A BILL TO BE ENTITLED
AN ACT to prevent conflict of interest and its appearance involving political contributions by state contractors.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 3 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 163‑278.13D. Prohibition on contributions by entity affiliated with a vendor.
(a)	Definitions. – The following definitions apply in this section:
(1)	Contribution. – As defined in G.S. 163‑278.6(6). A contribution is "made" during the contract if the check or other instrument is dated during the contract, or if the check or other instrument is delivered to the contributee during the contract, or if the contributor pledges during the contract to deliver the check or other instrument at a later time. A contribution is "accepted" during the contract if the check or other instrument is dated during the contract, or if the contributee receives the check or other instrument during the contract and does not return it within 10 days, or agrees during the contract to receive the check or other instrument at a later time.
(2)	During the contract. – The period from the formation of the contract until the termination of the contract.
(3)	Entity affiliated with the [a] vendor. – An officer or director of the vendor or partner or general manager if the vendor is an unincorporated business entity or any political committee of which the vendor is the parent entity as provided in G.S. 163‑278.19.
(4)	Relevant political campaign. – A candidate for the office with authority to award the contract or a political committee controlled by a candidate for the office with authority to award the contract.
(b)	Prohibition. – No entity affiliated with a vendor that has entered into a contract for goods and services in excess of twenty‑five thousand dollars ($25,000) with any department, institution, or agency of the State government subject to the provisions of Article 3 of Chapter 143 of the General Statutes shall make during the contract a contribution to a relevant political campaign. No relevant political campaign shall knowingly accept a contribution during the contract from an entity affiliated with a vendor that has entered into a contract for goods and services with any department, institution, or agency of the State government subject to the provisions of Article 3 of Chapter 143 of the General Statutes. This subsection does not apply if the contributions by all entities affiliated with the vendor to all State political campaigns during the contract do not exceed one thousand dollars ($1,000). The State Board of Elections shall adopt any procedures for reporting it deems necessary for the enforcement of this subsection.
(c)	Penalty. – A violation of this section is a Class 2 misdemeanor."
SECTION 2.  This act becomes effective January 1, 2010, and applies to contributions made on or after that date.