GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	1 

SENATE BILL 708

Short Title:  Stand By Your Ad.	(Public)

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Sponsors: Senators Cooper, Conder, Plyler, Hartsell, Horton; Albertson, Blust, Clark, East, Forrester, Garwood, Gulley, Hoyle, Jenkins, Kerr, Ledbetter, Lee, McDaniel, Miller, Odom, Page, Perdue, Phillips, Rand, Reeves, Rucho, Shaw of Guilford, Webster, and Winner.

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Referred to:  Judiciary.

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April 7, 1997

A BILL TO BE ENTITLED
AN ACT TO REQUIRE CERTAIN DISCLOSURES BY THE SPONSORS OF POLITICAL ADVERTISEMENTS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 163-278.16 reads as rewritten:
"§ 163-278.16. Regulations regarding timing of contributions and expenditures.
(a)	Except as provided in G.S. 163-278.12, no contribution may be received or expenditure made by or on behalf of a candidate, political committee, or referendum committee:
(1)	Until the candidate, political committee, or referendum committee appoints a treasurer and certifies the name and address of the treasurer to the Board; and
(2)	Unless the contribution is received or the expenditure made by or through the treasurer of the candidate, political committee, or referendum committee.
(b)	to (e) Repealed by Session Laws 1975, c. 565, s. 2.
									" "
Section 2. Article 22A of Chapter 163 of the General Statutes is amended by adding a new Part to read:
"Part 1A. Disclosure Requirements for Media Advertisements.
"§ 163-278.39.  Disclosure requirements for political advertisements in print media.
(a)	Required Disclosure. –  No print-media advertisement of any kind may be made by a treasurer, candidate, political committee, referendum committee, or individual unless all the following conditions are met:
(1) 	It bears the visual legend: 'Paid for by (or Sponsored by)....................... [Name of  candidate, political committee, referendum committee, individual].'
(2)	The name used in the labeling required in subdivision (1) of this subsection is the name that appears on the statement of organization as required in G.S. 163-278.7(b)(1). This subdivision applies only if the sponsor is a political committee or referendum committee.
(3)	The sponsor states in the print-media advertisement its position:
a.	For or against the candidate; or
b.	For or against an opposing candidate.
	This subdivision applies only if the print-media advertisement is made for or against a candidate; and
(4)	The sponsor states in the print-media advertisement its position for or against the ballot measure. This subdivision applies only if the print-media advertisement is made for or against a ballot measure.
(5)	The sponsor states in the advertisement whether it is authorized by a candidate. This subdivision applies only if:
a.	The advertisement supports or opposes a candidate; and
b.	The sponsor is an individual other than the candidate or a  political committee other than the committee of that candidate.
	The visual legend in the advertisement shall state either 'Authorized by [name of candidate], candidate for [name of office]' or 'Not authorized by a candidate.'
(b)	Size Requirements. – All the statements required in an advertisement by subsection (a) of this section shall constitute at least ten percent (10%) of the space of the advertisement.  If each copy of an advertisement consists of multiple pages, folds, or faces, the requirement of the previous sentence applies only to one page, fold, or face in each copy.
(c)	Print-Media Responsibility. – The print media shall not publish any political advertisement unless it bears the visual legends required in this section.
(d)	Misrepresentation of Authorization. – Notwithstanding G.S. 163-278.27(a), any individual, person, political committee, or referendum committee that submits to the print media an advertisement bearing any visual legend required by subsection (a) of this section that misrepresents the sponsorship or authorization of the advertisement is guilty of a Class 1 misdemeanor.
"§ 163-278.39A. Disclosure requirements for political advertisements related to candidates on television and radio.
(a)	Purpose. – It is the purpose of this section to effectuate the State's compelling interest in the integrity of its electoral processes by fulfilling the public's right to know the identity of sponsors of sophisticated and professional campaign advertisements on television and radio. In contrast to advertisements in print, those on television and radio present special challenges to the public's right to know because any disclosure on an electronic ad lacks permanence.
(b)	Relation to Federal Law. – State law incorporates the visual disclosure requirements of federal law on television and radio outlets. Any violation of federal visual disclosure requirements is a violation of State law.
(c)	Candidate Advertisements on Television and Radio. – The sponsoring candidate of an advertisement on television or radio shall orally state at least the following words: 'I am (or "This is..." ) [candidate's name], candidate for [name of office], and I (or "my campaign..." ) sponsored this ad.'
(d)	Political Party Advertisements on Television and Radio. – The chair, executive director, or treasurer of an official political party organization that sponsors an advertisement on television or radio shall orally state at least the following words: 'The [name of political party organization] sponsored this ad opposing/supporting [name of candidate] for [name of office].' The disclosed name of the political party organization must include the name of the political party as it appears on the ballot.
(e)	Political Action Committee Advertisements on Television and Radio. – The chief executive officer or treasurer of the political action committee that sponsors an advertisement on television or radio shall orally state at least the following words: 'The [name of political action committee] political action committee sponsored this ad opposing/supporting [name of candidate] for [name of office].' The name of the political action committee used in the advertisement shall be the name that appears on the statement of organization as required in G.S. 163-278.7(b)(1).
(f)	Advertisements on Television and Radio by an Individual. –  An individual sponsoring an advertisement on television or radio shall orally state at least the following words: 'I am [individual's name], and I sponsored this advertisement opposing/sponsoring [name of candidate] for [name of office].'
(g)	All Advertisements on Television Related to Candidate. – In any television advertisement related to a candidate, an unobscured, full-screen view of the disclosing person, either in photographic form or through the actual appearance of the disclosing person on camera, shall be featured throughout the duration of the disclosure statement. Any visual legend accompanying the disclosure statement shall be at least 32 scan lines in size.
(h)	Placement of Disclosure Statement in Television and Radio Advertisements. – A sponsoring candidate committee, political party organization, political action committee, or individual may place the disclosure statement required by this section at any point during the advertisement. The sponsoring entity may combine the oral disclosure statement required by this section with, or separate it from, any visual disclosure requirement under federal law. But any visual disclosure legend shall be at least 32 scan lines in size.
(i)	Choice by Noncandidate Entity of Supporting or Opposing a Candidate. – In its oral disclosure statement, a sponsoring political party organization, political action committee, or individual may choose either to identify an advertisement as supporting a particular candidate or opposing a particular candidate.
(j)	Legal Remedy. – Pursuant to the conditions established in subdivisions (1), (2), and (3) of this subsection, a candidate for an elective office who complied with the television and radio disclosure requirements throughout that candidate's entire campaign shall have a monetary remedy in a civil action against (i) an opposing candidate or candidate committee whose television or radio advertisement violates these disclosure requirements and (ii) against any political party organization, political action committee, or individual whose advertising for that elective office violates these disclosure requirements.
(1)	Any plaintiff candidate in a statewide race in an action under this section must complete and file a Notice of Complaint Regarding Failure to Disclose on Television or Radio Campaign Advertising with the State Board of Elections after the airing of the advertisement but no later than the first Friday after the Tuesday on which the election occurred. Candidates in nonstatewide races may file the notice with one county board of elections within the electoral area in which they are candidates. The timely filing of this notice preserves the candidate's right to bring an action in superior court any time within 90 days after the election. A candidate shall bring the civil action in the county where the candidate filed the notice.
(2)	Upon receiving a favorable verdict in accordance with existing law, the plaintiff candidate shall receive a monetary award of actual damages. The price of actual damages shall be calculated as the total dollar amount of television and radio advertising time that was aired and that the plaintiff candidate correctly identifies as being in violation of the disclosure requirements of this section.
		The plaintiff candidate shall also receive an award that trebles the amount of actual damages if:
a.	The plaintiff candidate can establish having notified or attempted to notify the sponsor of the advertising by return-receipt mail that a particular advertisement or advertisements failed to comply with the disclosure requirements of this section, and
b.	After the notice or attempted notice, the advertisement continued to be aired.
	The treble damages shall be calculated from the date on which the return-receipt notice was accepted or rejected by a defendant sponsoring candidate or candidate committee, political party organization, political action committee, or individual. The plaintiff candidate or candidate committee shall send a copy of any return-receipt mailing to the relevant board of elections as provided in subdivision (1) of this subsection within five days after the notice is returned to the possession of the candidate or candidate committee.
		The court shall award reasonable attorneys' fees to a plaintiff candidate who prevails in an action under this section. The plaintiff candidate may bring the civil action personally or authorize his or her candidate committee to bring the civil action.
(3)	A sponsoring candidate and the sponsoring candidate's committee shall be jointly and severally liable for the payment of damages and attorneys' fees. If the sponsoring candidate is held personally liable for any payment of damages or attorneys' fees, the sponsoring candidate shall not use or be reimbursed by funds from the candidate's campaign committee in paying any amount.
(k)	No Regulation or Liability of Television or Radio Outlets. – The disclosure requirements in this section impose no additional liability on or regulation of television or radio outlets beyond that otherwise existing in law.
(l)	No Criminal Liability. – Nothing in this section shall be relied upon or otherwise interpreted to create criminal liability for any person.
"§ 163-278.39B. Definitions.
As used in this Part:
(1)	'Print media' means billboards, cards, newspapers, newspaper inserts, magazines, mass mailings, pamphlets, periodicals, and outdoor advertising facilities.
(2)	'Political action committee' has the same meaning as 'political committee' in G.S. 163-278.6(14), except that 'political action committee' does not include any political party or political party organization.
(3)	'Political party organization' means any political party executive committee or any political committee that operates under the direction of a political party executive committee or political party chair.
(4)	'Scan line' means a standard term of measurement used in the electronic media industry calculating a certain area in a television advertisement.
"§ 163-278.39C.  Scope of disclosure requirements.
The disclosure requirements of this Part apply to those candidates or candidate committees, political party organizations, political action committees, and individuals required to file financial disclosure statements pursuant to this Article or pursuant to federal law. The disclosure requirements of this Part apply to candidates for elective federal office from North Carolina unless and until Congress takes clear action demonstrating that it has preempted the authority of State law."
Section 3.  G.S. 163-278.27(a) reads as rewritten:
"(a)	Any individual, candidate, political committee, referendum committee, treasurer, person or media who violates the provisions of G.S. 163-278.7, 163-278.8, 163-278.9, 163-278.10, 163-278.11, 163-278.12, 163-278.14, 163-278.16, 163-278.17, 163-278.18, 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."
Section 4.  The provisions of this act are severable. If any provision 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 becomes effective January 1, 1998, and applies to all advertisements published on or after that date. Prosecutions for, or sentences based on, offenses occurring before the effective date of this act are not abated or affected by this act, and the statutes that would be applicable to those prosecutions or sentences but for the provisions of this act remain applicable to those prosecutions or sentences.