A BILL TO BE ENTITLED
AN ACT to define and regulate digital communication in electioneering communications and advertising disclosures.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 163A‑1411 is amended by adding a new subdivision to read:
"(29)	The term "digital communication" means any communication placed on an online platform that meets all of the following characteristics:
a.	Is a public‑facing Web site, Web application, or digital application, including a social network, advertising network, or search engine.
b.	Sells political advertisements, including search engine marketing, display advertisements, video advertisements, native advertisements, and sponsorships."
SECTION 2.  G.S. 163A‑1411(41) reads as rewritten:
"(41)	The term "electioneering communication" means any broadcast, cable, or satellite communication, mass mailing, telephone bank, or digital communication that has all the following characteristics:
a.	Refers to a clearly identified candidate for elected office.
b.	In the case of the general election in November of the even‑numbered year is aired or transmitted after September 7 of that year, and in the case of any other election is aired or transmitted within 60 days of the time set for absentee voting to begin pursuant to G.S. 163A‑1300, 163A‑1301, 163A‑1302, 163A‑1303, and 163A‑1304 in an election for that office.
c.	May be received by either:
1.	50,000 or more individuals in the State in an election for statewide office or 7,500 or more individuals in any other election if in the form of broadcast, cable, or satellite communication or digital communication.
2.	20,000 or more households, cumulative per election, in a statewide election or 2,500 households, cumulative per election, in any other election if in the form of mass mailing or telephone bank."
SECTION 3.  G.S. 163A‑1411(43) reads as rewritten:
"(43)	The term "electioneering communication" does not include any of the following:
a.	A communication appearing in a news story, commentary, or editorial distributed through the facilities of any broadcasting station or any online or digital newspaper, magazine, blog, publication, or periodical, unless such broadcasting, online, or digital facilities are owned or controlled by any political party, affiliated party committee, political committee, or candidate.
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g.	A communication made by a news medium, as defined in G.S. 8‑53.11(a)(3)."
SECTION 4.  G.S. 163A‑1411(70) reads as rewritten:
"(70)	The term "mass mailing" means any mailing by United States mail, facsimile, or messages sent and received electronically to 20,000 or more households, cumulative per election, in a statewide election or 2,500 households, cumulative per election, in any other election."
SECTION 5.  G.S. 163A‑1434(b) reads as rewritten:
  "(b)	Each media outlet shall require written authority for each independent expenditure or electioneering communication from each individual, person, or entity making or authorizing an independent expenditure or electioneering communication. All written authorizations of independent expenditures or electioneering communications shall be deemed public records, and copies of those written authorizations shall be available for inspection during normal business hours at the office(s) of the media outlet making the publication or broadcast nearest to the place(s) of publication or broadcast. The written authorization shall include all of the following:
(1)	The name and address of the individual, person, or entity making the independent expenditure or electioneering communication.
(2)	The information required by G.S. 163A‑1476(a), provided however that the provisions of G.S. 163A‑1476(a)(7) and (a)(8) shall not apply to radio or television advertising.
For the purposes of this section, a media outlet shall include any online platform that meets the characteristics defined in G.S. 163A‑1411(29)."
SECTION 6.  G.S. 163A‑1475(1) reads as rewritten:
"(1)	"Advertisement" means any message appearing in the print media, on television or radio, or through digital communication that constitutes a contribution or expenditure under this Article."
SECTION 7.  G.S. 163A‑1476 reads as rewritten:
"§ 163A‑1476.  Basic disclosure requirements for all political advertisements.
(a)	Basic Requirements. – It shall be unlawful for any sponsor to sponsor an advertisement in the print media, on radio or television, or through digital communication that constitutes an expenditure, independent expenditure, electioneering communication, or contribution required to be disclosed under this Article unless all the following conditions are met:
(1)	It bears the legend or includes the statement: "Paid for by ____ [Name of candidate, candidate campaign committee, political party organization, political action committee, referendum committee, individual, or other sponsor]." In television or digital communication advertisements, this disclosure shall be made by visual legend.
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(b)	Size Requirements. – Size requirements shall be as follows:
(1)	In a print media advertisement covered by subsection (a) of this section, the height of all disclosure statements required by that subsection shall constitute at least five percent (5%) of the height of the printed space of the advertisement, provided that the type shall in no event be less than 12 points in size. In an advertisement in a newspaper or a newspaper insert, the total height of the disclosure statement need not constitute five percent (5%) of the printed space of the advertisement if the type of the disclosure statement is at least 28 points in size. If a single advertisement consists of multiple pages, folds, or faces, the disclosure requirement of this section applies only to one page, fold, or face. 
(2)	In a television advertisement covered by subsection (a) of this section, the visual disclosure legend shall constitute four percent (4%) of vertical picture height in size, and where the television advertisement that appears is paid for by a candidate or candidate campaign committee, the visual disclosure legend shall appear simultaneously with an easily identifiable photograph of the candidate for at least two seconds. 
(3)	In a radio advertisement covered by subsection (a) of this section, the disclosure statement shall last at least two seconds, provided the statement is spoken so that its contents may be easily understood.
(4)	In a digital communication advertisement covered by subsection (a) of this section, the disclosure statement shall appear in letters at least as large as the majority of the text in the communication and have a reasonable degree of color contrast between the background and the disclosure statement. If the digital communication is disseminated through a medium in which the provision of the disclosure statement is not possible, the communication shall, in a clear and conspicuous manner, include the following:
a.	The name of the person who paid for the communication.
b.	A means for the recipient of the communication to obtain the remainder of the information required by this section with minimal effort and without receiving or viewing any additional material other than the disclosure statement.
(c)	Misrepresentation of Authorization. – Notwithstanding G.S. 163A‑1445(a), any candidate, candidate campaign committee, political party organization, political action committee, referendum committee, individual, or other sponsor making an advertisement in the print media, on radio or television, or through digital communication bearing any legend required by subsection (a) of this section that misrepresents the sponsorship or authorization of the advertisement is guilty of a Class 1 misdemeanor."
SECTION 8.  This act becomes effective January 1, 2019, and applies to elections conducted on or after that date.