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Bill Summary · SB 1086

Overview

SB 1086 (Session 2025, North Carolina) seeks to enhance disclosure in campaign finance by requiring the identification of the original source of funds for reported donations. The bill applies to political committees and filers subject to campaign finance reporting, with certain monetary thresholds for exemption. It defines “original source” and obligates donors and recipients to share information about intermediaries and prior transfers of funds.

Purpose and Intent

  • Increase transparency in campaign contributions by tracing funds back to their original sources.
  • Require disclosure of the identity of the original source, the amounts of the original funds, and any intermediaries through which funds were transferred before contributing to the filer.
  • Target political committees and reports governed by NC campaign finance law, with an exemption for smaller donors/entities.

Key Provisions

  • Creation of new disclosure requirements (Sections 1 and 2) for:
    • G.S. 163-278.12 (filing/receipts by individuals or committees under reporting subsection).
    • G.S. 163-278.12C (filing/receipts by committees under certain reporting subsections).
  • Disclosure obligations include:
    • Identity of the original source of funds.
    • Amounts of the original funds.
    • Identity of any intermediaries who transferred funds before they reached the filer.
  • Definition of “original source”:
    • An individual contributing wages, investment income, or bequests.
    • A person contributing money received through ordinary commercial transactions.
  • Administrative thresholds and exemptions:
    • Excludes political committees that do not receive more than $6,800 per election from the enhanced disclosure requirements (or the amount set by G.S. 163-278.13).
    • The same threshold applies to both sections added (12(h) and 12C(e)).
  • Duty on donors and intermediaries:
    • Donors and entities contributing to an applicable filer must inform the recipient of the identity and amounts of the original funds and prior transferors.
  • Effective date:
    • The act becomes law upon passage and applies to donations made on or after that date.

Who Is Affected

  • Political committees and other filers required to report donations under NC campaign finance laws (as defined by existing sections 163-278.12 and 163-278.12C).
  • Donors who donate to such filers, especially those contributing amounts approaching or exceeding the $6,800 threshold.
  • Intermediaries who transfer funds before they reach the filer (e.g., intermediaries in the chain of custody for political contributions).

Procedural and Timeline Aspects

  • Effective date is the date the act becomes law; the disclosure requirements apply to donations made on or after that date.
  • The bill adds new reporting subsections (h) to 163-278.12 and (e) to 163-278.12C, expanding the information that must be disclosed in campaign finance reports.

Practical Implications

  • Greater visibility into the origins of campaign funds, enabling better tracing of donors to original sources.
  • Increased reporting burden on filers and donors (and intermediaries) to provide and verify information about original sources and prior transfers.
  • Potential impact on entities seeking to limit transparency or obfuscate fund origins, given the new disclosure obligations.

If you’d like, I can provide a quick comparison to current NC campaign finance disclosure rules or outline potential compliance steps for filers and donors.

Compiled from official sources — confirm details with the bill’s official record.

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