A BILL TO BE ENTITLED
AN ACT to prevent conflict of interest and its appearance involving political contributions by state contractors.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 3 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 163‑278.13D. Prohibition on contributions by entity affiliated with a vendor.
(a)	Definitions. – The following definitions apply in this section:
(1)	Contribution. – As defined in G.S. 163‑278.6(6). A contribution is made during the term of a contract if it is dated or pledged on or after the first day of the term of the contract, but not later than the last day of the term of the contract, if it is delivered on or after the first day of the term of the contract, but not later than the last day of the term of the contract, or if the entity affiliated with the vender pledges during the term of the contract to deliver the contribution after the last day of the term of the contract. A contribution is accepted during the term of a contract if the relevant political campaign receives the contribution on or after the first day of the term of the contract, but not later than the last day of the term of the contract and does not return the contribution within 10 days, or the relevant political campaign agrees on or after the first day of the term of the contract to receive the contribution after the last day of the term of the contract.
(2)	Entity affiliated with a vendor. – An officer, director, member, or manager of the vendor if the vendor is an incorporated business or a limited liability company, a partner or general manager if the vendor is an unincorporated business entity, or any political committee of which the vendor is the parent entity as provided in G.S. 163‑278.19.
(3)	Office with authority to award contract. – Any of the principal offices or departments listed in G.S. 143A‑11. Notwithstanding any other provision of law or delegation of authority and for the purposes of subsection (b) of this section, the head of the principal office or department shall be deemed to award all contracts for that principal office or department and for any other offices, agencies, or commissions administratively housed within that principal office or department.
(4)	Relevant political campaign. – A candidate for the office with authority to award the contract, the officer holding the office with authority to award the contract, or a political committee controlled by a candidate for or officer holding the office with authority to award the contract.
(b)	Prohibition. – No entity affiliated with a vendor that has entered into a contract for supplies, materials, equipment, other tangible personal property, or services in excess of twenty‑five thousand dollars ($25,000) with any of the principal offices or departments listed in G.S. 143A‑11 and subject to the provisions of Article 3 of Chapter 143 of the General Statutes shall make during the term of the contract a contribution to a relevant political campaign. No relevant political campaign shall knowingly accept a contribution during the term of the contract from an entity affiliated with a vendor that has entered into a contract for supplies, materials, equipment, other tangible personal property, or services in excess of twenty‑five thousand dollars ($25,000) with any of the principal offices or departments listed in G.S. 143A‑11 and subject to the provisions of Article 3 of Chapter 143 of the General Statutes. This subsection does not apply if the contributions by all entities affiliated with the vendor to the relevant political campaign during the term of the contract do not exceed one thousand dollars ($1,000). The State Board of Elections shall adopt any procedures for reporting it deems necessary for the enforcement of this subsection.
(c)	Penalty. – A violation of this section is a Class 2 misdemeanor."
SECTION 2.  This act becomes effective December 1, 2009, and applies to contributions made on or after that date.