GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	2 

SENATE BILL 1
Judiciary Committee Substitute Adopted 2/5/97

Short Title:  Campaign Reform Act of 1997.	(Public)

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Sponsors:

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Referred to: 

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February 3, 1997

A BILL TO BE ENTITLED
AN ACT TO REFORM THE CAMPAIGN LAWS OF NORTH CAROLINA.
The General Assembly of North Carolina enacts:
–LOWER THE CONTRIBUTION LIMIT AND CLOSE THE LOOPHOLES FOR PARTY CONTRIBUTIONS, FAMILY CONTRIBUTIONS, AND SECOND PRIMARIES.
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, 1998, and applies to all elections occurring on or after that date.
–ELECTRONIC FILING AND PUBLIC ACCESS ON THE INTERNET.
Section 2. (a) G.S. 163-278.9 is amended by adding a new subsection to read:
"( j)	Treasurers for the following entities shall file the reports required by this section electronically, according to rules which shall be promulgated by the State Board of Elections:
(1)	Candidates for statewide office or the General Assembly;
(2)	The executive committees of political parties;
(3)	Political committees that make contributions to candidates for statewide office or the General Assembly or make independent expenditures that affect contests for statewide office or the General Assembly."
(b)	The State Board of Elections shall provide access to the public of campaign finance reports over the Internet as soon as technically feasible.
(c)	This section becomes effective January 1, 1998, and applies to all reports due on or after that date.
–QUARTERLY AND SEMIANNUAL REPORTING.
Section 3. (a) 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.
				(5a)	Quarterly Reports. – During even-numbered years during which there is an election for that candidate or in which the campaign committee is supporting a candidate, the treasurer shall file a report with the Board not later than seven days after the end of each calendar quarter, covering the prior calendar quarter, except that the report for the third quarter shall also cover the period in October through the seventeenth day before the election, the third quarter  report shall be due seven days after that date, and the fourth quarter report shall not include that period if a third quarter report was required to be filed.
(6)	Semiannual Reports. – If contributions are received or expenditures made 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 July, covering the period through the last day of June, and shall be reported by the last Friday in January, covering the period through the last day of December. "
(b) The State Board of Elections shall study the feasibility of requiring monthly reporting by campaign treasurers during even-numbered years, with weekly reports required during the month before each primary and election. The State Board shall report in writing to the General Assembly by March 1, 1998.
(c) Subsection (a) of this section becomes effective January 1, 1998, and applies to all financial activity occurring on or after that date. Subsection (b) of this section is effective when it  becomes law.
–DONOR'S OCCUPATION.
Section 4. (a) G.S. 163-278.11(a)(1) reads as rewritten:
"(1)	Contributions. – A list of all contributions required to be listed under G.S. 163-278.8 received by or on behalf of a candidate, political committee, or referendum committee. The statement shall list the name and complete mailing address of each contributor, the amount contributed, the occupation of the donor, and the date such contribution was received. The total sum of all contributions to date shall be plainly exhibited. Forms for required reports shall be prescribed by the Board."
(b) This section becomes effective February 1, 1998, and applies to all reports due on or after that date.
–REPORTING IN LOCAL ELECTIONS.
Section 5. (a)	G.S. 163-278.6(1) reads as rewritten:
"(1)	The term 'board' means the State Board of Elections with respect to all candidates for State and multi-county district offices and the county or municipal board of elections with respect to all candidates for single-county district, county and municipal offices. The term means the State Board of Elections with respect to all statewide referenda and the county or municipal board of elections conducting all local referenda."
(b) G.S. 163-278.6(18) reads as rewritten:
"(18)	The term 'public office' means any office filled by election by the people on a statewide, county, municipal or district basis, and this Article shall be applicable to such elective offices whether the election therefor is partisan or nonpartisan, provided candidates for municipal and county offices in those municipalities and counties having less than 10,000 population, according to the most recent decennial census figures, shall not be required to file reports required by this Article, but this Article shall otherwise be applicable to such candidates for municipal and county offices."
(c) G.S. 163-278.6(18a) reads as rewritten:
"(18a)	The term 'referendum' means any question, issue, or act referred to a vote of the people of the entire State by the General Assembly, a unit of local government, or by the people under any applicable local act and includes constitutional amendments and State bond issues. The term 'referendum' includes any type of municipal, county, or special district referendum."
(d) G.S. 163-278.40(2) reads as rewritten:
"(2)	The term 'city' means any incorporated city, town, or village with a population of 10,000 or over, according to the most recent decennial federal census."
(e)  This section becomes effective January 1, 1998, and applies to elections beginning in 1998. 
–FUND-RAISING IN SESSION.
Section 6. (a)	G.S. 163-278.13A reads as rewritten:
"§ 163-278.13A.  No fund-raising from lobbyists for legislators or Council of State members while General Assembly is in regular session.
(a)	While the General Assembly is in regular session, none of the following entities may solicit or accept a contribution from, or at the behest or recommendation of, an individual registered as a lobbyist pursuant to Article 9A of Chapter 120 of the General Statutes or a political committee that employs or contracts with or whose parent entity employs or contracts with a lobbyist pursuant to Article 9A of Chapter 120 of the General Statutes:
(1)	A member of the Council of State; or
(2)	A member of the General Assembly; or
(3)	A political committee the principal purpose of which is to assist a member or members of the Council of State or General Assembly.
(b)	While the General Assembly is in regular session, no individual registered as a lobbyist under Article 9A of Chapter 120 of the General Statutes and no political committee that employs or contracts with or whose parent entity employs or contracts with a lobbyist pursuant to Article 9A of Chapter 120 of the General Statutes may make a contribution to any of the entities listed in subdivisions (1) through (3) of subsection (a) of this section.
(c)	This section does not apply to:
(1)	Any contribution made to or by a State, county or congressional district executive committee of a political party; or
	(3)	Any contribution made by a member of the Council of State or General Assembly to a political committee the principal purpose of which is to assist himself; or
(4)	Any contribution made to or any solicitation for a nonprofit organization under 26 U.S.C. § 501(c); or
(5)	Any contribution accepted with the intent that it be used to defray legal or other expenses incurred in connection with the contesting of election results; or
(6)	Any contribution to any of the entities listed in subdivisions (1) through (3) of subsection (a) of this section if the member of the Council of State or General Assembly has filed an official notice of candidacy with the appropriate board of elections for any elective office, provided the contribution is for the elective office for which the member has filed.
(d)	A violation of this section is a Class 2 misdemeanor, but no individual or person shall be prosecuted under this section for accepting or making a contribution unless the State Board of Elections has notified the individual or person of the apparent violation in writing by certified mail, has given the individual or person an opportunity to return or to request the return of the contribution, and, within 10 days of the receipt of the notification, the individual or person has failed to return or to request the return of the contribution.
(e)	For purposes of this section, the General Assembly is in regular session from the date set by law or resolution that the General Assembly convenes until the General Assembly either:
(1)	Adjourns sine die; or
(2)	Recesses or adjourns for more than 10 days."
(b) This section becomes effective January 1, 1999.
Section 7.  This act is effective when it becomes law.