GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	4 

SENATE BILL 708
Judiciary Committee Substitute Adopted 4/22/97
Third Edition Engrossed 4/24/97
House Committee Substitute Favorable 9/24/98

Short Title:  Election Act of 1998.	(Public)

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Sponsors:

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Referred to:  

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April 7, 1997

A BILL TO BE ENTITLED
AN ACT TO REQUIRE CERTAIN DISCLOSURES ON POLITICAL ADVERTISEMENTS TO BE MADE BY THEIR SPONSORS; TO REVISE THE DEFINITIONS OF "POLITICAL COMMITTEE," "CONTRIBUTION," "EXPENDITURE,"AND "POLITICAL PURPOSE" TO CONFORM TO FEDERAL COURT DECISIONS AND TO ADD DEFINITIONS OF "INDEPENDENT EXPENDITURE"AND "EXPRESS ADVOCACY"; TO CONFORM STATE LAW TO FEDERAL COURT DECISIONS CONCERNING INDEPENDENT EXPENDITURES BY CERTAIN TYPES OF CORPORATIONS; TO RESTORE 1996 CAMPAIGN REPORTING SCHEDULE WITH A $250 THRESHOLD FOR CONTRIBUTOR IDENTIFICATION; AND TO CHANGE THE DEADLINES AND PROCEDURES BY WHICH NEW PARTIES MAY GAIN BALLOT ACCESS AND CHOOSE CANDIDATES, TO ALLOW VOTERS TO RETAIN OFFICIAL AFFILIATION WITH AN EXPIRED PARTY, TO MAKE CERTAIN CHANGES TO EQUALIZE CANDIDACY REQUIREMENTS, AND TO REMOVE CERTAIN COURT-INVALIDATED REQUIREMENTS FROM THE PETITION PROCEDURES FOR NEW PARTIES, UNAFFILIATED CANDIDATES, AND WRITE-IN CANDIDATES.
The General Assembly of North Carolina enacts:
Section 1. This act shall be known as "The Election Act of 1998." By the act, the General Assembly intends to provide for reasonable regulation of election campaigns to the end that the First Amendment is respected, candidates are given reasonable standards of disclosure without being overburdened, and the voters are given adequate information on which to base their decisions. The General Assembly recognizes that the pressure upon candidates to raise increasing amounts of money has a harmful influence on the process of democracy. The principal reason for the pressure is the rising costs of media advertising. Accordingly, the General Assembly calls upon the corporations that control the news media to provide significant amounts of print space and prime air time to candidates to communicate with the voters, at the lowest practicable rate.
–STAND BY YOUR AD.
Section 2. (a) 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. Basic disclosure requirements for all political campaign advertisements.
(a)	Basic Requirements. – It shall be unlawful for any sponsor to sponsor an advertisement in the print media or on radio or television that constitutes an expenditure 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 advertisements, this disclosure shall be made by visual legend.
(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).
(3)	The sponsor states in the advertisement its position for or against the candidate, provided that this subdivision applies only if the advertisement supports or opposes a specific candidate or candidates.
(4)	The sponsor states in the advertisement its position for or against a ballot measure, provided that this subdivision applies only if the advertisement is made for or against a ballot measure.
(5)	In a print media advertisement supporting or opposing a specific candidate or candidates, the sponsor states whether it is authorized by a 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.' This subdivision does not apply if the sponsor of the advertisement is the candidate the advertisement supports or that candidate's campaign committee.
(6)	In a print media advertisement that identifies a candidate the sponsor is opposing, the sponsor discloses in the advertisement the name of the candidate that is intended to benefit from the advertisement.
If an advertisement described in this section is jointly sponsored, the disclosure statement shall name all the sponsors.
(b)	Size Requirements. – 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.  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. In a television advertisement covered by subsection (a) of this section, the visual disclosure legend shall constitute 32 scan lines in size. In a radio advertisement covered by subsection (a) of this section, the disclosure statement shall last at least three seconds.
(c)	Misrepresentation of Authorization. – Notwithstanding G.S. 163-278.27(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 or on radio or television 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.
"§ 163-278.39A. Disclosure requirements for television and radio advertisements supporting or opposing candidates.
(a)	Expanded Disclosure Requirements. – In addition to the basic disclosure requirements in G.S. 163-278.39, any political campaign advertisement on radio or television shall comply with the expanded disclosure requirements set forth in this section.
(b)	Disclosure Requirements for Television. –
(1)	Candidate advertisements on television. – Television advertisements purchased by a candidate or by a candidate campaign committee supporting or opposing a specific candidate or candidates shall include a disclosure statement spoken by the candidate and containing at least the following words: 'I am (or "This is..." ) [name of candidate], candidate for [name of office], and I (or "my campaign..." ) sponsored this ad.'
(2)	Political party advertisements on television. – Television advertisements purchased by a political party organization supporting or opposing a specific candidate or candidates shall include a disclosure statement spoken by the chair, executive director, or treasurer of the political party organization and containing 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 shall include the name of the political party as it appears on the ballot.
(3)	Political action committee advertisements on television. – Television advertisements purchased by a political action committee supporting or opposing a specific candidate or candidates shall include a disclosure statement spoken by the chief executive officer or treasurer of the political action committee and containing 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).
(4)	Advertisements on television by an individual. –  Television advertisements purchased by an individual supporting or opposing a specific candidate or candidates shall include a disclosure statement spoken by the individual and containing at least the following words: 'I am [individual's name], and I sponsored this advertisement opposing/sponsoring [name of candidate] for [name of office].'
(5)	Advertisements on television by another sponsor. – Television advertisements purchased by a sponsor other than a candidate, a candidate campaign committee, a political party organization, a political action committee, or an individual which mention the name of a specific candidate or candidates and whose cost or value constitutes an expenditure required to be disclosed under this Article shall include a disclosure statement spoken by the chief executive or principal decision maker of the sponsor and containing at least the following words: '[Name of sponsor] sponsored this ad.'
(6)	All advertisements on television. – In any television advertisement described in subdivisions (1) through (5) of this subsection, an unobscured, full-screen picture containing the disclosing individual, either in photographic form or through the actual appearance of the disclosing individual on camera, shall be featured throughout the duration of the disclosure statement.
(c)	Disclosure Requirements for Radio. –
(1)	Candidate advertisements on radio. – Radio advertisements purchased by a candidate or by a candidate campaign committee supporting or opposing a specific candidate or candidates shall include a disclosure statement spoken by the candidate and containing at least the following words: 'I am (or "This is.." ) [name of candidate], candidate for [name of office], and this ad was paid for (or "sponsored" or "furnished") by [name of candidate campaign committee that paid for the advertisement].'
(2)	Political party advertisements on radio. – Radio advertisements purchased by a political party organization supporting or opposing a specific candidate or candidates shall include a disclosure statement spoken by the chair, executive director, or treasurer of the political party organization and containing at least the following words: 'This ad opposing/supporting [name of candidate] for [name of office] was paid for (or "sponsored" or "furnished") by [name of political party].' The disclosed name of the political party organization shall include the name of the political party as it appears on the ballot.
(3)	Political action committee advertisements on radio. – Radio advertisements purchased by a political action committee supporting or opposing a specific candidate or candidates shall include a disclosure statement spoken by the chief executive officer or treasurer of the political action committee and containing at least the following words: 'This ad opposing/supporting [name of candidate] for [name of office] was paid for (or "sponsored" or "furnished") by [name of political action committee] political action committee.' The name of the political action committee used in the advertisement shall be the name that appears on the statement of organization as required by G.S. 163-278.7(b)(1).
(4)	Advertisements on radio by an individual. – Radio advertisements purchased by an individual supporting or opposing a specific candidate or candidates shall include a disclosure statement spoken by the individual and containing at least the following words: 'I am [individual's name], and this ad opposing/supporting [name of candidate] for [name of office] was paid for (or "sponsored" or "furnished") by me.'
(5)	Advertisements on radio by another sponsor. – Radio advertisements purchased by a sponsor other than a candidate, a candidate campaign committee, a political party organization, a political action committee, or an individual, which mentions the name of a specific candidate or candidates and whose cost or value constitutes an expenditure or contribution required to be disclosed under this Article, shall include a disclosure statement spoken by the chief executive or principal decision maker of the sponsor and containing at least the following words: '[Name of sponsor] paid for (or "sponsored" or "furnished") this ad.'
(d)	Placement of Disclosure Statement in Television and Radio Advertisements. – In advertisements on television, a sponsor may place the disclosure statement required by this section at any point during the advertisement, except if the duration of the advertisement is more than five minutes, the disclosure statement shall be made both at the beginning and end of the advertisement. The sponsor may provide the oral disclosure statement required by this section at the same time as the visual disclosure required under the Communications Act of 1934, 47 U.S.C. §§ 315 and 317, is shown. But any visual disclosure legend shall be at least 32 scan lines in size. For advertisements on radio, the placement of the oral disclosure statement shall comply with the requirements of the Communications Act of 1934, 47 U.S.C. §§ 315 and 317.
(e)	Choice of Supporting or Opposing a Candidate. – In its oral disclosure statement, a sponsoring political party organization, political action committee, individual, or other noncandidate sponsor shall choose either to identify an advertisement as supporting a specific candidate or opposing a specific candidate.
(e1)	Joint Sponsors. – If an advertisement described in this section is jointly sponsored, the disclosure statement shall name all the sponsors and the disclosing individual shall be one of those sponsors. If a candidate is one of the sponsors, that candidate shall be the disclosing individual, and if more than one candidate is the sponsor, at least one of the candidates shall be the disclosing individual.
(f)	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, individual, or other sponsor whose advertisement for that elective office violates these disclosure requirements:
(1)	Any plaintiff candidate in a statewide race in an action under this section shall 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 during the same time period 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 advertisement properly by return-receipt mail about the failure of a particular advertisement or advertisements 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 campaign committee to bring the civil action.
(3)	A candidate who violates the disclosure requirements of State law in this section and that candidate's campaign committee shall be jointly and severally liable for the payment of damages and attorneys' fees. If the candidate is held personally liable for any payment of damages or attorneys' fees, the candidate shall not use or be reimbursed by funds from the candidate's campaign committee in paying any amount.
(g)	Relation to the Communications Act of 1934. – Television advertisements by a sponsor supporting or opposing a specific candidate or candidates shall comply with the oral disclosure requirements under State law in this section. Those advertisements shall also comply with disclosure requirements under the Communications Act of 1934, 47 U.S.C. §§ 315 and 317 by use of visual legends. The content of those visual legends is specified by the Communications Act of 1934, 47 U.S.C. §§ 315 and 317, and G.S. 163-278.39(a)(1). The size of those visual legends is determined by G.S. 163-278.39(b), which satisfies requirements under the Communications Act of 1934, 47 U.S.C. §§ 315 and 317. In the case of radio advertisements, the oral disclosure requirements under State law in this section incorporate the content requirements under the Communications Act of 1934, 47 U.S.C. §§ 315 and 317.
(h)	No Additional Liability of Television or Radio Outlets. – Television or radio outlets shall not be liable under this section for carriage of political advertisements that fail to include the disclosure requirements provided for in this section.
(i)	No Criminal Liability. – Nothing in this section regarding the disclosure requirements in subsections (b) and (c) of 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)	'Advertisement' means any message of advocacy appearing in the print media, on television, or on radio that constitutes a contribution or expenditure under this Article.
(2)	'Candidate' means any individual who, with respect to a public office listed in G.S. 163-278.6(18), has filed a notice of candidacy or a petition requesting to be a candidate, or has been certified as a nominee of a political party for a vacancy, or has otherwise qualified as a candidate in a manner authorized by law, or has filed a statement of organization under G.S. 163-278.7 and is required to file periodic financial disclosure statements under G.S. 163-278.9.
(3)	'Candidate campaign committee' means any political committee organized by or under the direction of a candidate.
(4)	'Full-screen' means the only picture appearing on the television screen during the oral disclosure statement contains the disclosing person, that the picture occupies all visible space on the television screen, and that the image of the disclosing person occupies at least fifty percent (50%) of the vertical height of the television screen.
(5)	'Print media' means billboards, cards, newspapers, newspaper inserts, magazines, mass mailings, pamphlets, fliers, periodicals, and outdoor advertising facilities.  A 'mass mailing' is a mailing with more than five hundred (500) pieces.
(6)	'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.
(7)	'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.
(8)	'Radio' means any radio broadcast station that is subject to the provisions of 47 U.S.C. §§ 315 and 317.
(9)	'Scan line' means a standard term of measurement used in the electronic media industry calculating a certain area in a television advertisement.
(10)	'Sponsor' means a candidate, candidate committee, political party organization, political action committee, referendum committee, individual, or other entity that purchases an advertisement.
(11)	'Supporting or Opposing' means an advertisement that mentions the name of a candidate, elected official, political party, or referendum issue, and whose cost or value constitutes an expenditure or contribution required to be disclosed under this Article.
(12)	'Television' means any television broadcast station, cable television system, wireless-cable multipoint distribution system, satellite company, or telephone company transmitting video programming that is subject to the provisions of 47 U.S.C. §§ 315 and 317.
(13)	'Unobscured' means the only printed material that may appear on the television screen is a visual disclosure statement required by law, and nothing is blocking the view of the disclosing person's face.
"§ 163-278.39C.  Scope of disclosure requirements.
The disclosure requirements of this Part apply to any sponsor of an advertisement in the print media or on radio or television the cost or value of which constitutes an expenditure or contribution required to be disclosed under this Article, except that the disclosure requirements of this Part:
(1)	Do not apply to an individual who makes uncoordinated independent expenditures aggregating less than one thousand dollars ($1,000) in a political campaign; and
(2)	Do not apply to an individual who incurs expenses with respect to a referendum."
(b)	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.
									" 	."
(c)	G.S. 163-278.27(a) reads as rewritten:
"(a)	Any individual, candidate, political committee, referendum committee, treasurer, person or media who violates the applicable 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."
–REVISED AND NEW DEFINITIONS IN THE CAMPAIGN FINANCE LAW; COMPLIANCE WITH COURT DECISIONS.
Section 3. (a)	G.S. 163-278.6(14) reads as rewritten:
"(14)	The term 'political committee' means a combination of two or more individuals, or any person, committee, association, or organization that has one or more of the following characteristics:
a.	Is controlled by a candidate;
b.	Makes contributions to a candidate or political committee; or
c.	Has as a nonincidental purpose, making expenditures to expressly advocate the nomination or election or defeat of a clearly identified candidate at any election.
If the group qualifies as a 'political committee' under sub-subdivision a., b., or c. of this subdivision, it continues to be a political committee if it receives contributions to repay loans or cover a deficit, or makes expenditures to satisfy obligations of an election already held.  The term includes, without limitation, any political party's State, county or district executive committee."
(b)	G.S. 163-278.6(6) reads as rewritten:
"(6)	The terms 'contribute' or 'contribution' mean any advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift, pledge or subscription of money or anything of value whatsoever, to a candidate, political committee, political party, or referendum committee from any person or individual, whether or not made in an election year, and any contract, agreement, promise or other obligation, whether or not legally enforceable, to make a contribution, in support of or in opposition to any candidate, political committee, referendum committee, or political party. These terms include, without limitation, such contributions as labor or personal services, postage, publication of campaign literature or materials, in-kind transfers, loans or use of any supplies, office machinery, vehicles, aircraft, office space, or similar or related services, goods, or personal or real property. These terms also include, without limitation, the proceeds of sale of services, campaign literature and materials, wearing apparel, tickets or admission prices to campaign events such as rallies or dinners, and the proceeds of sale of any campaign-related services or goods. Notwithstanding the foregoing meanings of 'contribution,' the word shall not be construed to include services provided without compensation by individuals volunteering a portion or all of their time on behalf of a candidate, political committee, or referendum committee. The term 'contribution' does not include an 'independent expenditure.'"
(c)	G.S. 163-278.6(9) reads as rewritten:
"(9)	The terms 'expend' or 'expenditure' mean any contribution, purchase, advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift, pledge or subscription of money or anything of value whatsoever, from any person or individual, whether or not made in an election year, and any contract, agreement, promise or other obligation, whether or not legally enforceable, to make an expenditure, to expressly advocate the nomination or election or defeat of any clearly identified candidate.  The term 'expenditure' also includes any payment made by a candidate, political committee, or referendum committee."
(d)	G.S. 163-278.6 is amended by adding a new subdivision to read:
"(9A)	The term 'express advocacy' means a communication that advocates the election or defeat of a candidate by:
a.	Containing a phrase such as 'vote for', 're-elect', 'support', 'cast your ballot for', '(name of candidate) for (name of office)', '(name of candidate) in (year)', 'vote against', 'defeat', 'reject', or a campaign slogan or words that in context can have no reasonable meaning other than to advocate the election or defeat of one or more clearly identified candidates;
b.	Referring to one or more clearly identified candidates in a paid advertisement that is broadcast by a radio broadcast station or a television broadcast station within sixty (60) calendar days preceding the date of a primary or election of the candidate; or
c.	Expressing unmistakable and unambiguous support for or opposition to one or more clearly identified candidates when taken as a whole and with limited reference to external events, such as proximity to an election.
	The term 'express advocacy' does not include a printed communication that (i) presents information in an educational manner solely about the voting record or position on a campaign issue of two or more candidates; (ii) is not made in coordination with a candidate, political party, or agent of the candidate or party; or a candidate's agent or a person who is coordinating with a candidate or a candidate's agent; and (iii) does not contain a phrase such as 'vote for', 're-elect', 'support', 'cast your ballot for', '(name of candidate) for Governor', '(name of candidate) in 1998', 'vote against', 'defeat', 'reject', or a campaign slogan or words that in context can have no reasonable meaning other than to urge the election or defeat of one or more clearly identified candidates."
(e)  G.S. 163-278.6 is amended by adding a new subdivision to read:
"(9B)	The term 'independently expend' or 'independent expenditure' means an expenditure made without consultation or coordination with any candidate, political committee, or political party that benefits or would benefit electorally from the expenditure."
(f)  G.S. 163-278.6(16) reads as rewritten:
"(16)	The term 'political purpose' means to expressly advocate the nomination or election or defeat of a clearly identified political party or candidate."
(g)  G.S. 163-269 and G.S. 163-270 are repealed.
(h)  G.S. 163-278.19 is amended by adding a new subsection to read:
	"( f) This section does not prohibit an independent expenditure by an entity that:
(1)	Was formed for the express purpose of promoting political ideas and does not engage in business activities;
(2)	Does not have shareholders or other individuals or persons which have an economic interest in its assets and earnings; and
(3)	Was not established by a business corporation, including, but not limited to, those chartered under Chapter 55 or Chapter 55A, by an insurance company, by a business entity, by a professional association, or by a labor union and does not receive a significant portion of its revenues from such entities."
(i)  G.S. 163-278.12 reads as rewritten:
"§ 163-278.12.  Independent expenditures.
Subject to 	Part 1A of this Article and to G.S. 163-278.14, it shall be permissible for an individual other than a candidate to make independent expenditures.  In the event an individual or entity other than a political committee permitted by law to do so makes independent expenditures in excess of one hundred dollars ($100.00), then, within 10 days after making such an independent expenditure, that individual or entity shall file a statement of such independent expenditure with the Board in accordance with the terms and conditions of G.S. 163-278.11."
(j)  G.S. 163-278.12A is repealed.
–RESTORATION OF REPORTING SCHEDULE; $250 IDENTIFICATION THRESHOLD.
Section 4. (a) G.S. 163-278.8(d) reads as rewritten:
"(d)	A treasurer shall not be required to report the name of any individual who is a resident of this State who makes a total contribution of two hundred fifty dollars ($250.00) or less but he shall instead report the fact that he has received a total contribution of two hundred fifty dollars ($250.00) or less, the amount of the contribution, and the date of receipt. If a treasurer receives contributions of two hundred fifty dollars ($250.00) or less, each at a single event, he may account for and report the total amount received at that event, the date and place of the event, the nature of the event, and the approximate number of people at the event. With respect to the proceeds of sale of services, campaign literature and materials, wearing apparel, tickets or admission prices to campaign events such as rallies or dinners, and the proceeds of sale of any campaign-related services or goods, if the price or value received for any single service or goods exceeds two hundred fifty dollars ($250.00), the treasurer shall account for and report the name of the individual paying for such services or goods, the amount received, and the date of receipt, but if the price or value received for any single service or item of goods does not exceed two hundred fifty dollars ($250.00) the treasurer may report only those services or goods rendered or sold at a value that does not exceed two hundred fifty dollars ($250.00), the nature of the services or goods, the amount received in the aggregate for the services or goods, and the date of the receipt."
(b) G.S. 163-278.9 reads as rewritten:
"§ 163-278.9.  Statements filed with Board.
(a)	Except as provided in G.S. 163-278.10A, the treasurer of each candidate and of each political committee shall file under verification with the Board the following reports:
(1)	Organizational Report. – The appointment of the treasurer as required by G.S. 163-278.7(a), the statement of organization required by G.S. 163-278.7(b), and a report of all contributions and expenditures not previously reported shall be filed with the Board no later than the tenth day following the day the candidate files notice of candidacy or the tenth day following the organization of the political committee, whichever occurs first. Any candidate whose campaign is being conducted by a political committee which is handling all contributions and expenditures for his campaign shall file a statement with the Board stating such fact at the time required herein for the organizational report. Thereafter, the candidate's political committee shall be responsible for filing all reports required by law.
(2)	Preprimary Report. – The treasurer shall file a report with the Board no later than the tenth day preceding the primary election. 
(3) Postprimary Report(s). – The treasurer shall file a report with the Board no later than the 30th day after the primary election if the candidate was eliminated in the primary. If there is a second primary, the treasurer shall file a report with the Board no later than the 30th day after the second primary election if the candidate was eliminated in the second primary.
(4) Preelection Report. – The treasurer shall file a report with the Board not later than the tenth day preceding the general election.
	(5)	Repealed by Session Laws 1985, c. 164, s. 1.
	(6)	Annual Reports. – If contributions are received or expenditures made during a calendar year for which no reports are otherwise required by this Article, any and all such contributions and expenditures shall be reported by the last Friday in January of the following year.
(b)	Except as otherwise provided in this Article, each report shall be current within seven days prior to the date the report is due and shall list all contributions received and expenditures made which have not been previously reported.
(c)	Repealed by Session Laws 1985, c. 164, s. 6.1.
(d)	Candidates and committees for municipal offices are not subject to subsections (a), (b) and (c) of this section. Reports for those candidates and committees are covered by Part 2 of this Article.
(e)	Notwithstanding subsections (a) through (c) of this section, any political party (including a State, district, county, or precinct committee thereof) which is required to file reports under those subsections and under the Federal Election Campaign Act of 1971, as amended (2 U.S.C. 434), shall instead of filing the reports required by those subsections, file with the State Board of Elections:
(1)	The organizational report required by subsection (a)(1) of this section, and
(2)	A copy of each report required to be filed under 2 U.S.C. 434, such copy to be filed on the same day as the federal report is required to be filed.
(f)	Any report filed under subsection (e) of this section may include matter required by the federal law but not required by this Article.
(g)	Any report filed under subsection (e) of this section must contain all the information required by G.S. 163-278.8 or G.S. 163-278.11, notwithstanding that the federal law may set a higher reporting threshold.
(h)	Any report filed under subsection (e) of this section may reflect the cumulative totals required by G.S. 163-278.11 in an attachment, if the federal law does not permit such information in the body of the report.
(i)	Any report or attachment filed under subsection (e) of this section must be made under oath.
(j)	Treasurers for the following entities shall electronically file each report required by this section that shows in excess of five thousand dollars ($5,000) in contributions, in expenditures, or in loans, according to rules adopted by the State Board of Elections:
(1)	A candidate for statewide office;
(2)	A State, district, county, or precinct executive committee of a political party, if the committee makes contributions or independent expenditures in excess of five thousand dollars ($5,000) that affect contests for statewide office;
(3)	A political committee that makes contributions in excess of five thousand dollars ($5,000) to candidates for statewide office or makes independent expenditures in excess of five thousand dollars ($5,000) that affect contests for statewide office.
The State Board of Elections shall provide the software necessary to file an electronic report to a treasurer required to file an electronic report at no cost to the treasurer."
(c) G.S. 163-278.9A(a)(2a) is repealed.
–BALLOT ACCESS CHANGES.
Section 5. (a)	G.S. 163-96 reads as rewritten:
"§ 163-96. 'Political party' defined; creation of new party.
(a)	Definition. – A political party within the meaning of the election laws of this State shall be either:
(1)	Any group of voters which, at the last preceding general State  election, polled for its candidate for Governor, or for presidential electors, at least ten percent (10%) of the entire vote cast in the State for Governor or for presidential electors; or
(2)	Any group of voters which shall have filed with the State Board of Elections petitions for the formulation of a new political party which are signed by registered and qualified voters in this State equal in number to two percent (2%) of the total number of voters who voted in the most recent general election for Governor. Also the petition must be signed by at least 200 registered voters from each of four congressional districts in North Carolina. To be effective, the petitioners must file their petitions with the State Board of Elections before 12:00 noon on the thirty-first day of December preceding the day on which is to be held the first general State election in which the new political party desires to participate. The State Board of Elections shall forthwith determine the sufficiency of petitions filed with it and shall immediately communicate its determination to the State chairman of the proposed new political party.
(b)	Petitions for New Political Party. – Petitions for the creation of a new political party shall contain on the heading of each page of the petition in bold print or all in capital letters the words: 'THE UNDERSIGNED REGISTERED VOTERS IN ............ COUNTY HEREBY PETITION FOR THE FORMATION OF A NEW POLITICAL PARTY TO BE NAMED ......... AND WHOSE STATE CHAIRMAN IS ................., RESIDING AT................ AND WHO CAN BE REACHED BY TELEPHONE AT....... THE SIGNERS OF THIS PETITION DESIRE THAT A NEW POLITICAL PARTY BE ORGANIZED TO PARTICIPATE IN THE NEXT SUCCEEDING GENERAL ELECTION.'
All printing required to appear on the heading of the petition shall be in type no smaller than 10 point or in all capital letters, double spaced typewriter size. In addition to the form of the petition, the organizers and petition circulators shall inform the signers of the general purpose and intent of the new party.
The petitions must specify the name selected for the proposed political party. The State Board of Elections shall reject petitions for the formation of a new party if the name chosen contains any word that appears in the name of any existing political party recognized in this State or if, in the Board's opinion, the name is so similar to that of an existing political party recognized in this State as to confuse or mislead the voters at an election.
The petitions must state the name and address of the State chairman of the proposed new political party.
			Each petition shall be presented to the chairman of the board of elections of the county in which the signatures were obtained, and it shall be the chairman's duty:
(1)	To examine the signatures on the petition and place a check mark on the petition by the name of each signer who is qualified and registered to vote in his county.
(2)	To attach to the petition his signed certificate
a.	Stating that the signatures on the petition have been checked  against the registration records and
b.	Indicating the number found qualified and registered to vote in his county.
(3)	To return each petition, together with the certificate required by the preceding subdivision, to the person who presented it to him for checking.
The group of petitioners shall submit the petitions to the chairman of the county board of elections in the county in which the signatures were obtained no later than 5:00 P.M. on the fifteenth business day preceding the date the petitions are due to be filed with the State Board of Elections as provided in subsection (a)(2) of this section. Verification shall be completed within 15 business days from the date such petitions are presented. Notwithstanding the previous sentence, the county board may extend its deadline for verifying the signatures for a reasonable length of time, if meeting the deadline is unduly burdensome and extending it will not disadvantage the petitioners."
(b)	G.S. 163-97.1 reads as rewritten:
"§ 163-97.1.  Voters affiliated with expired political party.
" Any voter registered with a political party shall be allowed to retain that affiliation even if that party loses its status as a political party under the provisions of G.S. 163-97. Unless the voter indicates an intention otherwise, the county board of elections shall carry that voter on its registration lists as a member of the expired party."
(c)	G.S. 163-98 reads as rewritten:
"§ 163-98. General election participation by new political party.
In the first general election following the date on which a new political party qualifies under the provisions of G.S. 163-96, it shall be entitled to have the names of its candidates for municipal, county, district, State, congressional, and national offices printed on the official ballots in accordance with the procedures in this section.
For the first general election following the date on which it qualifies under G.S. 163-96, a new political party shall select its candidates in accordance with Article 1 and Article 10 of this Chapter."
(d)	Article 9 of Chapter 163 of the General Statutes is amended by adding a new section to read:
"§ 163-100. Political party for presidential election only.
A party shall be recognized only for the purposes of nominating candidates for presidential electors in a general election if the party meets the other requirements of this Article except that the petitioners for that party file their petitions as provided in G.S. 163-96(a)(2) with the State Board of Elections before 12:00 noon on the second Thursday in July before that general election. If that party so qualifies, it may nominate its electors in convention no later than 90 days before the general election. Unless the party has met the petition deadline of G.S. 163-96, it shall cease to be a political party within the provisions of this Chapter."
(e)  G.S. 163-106(b) reads as rewritten:
"(b)	Eligibility to File. – No person shall be permitted to file as a candidate in a primary if, at the time he offers to file notice of candidacy, he is registered on the appropriate registration book or record as an affiliate of a political party other than that in whose primary he is attempting to file. No person who has changed his political party affiliation or who has changed from unaffiliated status to party affiliation as permitted in G.S. 163-82.17, shall be permitted to file as a candidate in the primary of the party to which he changed unless he has been affiliated with the political party in which he seeks to be a candidate for at least 90 days prior to the filing date for the office for which he desires to file his notice of candidacy, provided that the requirement of this sentence shall not apply to a person filing a notice of candidacy in the primary of a party holding its first primary since gaining ballot access under the provisions of G.S. 163-96(a)(2).
A person registered as 'unaffiliated' shall be ineligible to file as a candidate in a party primary election."
(f)   G.S. 163-107.1 reads as rewritten:
"§ 163-107.1.  Petition in lieu of payment of filing fee.
(a)	Any qualified voter who seeks nomination in the party primary of the political party with which he affiliates may, in lieu of payment of any filing fee required for the office he seeks, file a written petition requesting him to be a candidate for a specified office with the appropriate board of elections, State, county or municipal.
(b)	If the candidate is seeking the office of United States Senator, Governor, Lieutenant Governor, any State executive officer, Justice of the Supreme Court or Judge of the Court of Appeals, the petition must be signed by registered voters of the State equal in number to two percent (2%) of the total number of registered voters in the State as reflected by the most recent statistical report issued by the State Board of Elections.  The petition must be filed with the State Board of Elections not later than 12:00 noon on Monday preceding the filing deadline before the primary in which he seeks to run. The names on the petition shall be verified by the board of elections of the county where the signer is registered, and the petition must be presented to the county board of elections at least 15 days before the petition is due to be filed with the State Board of Elections. When a proper petition has been filed, the candidate's name shall be printed on the primary ballot.
(c)	County, Municipal and District Primaries. – If the candidate is seeking one of the offices set forth in G.S. 163-106(c) but which is not listed in subsection (b) of this section, or a municipal or any other office requiring a partisan primary which is not set forth in G.S. 163-106(c) or (d), he shall file a written petition with the appropriate board of elections no later than 12:00 noon on Monday preceding the filing deadline before the primary. The petition shall be signed by registered voters in the election area in which the office will be voted for equal to four percent (4%) of the registered voters of that area as reflected by the latest statistical report issued by the appropriate board of elections.  The board of elections shall verify the names on the petition, and if the petition is found to be sufficient, the candidate's name shall be printed on the appropriate primary ballot. Petitions for candidates for member of the U.S. House of Representatives, District Attorney, and judge of the District Court or members of the State House of Representatives from multi-county districts or members of the State Senate from multi-county districts must be presented to the county board of elections for verification at least 15 days before the petition is due to be filed with the State Board of Elections, and such petition must be filed with the State Board of Elections no later than 12:00 noon on Monday preceding the filing deadline. The State Board of Elections may adopt rules to implement this section and to provide standard petition forms.
(d)	Nonpartisan Primaries and Elections. – Any qualified voter who seeks to be a candidate in any nonpartisan primary or election may, in lieu of payment of the filing fee required, file a written petition signed by registered voters in the election area in which the office will be voted for equal to four percent (4%) of the registered voters of that area as reflected by the latest statistical report issued by the appropriate board of elections.  Any qualified voter may sign the petition. The petition shall state the candidate's name, address and the office which he is seeking. The petition must be filed with the appropriate board of elections no later than 60 days prior to the filing deadline for the primary or election, and if found to be sufficient, the candidate's name shall be printed on the ballot."
(g)  G.S. 163-122 reads as rewritten:
"§ 163-122.  Unaffiliated candidates nominated by petition.
(a)	Procedure for Having Name Printed on Ballot as Unaffiliated Candidate. – Any qualified voter who seeks to have his name printed on the general election ballot as an unaffiliated candidate shall:
(1)	If the office is a statewide office, file written petitions with the State Board of Elections supporting his candidacy for a specified office. These petitions must be filed with the State Board of Elections on or before 12:00 noon on the day of the first primary for the office preceding the general election and must be signed by qualified voters of the State equal in number to two percent (2%) of the total number of registered voters in the State as reflected by the most recent statistical report issued by the State Board of Elections. Each petition shall be presented to the chairman of the board of elections of the county in which the signatures were obtained. The chairman shall examine the names on the petition and place a check mark on the petition by the name of each signer who is qualified and registered to vote in his county and shall attach to the petition his signed certificate. Said certificates shall state that the signatures on the petition have been checked against the registration records and shall indicate the number of signers to be qualified and registered to vote in his county. The chairman shall return each petition, together with the certificate required in this section, to the person who presented it to him for checking. Verification by the chairman of the county board of elections shall be completed within two weeks from the date such petitions are presented.
(2)	If the office is a district office comprised of two or more counties, file written petitions with the State Board of Elections supporting his candidacy for a specified office. These petitions must be filed with the State Board of Elections on or before 12:00 noon on the day of the first primary for the office preceding the general election and must be signed by qualified voters of the district equal in number to four percent (4%) of the total number of registered voters in the district as reflected by the latest statistical report issued by the State Board of Elections. Each petition shall be presented to the chairman of the board of elections of the county in which the signatures were obtained. The chairman shall examine the names on the petition and the procedure for certification shall be the same as specified in (1) above.
(3)	If the office is a county office or a single county legislative district, file written petitions with the chairman or director of the county board of elections supporting his candidacy for a specified county office. These petitions must be filed with the county board of elections on or before 12:00 noon on the day of the first primary for the office preceding the general election and must be signed by qualified voters of the county equal in number to four percent (4%) of the total number of registered voters in the county as reflected by the most recent statistical report issued by the State Board of Elections, except if the office is for a district consisting of less than the entire county and only the voters in that district vote for that office, the petitions must be signed by qualified voters of the district equal in number to four percent (4%) of the total number of voters in the district according to the most recent figures certified by the State Board of Elections. Each petition shall be presented to the chairman or director of the county board of elections. The chairman shall examine, or cause to be examined, the names on the petition and the procedure for certification shall be the same as specified in (1) above.
(4)	If the office is a partisan municipal office, file written petitions with the chairman or director of the county board of elections in the county wherein the municipality is located supporting his candidacy for a specified municipal office. These petitions must be filed with the county board of elections on or before the time and date specified in G.S. 163-296 and must be signed by the number of qualified voters specified in G.S. 163-296. The procedure for certification shall be the same as specified in (1) above.
Upon compliance with the provisions of (1), (2), (3), or (4) of this subsection, the board of elections with which the petitions and affidavit have been timely filed shall cause the unaffiliated candidate's name to be printed on the general election ballots in accordance with G.S. 163-140.
An individual whose name appeared on the ballot in a primary election preliminary to the general election shall not be eligible to have his name placed on the general election ballot as an unaffiliated candidate for the same office in that year.
(b)	Form of Petition. – Petitions requesting an unaffiliated candidate to be placed on the general election ballot shall contain on the heading of each page of the petition in bold print or in all capital letters the words: 'THE UNDERSIGNED REGISTERED VOTERS IN .............. COUNTY HEREBY PETITION ON BEHALF OF .............. AS AN UNAFFILIATED CANDIDATE IN THE NEXT GENERAL ELECTION. THE UNDERSIGNED HEREBY PETITION THAT SUBJECT CANDIDATE BE PLACED ON THE APPROPRIATE BALLOT UPON COMPLIANCE WITH THE PROVISIONS CONTAINED IN G.S. 163-122.'
(c)	This section does not apply to elections under Article 25 of this Chapter.
(d)	Presidential Electors. – Unaffiliated candidates for presidential electors who comply with the other provisions of this section shall qualify for the ballot if the petitions for their candidacy are filed with the State Board of Elections at least 75 days before the general election."
(h)  G.S. 163-123(c)(1) reads as rewritten:
"(1)	If the office is a statewide office, file written petitions with the State Board of Elections supporting his candidacy for a specified office. These petitions shall be filed on or before noon on the 90th day before the general election. They shall be signed by 500 qualified voters of the State. Before being filed with the State Board of Elections, each petition shall be presented to the board of elections of the county in which the signatures were obtained. A petition presented to a county board of elections shall contain only names of voters registered in that county.  The chairman of the county board of elections shall examine the names on the petition and place a check mark by the name of each signer who is qualified and registered to vote in his county. The chairman of the county board shall attach to the petition his signed certificate. On his certificate the chairman shall state that the signatures on the petition have been checked against the registration records and shall indicate the number of signers who are qualified and registered to vote in his county and eligible to vote for that office. The chairman shall return each petition, together with the certificate required in this section, to the person who presented it to him for checking. The chairman of the county board shall complete the verification within two weeks from the date the petition is presented. "
Section 6. 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.
Section 7. 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 8. This act becomes effective February 1, 1999.