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North Carolina > Elections And Election Laws > Regulation of Election Campaigns - Corrupt Practices and Other Offenses Against the Elective Franchise (§ § 163-259 through 163-278.329) Article 22M. Legal Expense Funds (§ § 163-278.300 through 163-278.329)

§ 163-278.3. Definitions.

Overview of Statute

The statute defines the terms used in regard to legal action and legal funding for suits against or by elected officials.

Statute

As used in this Article, the following terms mean:

(1) Reserved

(2) Elected officer. – Any individual serving in or seeking a public office. An individual is seeking a public office when that individual has filed any notice, petition, or other document required by law or local act as a condition of election to public office. An individual continues to be an elected officer for purposes of this Article as long as a legal action commenced while the individual was an elected officer continues. If a legal action is commenced after an individual ceases to serve in or seek public office but the legal action concerns subject matter in the individual’s official capacity as an elected officer, for purposes of this Article, that individual is an elected officer as long as that legal action continues.

(3) Expenditure. – An expenditure means any purchase, advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift, pledge, subscription of money, anything of value whatsoever, and any contract, agreement, promise, or other obligation to make an expenditure, by a legal defense fund for a permitted use as provided in G.S. 163A-1570. An expenditure forgiven by a person or entity to whom it is owed shall be reported as a legal expense donation.

(4) Legal action. – A formal dispute in a judicial, legislative, or administrative forum, including but not limited to, a civil or criminal action filed in a court, a complaint or protest filed with a board of elections, an election contest filed under Article 3 of Chapter 120 of the General Statutes or G.S. 163A-1182, or a complaint filed with the State Board or Legislative Ethics Committee. The term “legal action” also includes investigations made or conducted before the commencement of any formal proceedings. The term “legal action” does not include the election itself or the campaign for election.

(5) Legal expense donation. – A legal expense donation means any advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift, subscription of money, or anything of value whatsoever, and any contract, agreement, or other obligation to make a contribution to a legal expense fund for a permitted use as provided in G.S. 163A-1570. The term “legal expense donation” does not include either of the following:

a. The provision of legal services to an elected officer by the State or any of its political subdivisions when those services are authorized or required by law, or

b. The provision of free or pro bono legal advice or legal services, provided that any costs incurred or expenses advanced for which clients are liable under other provisions of law shall be deemed legal expense donations.

(6) Legal expense fund. – Any collection of money for the purpose of funding a legal action, or a potential legal action, taken by or against an elected officer in that elected officer’s official capacity.

(7) Official capacity. – Related to or resulting from the campaign for public office or related to or resulting from holding public office. “Official capacity” is not limited to “scope and course of employment” as used in G.S. 143-300.3.

(8) Public office. – As defined in G.S. 163A-1411.

(9) Treasurer. – An individual appointed by an elected officer or other individual or group of individuals collecting money for a legal expense fund.

(2007-349, s. 1; 2009-534, s. 2(a); 2017-6, s. 3.)

Definition [expenditure]

The terms “expend” or “expenditure” mean any purchase, advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift, pledge or subscription of money or anything of value whatsoever, whether or not made in an election year, and any contract, agreement, or other obligation to make an expenditure, to support or oppose the nomination, election, or passage of one or more clearly identified candidates, or ballot measure. An expenditure forgiven by a person or entity to whom it is owed shall be reported as a contribution from that person or entity. Supporting or opposing the election of clearly identified candidates includes supporting or opposing the candidates of a clearly identified political party. The term “expenditure” also includes any payment or other transfer made by a candidate, political committee, or referendum committee.

§ 163A-1411 (51). Definitions.

Definition [Expenditure]

Expenditure. – An expenditure means any purchase, advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift,pledge, subscription of money, anything of value whatsoever, and any contract, agreement, promise, or other obligation to make an expenditure, by a legal defense fund for a permitted use as provided in G.S. 163A-1570. An expenditure forgiven by a person or entity to whom it is owed shall be reported as a legal expense donation.

§ 163A-1550 (3). Definitions.

Definition [contribution]

The terms “contribute” or “contribution” mean any advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift, pledge or subscription of money or anything of value whatsoever, made to, or in coordination with, a candidate to support or oppose the nomination or election of one or more clearly identified candidates, to a political committee, to a political party, to an affiliated party committee, or to a referendum committee, whether or not made in an election year, and any contract, agreement, or other obligation to make a contribution. An expenditure forgiven by a person or entity to whom it is owed shall be reported as a contribution from that person or entity. These terms include, without limitation, such contributions as labor or personal services, postage, publication of campaign literature or materials, in-kind transfers, loans or use of any supplies, office machinery, vehicles, aircraft, office space, or similar or related services, goods, or personal or real property. These terms also include, without limitation, the proceeds of sale of services, campaign literature and materials, wearing apparel, tickets or admission prices to campaign events such as rallies or dinners, and the proceeds of sale of any campaign-related services or goods. Notwithstanding the foregoing meanings of “contribution,” the word shall not be construed to include services provided without compensation by individuals volunteering a portion or all of their time on behalf of a candidate, political committee, or referendum committee. The term “contribution” does not include an “independent expenditure.” If:

a. Any individual, person, committee, association, or any other organization or group of individuals, including but not limited to, a political organization (as defined in section 527(e)(1) of the Internal Revenue Code of 1986) makes, or contracts to make, any disbursement for any electioneering communication, as defined in this section; and

b. That disbursement is coordinated with a candidate, an authorized political committee of that candidate, a State or local political party or committee of that party, an affiliated party committee, or an agent or official of any such candidate, party, or committee that disbursement or contracting shall be treated as a contribution to the candidate supported by the electioneering communication or that candidate’s party and as an expenditure by that candidate or that candidate’s party.

 

§ 163A-1411 (13). Definitions.

 

 

 

 

Definition [public office]

The term “public office” means any office filled by election by the people on a statewide, county, municipal or district basis, and this Article shall be applicable to such elective offices whether the election therefor is partisan or nonpartisan.

§ 163A-1411 (80). Definitions.

Definition [Legal action.]

Legal action. – A formal dispute in a judicial, legislative, or administrative forum, including but not limited to, a civil or criminal action filed in a court, a complaint or protest filed with a board of elections, an election contest filed under Article 3 of Chapter 120 of the General Statutes or G.S. 163A-1182, or a complaint filed with the State Board or Legislative Ethics Committee. The term “legal action” also includes investigations made or conducted before the commencement of any formal proceedings. The term “legal action” does not include the electionitself or the campaign for election.

 

§ 163A-1550 (4). Definitions.

Definition [Elected officer]

Elected officer. – Any individual serving in or seeking a public office. An individual is seeking a public office when that individual has filed any notice, petition, or other document required by law or local act as a condition of election to public office. An individual continues to be an elected officer for purposes of this Article as long as a legal action commenced while the individual was an elected officer continues. If a legal action is commenced after an individual ceases to serve in or seek public office but the legal action concerns subject matter in the individual’s official capacity as an elected officer, for purposes of this Article, that individual is an elected officer as long as that legal action continues.

§ 163A-1550 (2). Definitions.

Definition [Official capacity]

Official capacity. – Related to or resulting from the campaign for public office or related to or resulting from holding public office. “Official capacity” is not limited to “scope and course of employment” as used in G.S. 143-300.3.

§ 163A-1550 (7). Definitions.

Definition [Legal expense donation]

Legal expense donation. – A legal expense donation means any advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift, subscription of money, or anything of value whatsoever, and any contract, agreement, or other obligation to make a contribution to a legal expense fund for a permitted use as provided in G.S. 163A-1570. The term “legal expense donation” does not include either of the following:

a. The provision of legal services to an elected officer by the State or any of its political subdivisions when those services are authorized or required by law, or

b. The provision of free or pro bono legal advice or legal services, provided that any costs incurred or expenses advanced for which clients are liable under other provisions of law shall be deemed legal expense donations.

§ 163A-1550 (5). Definitions.

Definition [Gift]

Gift. – Anything of monetary value given or received without valuable
consideration by or from a lobbyist, lobbyist principal, liaison personnel, or a
person described under G.S. 163A-212(d)(1), (2), or (3). The following shall
not be considered gifts under this subdivision:
a. Anything for which fair market value, or face value if shown, is paid
by the covered person or legislative employee.
b. Commercially available loans made on terms not more favorable than
generally available to the general public in the normal course of
business if not made for lobbying.
c. Contractual arrangements or commercial relationships or arrangements
made in the normal course of business if not made for lobbying.
d. Academic or athletic scholarships based on the same criteria as applied
to the public.
e. Anything of value properly reported as required under Article 23 of
this Chapter.
f. Expressions of condolence related to a death of an individual, sent
within a reasonable time of the death, if the expression is one of the
following:
1. A sympathy card, letter, or note.
2. Flowers.
3. Food or beverages for immediate consumption.
4. Donations to a religious organization, charity, the State or a
political subdivision of the State, not to exceed a total of two
hundred dollars ($200.00) per death per donor.

§ 163A-152 (32). Definitions.

Definition [board]

The term “board” means the State Board with respect to all candidates for State, legislative, and judicial offices and the county board of elections with respect to all candidates for county and municipal offices. The term means the State Board with respect to all statewide referenda and the county board of elections conducting all local referenda.

§ 163A-1411 (3). Definitions.

 

 

 

 

Definition [Board]

Board. – Any State board, commission, council, committee, task force,
authority, or similar public body, however denominated, created by statute or
executive order, as determined and designated by the State Board, except for
those public bodies that have only advisory authority.

§ 163A-152 (3). Definitions

Definition [State]

“State” means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

§ 163A-1336 (5). Definitions.

Definition [expend]

The terms “expend” or “expenditure” mean any purchase, advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift, pledge or subscription of money or anything of value whatsoever, whether or not made in an election year, and any contract, agreement, or other obligation to make an expenditure, to support or oppose the nomination, election, or passage of one or more clearly identified candidates, or ballot measure. An expenditure forgiven by a person or entity to whom it is owed shall be reported as a contribution from that person or entity. Supporting or opposing the election of clearly identified candidates includes supporting or opposing the candidates of a clearly identified political party. The term “expenditure” also includes any payment or other transfer made by a candidate, political committee, or referendum committee.

§ 163A-1411 (51). Definitions.

Definition [person]

The term “person” means any business entity, corporation, insurance company, labor union, or professional association.

§ 163A-1411 (72). Definitions.

Definition [Office]

(4) Office. – The elected office for which the candidate has filed or petitioned.
(2006-155, s. 1; 2006-259, s. 48(a); 2017-6, s. 3.)

§ 163A-1025 (4). Definitions.

Definition [Protest]

“Protest” means a complaint concerning the conduct of an election which, if
supported by sufficient evidence, may require remedy by one or more of the following:

a. A correction in the returns.

b. A discretionary recount as provided in G.S. 163A-1174.

c. A new election as provided in G.S. 163A-1181. (2001-398, s. 3; 2010-96, ss. 19, 35; 2017-6, s. 3.)

§ 163A-1165 (4). Definitions.

Definition [Payment]

Payment. – Any money, thing of value, or economic benefit conveyed to the
lobbyist for lobbying, other than reimbursement of actual travel,
administrative expenses, or subsistence.

§ 163A-250 (32). Definitions

Definition [election]

The term “election” means any general or special election, a first or second primary, a run-off election, or an election to fill a vacancy. The term “election” shall not include any local or statewide referendum.

§ 163A-1411 (30). Definitions.

Definition [Election]

“Election” means the event in which voters cast votes in ballot items concerning proposals or candidates for office in this State or the United States. The term includes primaries, general elections, referenda, and special elections.

§ 163A-1095 (4). Definition

Definition [Contract]

Contract. – Any agreement, including sales and conveyances of real and
personal property, and agreements for the performance of services.

§ 163A-152 (19). Definitions.

Definition [treasurer]

The term “treasurer” means an individual appointed by a candidate, political committee, or referendum committee as provided in G.S. 163A-1412 or G.S. 163A-1496. (1973, c. 1272, s. 1; 1975, c. 798, ss. 5, 6; 1979, c. 500, s. 1; c. 1073, ss. 1-3, 19, 20; 1981, c. 837, s. 1; 1983, c. 331, s. 6; 1985, c. 352, ss. 1-3; 1997-515, ss. 4(a)-(c), 7(b)-(d); 1999-31, ss. 1(a), (b), 2(a)-(c), 3, 4(a); 1999-424, s. 6(a), (b); 2002-159, s. 55(n); 2003-278, s. 5; 2004-125, s. 3; 2004-127, s. 15; 2004-203, s. 12(b); 2005-430, s. 10; 2006-264, s. 23; 2007-391, s. 3; 2008-150, s. 6(a); 2008-187, s. 33(a); 2009-534, ss. 1, 3(a), (b); 2010-170, s. 1; 2011-31, s. 20; 2013-381, s. 50.1; 2015-66, s. 8(a); 2015-258, ss. 3(b), (b1); 2015-264, ss. 81(c), (d); 2017-6, s. 3.)

§ 163A-1411 (95). Definitions.

Definition [Committee]

Committee. – The Legislative Ethics Committee as created in Part 3 of Article
14 of Chapter 120 of the General Statutes.

§ 163A-152 (11). Definitions.