AN ACT to provide for the disclosure of candidate‑specific communications.

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 22G.
"Candidate‑Specific Communications.
"§ 163‑278.100. Definitions.
As used in this Article, the following terms have the following definitions:
(1)	The term "candidate‑specific communication" means any broadcast, cable, or satellite communication that has all the following characteristics:
a.	Refers to a clearly identified candidate for a statewide office or the General Assembly.
b.	Is made in an even‑numbered year after the final date on which a Notice of Candidacy can be filed for the office, pursuant to G.S. 163‑106(c) or G.S. 163‑323, and through the day on which the general election is conducted, excluding the time period set in the definition for "electioneering communication" in G.S. 163‑278.80(2)b.
c.	Is targeted to the relevant electorate.
(2)	The term "candidate‑specific communication" does not include any of the following: 
a.	A communication appearing in a news story, commentary, or editorial distributed through the facilities of any broadcasting station, unless those facilities are owned or controlled by any political party, political committee, or candidate.
b.	A communication that constitutes an expenditure or independent expenditure under Article 22A of this Chapter.
c.	A communication that constitutes a candidate debate or forum conducted pursuant to rules adopted by the Board or that solely promotes that debate or forum and is made by or on behalf of the person sponsoring the debate or forum.
d.	A communication made while the General Assembly is in session which, incidental to advocacy for or against a specific piece of legislation pending before the General Assembly, urges the audience to communicate with a member or members of the General Assembly concerning that piece of legislation.
e.	An electioneering communication as defined in Article 22E of this Chapter.
(3)	The term "disclosure date" means either of the following:
a.	The first date during any calendar year when a candidate‑specific communication is aired after an entity has incurred expenses for the direct costs of producing or airing candidate‑specific communications aggregating in excess of ten thousand dollars ($10,000).
b.	Any other date during that calendar year by which an entity has incurred expenses for the direct costs of producing or airing candidate‑specific communications aggregating in excess of ten thousand dollars ($10,000) since the most recent disclosure date for that calendar year.
(4)	The term "targeted to the relevant electorate" means a communication which refers to a clearly identified candidate for statewide office or the General Assembly and which can be received by 50,000 or more individuals in the State in the case of a candidacy for statewide office and 2,500 or more individuals in the district in the case of a candidacy for General Assembly.
(5)	Except as otherwise provided in this Article, the definitions in Article 22A of this Chapter apply in this Article.
"§ 163‑278.101. Disclosure of candidate‑specific communications.
(a)	Statement Required. – Every individual, committee, association, or any other organization or group of individuals that incurs an expense for the direct costs of producing or airing candidate‑specific communications in an aggregate amount in excess of ten thousand dollars ($10,000) during any calendar year shall, within 24 hours of each disclosure date, file with the Board a statement containing the information described in subsection (b) of this section.
(b)	Contents of Statement. – Each statement required to be filed by this section shall be made under the penalty of perjury in G.S. 14‑209 and shall contain the following information:
(1)	The identification of the entity incurring the expense, of any entity sharing or exercising direction or control over the activities of that entity, and of the custodian of the books and accounts of the entity incurring the expense.
(2)	The principal place of business of the entity incurring the expense if the entity is not an individual.
(3)	The amount of each expense incurred of more than one thousand dollars ($1,000) during the period covered by the statement and the identification of the entity to whom the expense was incurred.
(4)	The candidates in the candidate‑specific communications that are identified or are to be identified.
(5)	The identity of every provider of funds or anything of value whatsoever to the entity, providing an amount in excess of one thousand dollars ($1,000). If the provider is an individual, the statement shall also contain the principal occupation of the provider. The "principal occupation of the provider" shall mean the same as the "principal occupation of the contributor" in G.S. 163‑278.11.
(c)	Creating Multiple Organizations. –  It shall be unlawful for any person or entity to create, establish, or organize more than one political organization (as defined in section 527(c)(1) of the Internal Revenue Code) with the intent to avoid or evade the reporting requirements contained in this Article.
"§ 163‑278.102. Penalties.
The State Board of Elections has the same authority to compel from any
organization covered by this Article the disclosures required by this Article that the Board has to compel from a political committee the disclosures required by Article 22A of this Chapter. The civil penalties and remedies in G.S. 163‑278.34 shall apply to violations of this Article."
SECTION 2.  Chapter 163 of the General Statutes is amended by adding a new Article to read:
"Article 22H.
"Mass Mailings and Telephone Banks: Candidate‑Specific Communications.
"§ 163‑278.110. Definitions.
As used in this Article, the following terms have the following definitions:
(1)	The term "candidate‑specific communication" means any mass mailing or telephone bank that has all the following characteristics:
a.	Refers to a clearly identified candidate for a statewide office or the General Assembly.
b.	Is made in an even‑numbered year after the final date on which a Notice of Candidacy can be filed for the office, pursuant to G.S. 163‑106(c) or G.S. 163‑323, and through the day on which the general election is conducted, excluding the time period set in the definition for "electioneering communication" in G.S. 163‑278.90(2)b.
c.	Is targeted to the relevant electorate.
(2)	The term "candidate‑specific communication" does not include any of the following: 
a.	A communication appearing in a news story, commentary, or editorial distributed through any newspaper or periodical, unless that publication is owned or controlled by any political party, political committee, or candidate.
b.	A communication that constitutes an expenditure or independent expenditure under Article 22A of this Chapter.
c.	A communication that constitutes a candidate debate or forum conducted pursuant to rules adopted by the Board or that solely promotes that debate or forum and is made by or on behalf of the person sponsoring the debate or forum.
d.	A communication that is distributed by a corporation solely to its shareholders or employees or by a labor union or professional association solely to its members.
e.	A communication made while the General Assembly is in session which, incidental to advocacy for or against a specific piece of legislation pending before the General Assembly, urges the audience to communicate with a member or members of the General Assembly concerning that piece of legislation.
f.	An electioneering communication as defined in Article 22F of this Chapter.
g.	A public opinion poll conducted by a newspaper, periodical, or other news gathering organization.
(3)	The term "disclosure date" means either of the following:
a.	The first date during any calendar year when a candidate‑specific communication is transmitted after an entity has incurred expenses for the direct costs of producing or transmitting candidate‑specific communications aggregating in excess of ten thousand dollars ($10,000).
b.	Any other date during that calendar year by which an entity has incurred expenses for the direct costs of producing or transmitting candidate‑specific communications aggregating in excess of ten thousand dollars ($10,000) since the most recent disclosure date for that calendar year.
(4)	The term "mass mailing" means any mailing by United States mail or facsimile. Part 1A of Article 22A of this Chapter has its own internal definition of "mass mailing" under the definition of "print media," and that definition does not apply in this Article.
(5)	The term "race" means a ballot item, as defined in G.S. 163‑165(2), in which the voters are to choose between or among candidates.
(6)	The term "targeted to the relevant electorate" means:
a.	With respect to a statewide race:
1.	Transmitting, by mail or facsimile to a cumulative total of 50,000 or more addresses in the State, items identifying one or more candidates in the same race within any 30‑day period; or
2.	Making a cumulative total of 50,000 or more telephone calls in the State identifying one or more candidates in the same race within any 30‑day period.
b.	With respect to a race for the General Assembly:
1.	Transmitting, by mail or facsimile to a cumulative total of 2,500 or more addresses in the district, items identifying one or more candidates in the same race within any 30‑day period; or
2.	Making a cumulative total of 2,500 or more telephone calls in the district identifying one or more candidates in the same race within any 30‑day period.
(7)	The term "telephone bank" means telephone calls that are targeted to the relevant electorate, except when those telephone calls are made by volunteer workers, whether or not the design of the telephone bank system, development of calling instructions, or training of volunteers was done by paid professionals.
"§ 163‑278.111. Disclosure of candidate‑specific communications.
(a)	Statement Required. – Every individual, committee, association, or any other organization or group of individuals that incurs an expense for the direct costs of producing or transmitting candidate‑specific communications in an aggregate amount in excess of ten thousand dollars ($10,000) during any calendar year shall, within 24 hours of each disclosure date, file with the Board a statement containing the information described in subsection (b) of this section.
(b)	Contents of Statement. – Each statement required to be filed by this section shall be made under the penalty of perjury in G.S. 14‑209 and shall contain the following information:
(1)	The identification of the entity incurring the expense, of any entity sharing or exercising direction or control over the activities of that entity, and of the custodian of the books and accounts of the entity incurring the expense. 
(2)	The principal place of business of the entity incurring the expense if the entity is not an individual.
(3)	The amount of each expense incurred of more than one thousand dollars ($1,000) during the period covered by the statement and the identification of the entity to whom the expense was incurred.
(4)	The candidates in the candidate‑specific communications that are identified or are to be identified.
(5)	The identity of every provider of funds or anything of value whatsoever to the entity, providing an amount in excess of one thousand dollars ($1,000). If the provider is an individual, the statement shall also contain the principal occupation of the provider. The "principal occupation of the provider" shall mean the same as the "principal occupation of the contributor" in G.S. 163‑278.11.
(c)	Creating Multiple Organizations. –  It shall be unlawful for any person or entity to create, establish, or organize more than one political organization (as defined in section 527(c)(1) of the Internal Revenue Code) with the intent to avoid or evade the reporting requirements contained in this Article.
"§ 163‑278.112. Penalties.
The State Board of Elections has the same authority to compel from any organization covered by this Article the disclosures required by this Article that the Board has to compel from a political committee the disclosures required by Article 22A of this Chapter. The civil penalties and remedies in G.S. 163‑278.34 shall apply to violations of this Article."
SECTION 3.  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 4.  This act becomes effective January 1, 2007.
In the General Assembly read three times and ratified this the 27th day of July, 2006.

	s/	 Beverly E. Perdue
	 President of the Senate

	s/	 James B. Black
	 Speaker of the House of Representatives

	s/	 Michael F. Easley
	 Governor

Approved 2:01 p.m. this 13th day of August, 2006