2. K&L GATES
POLITICAL ACTIVITY IN NC FOR
ASSOCIATIONS AND CORPORATIONS
• State Board of Elections
• Ethics Commission
• Secretary of State
klgates.com
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3. K&L GATES
NORTH CAROLINA CAMPAIGN FINANCE
What is a Political Action Committee (“PAC”)?
• What is an Independent Expenditure (“IE”)?
• What is an Independent Expenditure Committee
(“IE PAC” or “Super PAC”)?
• What is Electioneering?
• What’s New?
klgates.com
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POLITICAL ACTION COMMITTEE (“PAC”)
A PAC is a group or combination of two or more individuals whose
major purpose is to support or oppose one or more clearly identified
candidates or candidates of a clearly identified political party.
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• Receives contributions from Individuals $5,000.00 limit per
election
• Contributes funds directly to candidates either in cash contributions
or in kind $5,000.00 limit per election
• Corporate contributions are not allowed
• Can coordinate with other PACS and candidates
• Administrative Support
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Reports to the North Carolina State Board of Elections (NCSBOE)
Quarterly in Election Years and Semi-Annually in Non-Election Years
All contributions and expenditures must be reported
Contributions over $50 must have name, address and occupation of
contributor
48-hour report Required when a contribution of $1000 is received
during the last weeks before an election.
Record keeping should be current within 7 days of receiving or
making a contribution
Date Issues
Electronic Filing
POLITICAL ACTION COMMITTEE
REPORTING REQUIREMENTS
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• Expenditure made to support or oppose one or
more clearly identified candidates without
consultation or coordination with a candidate
or agent of a candidate that the expenditure
supports, or whose opponent’s nomination or
election the expenditure opposes.
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K&L GATES
INDEPENDENT EXPENDITURE REPORTING
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Expenditures greater than $100
Must report any donations made for the purpose
of the independent expenditure
Reports due within 30 days after exceeding
$100 or 10 days before an election
Subsequent expenditures comply with reporting
schedule of PACs
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Made in concert or cooperation with, or at the
request or suggestion of, a candidate, a
candidate campaign committee, the agent of the
candidate or the agent of the candidate
campaign committee
• 3-prong federal test
• Payment
• Content
• Conduct
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INDEPENDENT EXPENDITURE COMMITTEE
“IE COMMITTEE,” “SUPER PAC” OR “IE
PAC”
An IE Committee is a political committee registered with the NCSBOE
that certifies that it will not directly or indirectly coordinate with, or
make contributions to candidate committees or other committees that
coordinate or make contributions to candidates.
• After Citizens United, corporate contributions now clearly allowed
• Unlimited
• Cannot contribute directly to candidates
• Cannot coordinate with other PACS or candidates
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Reports to the NCSBOE Quarterly in Election Years and Semi
Annually in Non-Election Years (currently on the same schedule as
PACs)
All contributions and expenditures must be reported
Contributors of more than $100 must file reports with NCSBOE
within 30 days of contribution
48-hour report Required when an expenditure of $5000 or more is
made, or a contribution of $1000 or more is received during the last
weeks before an election.
Record keeping should be current within 7 days of receiving or
making a contribution
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INDEPENDENT EXPENDITURE COMMITTEE
REPORTING REQUIREMENTS
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WHY FORM AN INDEPENDENT
EXPENDITURE COMMITTEE?
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K&L GATES
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Donors to IE committee can see who has contributed and how money is spent
Compliance with applicable laws
Maintain tax exempt status
Avoids complaints that general funds, operating funds, dues, etc. are being used
for political purposes
Ongoing visibility and fund raising
Segregation of Funds
Focuses attention on key political issues, bringing in donors who might not
otherwise contribute
Allows organizers and donors to shape and deliver their message, regardless of
official campaign’s approach
Buy-In
•
Tax Issues
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• Transparency
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ELECTIONEERING COMMUNICATIONS
•
Disclosure requirements— for 501(c)(4) entities, print media
• 50,000 or more individuals in a statewide election or 7,500 in any other
election if in the form of broadcast, cable, or satellite; or
• 20,000 or more households, cumulative per election, in a statewide election
or 2,500 households, cumulative per election, in any other election in the
form of mass mailing or telephone bank
Any broadcast, cable, satellite, mass mailing or phone bank
communication that
• Refers to a clearly identified candidate
Does not expressly advocate for the election or defeat of the candidate
• Is aired or transmitted within 60 days of the time set for absentee voting
to begin
• May be received by either
•
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Not express advocacy
• Not an independent expenditure
• Must report over $5000 within 10 days of making
the expenditure
• Incurs the direct cost of producing and airing the
communication
• Names of donors providing over $1000
• Unlimited
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ELECTION LAW CHANGES
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K&L GATES
Maximum Contribution Increase
• The new 2013 tax reform bill changed the PAC contribution maximum
from $4,000 to $5,000 per election. It also changed the time period for
an “election cycle,” extending it through the end of the calendar year.
Deleted Candidate Specific Communications
Bundling restrictions for lobbyists
Raffles
Ad Disclosure Changes
• Deletes disclosure requirements for independent expenditures and
electioneering communications
• Defines Electioneering Communications as those aired or transmitted
after September 7 for November General Elections
• Strikes the requirement for sponsor disclosure for independent
expenditures and electioneering communications
klgates.com
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22. K&L GATES
www.klgates.com
August 1, 2013
PracticeGroup(s):
PubllcPolicyand
What Do Corporations and PACs Need to
Know About North Carolina’s Recent
Election Law Reform?
By Amy H. Fulibright and Margaret R. Westbrook
North Carolina’s General Assembly has approved sweeping elections law changes. Making good on
promises when Republicans assumed control of both the State House and Senate for the first time
since Reconstruction, legislative leaders have adopted a multitude of revisions to existing state
election laws. These changes are found in House Bill 589, which passed the House and the Senate
late last week and currently awaits Governor McCrory’s signature or veto. Although the bill includes
other, more headline-grabbing components, including a requirement for voters to provide government
issued photo identification at polls, a shortened early voting period, the end of straight party ticket
voting and same-day registration, and a requirement that voters register or make changes to their
registration information at least 25 days in advance of an election, the bill also includes several
provisions that could have significant effects on corporations and political action committees
(“PACs”).
First, the bill raises the amounts that individuals can contribute to candidates and PACs and the
amounts that PACs can contribute to candidates from $4,000 to $5,000 per election. Importantly, this
dollar amount will be indexed to increase in odd numbered years beginning in 2015 based on the
consumer price index. The bill also changes the time periods for an “election cycle,” extending it
through the end of the calendar year after an election. Therefore, contributors who have reached their
maximum contribution limits cannot provide additional support for debt reduction immediately
following the election. Additionally, the bill repeals the $1,000 limit for contributions to candidates
for superior or district court judge positions and eliminates the public funding program for appellate
court elections.
However, the General Assembly narrowed a few traditional loopholes. The bill limits family
members who may give unlimited amounts to candidates. Previously, a candidate’s spouse, parents,
brothers and sisters were exempt from the contribution limits. Now, only a candidate’s spouse may
donate unlimited amounts to the candidate. HB 589 also attempts to prescribe the use of money given
for a political party “building fund.” Donations to these funds were previously unlimited, which made
them a long-standing avenue for soft money. HB 589 seeks to limit use of these funds for a principal
headquarters building and prohibits the use of those funds for headquarters equipment, other than
fixtures, personnel compensation, or travellfundraising expense. It does allow funds to be used for up
to three administrative personnel who meet certain requirements.
Several key changes to the rules governing mass communications were included. The bill repeals
Articles 22G and 22H defming candidate-specific communications and requiring disclosure
statements to be filed with the State Board of Elections for candidate-specific communications in
broadcast, cable, satellite, mass mailings or telephone banks. The bill clarifies that electioneering
communications will be defined as those communications aired or transmitted after September 7 for
November general elections. Most importantly, the bill strikes the previous requirement for sponsors
of printed independent expenditure communications and electioneering communications to disclose
23. K&L GATES
Amy H. Fulibright
Government Affairs Counselor
Raleigh
T 919.743.7352
F 919.516.2022
amy.futbright@klgates.com
AREAS OF PRACTICE
Amy Fulibright is a Government Affairs Counselor in the Public Policy and Law group whose
practice focuses on legislative and regulatory affairs in North Carolina. Ms. Fullbright represents
businesses, industry and associations before the North Carolina General Assembly on a variety
of legislative matters, including taxation, financial services, privacy, appropriations, health care,
and environmental issues. This includes drafting legislation, testifying before legislative
committees and subcommittees, lobbying state representatives, monitoring legislation, and
implementation of legislative strategies.
PROFESSIONAL BACKGROUND
Ms. Fullbright has more than sixteen years of experience in government and government
relations, representing corporations, financial institutions, trade associations, and non profit
entities.
A member of the environmental team at her prior firm, Ms. Fullbright has experience working with
legislation involving air and water pollution, water allocation, energy and power generation
including coal, natural gas, petroleum and biomass, waste handling and disposal, electronics
recycling, property remediation, chemicals and manufacturing, pharmaceuticals and
biotechnology, agribusiness including food processing and transportation, timber and forest
products and other environmental compliance and regulatory review issues. She works to
successfully navigate legislative and regulatory requirements and maintain good relations with
regulatory agencies and elected officials.
EDUCATI ON
BA., North Carolina State University, 1994 (Political Science)
ACHIEVEMENTS
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President, North Carolina Professional Lobbyists Association, 2011-2012
Named in 40 Under 40 Leadership Awards by the Triangle Business Journal in 2008
24. K&L GATES
Margaret R. Westbrook
Partner
Raleigh
T 919.743.7311
F 919.516.2011
Charlotte
T704.331.7400
F 704.331.7598
margaret.westbrook@klgates.com
OVERVIEW
Ms. Westbrook is a partner in the Raleigh office and has two distinct areas of practice: creditors
rights and campaign finance. She has extensive experience in representing both secured and
unsecured creditors in restructurings in and out of the court system and in foreclosures. She is a
frequent speaker on bankruptcy and foreclosure issues at state and regional seminars. Ms.
Westbrook also advises clients on matters relating to the regulation of corporate political activity,
including the formation and administration of state and federal political action committees. She
has represented clients in the North Carolina General Assembly and advised clients regarding the
development of political corn pliance programs.
PROFESSIONAL BACKGROUND
Prior to joining the firm, Ms. Westbrook served as law clerk to the Honorable J. Rich Leonard,
Judge of the United States Bankruptcy Court, Eastern District of North Carolina, 1996-1998. She
now resides in the Raleigh Office (which, along with Durham and Chapel Hill, forms North
Carolina’s Research Triangle).
EDUCATION
J.D., University of North Carolina, 1996 (with honors; Member, North Carolina Law Review; Order
of the Coif)
B.A., University of North Carolina, 1993
ACHIEVEMENTS
Legal Elite, Business North Carolina Magazine, Bankruptcy Law, 2012, 2013
Triangle Business Journal, Women in Business Award, 2007
25. K&L GATES
James L. Joyce
Associate
Ra’eigh
T 919.743.7336
F 919.743.7358
jim.joyce@klgates.com
OVERVIEW
Jim Joyce focuses his practice on environmental, energy, and land use matters. His clients
include companies in the food manufacturing, enzymes, cement, real estate development, and oil
and gas industries.
Mr. Joyce’s experience includes advising clients on the environmental aspects of real estate and
corporate transactions; land use and environmental permitting litigation; cleanup and
redevelopment of contaminated properties; and compliance with federal, state, and local
regulatory programs.
Mr. Joyce also counsels clients in the development of shale gas resources, and is intimately
familiar with North Carolina’s emerging regime for regulation of oil and gas production. He has
followed closely and reviewed the regulations in production, starting with the beginning of the
legislative process that continues to create North Carolina’s new oil and gas statutes and
continuing through the work of the North Carolina Mining and Energy Commission and its
subgroups in researching and drafting regulations.
PROFESSIONAL BACKGROUND
Prior to joining the firm, Mr. Joyce was a fellow at the University of North Carolina School of
Government, where he co-authored a book on inclusionary zoning. His education in law and land
use planning makes him well versed in zoning and land use related law.
EDUCATION
J.D., University of Virginia School of Law, 2009 (Dean’s Scholarship; Virginia Environmental Law
Journal articles review board, articles editor; Merhige National Environmental Negotiation
Competition)
M.C.P., University of Maryland, 2006 (University Fellowship, LeFrak Award for Service to the
Community)
B.A., University of North Carolina, 2001 (with highest distinction; highest honors in political
science, Phi Beta Kappa, Dean’s List)
26. K&L GATES
Marissa C. Farrell
Policy Assistant
Raleigh
T 919.831.7003
F 919.516.2103
marissa.farrellklgates.com
AREAS OF PRACTICE
Marissa Farrell is a Policy Assistant in the Public Policy and Law group whose practice focuses
on legislative and regulatory affairs in North Carolina. As a Policy Assistant, Ms. Farrell attends
various legislative and agency meetings covering many different areas of interest in order to
thoroughly track any changes or movements of given legislation. These areas consist of
environmental, energy, finance, taxation, healthcare, and regulatory. Ms. Farrell focuses on
providing detailed research, history, and reports on legislation in the General Assembly or efforts
moving through particular Government Agencies.
PROFESSIONAL BACKGROUND
Ms. Farrell has spent the vast majority of her professional career in state level government and
politics. This involvement includes working as the Legislative Director for a Representative of the
State House, a Research Analyst and Committee Clerk for three State Senators and a Coalition
Director for a national presidential campaign.
While working at the General Assembly, Ms. Farrell gained invaluable experience and
understanding of the process and nuances of drafting, introducing, moving, and passing
legislation. As a research analyst, Ms. Farrell focused on environment and energy concerns and
worked closely with the members and staff in order to draft successful legislation. Now as a
Policy Assistant, she works to build and maintain good relationships with various elected officials,
staff and agencies in order to better serve and contribute to the efforts of the policy team.
EDUCATION
B.A., Hillsdale College, 2010 (History)
