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HomeMy WebLinkAbout2022 Municipal Candidate Guide 2022 MUNICIPAL ELECTIONS A CANDIDATE’S GUIDE TO ELECTIONS IN NORTH CAROLINA 2 Table of Contents Important Municipal Election Dates .................................................................................................................................. 4 General Candidacy Requirements .................................................................................................................................................................... 5 Notice of Candidacy ..................................................................................................................................................... 6-8 Voter Registration Drives................................................................................................................................................... 9 Absentee Guidance for Candidates ................................................................................................................................. 10 Electioneering Near the Front Entrance to a Voting Site ................................................................................................. 11 Election Results ................................................................................................................................................................. 12 Candidacy Forms............................................................................................................................................................... 13 Municipal Candidacy Form ............................................................................................................................................... 14 Felony Disclosure Form… ................................................................................................................................................. 15 Petition Request Form… .................................................................................................................................................. 16 Withdrawal of Notice of Candidacy… ...............................................................................................................................17 General Statute Links ....................................................................................................................................................... 18 Campaign Finance ............................................................................................................................................................ 19 Campaign Finance Information ....................................................................................................................................... 20 Organizing the Committee .............................................................................................................................................. 21 Forms Required to Set Up the Committee ...................................................................................................................... 22 Certification of Threshold ................................................................................................................................................ 23 Treasurer Training ...................................................................................................................................................... 24-25 What is Included in a Disclosure Report?. .......................................................................................................................26 3 Methods Available for Filing Disclosure Reports ............................................................................................................. 27 Penalties for Filing Disclosure Reports Late .................................................................................................................... 28 When Submitting Paperwork…Remember… .................................................................................................................... 29 What is the Law Regarding Contributions?. .................................................................................................................... 30 What is the Law Regarding Expenditures?. ..................................................................................................................... 31 Basic Disclosure Requirements for Print, Radio and Television Advertisements ........................................................... 32 Legend Size Requirements .............................................................................................................................................. 33 Mandatory Compliance Training ..................................................................................................................................... 34 Instructions to Register to take the Campaign Finance Mandatory Compliance Training ......................................... …..35 Frequently Asked Questions-Mandatory Electronic Filing ......................................................................................... 36-38 4 A specific municipality’s election schedule depends on the method of elections used in that town or city (e.g., partisan primary, nonpartisan primary, nonpartisan plurality, or nonpartisan elections and runoff). Election dates for each municipality will be updated at the Local Voter Tool. Candidate Filing dates for each municipality will be updated at the Local Candidate Tool. Municipal Elections rescheduled from 2021 Candidate Filing resumption: 8 a.m. February 24, 2022 – noon March 4, 2022 Election Day: May 17, 2022 Second Election Day*: July 26 (unless there is a second primary called that doesn’t involve a federal office, in which case the date is July 5). * Only those municipalities using primary-and-election and election-and-runoff electoral methods will have a second election day. Plurality election jurisdictions have only one election day. Municipalities with Even-Numbered Year Elections Candidate Filing: noon July 1, 2022 – noon July 15, 2022 Election Day: November 8, 2022 General Election IMPORTANT MUNICIPAL ELECTION DATES 5 • Candidate must be 21 years old on Election Day. o Candidate must be a registered voter of the municipality at the time they file for office. If they are not already registered to vote, they can register at the same time they file their notice of candidacy. • Candidate must reside within the municipal corporate limits. • For an office that is elected by district or ward, the candidate must reside within the district or ward. • Candidate must file a notice of candidacy with the county board of elections office in the county of their residence and pay a filing fee set by the municipal governing board during the filing period. The minimum is $5 with a maximum of 1% of the annual salary of the office sought. • A person whose name appeared on the ballot in a partisan primary election is not eligible to have their name placed on the general municipal election ballot as an unaffiliated candidate for the same office in that year. • The notice of candidacy includes a question about any previous felony convictions and will require disclosure of any convictions. • A candidate may not file a notice of candidacy for more than one municipal office at the same election. ONLY FILE FOR ONE OFFICE PER ELECTION If a person has filed a notice of candidacy for one office with the county board of elections, then a notice of candidacy may not later be filled for any other municipal office for that election unless the notice of candidacy for the first office is withdrawn first. Important Note: The State and county boards of elections cannot accept candidate filings via surrogate. During any candidate filing period, the boards of elections will only accept notices of candidacy that are signed and submitted in person by the candidate, or which are certified and delivered via mail or commercial courier service, per N.C.G.S. § 163-106(a). In the past, some candidates have relied on surrogates, including staff members, to submit their notices of candidacy during the candidate filing period. This practice is not permitted in the General Statutes, and such filings will not be accepted by the boards of elections going forward. General Statute Section 163-106(a) provides as follows: Each candidate shall sign the notice of candidacy in the presence of the chairman or secretary of the board of elections, State or county, with which the candidate files. In the alternative, a candidate may have the candidate’s signature on the notice of candidacy acknowledged and certified to by an officer authorized to take acknowledgments and administer oaths, in which case the candidate may mail or deliver by commercial courier service the candidate’s notice of candidacy to the appropriate board of elections. GENERAL CANDIDACY REQUIREMENTS 6 The State Board of Elections provides a Notice of Candidacy form, which is available on the State Board’s website or from any county board of elections. Candidates must file for municipal office at their county board of elections office. Candidate’s Name on the Ballot: The names of the candidates will appear on the official ballots as they appear on the notice of candidacy. No title, appendage, or appellation indicating rank, status, or position shall be printed on the official ballot in connection with a candidate's name, though candidates may use the title Mr., Mrs., Miss, or Ms. Legitimate nicknames may be permitted on an official ballot, but only if listed on the notice of candidacy. The nickname, which will appear in parentheses on the ballot, may not mislead voters or unduly advertise the candidacy. If a candidate is providing an affidavit to permit the use of a nickname with his or her legal last name, the affidavit shall also include the way the ballot shall list the candidate’s name if another candidate with the same last name files for the same office. *Please use the below table as examples of appropriate naming conventions for ballots: Each candidate shall sign the notice of candidacy in the presence of the chairman or secretary of the board of elections or the director of elections of that county, or signed before an officer authorized to take acknowledgements who shall certify the notice under seal. In the alternative, a candidate may have the candidate’s signatures on the notice of candidacy acknowledged and certified to by an officer authorized to take acknowledgments and administer oaths, in which case the candidate may mail or deliver by commercial courier service the candidate’s notice of candidacy to the appropriate board of elections prior to the filing period deadline. NOTICE OF CANDIDACY 7 Disclosure of Felony Conviction: The Notice of Candidacy form provided by the State Board of Elections includes a statement that asks the following question: “Have you ever been convicted of a felony?” Candidates who answer “yes” to this question must provide the name of the offense, date of conviction, date of restoration of citizenship rights, and the county and state of conviction. It is a Class I felony for an individual to knowingly provide untrue information in response to this question. A candidate is not required to disclose a felony conviction if the conviction was dismissed because of a reversal on appeal or if it resulted in a pardon of innocence or expungement. A prior felony conviction does not preclude holding elective office if the candidate’s rights of citizenship have been restored (i.e., they have completed their sentence). If a candidate fails to provide the required information in response to the felony disclosure question, the board of elections that accepted the filing will notify the candidate of the omission, at which point the candidate has 48 hours to provide the missing information. If a candidate does not provision this information at the time of filing or within 48 hours after the notice, the individual’s filing is not considered complete, the individual’s name shall not appear on the ballot as a candidate, and votes for the individual shall not be counted. The notice of candidacy is a public record in the office of the board of elections where the candidate files. 8 Candidate’s Signature & How to file the Notice of Candidacy: The candidate shall sign the notice of candidacy with his or her legal name and, in his or her discretion, any nickname by which he or she is commonly known in the form that he or she wishes it to appear upon the ballot, but substantially as follows: Richard D. (Dick) Roc. A candidate may also, in lieu of his or her legal first name and legal middle initial of middle name (if any), sign his or her nickname, provided that he or she appends to the notice of candidacy an affidavit that he or she has been commonly known by the nickname for at least five years prior to the date of making the affidavit, and notwithstanding the previous sentence, if the candidate has used his or her nickname in lieu of first and middle name names as permitted by this sentence, unless another candidate for the same office who files a notice of candidacy has the same last name, the nickname shall be printed on the ballot immediately before the candidate’s surname but shall not be enclosed by parentheses. Each candidate shall sign the notice of candidacy in the presence of the chair, secretary, or director of the county board of elections with which the candidate files, or signed and acknowledged by a notary. A notarized notice of candidacy may be mailed or delivered by commercial courier service to the county board of elections. Withdrawal of Notice of Candidacy: Any person who has filed a notice of candidacy for an office has the right to withdraw it at any time prior to the close of business on the third business day prior to the date on which the right to file for that office expires. Disqualification: When any candidate files a notice of candidacy with a board of elections, the board of elections shall, immediately upon receipt of the notice of candidacy, inspect the registration records of the county, and cancel the notice of candidacy of any person who does not meet the constitutional or statutory qualifications for the office, including residency. The board shall give notice of cancellation to any candidate whose notice of candidacy has been cancelled by mail or by having the notice served on him by the sheriff, and to any other candidate filing for the same office. 9 Candidates and their campaigns may distribute voter registration applications and conduct voter registration drives. Voter registration applications may be picked up at county boards of elections offices in quantities up to 100. Larger quantities may be requested from the State Board of Elections. Any person who conducts a voter registration drive is responsible for understanding the legal requirements and the legal penalties for failure to comply with the requirements. LEGAL REQUIREMENTS Organizers and participants should carefully follow the voter registration drive information chart of requirements and DOs and DON’Ts. RETURN VOTER REGISTRATION APPLICATIONS TO COUNTY BOARD OF ELECTIONS Voter registration applications that are collected from applicants should be delivered to the appropriate county board of elections no later than the voter registration deadline for an election. It is recommended that the applications be delivered to the board of elections within five (5) days of receipt. This will ensure that the applicant is timely registered and promptly receives his or her voter registration card. Applications received by the State Board of Elections will be routed to the proper county board of elections, but voter registration drive organizers are strongly encouraged to route completed applications directly to the applicants’ proper county board of elections. VOTER REGISTRATION DRIVES 10 ABSENTEE GUIDANCE FOR CANDIDATES 1. It is important that the candidate understand legal limits on their activity with respect to providing assistance in the absentee voting process. 2. Candidates may not take possession of a non-relative’s ballot for purposes of returning the ballot to the board of elections. Doing so is a violation of G.S. § 163-226.3(a)(5) and is a Class I felony. 3. Candidates may not act as witnesses for persons who are not near relatives. As noted in G.S. § 163-237(c), it is a criminal offense for a person to act as witness in any primary or election in which the person is a candidate for nomination or election, unless the voter is the candidate’s near relative. 4. A near relative as defined in G.S. 163-226(f) is a spouse, brother, sister, parent, grandparent, child, grandchild, mother-in law, daughter in-law, son-in-law, stepparent, or stepchild. 11 No electioneering may occur within the area immediately outside of the front entrance of a voting place. This area will be marked by signage to designate the area of the “buffer zone,” which is typically 50 feet from the front entrance but must be at least 25 feet from the front entrance. Persons may not engage in electioneering in this restricted area. If a political sign is placed in this restricted area, it will be removed. Every voting site will offer curbside voting in a designated area, to allow voters with disabilities to cast their vote in a vehicle. If curbside voting is located outside of the “buffer zone,” then electioneering restrictions will be in place to ensure the privacy of curbside voters. For more information about the area in which electioneering is restricted for a specific voting site, contact your county board of elections office. Any issue or complaint relating to a voting site should first be brought to the attention of the polling place’s chief judge (or, in the case of a One-Stop early voting site, manager of the voting site). If the issue cannot be resolved by the election official at the voting site, contact your county board of elections office. ELECTIONEERING NEAR THE FRONT ENTRANCE TO A VOTING SITE CURBSIDE VOTING ISSUES OR COMPLAINTS AT VOTING SITES 12 All election results on election night are unofficial. Election results are not made official until all relevant canvasses are completed (the county canvass for local contests and the state canvass for multicounty contests). Absentee ballots (including One-Stop absentee ballots) are counted at 5:00 PM on Election Day; in some cases, they may be counted as early as 2:00 PM. County boards of elections may not release absentee results until after the close of the polls. Absentee ballots that are timely received after election day will be counted at or prior to the county’s canvass meeting. Ballots cast on election day are counted after the close of the polls. Polls close at 7:30 PM. Provisional ballots are researched after Election Day. If the provisional voter is determined to be eligible, his or her ballot will be counted at or prior to the county’s canvass meeting. ELECTION RESULTS ABSENTEE BALLOTS ELECTION DAY BALLOTS PROVISIONAL BALLOTS 13 *The displayed forms in this section are intended for reference purposes only. To access the appropriate form, please use the hyperlinks provided below each respective form or contact your county board of elections. CANDIDACY FORMS 14 Each person seeking municipal office must file a Municipal Notice of Candidacy form with the appropriate county board of elections. The Municipal Notice of Candidacy form can be found on the State Board’s website here: Municipal Notice of Candidacy form. Additionally, you can get the form from a county board of elections office. MUNICIPAL CANDIDACY FORM 2 1 15 A candidate who answers “yes” to the felony question on the Municipal Notice of Candidacy form must use this form to disclose a felony conviction. The Felony Disclosure form can be found on the State Board’s website here: Felony Disclosure form. Additionally, you can get the form at a county board of elections office. FELONY DISCLOSURE FORM 16 The Petition Request form should be completed and submitted to the appropriate board of elections when a voter is interested in starting a petition for one of the following: Petition in lieu of filing fee or Unaffiliated candidate. The Petition Request form can be found on the State Board’s website here: Petition Request form. Additionally, you can get the form at a county board of elections office. PETITION REQUEST FORM 17 The form is utilized when a candidate would like to withdrawal their Notice of Candidacy. The Withdrawal of Notice of Candidacy form can be found on the State Board’s website here: Withdrawal of Notice of Candidacy form. Additionally, you can get the form at a county board of elections office. WITHDRAWAL OF NOTICE OF CANDIDACY 18 Relevant statutes for municipal elections: General Statute Brief Description G.S. 163-279 Time of municipal primaries and elections G.S. 163-286 Conduct of municipal and special district elections G.S. 163-289 Right to challenge; challenge procedure G.S. 163-290 Alternative methods of determining the results of municipal elections G.S. 163-291 Partisan primaries and elections G.S. 163-292 Determination of election results in cities using the plurality method G.S. 163-294 Determination of election results in cities using nonpartisan primaries G.S. 163-294.1 Death of candidates or elected officers G.S. 163-294.2 Notice of candidacy and filing fee in nonpartisan municipal elections G.S. 163-294.3 Sole candidates to be voted upon in nonpartisan municipal elections G.S. 163-294.4 Failure of candidates to file; death of a candidate before election G.S. 163-296 Nomination by petition G.S. 163-299 Ballots; municipal primaries and elections G.S. 163-301 Chairman of election board to furnish certificate of elections General Statute Links 19 CAMPAIGN FINANCE 20 The information provided in this part of the guide is relevant to candidates running in municipal elections. Candidates for municipal offices file campaign disclosure reports with their county boards of elections. The statutes relevant to candidate campaign finance are found in Article 22A and Article 22M of Chapter 163 of the North Carolina General Statutes. These statutes may be accessed at the following link: https://www.ncleg.gov/Laws/GeneralStatutes If legislative action or legal developments affect the information within this document, such changes will be noted and made available on the Campaign Finance section of the website of the State Board of Elections. CAMPAIGN FINANCE INFORMATION 21 ORGANIZING THE COMMITTEE FIRST ACTIVITY: Within 10 days of the following activities, the treasurer of a candidate committee must file an organizational report: Receiving contributions or making expenditures Filing a notice of candidacy Being certified as the nominee of a political party for a vacancy 22 *If you are a candidate eligible to file a Certification of Threshold, the Organizational Disclosure Report is not required. (See next section to determine Threshold eligibility.) FORMS REQUIRED TO SET UP THE COMMITTEE An organizational report must include the following: • CRO-2100A Statement of Organization – Candidate Committee. This form discloses basic information about the candidate, treasurer, and committee. • CRO-3500 Certification of Financial Accounts. This form discloses the bank accounts used by the candidate committee. • CRO-1100 Detailed Report Cover and CRO-1100 Detailed Summary (Organizational Disclosure Report). As part of the organizational report, the candidate committee must disclose all contributions and expenditures not previously reported. An organizational report may also include the following recommended form: • CRO-3900 Candidate Designation of Funds. This form designates how funds should be disbursed in the case of the death of the candidate. Undesignated funds must be paid to the North Carolina Escheat Fund. 23 If a municipal candidate does not intend to raise or spend more than $1,000 in the election cycle, the treasurer may file a CRO-3600 Certification of Threshold. As long as the committee remains under the threshold, the treasurer is not required to file regular disclosure reports. The organizational report for a committee under threshold consists only of CRO forms 2100A, 3500 and 3600, and the optional CRO-3900. Note: All monies raised or spent count towards the $1,000 threshold, including money that the candidate spends out of pocket, in-kind contributions, loans etc. A committee that intends to remain under the threshold for the election cycle must submit form CRO-3600 with the committee’s organizational report, which is due within ten days of organizing or filing a notice of candidacy. To remain under threshold for subsequent election cycles, the committee must file a CRO-3600 by the applicable due date in 08 NCAC 21 .0203. If a committee does not renew the certification by submitting a new CRO-3600 at the beginning of the next election cycle, the committee will be required to file disclosure reports. If the intent to stay within the threshold changes, or if the $1,000 threshold is exceeded, the treasurer must immediately notify the county board and shall be responsible for filing all future reports. Any contribution, loan or expenditure which would have been required to be reported on an earlier report must be disclosed on the next report required after the intent changes or the threshold is exceeded. G.S. § 163-278.10A. Threshold committees that wish to close after the election and are eligible under 08 NCAC 21 .0202 must submit a CRO-3400 Certification to Close Committee. A committee is not eligible to close if the committee has failed to file a report or the committee has a penalty assessed that remains unpaid within three years of the date the assessment was due. Please note that the option to file the Certification of Threshold is available ONLY to candidates seeking county or municipal offices. Candidates for legislative, judicial and statewide races are not eligible to file a Certification of Threshold. CERTIFICATION OF THRESHOLD 24 Treasurer training is a mandatory course that provides instruction on campaign finance disclosure filing and compliance. The training is conducted in group sessions at the State Board of Elections and at regional locations at various times during the year (in-person sessions are currently being conducted via webinar). Training is also available online. Visit our website at www.ncsbe.gov/Campaign-Finance/training for details. All treasurers MUST complete treasurer training within three months of appointment and once every four years, regardless of the amount of money that is raised or spent. Treasurers for candidates that are eligible to file the Certification of Threshold must also complete the required training. A schedule of upcoming training sessions is available at the end of this document and on the NCSBE website www.ncsbe.gov/Campaign-Finance/training. TREASURER TRAINING 25 ARE ALL CANDIDATES REQUIRED TO FILE DISCLOSURE REPORTS? Most candidates are required to file disclosure reports. Only candidates for county or municipal offices that do not intend to raise or spend more than $1,000 are eligible to file a Certification of Threshold and thus be exempt from filing disclosure reports. While eligible candidates that file a Certification of Threshold are not required to file reports, all information pertaining to contributions and expenditures are required to be accurately maintained in the committee’s records. This includes records of the candidate’s personal spending on behalf of the campaign. WHEN ARE DISCLOSURE REPORTS FILED? The reports that must be filed in a municipal election vary depending on the jurisdiction. An overview of the schedules can be found in G.S. 163-278.40B, 40C, 40D and 40E. If you are unclear on how your city election is conducted, please contact your county board of elections. The county board of elections will provide notice before each report is due to the treasurer disclosed on the most recent CRO-2100A Statement of Organization – Candidate Committee. The committee may also choose to have the candidate, any assistant treasurer, or custodian of books receive notices as well by checking the applicable box on the Statement of Organization. If a treasurer prefers to receive notices by email, he or she must check the applicable box on the Statement of Organization. A treasurer that does not make the selection on the Statement of Organization will not receive notices by U.S. Mail, not email. The reporting schedule for the 2022 municipal disclosure reports can be found at the following link: www.ncsbe.gov/Campaign-Finance/reporting-schedules. If you are unsure which schedule applies to your election, please contact your county board of elections. TREASURER TRAINING 26 All disclosure reports must include the Disclosure Report Cover form (CRO-1000), the Detailed Summary form (CRO 1100), and details for all contributions and expenditures occurring within the reporting period. The Disclosure Report Cover is essential for showing the start and end dates of the transactions included, the type of report being submitted, and for providing a signature that attests to the truth of the report. A candidate/treasurer who signs a report must have completed the required training (unless the report is filed within the 90-day training grace period). The Detailed Summary form is also required even if there has been no financial activity, in which case zeroes should be entered on the appropriate lines. However, if contributions have been received or expenditures made or debts incurred, then additional forms containing those transactions must be included with the report. A helpful hint to remember when completing disclosure reports using the paper forms is that the Detailed Summary form (CRO-1100) serves as a form guide as well as a summary of activity. The treasurer should refer to the transactions described on this form to determine which other forms, if any, are required to accompany the report. The required form for each transaction is noted on the same line as the transaction description. This process is simpler for persons who use State Board software because the software generates the appropriate form for each transaction. WHAT IS INCLUDED IN A DISCLOSURE REPORT? 27 Any committee may file disclosure reports electronically. Municipal candidates who have a cumulative total of more than $10,000 in contributions, in expenditures, or in loans in an election cycle must file reports electronically. G.S. § 163-278.9(i). A software manual, step-by-step instructions and new software instruction videos are available on our website: http://www.ncsbe.gov/Campaign-Finance/reporting-software. The Campaign Finance Reporting Forms can be found on the website at: http://www.ncsbe.gov/Campaign-Finance/reporting-forms. All other committees may file on paper forms. METHODS AVAILABLE FOR FILING DISCLOSURE REPORTS 28 Committees will be assessed civil penalties for reports that are not received or postmarked with the report due date. A candidate committee report that does not affect a statewide election is penalized at a rate of $50 per day up to a maximum of $500. G.S. § 163-278.34(a). A candidate committee report that affects a statewide election is penalized at a rate of $250 per day up to a maximum of $10,000. A report affects a statewide election if the committee made any contributions to or in support of a statewide candidate. A committee’s active status may be terminated for failure to file reports. . 08 NCAC 21 .0201. Once the committee’s active status is terminated, the committee is not eligible to receive contributions or make expenditures. PENALTIES FOR FILING DISCLOSURE REPORTS LATE 29 i. Forms can be typewritten or completed in blue or black ink (handwritten reports must not be completed in pencil). ii. Forms need not be stapled together. iii. Reports cannot be filed prior to the end of the reporting period. iv. Always enter the period start date and period end date on form CRO-1000. v. A DATE and ORIGINAL signature are required on the Disclosure Report Cover (CRO-1000). WHEN SUBMITTING PAPERWORK...REMEMBER 30 Effective Jan. 1, 2021, no individual or political committee shall contribute in excess of $5,600 to a candidate committee in any election. G.S. § 163-278.13. A candidate or candidate’s spouse may contribute unlimited amounts. A candidate committee may not accept any contribution made by a corporation, business entity, labor union, professional association or insurance company. G.S. § 163-278.15. Do not “pass the hat” or collect any contributions, however small the amount, without recording the contributor’s name and contact information. Do not accept cash from a contributor in excess of $50. Do not accept a contribution, including an “in-kind” contribution, from a business, corporation, professional association, labor union or insurance company. A person who purchases something from a candidate has made a contribution to that candidate’s committee. All such contributions, however small, must be disclosed. Volunteers raising contributions on behalf of the committee must turn those over to the treasurer within seven days of receipt so that the records are current, as required by State law. Do not accept blank checks. The contributor must indicate the intended recipient on the payee line of the check. WHAT IS THE LAW REGARDING CONTRIBUTIONS? 31 Candidate committees may only make expenditures as permitted by G.S. 163-278.16B. A candidate or candidate committee may use contributions only for the following purposes: i. Expenditures resulting from the candidate’s campaign for public office. ii. Expenditures resulting from holding public office. iii. Donations to an organization described in Section 170(c) of the Internal Revenue Code of 1986 (26 U.S.C. § 170(c)), provided that the candidate or the candidate’s spouse, children, parents, brothers, or sisters are not employed by the organization. iv. Contributions to a national, State, district or county committee of a political party or a caucus of the political party or an affiliated party committee. v. Contributions to another candidate or candidate’s campaign committee. vi. To return all or a portion of a contribution to the contributor. vii. Payment of any penalties against the candidate or candidate’s campaign committee for violation of North Carolina’s Campaign Finance Laws. viii. Payment to the Escheat Fund established by Chapter 116B of the General Statutes. ix. Legal expense donation not in excess of four thousand dollars ($4,000) per calendar year to a legal expense fund established pursuant to Article 22Mof Chapter 163 of the General Statutes. b. If the candidate committee is required to file disclosure reports, all expenditures must be reported. c. Any expenditure that is made for media purposes must be paid for by check or other verifiable form of payment. d. All expenditures of more than $50 must be made with a verifiable form of payment. e. Expenditures for non-media purposes that are less than $50 may be reported without disclosing the payee. The report must still disclose the form of payment, date, amount, purpose and account code for the account from which the expenditure was made. WHAT IS THE LAW REGARDING EXPENDITURES? 32 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. G.S. § 163-278.39. • Please note, there is a specific exception in G.S. § 163-278.39C for advertisements sponsored by individuals who make independent expenditures of less than $1,000 in a political campaign. The disclosure legend is only required for print media, radio, and television advertisements. North Carolina does not currently require disclosures on internet or social media advertisements. Defined in G.S. § 163-278.38Z(7), print media includes: • Billboards (see definition in 08 NCAC 21 .0501) • Cards • Newspapers • Newspaper Inserts • Magazines • Mass Mailings • Pamphlets • Fliers • Periodicals • Outdoor Advertising Facilities Effective December 1, 2021, a billboard is any sign, flat surface, or other display greater than 50 square feet. 08 NCAC 21 .0501. Yard signs, posters, and magnetic signs with a print area of equal to or less than 50 square feet do not require a disclosure legend. 08 NCAC 21 .0501 also clarifies that flags and banners are not billboards. Contents of the Disclosure Legend • The sponsor of the advertisement must be disclosed. The sponsor is the candidate, political committee, referendum committee, individual, or other entity that purchased the advertisement. G.S. § 163-278.38Z(10). 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].” G.S. § 163-278.39(a)(1). • If sponsored by a political committee or referendum committee, the name in the “Paid for by ___” statement shall be the same name that appears on the committee’s Statement of Organization. G.S. § 163-278.39(a)(2). • If an advertisement is jointly sponsored, the disclosure legend shall name all sponsors. Basic Disclosure Requirements for Print, Radio and Television Advertisements 33 • If the print media advertisement supports or opposes one or more clearly identified candidates, the advertisement shall disclose whether the advertisement was authorized by any candidate. The disclosure legend shall state either "Authorized by [name of candidate], candidate for [name of office]" or "Not authorized by a candidate." An “Authorized by” statement is not required if the advertisement is sponsored by the candidate or candidate committee. G.S. § 163-278.39(a)(3). • If the print media advertisement identifies a candidate the sponsor is opposing, the advertisement shall name the candidate who is intended to benefit from the advertisement. This subdivision applies only when the sponsor coordinates or consults about the advertisement or the expenditure for it with the candidate who is intended to benefit. G.S. § 163-278.39(a)(4). Sample Disclosure Legend for a PAC: Paid for by Citizens for John Smith. Authorized by John Smith, candidate for City Council. Size Requirements for Print Media Advertisements. G.S. § 163-278.39(b). • The height of the disclosure legend shall be at least five percent (5%) of the height of the printed space of the advertisement, however, the type shall be no less than 12-point font. • In an advertisement in a newspaper or a newspaper insert, the disclosure legend may be less than five percent (5%) of the height of the advertisement so long as the type is no less than 28-point font. • If a single advertisement consists of multiple pages, folds, or faces, the disclosure legend only needs to appear on one page, fold or face. Size Requirements for Television Advertisements. G.S. § 163-278.39(b). • The visual disclosure legend shall constitute four percent (4%) of the vertical picture height. • Where the television advertisement is paid for by a candidate or candidate committee, the visual disclosure legend shall appear simultaneously with an easily identifiable photograph of the candidate for at least two seconds. Radio Advertisements. G.S. § 163-278.39(b). • In a radio advertisement, the disclosure statement shall last at least two seconds. The statement shall be spoken so that its contents may be easily understood. 34 For NC Candidate, Party and Referendum Committee Treasurers Training is required once every four years for all NC Treasurers including those under the $1,000 threshold. A schedule of all regional training dates, times and locations is included with the candidate packet and is also available online at https://www.ncsbe.gov/Campaign-Finance/training Complete instructions for registering and accessing the training website are included on the next page. The following are helpful tips to remember when attempting to register or complete the training. The system may not immediately provide you with a listing of session dates to select from. If this happens, log-out and wait 24-72 hours to log-in, the dates should appear. The online course currently does NOT contain audio. Attendees arriving more than 15 minutes after the session begins may not receive credit & will need to re- schedule. The SBE reserves the right to cancel any session due to low registration, whether or other unforeseen reasons. Only attendees that pre-register will be notified of any possible cancellation. To register for a Software Training in Raleigh or via phone: Email your request to: campaign.reporting@ncsbe.gov - one of our trainers will contact you to schedule a session. PAC’s and IE Committees should visit www.ncsbe.gov/Campaign-Finance/training for their specialized schedule. MANDATORY COMPLIANCE TRAINING 35 To register for and complete NCSBE Campaign Finance Mandatory Compliance Training (online or in-person), follow these steps: 1. After reading through the instructions below, click on the link from the SBE Website to access the training registration page (North Carolina Learning Center website https://ncgov.csod.com). New account users must wait 24–72 hours before all training opportunities will be available for registration. 2. To create a new account, click on the link next to the word “Register” on the North Carolina Learning Center website. 3. Complete all *required fields: First/Last Name, Email Address, Phone, User ID (recommended User ID is email address), EE Code (CF-Elections), Category (Associated State Agency), Association (Elections) and Password (password requirements: upper & lowercase letters, alpha and numeric characters, must be 8- 20 characters, cannot have leading or trailing spaces and cannot be the same as Username, User ID or email address). Click “login”. 4. From the Welcome page, search for training in the upper right corner. Enter the word “Campaign” and click the magnifying glass symbol. 5. You should see multiple training options in your list. Click on the training title of your preference (NCSBE Campaign Finance Mandatory Compliance Training), either the classroom or online session. The classroom session has a calendar symbol in red. The online session has a computer screen icon. 6. If a classroom session is selected, you will be taken to the next screen to REQUEST the session you would- like to attend. The system may not immediately provide you with a list of session dates to select from. If this happens, you will need to log out and wait 24-72 hours to log in, the dates will then be available. 7. You will be prompted to complete a short form for reporting purposes. Full Name, Phone Number, Address and Email Address are required fields. You will also be asked for Committee or Candidate Name and County. These should be completed if applicable. Click “SUBMIT.” 8. If online training is selected, you will be taken to the next screen. Select “REQUEST.” Then select “REGISTER.” The system will process your registration.) Then select “LAUNCH.” The course will proceed to load in a new window. There is currently no audio for the online training. (If you are unable to open the training website, it may be because you have a pop-up blocker for security reasons on your computer. You may need to configure your pop-up blocker to allow access to the training website.) 9. If you need to return to the course or after you have completed it (either online or in-person) you will use the User ID and password that you created to log back in to view and print your certificate from the transcript page. INSTRUCTIONS TO REGISTER TO TAKE CF MANDATORY COMPLIANCE TRAINING 36 Any committee that raises or spends in excess of $10,000.00 in an election cycle must file reports electronically. Any committee that does not exceed the $10,000.00 threshold will not be required to file reports electronically but may choose to do so. All committees that file electronic reports must comply with Rule 08 NCAC 21 .0106 in filing their reports. The software performs calculations for you thereby making your reports more accurate and less time consuming for the user. In addition, the software maintains a database of all contributors and payees which also saves time by eliminating the need to enter repetitive information. The Campaign Finance Remote Software (CFRS) is available on the State Board of Elections website at www.ncsbe.gov/Campaign-Finance/reporting-software. The software is available for download. There are also short instructional videos, a manual and help topics that will get you started. A treasurer may use third-party software only if that software can generate reports that are capable of import into the State Board’s central database. The import file formals and a validation tool to assist in verifying the format of import files are available on the NCSBE website. The Reporting software is a stand-alone application built for the Windows operating system; there is no support for setting up the application to run over a network. The following Windows operating platforms are supported, but the software will operate on various Windows operating platforms (including Windows 10): ▪ Windows XP SP3 ▪ Windows 7 32bit You can start at any time but it’s easier to start at the beginning of a committee or the beginning of an election cycle so that your election totals are correct. MANDATORY ELECTRONIC FILINGFREQUENTLY ASKED QUESTIONS 1. I am expecting to have very little activity for my election. Do I still need to file my reports electronically? 2. What are the benefits of filing electronically? 3. How do I obtain the reporting software? 4. I have a really old pc (dial-up, tablet, Mac), will this software work on my device? 5. When is the best time to start using the software? 37 No. Once a committee exceeds the $10,000 threshold the committee must simply start filing reports consist with 08 NCAC 21 .0106. No. A pdf is not the correct format for electronic filing. Reports generated by the State Board software or third-party software must be filed by e-mailing the generated .cfd file to campaign.reproting@ncsbe.gov. Currently we do not have internal software that county boards of elections can use to receive electronic reports. All electronic reports are received by the State Board of Elections and made available on the NCSBE website. For each correctly filed report, State Board staff will send an e-mail confirming receipt. All electronic reports will be available on the NCSBE website. Reports received and processed are typically posted online the following business day. Please note, daily volume may extend this timeline. Modernization efforts are underway, however, new software will not be available for this municipal election cycle. Yes. 08 NCAC 21 .0106 requires that municipal candidate committee treasurers sign and file a CRO-1000 Disclosure Report Cover with the county board of elections for each report filed. Unfortunately, the software is a stand-alone application which cannot easily be shared between users. Downloading the software to a laptop which can be shared between users is what we would recommend. 6. Is there a form that I need to file with the BOE indicating that I am planning to exceed $10,000? 7. Can I create a pdf file and email that in as my electronic filing? 8. Why am I emailing my electronic reports to the State? I am a municipal/county candidate. 9. How can I determine that my electronic report was received? 10. I heard that the state was working on web based software. Is that available? 11. Do I still need to file a signed cover page manually if I have filed an electronic report? 12. We are planning to have three very large fundraisers. Will I be able to assist my treasurer With data entry duties using this software? 38 The committee will have failed to file the required report and will receive a Notice of Noncompliance pursuant to 08 NCAC 21 .0201. Software training is provided at the NCSBE office, on a one to one basis. If enough interest is generated, we may be able to offer software training workshops. There are currently no plans to offer regional software training. There are short instructional videos, a manual and help topics that will get you started on the software page of the NCSBE website. https://www.ncsbe.gov/campaign-finance/campaign- finance-reporting-software. Register your interest in software training by emailing campaign.reporting@ncsbe.gov. You can also use this email address if you have any related questions. You should call or email your questions to NCSBE at 919-814-0700 or campaign.reporting@ncsbe.gov. 13. What happens if a committee exceeds $10,000.00 and doesn’t file their reports electronically? 14. If I want to receive training for the software, how do I register my interest? 15. If I have questions about how to use the software, who should I ask?