§ 163-278.34. Civil penalties. - North Carolina Statutes

§ 163‑278.34.  Civilpenalties.

(a)        Civil Penalties forLate Filing. – Except as provided in G.S. 163‑278.9 and G.S. 163‑278.9A,all reports, statements or other documents required by this Article to be filedwith the Board shall be filed either by manual delivery to or by mail addressedto the Board. Timely filing shall be complete if postmarked on the day thereports, statements or other documents are to be delivered to the Board. If areport, statement or other document is not filed within the time required bythis Article, then the individual, person, media, candidate, politicalcommittee, referendum committee or treasurer responsible for filing shall payto the State Board of Elections election enforcement costs and a civil latepenalty as follows:

(1)        Two hundred fiftydollars ($250.00) per day for each day the filing is late for a report thataffects statewide elections, not to exceed a total of ten thousand dollars($10,000); and

(2)        Fifty dollars($50.00) per day for each day the filing is late for a report that affects onlynonstatewide elections, not to exceed a total of five hundred dollars($500.00).

If the form is filed by mail,no civil late penalty shall be assessed for any day after the date of postmark.No civil late penalty shall be assessed for any day when the Board office atwhich the report is due is closed. The State Board shall immediately notify, orcause to be notified, late filers, from which reports are apparently due, bymail, of the penalties under this section. The State Board of Elections maywaive a late penalty if it determines there is good cause for the waiver.

If the Board determines byclear and convincing evidence that the late filing constitutes a willfulattempt to conceal contributions or expenditures, the Board may assess a civilpenalty in an amount to be determined by that Board, plus the costs ofinvestigation, assessment, and collection. The civil penalty shall not exceedthree times the amount of the contributions and expenditures willfullyattempted to be concealed.

(b)        Civil Penalties forIllegal Contributions and Expenditures. – If an individual, person, politicalcommittee, referendum committee, candidate, or other entity intentionally makesor accepts a contribution or makes an unlawful expenditure in violation of thisArticle, then that entity shall pay to the State Board of Elections, in anamount to be determined by that Board, a civil penalty and the costs ofinvestigation, assessment, and collection. The civil penalty shall not exceedthree times the amount of the unlawful contribution or expenditure involved inthe violation. The State Board of Elections may, in addition to the civilpenalty, order that the amount unlawfully received be paid to the State Boardby check, and any money so received by the State Board shall be deposited inthe Civil Penalty and Forfeiture Fund of North Carolina.

(c)        Civil RemediesOther Than Penalties. – The State Board of Elections, in lieu of or in additionto imposing a civil penalty under subsection (a) or (b) of this section, maytake one or more of the following actions with respect to a violation for whicha civil penalty could be imposed:

(1)        Issue an orderrequiring the violator to cease and desist from the violation found.

(2)        Issue an order tocease receiving contributions and making expenditures until a delinquent reporthas been filed and any civil penalty satisfied.

(3)        Issue an orderrequiring the violator to take any remedial action deemed appropriate by theBoard.

(4)        Issue an orderrequiring the violator to file any report, statement, or other information asrequired by this Article or the rules adopted by the Board.

(5)        Publicly reprimandthe violator for the violation.

(d)        Facts inMitigation. – An individual or other entity notified that a penalty has beenassessed against it may submit an affidavit to the State Board of Electionsstating the facts in mitigation. The State Board of Elections may waive a civilpenalty in whole or in part if it determines there is good cause for thewaiver.

(e)        Calculation and Assessment.– The State Board shall calculate and assess the amount of the civil penaltydue under subsection (a) or (b) of this section and shall notify the person whois assessed the civil penalty of the amount. The notice of assessment shall beserved by any means authorized under G.S. 1A‑1, Rule 4, and shall directthe violator either to pay the assessment or to contest the assessment within30 days by filing a petition for a contested case under Article 3 of Chapter150B of the General Statutes. If a violator does not pay a civil penaltyassessed by the Board within 30 days after it is due, the Board shall requestthe Attorney General to institute a civil action to recover the amount of theassessment. The civil action may be brought in the superior court of any countywhere the report was due to be filed or any county where the violator residesor maintains an office. A civil action must be filed within three years of thedate the assessment was due. An assessment that is not contested is due whenthe violator is served with a notice of assessment. An assessment that iscontested is due at the conclusion of the administrative and judicial review ofthe assessment. The State Board of Elections shall pay the clear proceeds ofcivil penalties collected under this section to the Civil Penalty andForfeiture Fund pursuant to G.S. 115C‑457.2. The State Board of Electionsshall reduce the monies collected by the enforcement costs and the collectioncosts to determine the clear proceeds payable to the Civil Penalty andForfeiture Fund. Monies set aside for the costs of enforcement and the costs ofcollection shall be credited to accounts of the State Board of Elections.

(f)         Notifying andConsulting With District Attorney. – Before assessing a civil penalty undersubsection (b) of this section or imposing a civil remedy under subsection (c)of this section, the State Board of Elections shall notify and consult with thedistrict attorney who would be responsible under G.S. 163‑278.27 forbringing a criminal prosecution concerning the violation.  (1973, c. 1272, s. 1; 1975,c. 565, s. 5; 1979, c. 1073, s. 19; 1997‑515, s. 7(a); 2001‑353, s.10; 2001‑419, s. 1; 2007‑391, ss. 2(a), 37; 2008‑187, s.33(a).)