§ 163-278.42. Distribution of campaign funds; legitimate expenses permitted. - North Carolina Statutes

§ 163‑278.42. Distribution of campaign funds; legitimate expenses permitted.

(a)        In a generalelection year in which a presidential election is held, every State chairman ofa political party shall disburse fifty percent (50%) of all funds received fromthe North Carolina Political Parties Financing Fund to that political party.The remaining fifty percent (50%) of such funds shall be allocated by thespecial committee established by subsection (d) of this section and used forone or more of the purposes permitted by subsection (e) of this section. Anycandidate may elect to decline in whole or in part any funds that the partychooses to distribute to the candidate.

(b)        In a generalelection year in which there is not a presidential election, every State chairmanof a political party shall disburse fifty percent (50%) of all funds receivedfrom the Political Parties Fund to that political party. The remaining fiftypercent (50%) of such funds shall be allocated by the special committeeestablished in subsection (d) of this section and used for one or more of thepurposes permitted by subsection (e) of this section. Any candidate may electto decline in whole or in part any funds that the party chooses to distributeto the candidate.

(c)        In each year inwhich no general election is held, every State chairman of a political partyshall disburse all funds received from the Political Parties Fund to thatpolitical party.

(d)        The allocation ofthe remaining fifty percent (50%) of the funds under subsections (a) or (b) ofthis section shall be made by a committee composed of the State Chairman ofthat political party, the Treasurer of that party, the Congressional DistrictChairmen of that party, and a number of persons that shall not exceed thenumber of congressional districts in North Carolina appointed by the StateChairman of that party, and the State Chairman shall serve as Chairman of thiscommittee. The allocation of funds shall be in the sole discretion of thecommittee, but must be for a purpose permitted by subsection (e) of thissection and if allocated to a candidate, shall be disbursed by the StateChairman of that party only to the Treasurer of that candidate or committeeappointed under Article 22A of this Chapter or under the Federal ElectionCampaign Act of 1971, Chapter 14 of Title 2, United States Code.

(e)        A political partyshall expend funds distributed from the Political Parties Fund or from the"Presidential Election Year Candidates Fund" only for legitimatecampaign expenses. By way of illustration but not by way of limitation, thefollowing are examples of legitimate campaign expenses:

(1)        Radio, television,newspaper, and billboard advertising for and on behalf of a political party orcandidate;

(2)        Leaflets, fliers,buttons, and stickers;

(3)        Campaign staffsalaries, provided each staff member is listed by name and by the amount paidas salary and the amount paid as campaign expense reimbursement;

(4)        Travel expenses,lodging and food for candidate and staff;

(4a)      Expenses to ensurecompliance with federal and State campaign finance and reporting laws;

(4b)      Contributions to orexpenses on behalf of candidates of that political party;

(5)        Party headquartersoperations related to upcoming general elections, including the purchase,maintenance and programming of computers to provide lists of voters, partyworkers, officers, committee members and participants in party functions,patterns of voting and other data for use in general election campaigns andparty activities and functions prior thereto, the establishment and updatingcomputer file systems of voter registration lists, State, district, county andprecinct officers and committee member lists, party clubs or organizationlists, the organizing of voter registration, fund raising and get‑out‑the‑voteprograms at the county level when conducted by State party personnel, and thepreparation of reports required to be filed by State and federal laws andsystems needed to prepare the same and keep records incident thereto.

(f)         All moneys andfunds previously designated by taxpayers being held by the North CarolinaSecretary of Revenue and being held by the North Carolina State Treasurer whichmoneys and funds have not been disbursed or delivered to a political party asof June 16, 1978, when disbursed shall be allocated by the State Chairman ofthe political party as follows: sixty‑two and one‑half percent (621/2%) of such funds to the political party for legitimate general electioncampaign expenditures; thirty‑seven and one‑half percent (37 1/2%)to the eligible candidates as determined by the committee established underthis Article.

(g)        It shall beunlawful for any political party to use either directly or indirectly any partof funds distributed from the Political Parties Fund or the Presidential ElectionYear Candidates Fund of any political party for the support or assistanceeither directly or indirectly of any candidate in a primary election, forsupport or assistance relating to the selection of a candidate at a politicalconvention or by the executive committee of a party, for the payment orrepayment of any debt or obligation of whatsoever kind or nature incurred byany person, candidate or political committee in a primary election, theselection of a candidate at a political convention or by the executivecommittee of a party, or for the support, promotion or opposition of anational, State or local referendum, bond election or constitutional amendment. (1977, 2ndSess., c. 1298, s. 2; 1983, c. 700, ss. 1‑4; 1985 (Reg. Sess., 1986), c.866; 1987 (Reg. Sess., 1988), c. 1063, s. 3; 1991, c. 397, s. 1; c. 636, s.20(b); 1991 (Reg. Sess., 1992), c. 1032, s. 10B; 1993, c. 553, s. 70; 2009‑534,s. 10.1.)