A BILL TO BE ENTITLED
AN ACT to establish a pilot program for public financing of municipal election campaigns.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 160A‑499.1, as enacted by Section 2 of Session Law 2007‑222, reads as rewritten:
"§ 160A‑499.1.  Uniform, nondiscriminatory program of public financing of election campaigns.
(a)	A governing body of a city may appropriate funds for a public campaign financing program as defined in subsection (c) of this section for city office in that city's jurisdiction if the city has held at least one public hearing on the program before adopting it and the program is approved by the State Board of Elections. The State Board of Elections shall develop guidelines for the basic components needed in a program to meet the criteria set forth in subsection (c) of this section and shall approve a city's program that meets the criteria. The guidelines shall require that participating candidates shall file all disclosure reports with the State Board of Elections and that the State Board of Elections shall certify all candidates participating in the program. Any city exercising authority under this section shall provide full notice to the county board of elections in any county in which it has territory.
(b)	The governing body of a city appropriating funds as provided by this section shall prepare a report no later than six months after the second election in which it appropriates funds under this section that analyzes its experience in implementing a public campaign financing program by that date, including percent of candidates participating in a program, sources and amounts of funding, litigation involving a program, administrative issues, and recommendations for changes in this statute. The report shall be presented by that date to the State Board of Elections.
(c)	The term 'public campaign financing program' means a uniform program of a governmental entity that offers support for the campaigns of candidates for elective office within the jurisdiction of that governmental entity under the following conditions: (i) the candidates participating in the program must demonstrate public support and voluntarily accept strict fund‑raising and spending limits in accordance with a set of requirements drawn by that government, (ii) the requirements are drawn to further the public purpose of free and fair 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, (iii) any public funds provided to candidates are restricted to use for campaign purposes according to guidelines drawn by the State Board of Elections, (iv) unspent public funds are required to be returned to that governmental entity, and (v) if the program provides for matching funds for electioneering communications for certified candidates when funds in opposition to a certified candidate or in support of an opponent to that candidate exceed a certain amount, the governing entity shall determine which candidate, if any, is entitled to receive matching funds as a result of the communication. The governing entity shall issue matching funds based on the communication only if it ascertains that the communication is susceptible of no reasonable interpretation other than as an appeal to vote for or against a specific candidate. In making its determination, the governing entity shall not consider evidence external to the communication itself of the intent of the sponsor or the effect of the communication. Funds paid 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 payments.
(d)	This section applies to the Town of Chapel Hill and to other municipalities selected by the State Board of Elections for participation in a pilot program for the public financing of municipal campaigns. The State Board of Elections shall select for the pilot program only municipalities whose governing boards have submitted proposals that comply with the criteria of subsection (a) of this section. In selecting those municipalities, the State Board shall seek diversity of population size, regional location, and demographic composition. The State Board shall limit the number of municipalities selected according to its own resources to administer the pilot program. The State Board of Elections shall closely monitor the pilot program and report its findings and recommendations by June 30, 2016, to the Joint Legislative Commission on Governmental Operations, to the Fiscal Research Division of the Legislative Services Office, to the Joint Legislative Elections Oversight Committee, and to the committees in the House of Representatives and Senate to which election‑related bills are primarily referred. The State Board shall provide interim reports to those same entities by June 30, 2012, and June 30, 2014.
(e)	This section expires July 1, 2016."
SECTION  2.  Sections 1, 3, and 4 of Session Law 2007‑222 are repealed.
SECTION 3.  This act is effective when it becomes law.