Independent Expenditures, Electioneering Communications and Special Contributors

Independent Expenditure Filers

• N.C.G.S. § 163-278.12
• 08 NCAC 21 .0102

An independent expenditure is an expenditure made to support or oppose the nomination or election of one or more clearly identified candidates that is not made in concert or cooperation with or at the request or suggestion of, the candidate the expenditure supports or the opponent of the candidate the expenditure opposes, the agent of a candidate, the candidate campaign committee or the agent of the candidate campaign committee. See N.C.G.S. § 163-278.6(53) and N.C.G.S. § 163-278.6(20).

Political party committees, PACs, independent expenditure political committees, individuals, corporations, professional associations, labor unions and other business entities may make independent expenditures. So long as independent expenditures are in fact independent, and not coordinated with any candidate, there is no limit on how much an individual or entity may spend.

Political party committees, PACs and independent expenditure political committees report independent expenditures on the committee’s regular disclosure reports. Other individuals and entities making independent expenditures with a value in excess of $100 in an election are also required to file disclosure reports. N.C.G.S. § 163-278.12(a). These individuals and entities are referred to as Independent Expenditure Filers.

Independent Expenditure Filers that support or oppose statewide candidates, legislative candidates, judicial candidates, or candidates for district attorney file disclosure reports with the State Board of Elections. Independent Expenditure Filers that support or oppose statewide ballot issues also file with the State Board.

Independent Expenditure Filers that support or oppose county or municipal candidates file disclosure reports with the county board of elections. Independent Expenditures Filers that support or oppose ballot issues contained within one county also file with the county board of elections.

An Independent Expenditure Filer must disclose expenditures within 30 days after independent expenditures exceed $100 or 10 days before an election the independent expenditures affect, whichever occurs earlier. N.C.G.S.  § 163-278.12(d). After the initial disclosure report, the Independent Expenditure Filer must continue to file reports on the same schedule as political committees until the end of the election. 08 NCAC 21 .0102(f). The final report for a given election must cover the period through the day of the election.

In certain circumstances, donations made to Independent Expenditure Filers must also be disclosed. N.C.G.S. § 163-278.12(c). Donations must be disclosed if made to further the reported independent expenditure. A donation is made to further an independent expenditure if any of the following apply:

1. The donor designates, requests, or suggests that the donation be used for an independent expenditure or for multiple independent expenditures, and the filer agrees to use the donation for an independent expenditure.
2. The filer expressly solicited the donor for a donation for making or paying for an independent expenditure.
3. The donor and the filer engaged in substantial written or oral discussion regarding the donor’s making, donating, or paying for an independent expenditure.
4. The donor or the filer knew or had reason to know of the filer’s intent to make independent expenditures with the donation. N.C.G.S. § 163-278.12(f).

An Independent Expenditure Filer that makes independent expenditures with a value in excess of $5,000 during an election must file disclosure reports electronically consistent with 08 NCAC 21 .0106. All other Independent Expenditure Filers may choose between filing reports electronically or on paper.

Paper reports must be made using forms Independent Expenditure Report Cover (CRO-2210A), Donations for Independent Expenditures (CRO-2210B), and Incurred Costs for Independent Expenditures (CRO-2210C). 08 NCAC 21 .0102(c). For each independent expenditure report filed electronically, the Independent Expenditure Filer must still sign and file with the appropriate board of elections the CRO-2210A. 08 NCAC 21 .0102(e).

Independent Expenditure Filers are also required to file 48 Hour Reports. An Independent Expenditure Filer that incurs an expense of $5,000 or more, or receives a donation in furtherance of independent expenditures of $1,000 or more, before an election but after the period covered by the last report due before that election must file a 48 Hour Report. N.C.G.S. § 163-278.12(e).

Independent Expenditure Filers submit their 48 Hour Report using forms CRO-2210A, CRO-2210B, and CRO-2210C. NCAC 21 .0102(i). 48 Hour Reports may be filed via fax or email to the relevant board.

Special Contributors

• N.C.G.S. § 163-278.12
• 08 NCAC 21 .0103

A corporation, business entity, labor union, professional association, insurance company, or other entity that is not a registered referendum committee or political committee, but contributes to a referendum committee or political committee, may be required to file a disclosure report as a Special Contributor. N.C.G.S. § 163-278.12(b).

Corporations, business entities, labor unions, professional associations, and insurance companies are limited by N.C.G.S. § 163-278.19. In general, these entities cannot make contributions to political committees. However, these entities may make contributions referendum committees and independent expenditure political committees. Some corporations may also make contributions to political committees if they meet the specific requirements of N.C.G.S. § 163-278.19(h).

A corporation, business entity, labor union, professional association, or insurance company that is not a registered referendum committee or registered political committee but makes contributions with a value in excess of $100 in an election is required to file disclosure reports. This contributor is referred to as a Special Contributor.

Special Contributors that contribute to statewide candidates, legislative candidates, judicial candidates, or candidates for district attorney file disclosure reports with the State Board of Elections. Special Contributors that contribute to referendum committees or independent expenditure political committees that file with the State Board of Elections also file disclosure reports with the State Board.  

Special Contributors that contribute to county or municipal candidates file disclosure reports with the county board of elections. Special Contributors that contribute to referendum committees or independent expenditure political committees that file with the county board of elections also file disclosure reports with the county board.  

A Special Contributor must disclose contributions within 30 days after contributions exceed $100 in an election or 10 days before an election the contributions affect, whichever occurs earlier. N.C.G.S. § 163-278.12(d). After the initial disclosure report, the Special Contributor must continue to file reports on the same schedule as political committees until the end of the election. 08 NCAC 21 .0103(d). The final report for a given election must cover the period through the day of the election.

In certain circumstances, donations made to Special Contributors must also be disclosed. N.C.G.S. § 163-278.12(c). Donations must be disclosed if made to further the reported contribution. A donation is made to further a contribution if any of the following apply:

1. The donor designates, requests, or suggests that the donation be used for a contribution or for multiple contributions, and the filer agrees to use the donation for a contribution.
2. The filer expressly solicited the donor for a donation for making or paying for a contribution.
3. The donor and the filer engaged in substantial written or oral discussion regarding the donor’s making, donating, or paying for a contribution.
4. The donor or the filer knew or had reason to know of the filer’s intent to make contributions with the donation. N.C.G.S. § 163-278.12(f).

Please exercise caution – N.C.G.S. § 163-278.14 prohibits any donor from making a contribution in the name of another.

North Carolina’s electronic software does not permit Special Contributors to submit reports electronically. All Special Contributors must file reports on paper. Paper reports must be made using forms CRO-2215A, CRO-2215B, CRO-2215C. 08 NCAC 21 .0103(c).

Special Contributors are also required to file 48 Hour Reports. A Special Contributor that makes a contribution of $5,000 or more, or receives a donation in furtherance of contributions of $1,000 or more, before an election but after the period covered by the last report due before that election, must file a 48 Hour Report. N.C.G.S. § 163-278.12(e). Special Contributors submit their 48 Hour Report using forms Contributions to Registered Entities Report Cover (CRO-2215A), Donations to further Contributions reported at 2215C (CRO-2215B), and Contributions Made to Registered Committees (CRO-2215C). 08 NCAC 21 .0103(g). 48 Hour Reports may be filed via fax or email to the relevant board.

Electioneering Communications

• N.C.G.S. § 163-278.12C
• 08 NCAC 21 .0104

What is an Electioneering Communication?

An electioneering communication is any broadcast, cable, satellite communication, mass mailing or telephone bank that has all of the following characteristics:

1. Refers to a clearly identified candidate for elected office. It does not expressly advocate for the election or defeat of the candidate.
2. In the case of the general election in November of the even-numbered year, is aired or transmitted within 30 days of the election for that office.
3. May be received by either:
   1. 50,000 or more individuals in the state in an election for statewide office or 7,500 or more individuals in any other election if in the form of a broadcast, cable, or satellite communication.
   2. 20,000 or more households, cumulative per election, in a statewide election or 2,500 households, cumulative per election, in any other election if in the form of a mass mailing or telephone bank. N.C.G.S. § 163-278.6(8j).

What Communications are Not Considered Electioneering Communications?

1. 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, affiliated party committee, political committee, or candidate.
2. A communication that constitutes an expenditure or independent expenditure under this Article.
3. 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.
4. 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 or a solicitation of others as defined in N.C.G.S. § 120C-100(a)(36) properly reported under Chapter 120C of the General Statutes.
5. A communication that meets all of the following criteria:
   1. Does not mention any election, candidacy, political party, opposing candidate, or voting by the general public.
   2. Does not take a position on the candidate’s character or qualifications and fitness for office.
   3. Proposes a commercial transaction.
6. A public opinion poll conducted by a news medium, as defined in N.C.G.S. § 8-53.11(a)(3), conducted by an organization whose primary purpose is to conduct or publish public opinion polls, or contracted for by a person to be conducted by an organization whose primary purpose is to conduct or publish public opinion polls. This sub-subdivision shall not apply to a push poll. For the purpose of this sub-subdivision, “push poll” shall mean the political campaign technique in which an individual or organization attempts to influence or alter the view of respondents under the guise of conducting a public opinion poll.
7. A communication made by a news medium, as defined in N.C.G.S. § 8-53.11(a)(3), if the communication is in print. N.C.G.S. § 163-278.6(43).

Every individual, person or entity that incurs an expense for the direct costs of producing or airing electioneering communications aggregating in excess of $5,000 is required to file disclosure reports. N.C.G.S. § 163-278.12C(a).

Electioneering Communications that refer to statewide candidates, legislative candidates, judicial candidates, or candidates for district attorney are disclosed on reports filed with the State Board of Elections. 08 NCAC 21 .0104(a)(2).

Electioneering Communications that refer to county or municipal candidates are disclosed on reports filed with the county board of elections. 08 NCAC 21 .0104(a)(1).

An individual, person or entity disclosing electioneering communications must file disclosure reports no later than the 10th day following the day the individual or person incurs expenses aggregating in excess of $5,000 or more for the direct costs of producing or airing electioneering communications. N.C.G.S. § 163-278.12C(b). After the initial disclosure report, the filer must continue to file reports on the same schedule as political committees until the end of the election. The final report for a given election must cover the period through the day of the election. 08 NCAC 21 .0104(d).

In certain circumstances, the names and addresses of all entities that donated to further an electioneering communication must also be disclosed. N.C.G.S. § 163-278.12C(a)(5). Donations must be disclosed if made to further the reported electioneering communication. A donation is made to further an electioneering communication if any of the following apply:

1. The donor designates, requests, or suggests that the donation be used for an electioneering communication or electioneering communications, and the filer agrees to use the donation for that purpose.
2. The filer expressly solicited the donor for a donation for making or paying for an electioneering communication.
3. The donor and the filer engaged in substantial written or oral discussion regarding the donor’s making, donating, or paying for an electioneering communication.
4. The donor or the filer knew or had reason to know of the filer’s intent to make electioneering communication with the donation. N.C.G.S. § 163-278.12C(c).

North Carolina’s electronic software does not permit individuals, persons or entities filing electioneering communications disclosure reports to submit reports electronically. All reports must be filed on paper. Paper reports must be made using forms Electioneering Communications Report (CRO-2310), Controlling/Directing Entity List (CRO-2320), Receipts for Electioneering Communications (CRO-2330), and Incurred Costs for Electioneering Communications (CRO-2340). 08 NCAC 21 .0104(c).

Electioneering Communications may also require 48 Hour Reports. An individual or person that produces or airs an electioneering communication must file a 48 Hour Report within 48 hours of incurring an expense of five thousand dollars ($5,000) or more or receiving a donation of one thousand dollars ($1,000) or more for making an electioneering communication before an election but after the period covered by the last report due before that election. N.C.G.S. § 163-278.12C(b). 48 Hour Reports are made using forms CRO-2310, CRO-2320, CRO-2330, and CRO-2340. 08 NCAC 21 .0104(h). 48 Hour Reports may be filed via fax or email to the relevant board.

Disclosure Legends

Under N.C.G.S. § 163-278.39, print media, radio, and television advertisements that are a reportable contribution, expenditure, independent expenditure, or electioneering communication must include a legend or statement disclosing certain information about the advertisement.

The disclosure legend shall include the statement, “Paid for by ___ [Name of candidate, candidate committee, political party organization, political action committee referendum committee, or individual].”

Find more information about the format and size requirements at Disclosure Legends, or refer to the Campaign Finance Manual.