GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
S	2
SENATE BILL 1054
Judiciary I Committee Substitute Adopted 9/10/01 

Short Title:	Judicial Campaign Reform Act.	()	
Sponsors:	     	
Referred to:	     	
April 5, 2001

A BILL TO BE ENTITLED
AN ACT to reform the method of electing supreme Court justices and court of appeals judges and to establish a fair elections fund that provides candidates for these offices with an alternative means of financing their campaigns.

The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 163 of the General Statutes is amended by adding a new Article to read:
"Article 22D.
"The North Carolina Fair Elections Fund.
"§ 163‑278.61.  Purpose of the North Carolina Fair Elections Fund.
The purpose of this Article is to ensure the fairness of democratic elections in North Carolina and to protect the constitutional rights of voters and candidates from the detrimental effects of increasingly large amounts of money being raised and spent to influence the outcome of elections. The potential for corruption and its appearance is especially problematic in elections of the judiciary, since impartiality is uniquely important to the integrity and credibility of the courts. Accordingly, this Article establishes the North Carolina Fair Elections Fund as an alternative source of campaign financing for candidates who demonstrate public support and voluntarily accept strict fund‑raising and spending limits. This Article is available to candidates for justice of the Supreme Court and judge of the Court of Appeals in elections to be held in 2004 and thereafter.
"§ 163‑278.62. Definitions.
When used in this Article:
(1)	'Board' means the State Board of Elections.
(2)	'Candidate' means any individual who becomes a candidate as described in G.S. 163‑278.6(3) and also means a political committee authorized by the candidate for that candidate's election.
(3)	'Certified candidate' means a candidate running for office who chooses to receive campaign funds from the Fund and who is certified under G.S. 163‑278.64(c).
(4)	'Contested primary' and 'contested general election' mean elections in which there are more candidates than the number to be elected.
(5)	'Contribution,' 'expenditure,' 'independent expenditure,' 'political committee,' and 'referendum committee' have the same meaning as defined in G.S. 163‑278.6.
(6)	'Fund' means the North Carolina Fair Elections Fund established in G.S. 163‑278.63.
(7)	'Minimum qualifying contributions' means an amount of qualifying contributions equal to 20 times the filing fee for candidacy for the office.
(8)	'Maximum qualifying contributions' means an amount of qualifying contributions equal to 45 times the filing fee for candidacy for the office.
(9)	'Nonparticipating candidate' means a candidate running for office who is not seeking to be certified under G.S. 163‑278.64(c).
(10)	'Office' means a position on the North Carolina Court of Appeals or North Carolina Supreme Court.
(11)	'Participating candidate' means a candidate who for office who has filed a declaration of intent to participate under G.S. 163‑278.64.
(12)	'Petition of support' means a statement to which registered voters have affixed their signature and provided in legible writing their complete name, residence address, and county of residence; the top of each page of the statement shall read, 'The registered voters of North Carolina listed below support the election of [name of candidate] to the position of [name of office being sought] in [year of election]. Your signature helps this candidate qualify to receive money from the Fair Elections Fund to run his or her campaign, because the candidate has also agreed to abide by strict campaign spending and fund‑raising limits.'
(13)	'Qualifying contribution' means a donation of not less than ten dollars ($10.00) and not more than five hundred dollars ($500.00) in the form of a check or money order to the candidate or the candidate’s committee:
a.	Made by any registered voter in this State;
b.	Made during the qualifying period and obtained with the approval of the candidate or candidate’s committee; and
c.	Acknowledged by a written receipt, on a multicopy form provided by the Board, that identifies the complete name, residence address, and county of residence of the contributor and the amount and date of the contribution made; states that the contributor is a registered voter of this State; states that the contributor authorizes the candidate to use the contribution to qualify to receive campaign funds from the Fund; and is signed by the contributor and the candidate or the candidate's representative.
(14)	'Qualifying period' means the period beginning September 1 in the year before the election and ending on the day of the primary of the election year. For a candidate in a second primary, that period extends to the day of the second primary. For an unaffiliated candidate nominated pursuant to G.S. 163-122 and a new party candidate nominated pursuant to G.S. 163-98, the qualifying period extends from November 1 in the year before the election to July 1 of the election year.
(15)	'Trigger for rescue funds' means the dollar amount at which rescue funds are released for certified candidates. In the case of a primary, the trigger equals the maximum qualifying contributions for participating candidates. In the case of a contested general election, the trigger equals the base level of funding available under G.S. 163‑278.65(b)(4).
"§ 163‑278.63. North Carolina Fair Elections Fund established; sources of funding.
(a)	Establishment of Fund. – The North Carolina Fair Elections Fund is established to finance the election campaigns of certified candidates for office and to pay administrative and enforcement costs of the Board related to this Article. The Fund is a special, dedicated, nonlapsing, nonreverting fund. Any interest generated by the Fund is credited to the Fund. The Board shall administer the Fund.
(b)	Sources of Funding. – Money received from all the following sources must be deposited in the Fund:
(1)	Money from the North Carolina Candidates Financing Fund.
(2)	Designations made to the Fair Elections Fund by individual taxpayers pursuant to G.S. 105‑159.2.
(3)	A portion of the annual license fee paid by attorneys in accordance with G.S. 105-41.
(4)	Fair Elections Fund revenues distributed for an election that remain unspent or uncommitted at the time the recipient is no longer a certified candidate in the election.
(5)	Money ordered returned to the Fair Elections Fund in accordance with G.S. 163-278.70.
(6)	Voluntary donations made directly to the Fair Elections Fund. Corporations, other business entities, labor unions, and professional associations may make donations to the Fund.
(c)	Determination of Fund Amount. – By October 1, 2003, and every two years thereafter, the Board, in conjunction with the Advisory Council for the Fair Elections Fund, shall prepare and provide to the Joint Legislative Commission on Governmental Operations of the General Assembly a report documenting, evaluating, and making recommendations relating to the administration, implementation, and enforcement of this Article. In its report, the Board shall set out the funds received to date and the expected needs of the Fund for the next election.
"§ 163‑278.64.  Requirements for participation; certification of candidates.
(a)	Declaration of Intent to Participate. – Any individual choosing to receive campaign funds from the Fund shall first file with the Board a declaration of intent to participate in the act as a candidate for a stated office. The declaration of intent shall be filed before or during the qualifying period and before collecting any qualifying contributions or circulating a petition of support. In the declaration, the candidate shall swear or affirm that only one political committee, identified with its treasurer, shall handle all contributions, expenditures, and obligations for the participating candidate and that the candidate will comply with the contribution and expenditure limits set forth in subsection (d) of this section and all other requirements set forth in this Article or adopted by the Board. Failure to comply is a violation of this Article.
(b)	Demonstration of Support of Candidacy. – Except for justices and judges holding office on the Supreme Court or Court of Appeals, participating candidates who seek certification to receive campaign funds from the Fund shall first, during the qualifying period:
(1)	Obtain qualifying contributions from at least 250 registered voters in an aggregate sum that at least equals the amount of minimum qualifying contributions described in G.S. 163‑278.62(7) but that does not exceed the amount of maximum qualifying contributions described in G.S. 163‑278.62(8); and
(2)	Obtain signatures from at least 1,000 registered voters on a petition of support described in G.S. 163‑278.62(12). No more than one-third of the signers needed for purposes of the candidate's certification shall reside in the same judicial division.
Justices and judges holding office on the Supreme Court or Court of Appeals shall be deemed to have demonstrated support by their selection for the office and shall not be required to comply with subdivisions (1) and (2) of this subsection as a condition for certification.
No payment, gift, or anything of value shall be given in exchange for a qualifying contribution or for a petition signature.
(c)	Certification of Candidates. – Upon receipt of a submittal of the record of demonstrated support by a participating candidate, the Board shall determine whether or not the candidate has complied with all the following requirements, if they apply to that candidate:
(1)	Signed and filed a declaration of intent to participate in this Article.
(2)	Submitted copies of the appropriate number of forms described in G.S. 163‑278.62(13)c. signed by contributors who are registered voters, which the Board shall verify through a random sample or other means it adopts;
(3)	Submitted the appropriate number of signatures on a petition of support described in G.S. 163‑278.62(12), which the Board shall verify through a random sample or other means it adopts.
(4)	Qualified to receive votes on the ballot as a candidate for the office.
(5)	Otherwise met the requirements for participation in this Article.
The Board shall certify candidates complying with the requirements of this section as soon as possible and no later than five business days after receipt of a satisfactory record of qualifying contributions and petition of support.
(d)	Restrictions on Contributions and Expenditures for Participating and Certified Candidates. – The following restrictions shall apply to contributions and expenditures with respect to participating and certified candidates:
(1)	Beginning January 1 of the year before the election and before the filing of a declaration of intent, a candidate for office may accept in contributions up to five thousand dollars ($5,000) from sources and in amounts permitted by Article 22A of this Chapter and may expend up to five thousand dollars ($5,000) for any campaign purpose. A candidate who exceeds either of these limits shall be ineligible to file a declaration of intent or receive funds from the Fair Elections Fund.
(2)	From the filing of a declaration of intent through the end of the qualifying period, a candidate shall expend no more than an amount equal to the maximum qualifying contributions for that candidate, not including possible rescue funds. Contributions a candidate may use to expend to that limit shall be limited to money raised pursuant to subdivision (1) of this subsection, qualifying contributions, and personal and family contributions permitted by subdivision (4) of this subsection. If the candidate is in a second primary, the candidate may accept and expend during the period after the first primary and through the date of the second primary an additional amount in qualifying contributions equal to the maximum qualifying contributions for that candidate, not including possible rescue funds.
(3)	After the qualifying period and through the date of the general election, the candidate shall expend only the funds the candidate receives from the Fund pursuant to G.S. 163-278.65(b)(4) plus any funds remaining from the qualifying period and possible rescue funds. In-kind contributions from the candidate's political party executive committee, as permitted by subdivision (5) of this subsection, do not count as expenditures by the candidate for purposes of this subdivision. 
(4)	During the qualifying period, the candidate may contribute up to one thousand dollars ($1,000) of that candidate's own money to the campaign and may accept in contributions one thousand dollars ($1,000) from each voting age member of that candidate's family consisting of spouse, parent, child, brother, and sister.
(5)	The executive committee of the party that has nominated the candidate may expend in support of the candidate an amount equal to twenty percent (20%) of the candidate's base level of public financing specified under G.S. 163-278.65(b), if that in-kind contribution is part of a coordinated campaign to support two or more judicial candidates.
(6)	A candidate and the candidate's committee shall limit the use of all revenues permitted by this subsection to expenditures for campaign-related purposes only. The Board shall publish guidelines outlining permissible campaign-related expenditures.
(7)	Any contribution received by a participating or certified candidate that falls outside that permitted by this subsection shall be returned to the donor as soon as practicable. Contributions intentionally made, solicited, or accepted in violation of this Article are subject to civil penalties as specified in G.S. 163-278.70. The funds involved shall be forfeited to the Civil Penalty and Forfeiture Fund.
(8)	A candidate shall return to the Fund any amount distributed for an election that is unspent and uncommitted at the date of the election, or at the time the individual ceases to be a certified candidate, whichever occurs first. For accounting purposes, all qualifying, personal, and family contributions shall be considered spent before revenue from the Fund is spent or committed.
"§ 163‑278.65. Distribution From the Fund.
(a)	Timing of Fund Distribution. – The Board shall distribute to a certified candidate revenues from the Fund in an amount determined under subsection (b)(4) of this section within five business days after the certified candidate's name is approved to appear on the ballot in a contested general election, but no earlier than five business days after the primary.
(b)	Amount of Fund Distribution. – By August 1, 2003, and no less frequently than every two years thereafter, the Board shall determine the amount of funds, rounded to the nearest one hundred dollars ($100.00), to be distributed to certified candidates as follows:
(1)	Uncontested Primaries. – No funds shall be distributed.
(2)	Contested Primaries. – No funds shall be distributed except as provided in G.S. 163‑278.67. 
(3)	Uncontested General Elections. – No funds shall be distributed.
(4)	Contested General Elections. – Funds shall be distributed to a certified candidate for a position on the Court of Appeals in an amount equal to 100 times the candidate's filing fee as set forth in G.S. 163‑107. Funds shall be distributed to a certified candidate for a position on the Supreme Court in an amount equal to 150 times the candidate's filing fee as set forth in G.S. 163‑107.
(c)	Unaffiliated and New Party Candidates. – Unaffiliated candidates and new-party candidates shall be eligible for revenues from the Fund in the same amounts as general election candidates but are not eligible for revenues in primary elections.
(d)	Method of Fund Distribution. – The State Treasurer shall cooperate with the Board to develop a rapid, reliable method of conveying funds to certified candidates. In all cases, the Board shall distribute funds to certified candidates in a manner that is expeditious, ensures accountability, and safeguards the integrity of the Fund.
"§ 163‑278.66. Reporting Requirements.
(a)	Reporting by Noncertified Candidates and Independent Expenditure Entities. – Any noncertified candidate with a certified opponent shall report total income, expenses, and obligations to the Board by facsimile machine or electronically within 24 hours after the total amount of campaign expenditures or obligations made, or funds raised or borrowed, exceeds eighty percent (80%) of the trigger for rescue funds as defined in G.S. 163‑278.62(15). Any entity making independent expenditures in excess of three thousand dollars ($3,000) in support of or opposition to a certified candidate shall report the total funds received, spent, or obligated for those expenditures to the Board by facsimile machine or electronically within 24 hours after the total amount of expenditures or obligations made, or funds raised or borrowed, for the purpose of making the independent expenditures, exceeds fifty percent (50%) of the trigger for rescue funds. After this 24‑hour filing, the noncertified candidate or independent expenditure entity shall comply with an expedited reporting schedule. The schedule and forms for reports required by this subsection shall be made according to procedures developed by the Board.
(b)	Reporting by Participating and Certified Candidates. – Notwithstanding other provisions of law, participating and certified candidates shall report any money received, including all previously unreported qualifying contributions, all campaign expenditures, obligations, and related activities to the Board according to procedures developed by the Board. A certified candidate who ceases to be certified or ceases to be a candidate or who loses an election shall file a final report with the Board and return any unspent revenues received from the Fund. In developing these procedures, the Board shall utilize existing campaign reporting procedures whenever practical. 
(c)	Timely Access to Reports. – The Board shall ensure prompt public access to the reports received in accordance with this Article. The Board may utilize electronic means of reporting and storing information.
"§ 163‑278.67. Rescue Funds.
(a)	When Rescue Funds Become Available. – When any report or group of reports shows that 'funds in opposition to a certified candidate or in support of an opponent to that candidate' as described in this section, exceed the trigger for rescue funds as defined in G.S. 163‑278.62(15), the Board shall issue immediately to that certified candidate an additional amount equal to the reported excess within the limits set forth in this section. 'Funds in opposition to a certified candidate or in support of an opponent to that candidate' shall be equal to the sum of the campaign expenditures or obligations made, or funds raised or borrowed, whichever is greater, reported by any uncertified opponent of a certified candidate, plus the expenditures reported in accordance with G.S. 163‑278.66 of entities making independent expenditures in opposition to the certified candidate or in support of any opponent of that certified candidate. 
(b)	Limit on Rescue Funds in Contested Primary. – Total rescue funds to a certified candidate in a contested primary shall be limited to an amount equal to two times the maximum qualifying contributions for the office sought. A candidate in a second primary may receive an additional amount in rescue funds up to the same limit as in a first primary if the trigger for rescue funds is reached by expenditures after the first primary and through the second primary.
(c)	Limit on Rescue Funds in Contested General Election. –  Total rescue funds to a certified candidate in a contested general election shall be limited to an amount equal to two times the amount described in G.S. 163‑278.65(b)(4).
"§ 163‑278.68.  Enforcement and Administration.
(a)	Enforcement by the Board. – The Board, with the advice of the Advisory Council for the Fair Elections Fund, shall administer the provisions of this Article.
(b)	Advisory Council for the Fair Elections Fund. – There is established under the Board the Advisory Council for the Fair Elections Fund to advise the Board on the rules, procedures, and opinions it adopts for the enforcement and administration of this Article and on the funding needs and operation of the Fair Elections Fund. The Advisory Council shall consist of five members to be appointed as follows:
(1)	The Governor shall name two members from a list of individuals nominated by the State Chair of the political party with which the greatest number of registered voters is affiliated. The State Chair of that party shall submit to the Governor the names of five nominees.
(2)	The Governor shall name two members from a list of individuals nominated by the State Chair of the political party with which the second greatest number of registered voters is affiliated. The State Chair of that party shall submit to the Governor the names of five nominees.
(3)	The Board shall name one member by unanimous vote of all members of the Board.
No individual shall be eligible to be a member of the Advisory Council who would be ineligible to serve on a county board of elections in accordance with G.S. 163‑30. The initial members shall be appointed by December 1, 2002. Of the initial appointees, two are appointed for one‑year terms, two are appointed for two‑year terms, and one is appointed for a three‑year term according to random lot. Thereafter, appointees are appointed to serve four‑year terms. An individual may not serve more than two full terms. The appointed members receive the legislative per diem pursuant to G.S. 120‑3.1. One of the Advisory Council members shall be elected by the members as Chair. A vacancy during an unexpired term shall be filled in the same manner as the regular appointment for that term, but a vacancy appointment is only for the unexpired portion of the term.
(c)	Appeals. – The initial decision on an issue concerning qualification, certification, or distribution under this Article shall be made by the Executive Director of the Board. The procedure for challenging that decision is as follows:
(1)	An individual or entity aggrieved by a decision by the Executive Director of the Board may appeal to the full Board within three business days of the decision. The appeal shall be in writing and shall set forth the reasons for the appeal.
(2)	Within five business days after an appeal is properly made, and after due notice is given to the parties, the Board shall hold a hearing. The appellant has the burden of providing evidence to demonstrate that the decision of the Executive Director was improper. The Board shall rule on the appeal within three business days after the completion of the hearing.
(d)	Board to Adopt Rules and Issue Opinions. – The Board shall adopt rules and issue opinions to ensure effective administration of this Article. Such rules and opinions shall include, but not be limited to, procedures for obtaining qualifying contributions, certification of candidates, addressing circumstances involving special elections, second primaries, vacancies, recounts, withdrawals, or replacements, collection of revenues for the Fund, distribution of Fund revenue to certified candidates, return of unspent Fund disbursements, and compliance with this Article. For races involving special elections, second primaries, recounts, vacancies, withdrawals, or replacement candidates, the Board shall establish procedures for qualification, certification, disbursement of Fund revenues, and return of unspent Fund revenues. The Board shall fulfill each of these duties in consultation with the Advisory Council on the Fair Elections Fund.
(e)	Report to the Public. – The Advisory Council for the Fair Elections Fund shall issue a report by March 1, 2005, and every two years thereafter that evaluates and makes recommendations about the implementation of this Article and the feasibility of expanding its provisions to include other candidates for State office, based on the experience of the Fund and the experience of similar programs in other states.  
"§ 163‑278.69. Voter education.
The Board shall publish and distribute a Judicial Voter Guide. The Guide shall include statements from the Board explaining the function of the appellate courts and the laws concerning their election, explaining the purpose and workings of the Fair Elections Fund, and explaining the laws of voter registration. The Guide shall also include information concerning all candidates for the Supreme Court and the Court of Appeals, as provided by those candidates according to a format provided to the candidates by the Board. The Board shall request information for the Guide from each candidate according to the following format:
(1)	Place of residence.
(2)	Education.
(3)	Occupation.
(4)	Employer.
(5)	Date admitted to the bar.
(6)	Legal/judicial experience.
(7)	Candidate statement, limited to 150 words. Concerning that statement, the Board shall send to the candidates instructions as follows: 'Your statement may include information such as your qualifications, your endorsements, your ratings, why you are seeking judicial office, why you would make a good judge, what distinguishes you from your opponent(s), your acceptance of spending and fund-raising limits to qualify to receive funds from the Fair Elections Fund, and any other information relevant to your candidacy. We will correct incidental errors of spelling, grammar, and punctuation which might prejudice the candidate’s statement unfairly or confuse voters. We will make no changes to the content of any statement which would alter the meaning or substance of the statement. The State Board of Elections will reject any portion of any statement which it determines contains obscene, profane, or defamatory language.'
The Board shall distribute the Guide to all voters in the State no more than 28 days nor fewer than seven days before the general election. The Board shall distribute the Guide as a newspaper supplement or through the mail, or through any means it finds effective and practical. The Board may use monies from the Fund to distribute the Guide, but only to the extent that sufficient monies remain to provide all certified candidates with the maximum funding they are eligible to receive.
"§ 163‑278.70. Civil penalty.
In addition to any other penalties that may be applicable, any individual, political committee, or other entity that violates any provision of this Article is subject to a civil penalty of up to ten thousand dollars ($10,000) per violation or three times the amount of any financial transactions involved in the violation, whichever is greater. In addition to any fine, for good cause shown, a candidate found in violation of this Article may be required to return to the Fund all amounts distributed to the candidate from the Fund. If the Board makes a determination that a violation of this Article has occurred, the Board shall calculate and assess the amount of the civil penalty and shall notify the entity that is assessed the civil penalty of the amount that has been assessed. The Board shall then proceed in the manner prescribed in G.S. 163‑278.34. In determining whether or not a candidate is in violation of this Article, the Board may consider as a mitigating factor any circumstances out of the candidate’s control."
SECTION 2. G.S. 163‑278.13 reads as rewritten:
"§ 163‑278.13.  Limitation on contributions.
(a)	No individual, political committee, or other entity shall contribute to any candidate or other political committee any money or make any other contribution in any election in excess of four thousand dollars ($4,000) for that election.
(b)	No candidate or political committee shall accept or solicit any contribution from any individual, other political committee, or other entity of any money or any other contribution in any election in excess of four thousand dollars ($4,000) for that election.
(c)	Notwithstanding the provisions of subsections (a) and (b) of this section, it shall be lawful for a candidate or a candidate's spouse, parents, brothers and sisters to make a contribution to the candidate or to the candidate's treasurer of any amount of money or to make any other contribution in any election in excess of four thousand dollars ($4,000) for that election.
(d)	For the purposes of this section, the term "an election" means any primary, second primary, or general election in which the candidate or political committee may be involved, without regard to whether the candidate is opposed or unopposed in the election, except that where a candidate is not on the ballot in a second primary, that second primary is not "an election" with respect to that candidate.
(e)	This section shall not apply to any State, district or county executive committee of any political party. For the purposes of this section only, the term "political party" means only those political parties officially recognized under 
G.S. 163‑96.
(e1)	No referendum committee which received any contribution from a corporation, labor union, insurance company, business entity, or professional association may make any contribution to another referendum committee, to a candidate or to a political committee.
(e2)	In order to make meaningful the provisions of Article 22D of this Chapter, the following provisions shall apply with respect to candidates for justice of the Supreme Court and judge of the Court of Appeals:
(1)	No candidate shall accept, and no contributor shall make to that candidate, a contribution in any election exceeding five hundred dollars ($500.00) except as provided for elsewhere in this subsection.
(2)	A candidate may accept, and a family contributor may make to that candidate, a contribution not exceeding one thousand dollars ($1,000) in an election if the contributor is that candidate's spouse, parent, child, brother, or sister.
(3)	No candidate shall accept, and no contributor shall make to that candidate, a contribution during the period beginning 21 days before the day of the general election and ending the day after the general election. This subdivision applies with respect to a candidate opposed in the general election by a certified candidate as defined in Article 22D of this Chapter who has not received the maximum rescue funds available under G.S. 163-278.67. The recipient of a contribution that apparently violates this subdivision has three days to return the contribution or file a detailed statement with the State Board of Elections explaining why the contribution does not violate this subdivision.
(4)	No candidate shall accept and no political party shall make to that candidate, a contribution that exceeds five hundred dollars ($500.00) in an election, except that the State executive committee of the party that has nominated that candidate may make in-kind contributions up to an aggregate value of twenty percent (20%) of base level of public financing for a candidate for that office as determined under 
G.S. 163-278.65(b), if that in-kind contribution is part of a coordinated campaign to support two or more judicial candidates.
As used in this subsection, 'candidate' is also a political committee authorized by the candidate for that candidate’s election. Nothing in this subsection shall prohibit a candidate from making a contribution or loan secured entirely by that candidate’s assets to that candidate’s own campaign.
(f)	Any individual, candidate, political committee, referendum committee, or other entity that violates the provisions of this section is guilty of a Class 2 misdemeanor."
SECTION 3.  G.S. 105‑41 reads as rewritten:
"§ 105‑41.  Attorneys‑at‑law and other professionals.
(a)	Every individual in this State who practices a profession or engages in a business and is included in the list below must obtain from the Secretary a statewide license for the privilege of practicing the profession or engaging in the business. A license required by this section is not transferable to another person. The tax for each license is fifty dollars ($50.00).
(1)	An attorney‑at‑law. An attorney‑at‑law shall pay an additional fifty dollars ($50.00) to fund the Fair Elections Fund established by Article 22D of Chapter 163 of the General Statutes, unless that attorney‑at‑law makes a written statement by July 1 of the year the fee is due declining to pay that portion of the license tax.
(2)	A physician, a veterinarian, a surgeon, an osteopath, a chiropractor, a chiropodist, a dentist, an ophthalmologist, an optician, an optometrist, or another person who practices a professional art of healing.
(3)	A professional engineer, as defined in G.S. 89C‑3.
(4)	A registered land surveyor, as defined in G.S. 89C‑3.
(5)	An architect.
(6)	A landscape architect.
(7)	A photographer, a canvasser for any photographer, or an agent of a photographer in transmitting photographs to be copied, enlarged, or colored.
(8)	A real estate broker or a real estate salesman, as defined in G.S. 93A‑2. A real estate broker or a real estate salesman who is also a real estate appraiser is required to obtain only one license under this section to cover both activities.
(9)	A real estate appraiser, as defined in G.S. 93E‑1‑4. A real estate appraiser who is also a real estate broker or a real estate salesman is required to obtain only one license under this section to cover both activities.
(10)	A person who solicits or negotiates loans on real estate as agent for another for a commission, brokerage, or other compensation.
(11)	A mortician or embalmer licensed under G.S. 90‑210.25.
(b)	The following persons are exempt from the tax:
(1)	A person who is at least 75 years old.
(2)	A person practicing the professional art of healing for a fee or reward, if the person is an adherent of an established church or religious organization and confines the healing practice to prayer or spiritual means.
(3)	A blind person engaging in a trade or profession as a sole proprietor. A "blind person" means any person who is totally blind or whose central visual acuity does not exceed 20/200 in the better eye with correcting lenses, or where the widest diameter of visual field subtends an angle no greater than 20 degrees. This exemption shall not extend to any sole proprietor who permits more than one person other than the proprietor to work regularly in connection with the trade or profession for remuneration or recompense of any kind, unless the other person in excess of one so remunerated is a blind person.
(c)	Every person engaged in the public practice of accounting as a principal, or as a manager of the business of public accountant, shall pay for such license fifty dollars ($50.00), and in addition shall pay a license of twelve dollars and fifty cents ($12.50) for each person employed who is engaged in the capacity of supervising or handling the work of auditing, devising or installing systems of accounts.
(d)	Repealed by Session Laws 1998‑95, s. 7.
(e)	Licenses issued under this section are issued as personal privilege licenses and shall not be issued in the name of a firm or corporation. A licensed photographer having a located place of business in this State is liable for a license tax on each agent or solicitor employed by the photographer for soliciting business. If any person engages in more than one of the activities for which a privilege tax is levied by this section, the person is liable for a privilege tax with respect to each activity engaged in.
(f)	Repealed by Session Laws 1981, c. 17.
(g)	Repealed by Session Laws 1998‑95, s. 7.
(h)	Counties and cities may not levy any license tax on the business or professions taxed under this section.
(i)	Obtaining a license required by this Article does not of itself authorize the practice of a profession, business, or trade for which a State qualification license is required."
SECTION 4.  Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑159.2.  Designation of tax to North Carolina Fair Elections Fund.
(a)	One dollar ($1.00) from the income taxes paid each year by each individual with an income tax liability of at least that amount shall be allocated to the North Carolina Fair Elections Fund established in Article 22D of Chapter 163 of the General Statutes, unless the taxpayer indicates an objection to the allocation on the income tax return in the manner described in subsection (b). In the case of a married couple filing a joint return, each individual shall have the option of objecting to the allocation.
(b)	Individual income tax returns shall include a place for the designation of one dollar ($1.00) to the North Carolina Fair Elections Fund with three options given to the taxpayer, 'For,' 'Against,' and 'No Opinion,' and the following statement: 'One dollar will support the N.C. Fair Elections Fund, unless you fill in the circle labeled "Against." Your tax remains the same regardless of which circle you choose.' A paid preparer of tax returns shall not choose one of the three options for a taxpayer without the taxpayer’s consent.
(c)	Individual income tax returns shall include in their instructions an explanatory statement for the designation described in subsection (b) which shall read, 'To enhance the impartiality and integrity of the court system in the State, the North Carolina Fair Elections Fund provides campaign money to candidates for the N.C. Supreme Court and Court of Appeals who voluntarily accept strict campaign spending and fund‑raising limits. The Fund also helps finance educational materials about voter registration, the role of the appellate courts, and the candidates seeking election as appellate judges in North Carolina. One dollar from the taxes you pay will go to the Fund unless you fill in the circle marked "Against." Regardless of what choice you make, your tax will not increase, nor will any refund you are entitled to be reduced.' The exact wording of this statement or the statement specified in subsection (b) may be modified if the new wording does not change the statement’s essential meaning and is approved by the State Board of Elections and the Advisory Council for the Fair Elections Fund.
(d)	Amounts allocated under subsection (a) shall be credited to the North Carolina Fair Elections Fund on a quarterly basis. Interest earned by the Fund shall be credited to the Fund."
SECTION 5.  Article 22C of Chapter 163 of the General Statutes is repealed.
SECTION 6.(a)  G.S. 105‑269.6 is repealed.
SECTION 6.(b)  The Secretary of Revenue shall transfer to the North Carolina Fair Elections Fund any funds contributed to the North Carolina Candidates Financing Fund pursuant to G.S. 105‑269.6 before its repeal by this section.
SECTION 7.(a)  If Senate Bill 17 of the 2001 General Assembly becomes law, Article 13A of Chapter 163 of the General Statutes is amended by adding a new section to read:
"§ 163-165.6A. Appellate judges on nonpartisan ballot.
In a general election, candidates for justice of the Supreme Court and judge of the Court of Appeals shall appear on the ballot with no designation for party. Regardless of whether the candidates were nominated in a party primary pursuant to Article 10, nominated by a party pursuant to G.S. 163-98, or nominated by petition pursuant to G.S. 163-122, the candidates' names shall appear on the official ballot in a county according to the same random selection method set forth in G.S. 163-165.6 for primary candidates. The provisions of G.S. 163-123 apply to write-in candidates for justice of the Supreme Court and judge of the Court of Appeals."
SECTION 7.(b)  If Senate Bill 17 of the 2001 General Assembly does not become law, Article 13 of Chapter 163 of the General Statutes is amended by adding a new section to read:
"§ 163-140.5. Appellate judges on nonpartisan ballot.
In a general election, candidates for justice of the Supreme Court and judge of the Court of Appeals shall appear on the ballot with no designation for party. Regardless of whether the candidates were nominated in a party primary pursuant to Article 10, nominated by a party pursuant to G.S. 163-98, or nominated by petition pursuant to G.S. 163-122, the candidates' names shall appear on the official ballot in a county according to a method of random selection designed by the State Board of Elections. The provisions of G.S. 163-123 apply to write-in candidates for justice of the Supreme Court and judge of the Court of Appeals."
SECTION 8.  G.S. 163‑123(g) reads as rewritten:
"(g)	Municipal and Nonpartisan Elections Excluded. – This section does not apply to municipal elections conducted under Subchapter IX of Chapter 163 of the General Statutes, and does not apply to nonpartisan elections except for superior court judge elections under Article 25 of this and elections for justice of the Supreme Court and judge of the Court of Appeals under G.S. 163-165.6A."
SECTION 9.  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 10.  Section 1 of this act is effective when it becomes law, provided that distributions from the Fund shall begin in the 2004 election year. Section 2 becomes effective January 1, 2003. Section 3 becomes effective with respect to licenses covering periods beginning July 1, 2002, and thereafter. Section 4, Section 5, and Section 6 become effective for taxable years beginning on or after January 1, 2003. Sections 7 and 8 become effective with respect to primaries and elections held on or after January 1, 2004. Except as otherwise provided in this act, this act is effective when it becomes law.