A BILL TO BE ENTITLED
AN ACT to clarify that grants from uniform programs for public campaign financing do not constitute "contributions" and are not subject to restrictions on contributions; to clarify that governments in cities and counties of a certain size are authorized to conduct those programs; to grant governments in cities and counties of a certain size authority to set contribution limits at one thousand dollars for local offices rather than the statewide limit of four thousand dollars; and to appropriate funds for and mandate a study of local public campaign financing programs. 
The General Assembly of North Carolina enacts:
SECTION 1.  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 to support or oppose the nomination or election of one or more clearly identified candidates, to a political committee, to a political party, or to a referendum committee, 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. 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.' The term 'contribution' does not include a grant from a governmental entity under a uniform program of grants to the campaigns of candidates for elective office within the jurisdiction of that governmental entity if: (i) the grants are available as a source of campaign financing for candidates for office who demonstrate public support and voluntarily accept strict fund-raising and spending limits in accordance with a set of criteria drawn by the government, (ii) the criteria are drawn to further the public purpose of free elections and do not discriminate for or against any candidate on the basis of race, creed, position on issues, status of incumbency or nonincumbency, or party affiliation, and (iii) the grants are restricted to use for campaign purposes. Grants pursuant to such a program are not subject to the contribution limitations of G.S. 163-278.13 and the prohibitions on corporate contributions of G.S. 163-278.15 or G.S. 163-278.19, but shall be reported as if they were contributions in all campaign reports required by law to be filed by the campaigns receiving the grants."
SECTION 2.  Article 21 of Chapter 160A is amended by adding a new section to read:
"§ 160A-499. Uniform, nondiscriminatory program of public financing of election campaigns.
A governing body of a county with a population exceeding 80,000 according to the most recent decennial federal census may appropriate funds for a uniform program of grants to the campaigns of candidates for county office in that county if: (i) the grants are available as a source of campaign financing for candidates for office who demonstrate public support and voluntarily accept strict fund-raising and spending limits in accordance with a set of criteria drawn by the county, (ii) the criteria are drawn to further the public purpose of free elections and do not discriminate for or against any candidate on the basis of race, creed, position on issues, status of incumbency or nonincumbency, or party affiliation, and (iii) the grants are restricted to use for permissible campaign-related expenditures in accordance with guidelines published pursuant to G.S. 163-278.64(d)(5) or other guidelines published by the State Board of Elections.
A governing body of a city with a population exceeding 40,000 according to the most recent decennial federal census may appropriate funds for a uniform program of grants to the campaigns of candidates for city office in that city if: (i) the grants are available as a source of campaign financing for candidates for office who demonstrate public support and voluntarily accept strict fund-raising and spending limits in accordance with a set of criteria drawn by the city, (ii) the criteria are drawn to further the public purpose of free elections and do not discriminate for or against any candidate on the basis of race, creed, position on issues, status of incumbency or nonincumbency, or party affiliation, and (iii) the grants are restricted to use for permissible campaign‑related expenditures in accordance with guidelines published pursuant to G.S. 163‑278.64(d)(5) or other guidelines published by the State Board of Elections.
Any county or city exercising authority under this section shall report its action to the State Board of Elections and the county board of elections in any county in which it has territory."
SECTION 3.  Article 21 of Chapter 160A is amended by adding a new section to read:
"§ 160A-500.  Authority to set political contribution limit at $1,000 for local office. 
A governing body of a county with a population exceeding 80,000 according to the most recent decennial federal census may substitute one thousand dollars ($1,000) for the dollar amount provided in G.S. 163-278.13(a) and (b) as a contribution limit with respect to elections for county offices in that county.
A governing body of a city with a population exceeding 40,000 according to the most recent decennial federal census may substitute one thousand dollars ($1,000) for the dollar amount provided in G.S. 163-278.13(a) and (b) as a contribution limit with respect to elections for city offices in that city.
Any county or city exercising authority under this section shall report its action to the State Board of Elections and the county board of elections in any county in which it has territory."
SECTION 4.  G.S. 153A‑445 reads as rewritten:
"§ 153A‑445.  Miscellaneous powers found in Chapter 160A.
(a)	A county may take action under the following provisions of Chapter 160A:
(1)	Chapter 160A, Article 20, Part 1. – Joint Exercise of Powers.
(2)	Chapter 160A, Article 20, Part 2. – Regional Councils of Governments.
(3)	G.S. 160A‑487. – Financial support for rescue squads.
(4)	G.S. 160A‑488. – Art galleries and museums.
(5)	G.S. 160A‑492. – Human relations programs.
(6)	G.S. 160A‑497. – Senior citizens programs.
(7)	G.S. 160A‑489. – Auditoriums, coliseums, and convention and civic centers.
(8)	G.S. 160A‑498. – Railroad corridor preservation.
(9)	G.S. 160A-499. – Uniform, nondiscriminatory program of public financing of election campaigns.
(10)	G.S. 160A-500. – Authority to set political contribution limit at $1,000 for local office.
(b)	This section is for reference only, and the failure of any section of Chapter 160A to appear in this section does not affect the applicability of that section to counties."
SECTION 5.  No later than 18 months after this act becomes effective, the State Board of Elections shall complete a study of a variety of public campaign financing programs for local government elections in the United States, prepare a description of the basic elements generally present, and compile a collection of reference materials for local governments in North Carolina to use in designing their programs. Of the funds appropriated to the State Board of Elections for the 2003‑2004 fiscal year, the sum of fifteen thousand dollars ($15,000) shall be used for this purpose. 
SECTION 6.  This act is effective when it becomes law.