A BILL TO BE ENTITLED
AN ACT to prohibit the use of blank checks as campaign contributions and to delineate what is lawful and unlawful participation by an intermediary in political fund-raising, as recommended by the house select committee on ethics and governmental reform.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 22A of Chapter 163 of the General Statutes is amended by adding a new section to read:
"§ 163‑278.20A. Making a contribution through an intermediary.
(a)	Lawful Contributions Through Intermediaries. – It is lawful for any entity that is not otherwise prohibited from making the contribution to make one through an intermediary as long as all the following conditions are satisfied:
(1)	The original contributor, on the instrument with which the contribution is made, makes a complete designation of the amount of the contribution, the date the contribution is made, and the political committee, candidate, or other lawful entity that the contributor intends to be the recipient of the contribution. If the contribution is by check, the contributor must sign and date the check and must complete the amount and payee spaces on the check. If an individual contributor, because of disability, lack of knowledge of the precise name of the contributee, or another justifiable reason, is unable to complete the check or other instrument, that contributor may receive assistance in completing it, but the substance of the completion shall be entirely at the direction of the contributor.
(2)	The contribution is within the limits provided in G.S. 163‑278.13.
(3)	The transaction is reported by the contributee and the contributor if reporting is required by this Article.
(4)	The intermediary is not prohibited from soliciting contributions by G.S. 163‑278.13B.
(5)	The contribution is delivered to the contributee within 20 days after the intermediary takes possession of the instrument by which the contribution is made.
(b)	Unlawful Contributions Through Intermediaries. – It is unlawful for any entity to make a contribution through an intermediary if the conditions of subsection (a) of this section are not satisfied. No one but the contributor shall complete any portion of a contribution check or other contribution instrument. If an individual contributor, because of disability, lack of knowledge of the precise name of the contributee, or another justifiable reason, is unable to complete the check or other instrument, that contributor may receive assistance in completing it, but the substance of the completion shall be entirely at the direction of the contributor.
(c)	No Reporting Required of Intermediary. – If a contribution involving an intermediary satisfies the conditions of subsection (a) of this section, the participation of an intermediary of a contribution is not required to be reported. 
(d)	Duty of Intermediary to Deliver or Return Contribution. – If an intermediary takes possession of a contribution and agrees to forward that contribution to another entity, that intermediary shall forward the contribution to the donee entity or return the contribution to the donor within 20 days of taking possession.
(e)	Definition of "Intermediary". – As used in this Article, the term "intermediary" means an entity that receives money or anything of value from an entity with the understanding that it will be forwarded as a contribution by the donor entity to a candidate, political committee, or other entity intended to accept a contribution.
(f)	Penalties. – A violation of this section is a Class 2 misdemeanor. A violation of this section constitutes "mak[ing] or accept[ing] a contribution in violation of this Article" for purposes of the imposition of civil penalties under G.S. 163‑278.34.
(g)	Rules. – The State Board of Elections shall adopt rules for the implementation of this section."
SECTION 2.  G.S. 163‑278.27(a) reads as rewritten:
"(a)	Any individual, candidate, political committee, referendum committee, treasurer, person or media who intentionally violates the applicable provisions of G.S. 163‑278.7, 163‑278.8, 163‑278.9, 163‑278.10, 163‑278.11, 163‑278.12, 163‑278.13, 163‑278.13B, 163‑278.14, 163‑278.16, 163‑278.17, 163‑278.18, 163‑278.19, 163‑278.20, 163‑278.20A, 163‑278.39, 163‑278.40A, 163‑278.40B, 163‑278.40C, 163‑278.40D or 163‑278.40E is guilty of a Class 2 misdemeanor. The statute of limitations shall run from the day the last report is due to be filed with the appropriate board of elections for the election cycle for which the violation occurred."
SECTION 3.  G.S. 163‑278.20 reads as rewritten:
"§ 163‑278.20.  Disclosure before soliciting contributions.
(a)	It shall be unlawful for one or more individuals acting in concert, or for any group, committee, club or organization, of any type or nature, of two or more individuals, to solicit, attempt to solicit, or receive contributions for the purpose of supporting a candidate, political committee, referendum committee, or political party without first clearly advising those solicited as follows:
(1)	The name of the candidate(s) for whom the contribution will be used; or
(2)	The name of the political committee or party for which the funds will be used; or
	(4)	The name of the referendum committee for which the funds will be used.
(b)	A violation of this section is a Class 2 misdemeanor."
SECTION 4.  This act becomes effective January 1, 2007, and applies to any contribution made or accepted on or after that date and to any contribution received or forwarded on or after that date.