual other than a candidate to make independent expenditures.  In the event an individual or entity other than a political committee permitted by law to do so makes independent expenditures in excess of one hundred dollars ($100.00), then, within 10 days after making such an independent expenditure, that individual or entity shall file a statement of such independent expenditure with the Board in accordance with the terms and conditions of G.S. 163-278.11."
(i)	This section is effective when it becomes law.
–- STRENGTHEN ENFORCEMENT PROVISIONS.
Section 3. (a)	Article 22A of Chapter 163 of the General Statutes is amended by adding a new section to read:
"§ 163-278.27A.  Five-year statute of limitations.
Prosecution for a misdemeanor brought under this Article shall be barred after five years have expired from the date the violation occurred."
(b)	G.S. 15-1 reads as rewritten:
"§ 15-1.  Statute of limitations for misdemeanors.
The crimes of deceit and malicious mischief, and the crime of petit larceny where the value of the property does not exceed five dollars ($5.00), and all misdemeanors except malicious misdemeanors and prosecutions under Article 22A of Chapter 163 of the General Statutes, shall be presented or found by the grand jury within two years after the commission of the same, and not afterwards: Provided, that if any  indictment found within that time shall be defective, so that no judgment can be given thereon, another prosecution may be instituted for the same offense, within one year after the first shall have been abandoned by the State."
(c)	This section becomes effective December 1, 1998, and applies to acts committed on or after that date.
Section 4.  There is appropriated from the General Fund to the State Board of Elections for fiscal year 1998-99 the sum of one hundred thousand dollars ($100,000) to administer this act.
Section 5.  This act is effective when it becomes law.