Title: House Bill 128-Third Edition
Category: Introduced Bill 2005

General Assembly of North Carolina	Session 2005

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
H	3
HOUSE BILL 128
Senate Judiciary I Committee Substitute Adopted 8/12/05
Third Edition Engrossed 8/13/05

Short Title:	Election Changes. | (Public)
Sponsors: |
Referred to: |
February 9, 2005

A BILL TO BE ENTITLED
AN ACT to authorize county boards of elections to take steps earlier to count mailed absentee votes; TO CLARIFY HOW A VOTER SHALL REPORT A MOVE; TO CLARIFY THE RESIDENCE FOR VOTING PURPOSES OF certain persons; TO AMEND THE STATUTES RELATING TO CHALLENGES; TO SPECIFY HOW FINANCIAL INSTITUTIONS MAY MAKE LOANS WITHOUT VIOLATING THE PROHIBITION ON CORPORATE CONTRIBUTIONS; TO MAKE CHANGES TO THE APPROPRIATIONS ACT AS IT RELATES TO ELECTIONS APPOINTMENTS; to provide that except for their ENVELOPE, PROVISIONAL BALLOTS SHALL NOT BE MARKED TO BE IDENTIFIABLE TO A VOTER; and to make changes to the Public Campaign fund.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 163‑234 is amended by adding a new subdivision to read:
"(2a)	Notwithstanding the provisions of subdivision (2) of this section, a county board of elections may, at each meeting at which it approves absentee ballot applications pursuant to G.S. 163‑230.1(c) and (c1), remove those ballots from their envelopes and have them read by an optical scanning machine, without printing the totals on the scanner. The board shall complete the counting of these ballots at the times provided in subdivision (2) of this section. The State Board of Elections shall provide instructions to county boards of elections for executing this procedure, and the instructions shall be designed to ensure the accuracy of the count, the participation of board members of both parties, and the secrecy of the results before election day. This subdivision applies only in counties that use optical scan devices to count absentee ballots."
SECTION 2.  G.S. 163‑82.15(a) reads as rewritten:
"(a)	Registrant's Duty to Report. – No registered voter shall be required to re‑register upon moving from one precinct to another within the same county. Instead, a registrant shall notify the county board of the change of address by the close of registration for an election as set out in G.S. 163‑82.6(c). In addition to any other method allowed by G.S. 163‑82.6, the form may be submitted by electronic facsimile, under the same deadlines as if it had been submitted in person. The registrant shall make the notification by means of a voter registration form as described in G.S. 163‑82.3, or by another written notice, signed by the registrant, that includes the registrant's full name, former residence address, new residence address, and the registrant's attestation that the registrant moved at least 30 days before the next primary or election from the old to the new address."
SECTION 2.1.  G.S. 163‑57(1) is amended by adding a sentence at the end of that subsection to read:
"If a person's residence is not a traditional residence such as a house or apartment, then the location of the person's usual sleeping area shall be controlling as to the residence of that person. Residence requirements shall be broadly construed to provide all persons with the opportunity to register and to vote. As with other voters, voters with nontraditional residences may report a mailing address that is different from their residence address."
SECTION 3.  Article 8 of Chapter 163 of the General Statutes reads as rewritten:
"Article 8.
"Challenges.
"§ 163‑84.  Time for challenge other than on day of primary or election.
The right of voters to register, remain registered, and vote may be challenged as provided in this Article.
"§ 163‑85.  Challenge procedure other than on day of primary or election.
(a)	Right to Challenge; When Challenge May Be Made. – Any registered voter of the county may challenge the right of any person to register, remain registered or vote in that county. No such challenge with regard to a particular primary, general, or special election may be made after the twenty‑fifth day before that primary, general, or special election.
(b)	Challenges Shall Be Made to the County Board of Elections. – Each challenge to a person shall be made separately, in writing, under oath and on forms prescribed by the State Board of Elections, and shall specify the reasons why the challenged voter is not entitled to register, remain registered, or vote. The challenge shall be signed by the challenger and shall set forth the challenger's address.
(c)	Grounds for Challenge. – Such challenge may be made only for one or more of the following reasons:
(1)	That a person will not have been a resident at the address where the person claims residence for 30 days or more at the time of the next election.
		(4)	That a person is not 18 years of age, or if the challenge is made within 60 days before a primary, that the person will not be 18 years of age by the next general election.
(5)	That a person has been adjudged guilty of a felony and is ineligible to vote under G.S. 163‑55(2).
(6),	(7) Repealed by Session Laws 1985, c. 563, ss. 11.1, 11.2.
(7a)	That a person is dead.
(8)	That a person is not a citizen of the United States.
	(d)	Preliminary Hearing. – When a challenge is made, the county board of elections shall schedule a preliminary hearing on the challenge, and shall take that testimony under oath and receive such other evidence proffered by the challenger as may be offered. The burden of proof shall be on the challenger, and if no testimony is presented, the board shall dismiss the challenge. If the challenger presents evidence and if the board finds that probable cause exists that the person challenged is not qualified to vote, then the board shall schedule a hearing on the challenge. If the challenge is made for the reason stated in subdivision (1) of subsection (c) of this section and the registrant acknowledges that the address on the registration records is incorrect but the board finds that the registration records can be corrected so that the voter can vote the proper ballot in the coming election, the board shall not schedule a hearing on the challenge but shall correct the records, and the voter shall be allowed to vote the proper ballot.
(e)	Prima Facie Evidence That Voter No Longer Residesat an Address. – The presentation of a letter mailed by returnable first‑class mail to the voter at the address listed on the voter registration card and returned because the person does not live at the address shall constitute prima facie evidence that the person no longer resides at that address.
"§ 163‑86.  Hearing on challenge.
(a)	A challenge made under G.S. 163‑85 shall be heard and decided before the date of the next primary or election, except that if the board finds that because of the number of challenges, it cannot hold all hearings before the date of the election, it may order the challenges to be heard and decided at the next time the challenged person appears and seeks to vote, as if the challenge had been filed under G.S. 163‑87. Unless the hearing is ordered held under G.S. 163‑87, it shall be heard and decided by the board of elections.
(b)	At least 10 days prior to the hearing scheduled under G.S. 163‑86(c), the board of elections shall mail by first‑class mail, a written notice of the challenge to the challenged voter, to the address of the voter listed in the registration records of the county. The notice shall state succinctly the grounds asserted, and shall state the time and place of the hearing. A copy of the notice shall be sent to the person making the challenge and to the chair of each political party in the county.
(c)	At the time and place set for the hearing on a challenge entered prior to the date of a primary or election, the county board of elections shall explain to the challenged registrant the qualifications for registration and voting in this State. The board chairman, or in his absence the board secretary, shall then administer the following oath to the challenged registrant:
"You swear (or affirm) that the statements and information you shall give in this hearing with respect to your identity and qualifications to be registered and to vote shall be the truth, the whole truth, and nothing but the truth, so help you, God."
After swearing the challenged registrant, the board shall examine that person as to that person's qualifications to be registered and to vote. If the challenged registrant insists on being qualified, the board shall tender to the challenged registrant the following oath or affirmation:
"You do solemnly swear (or affirm) that you are a citizen of the United States; that you are at least 18 years of age or will become 18 by the date of the next general election; that you have or will have resided at the residence listed on your registration record for 30 days by the date of the next general election; that you are not disqualified from voting by the Constitution or the laws of this State; that your name is 	, and that in such name you were duly registered as a voter at the address listed on the voter registration records; and that you are the person you represent yourself to be, so help you, God."
If the challenged registrant refuses to take the tendered oath, or submit to the board the affidavit required by subsection (d), below, the challenge shall be sustained. If the challenged registrant takes the tendered oath, the board may, nevertheless, sustain the challenge if it finds the challenged registrant is not a legal voter.
The board, in conducting hearings on challenges, shall have authority to subpoena any witnesses it may deem appropriate, and administer the necessary oaths or affirmations to all witnesses brought before it to testify to the qualifications of the persons challenged.
(d)	Appearance by Challenged Registrant. – The challenged registrant shall appear in person at the challenge hearing. If the challenged registrant is unable to appear in person, that person may be represented by another person and must tender to the county board of elections an affidavit that the challenged registrant is a citizen of the United States, is at least 18 years of age or will become 18 by the date of the next general election, has or will have resided at the address listed on the registration record for 30 days by the date of the next general election, is not disqualified from voting by the Constitution or laws of this State, is named 	 and was duly registered as a voter of 	 precinct in such name, and is the person represented to be by the affidavit.
"§ 163‑87.  Challenges allowed on day of primary or election.
On the day of a primary or election, at the time a registered voter offers to vote, any other registered voter of the precinct may exercise the right of challenge, and when he does so may enter the voting enclosure to make the challenge, but he shall retire therefrom as soon as the challenge is heard.
On the day of a primary or election, any other registered voter of the precinct may challenge a person for one or more of the following reasons:
(1)	One or more of the reasons listed in G.S. 163‑85(c), or
(2)	That the person has already voted in that primary or election, or
(3)	That the person is not who the person claims to be.
The chief judge, judge, or assistant appointed under G.S. 163‑41 or 163‑42 may enter challenges under this section against voters in the precinct for which appointed regardless of the place of residence of the chief judge, judge, or assistant.
If a person is challenged under this subsection, and the challenge is sustained under G.S. 163‑85(c)(1), the voter may still transfer registration under G.S. 163‑82.15(e) if eligible under that section, and the registration shall not be cancelled under G.S. 163‑90.2(a) if the transfer is made. A person who has transferred his registration under G.S. 163‑82.15(e) may be challenged at the precinct to which the registration is being transferred.
"§ 163‑88.  Hearing on challenge made on day of primary or election.
A challenge entered on the day of a primary or election shall be heard and decided """
 by the county board of elections on the day set for the county canvass. When the challenge is made at the voting place, the chief judge shall, in a manner that minimizes disruption to the voting place, explain to the challenged registrant and to the challenger the process by which the county board of elections will decide the challenge. The chief judge shall allow the voter to complete a challenged ballot as provided in G.S. 163‑88.1. The chief judge shall transmit the documentation of the challenge, including the challenged ballot, to the county board of elections according to procedures that shall be prescribed by the State Board of Elections. On the day of the canvass, the county board shall conduct a hearing on the challenge according to procedures set forth in subsections (c) and (d) of G.S. 163‑86.A letter or postal card mailed by returnable mail and returned by the United States Postal Service purportedly because the person no longer lives at that address or because a forwarding order has expired shall not be admissible evidence in a challenge heard under this section which was made under G.S. 163‑87. 
"§ 163‑88.1.  Request for challenged ballot.
(a)	A voter challenged under G.S. 163‑88 may request a challenged ballot by submitting an application to the chief judge. The application shall include an affidavit that the person possesses all the qualifications for voting and is entitled to vote at the election. The form of the affidavit shall be prescribed by the State Board of Elections and shall be available at the polls.
(b)	The State Board of Elections shall adopt rules for the recording, transmission, and security of challenged ballots, to which the county boards of elections shall adhere.
(c)	The county board of elections shall preserve challenged ballots in the sealed envelopes for a period of six months after the election. However, in the case of an election protest, either party to such action may request the court to order the board of elections to convene and consider each challenged ballot and rule as to which ballots shall be counted. In that consideration, the board may take further evidence as it deems necessary, and shall have the power of subpoena. If any ballots are ordered to be counted, they shall be added to the vote totals.
"§ 163‑89.  Procedures for challenging absentee ballots.
(a)	Time for Challenge. – The absentee ballot of any voter may be challenged on the day of any primary or election beginning no earlier than noon and ending no later than 5:00 P.M., or by the chief judge at the time of closing of the polls as provided in G.S. 163‑232 and G.S. 163‑251(b).
(b)	Who May Challenge. – Any registered voter of the same precinct as the address the absentee voter claims on the affidavit may challenge that voter's absentee ballot.
(c)	Form and Nature of Challenge. – Each challenged absentee ballot shall be challenged separately. The burden of proof shall be on the challenger. Each challenge shall be made in writing and, if they are available, shall be made on forms prescribed by the State Board of Elections. Each challenge shall specify the reasons why the ballot does not comply with the provisions of this Chapter or why the absentee voter is not legally entitled to vote in the particular primary or election. The challenge shall be signed by the challenger.
(d)	To Whom Challenge Addressed; to Whom Challenge Delivered. – Each challenge shall be addressed to the county board of elections. It may be filed with the board at its offices or with the chief judge of the precinct in which the challenger and absentee voter are registered. If it is delivered to the chief judge, the chief judge shall personally deliver the challenge to the county board of elections on the day of the county canvass.
(e)	Hearing Procedure. – All challenges filed under this section shall be heard by the county board of elections on the day set for the canvass of the returns. All members of the board shall attend the canvass and all members shall be present for the hearing of challenges to absentee ballots.
Before the board hears a challenge to an absentee ballot, the chairman shall mark the word "challenged" after the voter's name in the register of absentee ballot applications and ballots issued and in the pollbook of absentee voters.
The board then shall hear the challenger's reasons for the challenge, and it shall make its decision without opening the container‑return envelope or removing the ballots from it.
The board shall have authority to administer the necessary oaths or affirmations to all witnesses brought before it to testify to the qualifications of the voter challenged or to the validity or invalidity of the ballot.
If the challenge is sustained, the chairman shall mark the word "sustained" after the word "challenged" following the voter's name in the register of absentee ballot applications and ballots issued and in the pollbook of absentee voters; the voter's ballots shall not be counted; and the container‑return envelope shall not be opened but shall be marked "Challenge Sustained." All envelopes so marked shall be preserved intact by the chairman for a period of six months from canvass day or longer if any contest then is pending concerning the validity of any absentee ballot.
If the challenge is overruled, the absentee ballots shall be removed from the container‑return envelopes and counted by the board of elections, and the board shall adjust the appropriate abstracts of returns to show that the ballots have been counted and tallied in the manner provided for unchallenged absentee ballots.
If the challenge was delivered to the board by the chief judge of the precinct and was sustained, the board shall reopen the appropriate ballot boxes, remove such ballots, determine how those ballots were voted, deduct such ballots from the returns, and adjust the appropriate abstracts of returns.
If the board determines that the challenged voter was eligible to vote part of the challenged ballot but not all of it, the board shall count the part that the voter was eligible to vote and not count the part that the voter was not eligible to vote. 
Any voter whose ballots have been challenged may, either personally or through an authorized representative, appear before the board at the hearing on the challenge and present evidence as to the validity of the ballot.
"§ 163‑90.  Challenge as felon; answer not to be used on prosecution.
If any registered voter is challenged as having been convicted of any crime which excludes him from the right of suffrage, he shall be required to answer any question in relation to the alleged conviction, but his answers to such questions shall not be used against him in any criminal prosecution.
"§ 163‑90.1.  Burden of proof.
(a)	Challenges shall not be made indiscriminately and may only be made if the challenger knows, suspects or reasonably believes such a person not to be qualified and entitled to vote.
(b)	No challenge shall be sustained unless the challenge is substantiated by affirmative proof. In the absence of such proof, the presumption shall be that the voter is properly registered or affiliated.
"§ 163‑90.2.  Action when challenge sustained, overruled, or dismissed.
(a)	When any challenge is sustained for any cause listed under G.S. 163‑85(c), the board shall cancel the voter registration of the voter and shall remove his card from the book, but shall maintain such record for at least six months and during the pendency of any appeal.
		(d)	A decision by a county board of elections on any challenge made under the provisions of this Article shall be appealable to the Superior Court of the county in which the offices of that board are located within 10 days. Only those persons against whom a challenge is sustained or persons who have made a challenge which is overruled shall have standing to file such appeal.
"§ 163‑90.3.  Making false affidavit perjury.
Any person who shall knowingly make any false affidavit or shall knowingly swear or affirm falsely to any matter or thing required by the terms of this Article to be sworn or affirmed shall be guilty of a Class I felony."
SECTION 4.  G.S. 163‑165(6) reads as rewritten:
"(6)	"Provisional official ballot" means an official ballot that is voted and then placed in an envelope that contains an affidavit signed by the voter certifying identity and eligibility to vote. Except for its envelope, a provisional official ballot shall not be marked to make it identifiable to the voter."
SECTION 4.1.(a)  G.S. 163‑278.19(a) reads as rewritten:
"(a)	Except as provided in subsections (a2), (b), (d), (e), (f), and (g) of this section it shall be unlawful for any corporation, business entity, labor union, professional association or insurance company directly or indirectly:
(1)	To make any contribution to a candidate or political committee  or to make any expenditure to support or oppose the nomination or election of a clearly identified candidate;
(2)	To pay or use or offer, consent or agree to pay or use any of its money or property for any contribution to a candidate or political committee or for any expenditure to support or oppose the nomination or election of a clearly identified candidate; or
(3)	To compensate, reimburse, or indemnify any person or individual for money or property so used or for any contribution or expenditure so made;
and it shall be unlawful for any officer, director, stockholder, attorney, agent or member of any corporation, business entity, labor union, professional association or insurance company to aid, abet, advise or consent to any such contribution or expenditure, or for any person or individual to solicit or knowingly receive any such contribution or expenditure. Supporting or opposing the election of clearly identified candidates includes supporting or opposing the candidates of a clearly identified political party. Any officer, director, stockholder, attorney, agent or member of any corporation, business entity, labor union, professional association or insurance company aiding or abetting in any contribution or expenditure made in violation of this section shall be guilty of a Class 2 misdemeanor, and shall in addition be liable to such corporation, business entity, labor union, professional association or insurance company for the amount of such contribution or expenditure, and the same may be recovered of him upon suit by any stockholder or member thereof."
SECTION 4.1(b).  G.S. 163‑278.19 is amended by adding a new subsection to read:
"(a2)	A financial institution may make a loan to a candidate or political committee if all of the following conditions are met:
(1)	The loan is made in accordance with applicable laws governing financial institutions.
(2)	The loan is made in the ordinary course of business.
(3)	The loan is secured in the full amount by collateral placed by or guaranties given by one or more individuals or entities who are not prohibited by this Article from making contributions to the candidate or political committee (subsequently referred to in this subsection as "guarantor").
(4)	The amount of each guaranty or the value of the collateral posted by each guarantor does not exceed the contribution limitations applicable under this Article to that guarantor, except that the value of collateral posted by a guarantor may exceed the contribution limitations applicable under this Article in cases where the amount of the loan secured by that collateral does not itself exceed the contribution limitations applicable to the guarantor. 
During the time that any loan made under this subsection remains outstanding and unpaid, then the amount of any guaranty or the value of any collateral posted for that loan shall be considered to be a contribution by the guarantor for purposes of determining the eligibility of any additional contributions made by that guarantor. If the loan, or any portion of the loan, is repaid by the candidate or political committee to whom the loan was made during the contribution limitation period for the same "election" as defined in G.S. 163‑278.13(d), in which the loan was made, the guarantor shall be eligible to further contribute to that candidate or political committee up to the amount of the repayment, as prorated to the amount of the guarantee or collateral repaid. That amount of the collateral or loan guarantee shall be treated as a refunded contribution and shall no longer count against the contribution limits under G.S. 163‑278.13 for that election for that guarantor. 
Only the candidate or political committee to whom the loan was made may repay the loan.
The candidate or political committee shall report the loan on its campaign report required by G.S. 163‑278.9, but if the loan meets the criteria of this subsection, the loan shall not be reported or otherwise treated as a contribution. The candidate or political committee shall report the collateral or loan guaranties as contributions from the entities providing them and shall indicate on the report the loan to which they relate. The State Board of Elections shall develop methods of reporting to implement this subsection."
SECTION 4.2.  If Senate Bill 622, 2005 Regular Session, becomes law, then Section 23A.3 of that act is repealed.
SECTION 5.  Article 22D of Chapter 163 of the General Statutes is amended by adding a new section to read:
"§ 163‑278.64A. Special participation provisions for candidates in plurality elections. 
(a)	Participation Provisions Modified. – Candidates in plurality elections as provided in G.S. 163‑329 may participate in the Fund subject to the provisions of G.S. 163‑278.64 as modified by this section. 
(b)	Qualifying. – The State Board of Elections shall designate a special qualifying period for a plurality election of no less than four weeks. That qualifying period shall begin at the close of the notice‑of‑candidacy filing period for the plurality election. To receive certification, a participating candidate shall raise at least 225 qualifying contributions, totaling at least 20 times the amount of the filing fee for the office, for a four‑week qualifying period. If the State Board of Elections sets a longer qualifying period, then for each additional week that the qualifying period extends beyond four weeks, the minimum number of qualifying contributions required for certification shall increase by 25, and the minimum amount of the qualifying contributions shall increase by two times the filing fee. The minimum qualifying contributions shall not exceed the limit set by G.S. 163‑278.64(b). 
(c)	Allocations. – Certified candidates in plurality elections shall receive one percent (1%) of the funding to which they would be eligible under G.S. 163‑278.65 times the number of calendar days between the end of the special qualifying period and the day of the general elections. That amount shall not exceed one hundred percent (100%) of the funding to which they would be eligible under G.S. 163‑278.65."
SECTION 6.  G.S. 163‑278.65(c) reads as rewritten:
"(c)	Method of Fund Distribution. – The Board, in consultation with the State Treasurer and the State Controller, shall 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. If the money in the Fund is insufficient to fully fund all certified candidates, then the available money shall be distributed proportionally, according to each candidate's eligible  funding, and the candidate may raise additional money in the same manner as a noncertified candidate for the same office up to the unfunded amount of the candidate's eligible funding."
SECTION 7.  G.S. 163‑278.66(a) reads as rewritten:
"(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(18). Any entity making independent expenditures in support of or opposition to a certified candidate or in support of a candidate opposing 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 five thousand dollars ($5,000). After this 24‑hour filing, the noncertified candidate or independent expenditure entity shall comply with an expedited reporting schedule by filing additional reports after receiving each additional amount in excess of one thousand dollars ($1,000) or after making or obligating to make each additional expenditure(s) in excess of one thousand dollars ($1,000). The schedule and forms for reports required by this subsection shall be made according to procedures developed by the Board."
SECTION 8.  G.S. 163‑278.68(b) reads as rewritten:
"(b)	Advisory Council for the Public Campaign Fund. – There is established under the Board the Advisory Council for the Public Campaign 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 Public Campaign 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. If the Board cannot reach unanimity on the appointment of that member, the Advisory Council shall consist of the remaining members.
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, except that regardless of the time of appointment each term shall end on December 31. A member shall continue on the Advisory Council beyond the expired term until a successor is appointed. 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."
SECTION 9.  G.S. 163‑278.69(c) reads as rewritten:
"(c)	Disclaimer. – The Judicial Voter Guide shall contain the following statement: 'Statements by candidates do not express or reflect the opinions of the State Board of Elections.'"
SECTION 10.(a)  G.S. 163‑278.13(e) reads as rewritten:
"(e)	Except as provided in subsections (e2) and (e3) of this section, this section shall not apply to any national, 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."
SECTION 10.(b)  G.S. 163‑278.13(e2) reads as rewritten:
"(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 one thousand dollars ($1,000) 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 two thousand dollars ($2,000) in an election if the contributor is that candidate's 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 if that contribution causes the candidate to exceed the "trigger for rescue funds" defined in G.S. 163‑278.62(18). 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.
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 or the spouse of that candidate from making a contribution or loan secured entirely by that individual's assets to that candidate's own campaign."
SECTION 10.(c)  G.S. 163‑278.13 is amended by adding a new subsection to read:
"(e3)	Notwithstanding the provisions of subsections (a) and (b) of this section, no candidate for superior court judge or district court judge shall accept, and no contributor shall make to that candidate, a contribution in any election exceeding one thousand dollars ($1,000), except as provided in subsection (c) of this section. 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 or the spouse of that candidate from making a contribution or loan secured entirely by that individual's assets to that candidate's own campaign."
SECTION 11.  G.S. 105‑159.2 reads as rewritten:
"§ 105‑159.2.  Designation of tax to North Carolina Public Campaign Fund.
(a)	Allocation to the North Carolina Public Campaign Fund. – To ensure the financial viability of the North Carolina Public Campaign Fund established in Article 22D of Chapter 163 of the General Statutes, the Department must allocate to that Fund three dollars ($3.00) from the income taxes paid each year by each individual with an income tax liability of at least that amount, if the individual agrees. A taxpayer must be given the opportunity to indicate an agreement or objection to that allocation in the manner described in subsection (b) of this section. In the case of a married couple filing a joint return, each individual must have the option of agreeing or objecting to the allocation. The amounts allocated under this subsection to the Fund must be credited to it on a monthly basis.
(b)	Returns. – Individual income tax returns must give an individual an opportunity to agree to the allocation of three dollars ($3.00) of the individual's tax liability to the North Carolina Public Campaign Fund. The Department must make it clear to the taxpayer that the dollars will support a nonpartisan court system, that the dollars will go to the Fund if the taxpayer marks an agreement, and that allocation of the dollars neither increases nor decreases the individual's tax liability. The following statement must be used to meet this requirement: 'This Fund pays for a nonpartisan voter guide and helps judicial candidates who accept strict fund‑raising limits. Do you agree to direct $3.00 to this Fund from the taxes you pay anyway? Marking Yes will not increase your tax or reduce your refund.' The Department must consult with the State Board of Elections to ensure that the information given to taxpayers complies with the intent of this section.
The Department must inform the entities it approves to reproduce the return that they must comply with the requirements of this section and that a return may not reflect an agreement or objection unless the individual completing the return decided to agree or object after being presented with the statement required by subsection (b) of this section and, as available background information or instructions, the information required by subsection (c) of this section. No software package used in preparing North Carolina income tax returns may default to an agreement or objection. A paid preparer of tax returns may not mark an agreement or objection for a taxpayer without the taxpayer's consent.
(c)	Instructions. – The instruction for individual income tax returns must include the following explanatory statement: 'The North Carolina Public Campaign Fund provides campaign money to nonpartisan 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 a Voter Guide with educational materials about voter registration, the role of the appellate courts, and the candidates seeking election as appellate judges in North Carolina. Three dollars from the taxes you pay will go to the Fund if you mark an agreement. Regardless of what choice you make, your tax will not increase, nor will any refund you are entitled to be reduced.'"
SECTION 12.  Sections 3 and 4 of this act becomes effective January 1, 2006. Section 10(c) of this act become effective January 1, 2006, and applies to contributions made or accepted on or after that date. Contributions made or accepted prior to that date shall count toward the cumulative limit after that date. The remainder of this act is effective when it becomes law.

Page 		House Bill 128-Third Edition

House Bill 128-Third Edition		Page