GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
SESSION LAW 2006-182
HOUSE BILL 1847
AN ACT to strengthen regulation of electioneering communications in north carolina.
The General Assembly of North Carolina enacts:
SECTION 1.(a) G.S. 163-278.80(1) reads as rewritten:
"(1) The term "disclosure date" means either of the following:
a. The first
date during any calendar year when an electioneering communication is aired
after an entity has made disbursementsincurred expenses for the
direct costs of producing or airing electioneering communications aggregating
in excess of ten thousand dollars ($10,000).
b. Any other
date during that calendar year by which an entity has made disbursements incurred
expenses for the direct costs of producing or airing electioneering
communications aggregating in excess of ten thousand dollars ($10,000) since
the most recent disclosure date for that calendar year."
SECTION 1.(b) G.S. 163-278.90 reads as rewritten:
"§ 163-278.90. Definitions.
As used in this Article, the following terms have the following definitions:
(1) The term "disclosure date" means either of the following:
a. The first
date during any calendar year when an electioneering communication is
transmitted after an entity has made disbursements incurred expenses for
the direct costs of producing or transmitting electioneering communications
aggregating in excess of ten thousand dollars ($10,000).
b. Any other
date during that calendar year by which an entity has made disbursements incurred
expenses for the direct costs of producing or transmitting electioneering
communications aggregating in excess of ten thousand dollars ($10,000) since
the most recent disclosure date for that calendar year.
(2) The term "electioneering communication" means any mass mailing or telephone bank that has all the following characteristics:
a. Refers to a clearly identified candidate for a statewide office or the General Assembly.
b. Is made within one of the following time periods:
1. 60 days before a general or special an election for the office sought by the candidate, or
2. 30 days before a primary election or a convention of a political party that has authority to nominate a candidate for the office sought by the candidate.
c. Is targeted to the relevant electorate.
(3) The term "electioneering communication" does not include any of the following:
a. A communication appearing in a news story, commentary, or editorial distributed through any newspaper or periodical, unless that publication is owned or controlled by any political party, political committee, or candidate.
b. A communication that constitutes an expenditure or independent expenditure under Article 22A of this Chapter.
c. A communication that constitutes a candidate debate or forum conducted pursuant to rules adopted by the Board or that solely promotes that debate or forum and is made by or on behalf of the person sponsoring the debate or forum.
d. A communication that is distributed by a corporation solely to its shareholders or employees, or by a labor union or professional association solely to its members.
e. A communication made while the General Assembly is in session which, incidental to advocacy for or against a specific piece of legislation pending before the General Assembly, urges the audience to communicate with a member or members of the General Assembly concerning that piece of legislation.
(4) The term "mass
mailing" means any mailing by United States mail or facsimile that is
targeted to the relevant electorate and is made by a commercial vendor or made
from any commercial list.facsimile. Part 1A of Article 22A of this
Chapter has its own internal definition of "mass mailing" under the
definition of "print media," and that definition does not apply in
this Article.
(5) The term "prohibited source" means any corporation, insurance company, labor union, or professional association. The term "prohibited source" does not include an entity that meets all the criteria set forth in G.S. 163-278.19(f).
(5a) The term "race" means a ballot item, as defined in G.S. 163-165(2), in which the voters are to choose between or among candidates.
(6) The term
"targeted to the relevant electorate" means a communication which
refers to a clearly identified candidate for statewide office or the General
Assembly and which:electorate" means:
a. If
transmitted by mail or facsimile in connection with a clearly identified
candidate for statewide office, is transmitted to 50,000 or more addresses in
the State, by the transmission of identical or substantially similar matter
within any 30-day period, or, in connection with a clearly identified candidate
for the General Assembly, is transmitted to 5,000 or more addresses in the
district, by the transmission of identical or substantially identical matter
within any 30-day period.
b. If
transmitted by telephone, in connection with a clearly identified candidate for
statewide office, more than 50,000 telephone calls in the State of an identical
or substantially similar nature within any 30-day period, or in the case of a
clearly identified candidate for the General Assembly, more than 5,000 calls in
the district of an identical or substantially similar nature within any 30-day
period.
a. With respect to a statewide race:
1. Transmitting, by mail or facsimile to a cumulative total of 50,000 or more addresses in the State, items identifying one or more candidates in the same race within any 30-day period; or
2. Making a cumulative total of 50,000 or more telephone calls in the State identifying one or more candidates in the same race within any 30-day period.
b. With respect to a race for the General Assembly:
1. Transmitting, by mail or facsimile to a cumulative total of 2,500 or more addresses in the district, items identifying one or more candidates in the same race within any 30-day period; or
2. Making a cumulative total of 2,500 or more telephone calls in the district identifying one or more candidates in the same race within any 30-day period.
(7) The term "telephone bank" means telephone calls that are targeted to the relevant electorate, except when those telephone calls are made by volunteer workers, whether or not the design of the telephone bank system, development of calling instructions, or training of volunteers was done by paid professionals.
(8) The term "501(c)(4) organization" means either of the following:
a. An organization described in section 501(c)(4) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of that Code.
b. An organization that has submitted an application to the Internal Revenue Service for determination of its status as an organization described in sub-subdivision a. of this subdivision.
(9) Except as otherwise provided in this Article, the definitions in Article 22A of this Chapter apply in this Article."
SECTION 2.(a) G.S. 163-278.81 reads as rewritten:
"§ 163-278.81. Disclosure of Electioneering Communications.
(a) Statement Required. -
Every individual, committee, association, or any other organization or group of
individuals that makes a disbursement incurs an expense for the
direct costs of producing and or airing electioneering
communications in an aggregate amount in excess of ten thousand dollars
($10,000) during any calendar year shall, within 24 hours of each disclosure
date, file with the Board a statement containing the information described in
subsection (b) of this section.
(b) Contents of Statement. - Each statement required to be filed by this section shall be made under the penalty of perjury in G.S. 14-209 and shall contain the following information:
(1) The identification of
the entity making the disbursement, incurring the expense, of any
entity sharing or exercising direction or control over the activities of that
entity, and of the custodian of the books and accounts of the entity making
the disbursement.incurring the expense.
(2) The principal place of
business of the entity making the disbursement incurring the expense if
the entity is not an individual.
(3) The amount of each disbursement
expense incurred of more than one thousand dollars ($1,000) during
the period covered by the statement and the identification of the entity to
whom the disbursement was made.expense was incurred.
(4) The elections to which the electioneering communications pertain and the names, if known, of the candidates identified or to be identified.
(5) The names and
addresses of all contributors who contributed entities that provided
funds or anything of value whatsoever in an aggregate amount of more than
one thousand dollars ($1,000) during the period beginning on the first day of
the preceding calendar year and ending on the disclosure date to a segregated
bank account that consists of funds contributed provided solely
by entities other than prohibited sources. Nothing in this subdivision is to be
construed as a prohibition on the use of funds in such a segregated account for
a purpose other than electioneering communications. If the provider is an
individual, the statement shall also contain the principal occupation of the
provider. The "principal occupation of the provider" shall mean the
same as the "principal occupation of the contributor" in G.S. 163-278.11.
(6) Repealed by Session Laws 2005-430, s. 9(a), effective December 1, 2005, and applicable to all contributions and expenditures made or accepted on or after that date."
SECTION 2.(b) G.S. 163-278.91 reads as rewritten:
"§ 163-278.91. Disclosure of Electioneering Communications.
(a) Statement Required. -
Every individual, committee, association, or any other organization or group of
individuals who makes a disbursement incurs an expense for the
direct costs of producing and or transmitting electioneering communications
in an aggregate amount in excess of ten thousand dollars ($10,000) during any
calendar year shall, within 24 hours of each disclosure date, file with the
Board a statement containing the information described in subsection (b) of
this section.
(b) Contents of Statement. - Each statement required to be filed by this section shall be made under the penalty of perjury in G.S. 14-209 and shall contain the following information:
(1) The identification of
the entity making the disbursement, incurring the expense, of any
entity sharing or exercising direction or control over the activities of that
entity, and of the custodian of the books and accounts of the entity making
the disbursement.incurring the expense.
(2) The principal place of
business of the entity making the disbursement incurring the expense if
the entity is not an individual.
(3) The amount of each disbursement
expense incurred of more than one thousand dollars ($1,000) during
the period covered by the statement and the identification of the entity to
whom the disbursement was made.expense was incurred.
(4) The elections to which the electioneering communications pertain and the names, if known, of the candidates identified or to be identified.
(5) The names and
addresses of all contributors who contributed entities that provided
funds or anything of value whatsoever in an aggregate amount of more than
one thousand dollars ($1,000) during the period beginning on the first day of
the preceding calendar year and ending on the disclosure date to a segregated
bank account that consists of funds contributed provided solely
by entities other than prohibited sources. Nothing in this subdivision is to be
construed as a prohibition on the use of funds in such a segregated account for
a purpose other than electioneering communications. If the provider is an
individual, the statement shall also contain the principal occupation of the
provider. The "principal occupation of the provider" shall mean the
same as the "principal occupation of the contributor" in
G.S. 163-278.11.
(6) Repealed by Session Laws 2005-430, s. 9(c), effective December 1, 2005, and applicable to all contributions and expenditures made or accepted on or after that date."
SECTION 3.(a) G.S. 163-278.82(a) reads as rewritten:
"(a) Prohibition. - No
prohibited source may make any disbursement for the costs of producing or
airing any electioneering communication. No individual, committee, association,
or any other organization or group of individuals, including but not limited
to, a political organization (as defined in section 527(e)(1) of the Internal
Revenue Code of 1986), which has received any payment funds or
anything of value whatsoever from a prohibited source may make any
disbursement for the costs of producing and or airing any
electioneering communication. communication, unless that individual,
committee, association, or other organization or group of individuals maintains
a segregated bank account that consists of funds provided solely by entities
other than prohibited sources.For the purpose of this section, the term
"electioneering communication" does not include a communication by a
section 501(c)(4) organization or a political organization (as defined in
section 527(e)(1) of the Internal Revenue Code of 1986) if the communication is
paid for exclusively by funds provided by individuals and the disbursements for
costs of producing and airing the communication are paid out of a segregated
bank account that consists of funds contributed solely by entities other than
prohibited sources directly to that account. For purposes of this
section, the term "funds or anything of value whatsoever" shall not
include monies paid to an individual, committee, association, or other
organization or group of individuals for services rendered or other payment of
debt owed. It shall be unlawful for any person or entity to create, establish,
or organize more than one political organization (as defined in section
527(c)(1) of the Internal Revenue Code) with the intent to avoid or evade the
prohibitions on disbursements for electioneering communications from prohibited
sources or the reporting requirements contained in this Article."
SECTION 3.(b) G.S. 163-278.92(a) reads as rewritten:
"(a) Prohibition. - No
prohibited source may make any disbursement for the costs of producing or airing
transmitting any electioneering communication. No individual, committee,
association, or any other organization or group of individuals, including but
not limited to, a political organization (as defined in section 527(e)(1) of
the Internal Revenue Code of 1986), which has received any payment funds
or anything of value whatsoever from a prohibited source may make any
disbursement for the costs of producing and airing or transmitting
any electioneering communication. communication, unless that
individual, committee, association, or other organization or group of
individuals maintains a segregated bank account that consists of funds provided
solely by entities other than prohibited sources. For the purpose of
this section, the term "electioneering communication" does not
include a communication by a section 501(c)(4) organization or a political
organization (as defined in section 527(e)(1) of the Internal Revenue Code of
1986) if the communication is paid for exclusively by funds provided by
individuals and the disbursements for costs of producing and airing the
communication are paid out of a segregated bank account that consists of funds
contributed solely by entities other than prohibited sources directly to that
account. For purposes of this section, the term "funds or anything
of value whatsoever" shall not include monies paid to an individual,
committee, association, or other organization or group of individuals for
services rendered or other payment of debt owed. It shall be unlawful for any
person or entity to create, establish, or organize more than one political
organization (as defined in section 527(c)(1) of the Internal Revenue Code)
with the intent to avoid or evade the prohibitions on disbursements for
electioneering communications from prohibited sources or the reporting
requirements contained in this Article."
SECTION 4. The provisions of this act are severable. If any provision of this act is held invalid by a court of competent jurisdiction, the invalidity does not affect other provisions of the act that can be given effect without the invalid provision.
SECTION 5. This act is effective when it becomes law, except that any criminal penalty resulting from this act becomes effective October 1, 2006.
In the General Assembly read three times and ratified this the 17th day of July, 2006.
s/ Beverly E. Perdue
President of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ Michael F. Easley
Governor
Approved 6:03 p.m. this 1st day of August, 2006