NORTH CAROLINA GENERAL ASSEMBLY
1979 SESSION

CHAPTER 926
HOUSE BILL 566

AN ACT TO PROVIDE FOR AN AUDIT OF TAX FUNDS USED FOR POLITICAL PURPOSES.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 163-278.43 is hereby amended by adding the following:
"(c)	On or before the 15th of January of each calendar year or as soon thereafter as practical the Legislative Services Commission shall appoint an independent auditor or auditors and such auditor or auditors shall immediately conduct an audit of the financial records of the receipts, expenditures and disbursements through each political party to the treasurer of each candidate or political committee receiving any of the above-mentioned funds during the previous calendar year; a copy of such audit shall be forwarded promptly to the Executive Secretary of the State Board of Elections and to the Legislative Services Commission; any discrepancies as shown by the audit shall be acted upon by the Executive Secretary of the State Board of Elections in the manner set forth in subsection (b) above.
(d)	The cost of the audit of each political party, candidate, or political committee shall be paid from the funds held by the State Treasurer for disbursement to that party, candidate or committee. The Legislative Services Commission shall determine and notify the State Treasurer of a fixed fee or maximum fee to be allowed for each such audit, and the State Treasurer shall withhold from the funds to be disbursed to each party, candidate or committee a sum necessary to pay the cost of the audit of that party, candidate or committee. If the amount withheld exceeds the actual cost of the audit, the Treasurer shall, after paying the costs of the audit, remit the balance to the party, candidate or committee from which it was withheld. If the designated cost of an audit exceeds the funds held by the Treasurer for disbursement to the party, candidate or committee to be audited, the chairman of the party, or the treasurer of the candidate or committee may decline to accept the funds, in which event the funds shall be transferred to the General Fund of the State, and no audit shall be required of those funds under this section. The Legislative Services Commission shall adopt and promulgate rules to implement the provisions of subsections (c) and (d) of this section. The Legislative Services Commission shall ensure that the auditing procedures shall be uniform and standardized."
Sec. 2.  This act shall be effective to provide an audit of such funds beginning with the calendar year 1979.
In the General Assembly read three times and ratified, this the 8th day of June, 1979.