Title 30 NCAC — State Ethics Commission

Chapter 01 General

30 NCAC 01 .0101 Scope {#sec-30-ncac-01-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 01 .0101}

The rules in this Title implement the authority granted to the State Ethics Commission ("Commission") pursuant to Chapter 138A, State Government Ethics Act, and Chapter 120C, Lobbying, of the North Carolina General Statutes.

History

• Authority G.S. 120C-101(a); 138A-10(a)(2); 138A-10(a)(10)
• Eff. January 1, 2011.

30 NCAC 01 .0102 Location and Contact Information {#sec-30-ncac-01-.0102 omnilex-key=us-nc-regs-official--title-30--30 NCAC 01 .0102}

The State Ethics Commission is located at 424 N. Blount St., Raleigh, NC 27601-1010. The mailing address is 1324 Mail Service Center, Raleigh, NC 27699-1324. The Commission's telephone number is (919) 715-2071. The Commission's e-mail address is ethics.commission@doa.nc.gov. Any change of address or telephone number will be published on the Commission's website.

History

• Authority G.S. 138A-9; 138A-10(a)(2); 138A-10(a)(10)
• Eff. January 1, 2011.

30 NCAC 01 .0103 Office Hours {#sec-30-ncac-01-.0103 omnilex-key=us-nc-regs-official--title-30--30 NCAC 01 .0103}

The State Ethics Commission office shall be staffed from 9:00 a.m. until 5:00 p.m., Monday through Friday. The Commission follows the State Government Holiday Schedule. Any change of office hours will be published on the Commission's website.

History

• Authority G.S. 138A-9; 138A-10(a)(2); 138A-10(a)(10)
• Eff. January 1, 2011.

30 NCAC 01 .0104 Calculation of Time Periods {#sec-30-ncac-01-.0104 omnilex-key=us-nc-regs-official--title-30--30 NCAC 01 .0104}

In computing any period of time prescribed or allowed by the rules in this Title, or by any applicable statute, G.S. 1A-1, Rule 6, applies, including all subsequent editions and amendments.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(10)
• Eff. January 1, 2011.

30 NCAC 01 .0105 Public Record Requests {#sec-30-ncac-01-.0105 omnilex-key=us-nc-regs-official--title-30--30 NCAC 01 .0105}

(a) There is no charge for copies of public records of 20 pages or less. For more than 20 pages, the fee is ten cents ($.10) per page.

(b) For information contained on a compact disc ("CD"), the charge is two dollars ($2.00) per compact disc.

History

• Authority G.S. 132-6(a); 138A-10(a)(2); 138A-10(a)(10)
• Eff. January 1, 2011.

Chapter 02 Covered Persons and Boards

30 NCAC 02 .0101 Non-Advisory Boards {#sec-30-ncac-02-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 02 .0101}

A board as defined in G.S. 138A-3(1c) that is authorized to perform any of the following functions shall be deemed a non-advisory board:

(1) Allocate, spend, award, or invest public money where the expenditures do not relate solely to the internal operations of the boards;

(2) Issue, renew, deny, revoke or suspend licenses;

(3) Adopt rules, regulations, standards, or criteria affecting those outside of the board or commission;

(4) Enter into or approve contracts involving public money; or

(5) Set policy governing operation of a State agency.

History

• Authority G.S. 138A-3(1c); 138A-10(a)(2) 138A-10(a)(10)
• Eff. January 1, 2011.

30 NCAC 02 .0102 Notification of Staff Recommendation to Commission {#sec-30-ncac-02-.0102 omnilex-key=us-nc-regs-official--title-30--30 NCAC 02 .0102}

Commission staff shall notify an entity of staff's initial recommendation to the Commission that the entity is a "board" pursuant to G.S. 138A-3(1c) at least 60 days prior to the Commission meeting at which the matter will be considered.

History

• Authority G.S. 138A-3(1c); 138A-10(a)(2); 138A-10(a)(10)
• Eff. January 1, 2011.

30 NCAC 02 .0103 Right to Contest Recommendation {#sec-30-ncac-02-.0103 omnilex-key=us-nc-regs-official--title-30--30 NCAC 02 .0103}

(a) If Commission staff recommends that the entity be designated a "board" pursuant to G.S. 138A-3(1c), that entity may contest the staff's recommendation. If the board elects to contest the staff's recommendation, the board shall respond in writing and submit any materials in support of the board's position within 45 days of receipt of the initial recommendation. If the board has timely responded to the initial notice, the board has the right to be heard at the Commission meeting at which the matter will be considered.

(b) The Executive Director may extend the deadline in Paragraph (a) of this Rule upon good cause shown.

History

• Authority G.S. 138A-3(1c); 138A-10(a)(2); 138A-10(a)(10)
• Eff. January 1, 2011.

Chapter 05 Statement of Economic Interest

Subchapter A

30 NCAC 05A .0101 Mandatory Use of Commission Forms {#sec-30-ncac-05a-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05A .0101}

The Commission's most current forms shall be used to file all Statements of Economic Interest ("SEI").

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(4); 138A-10(a)(10); 138A-22(g)
• Eff. January 1, 2011.

30 NCAC 05A .0102 Signature Verifies Information Is True {#sec-30-ncac-05a-.0102 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05A .0102}

An individual's signature on a Statement of Economic Interest constitutes that person's verification that all information contained in the Statement of Economic Interest and any documents incorporated by reference are true and complete.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(4); 138A-10(a)(10); 138A-22; 138A-24(c)
• Eff. January 1, 2011.

30 NCAC 05A .0103 Electronic Signature {#sec-30-ncac-05a-.0103 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05A .0103}

Signers of electronic documents may use any form of electronic signature permissible under G.S. 66-312(9), except that it shall not be a sound.

History

• Authority G.S. 66-312(9); 138A-10(a)(2); 138A-10(a)(4); 138A-10(a)(10); 138A-22
• Eff. January 1, 2011.

30 NCAC 05A .0104 General Submission Locations and Methods {#sec-30-ncac-05a-.0104 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05A .0104}

(a) Statements of Economic Interest shall be filed using one of the following methods:

(1) Electronically via the Commission's website.

(2) United States mail addressed to: State Ethics Commission, 1324 Mail Service Center, Raleigh, NC 27699-1324.

(3) Designated delivery service authorized by G.S. 1A-1, Rule 4, addressed to: State Ethics Commission, 424 N. Blount St., Raleigh, NC 27601-1010 or any successive address published on the Commission's website.

(4) Hand-delivery during regular business hours to the Commission's offices at 424 N. Blount St., Raleigh, NC 27601-1010, or any successive address published on the Commission's website.

(b) Statements of Economic Interest shall not be filed by methods other than authorized by this Rule, including scanning, e-mailing, or facsimile transmission.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(4); 138A-10(a)(10); 138A-22
• Eff. January 1, 2011.

30 NCAC 05A .0105 Incomplete Forms {#sec-30-ncac-05a-.0105 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05A .0105}

Incomplete Statements of Economic Interests shall not be considered timely filed for the purpose of G.S. 138A-22.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(4); 138A-10(a)(10); 138A-22; 138A-24(c)
• Eff. January 1, 2011.

30 NCAC 05A .0106 Proof of Submission {#sec-30-ncac-05a-.0106 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05A .0106}

A person may obtain proof of submission of a filing to the Commission by:

(1) Any means acceptable pursuant to G.S. 1A-1, Rules of Civil Procedure;

(2) Requesting that the Commission return a file stamped copy and supplying a postage prepaid envelope or prepaid delivery service envelope; or

(3) Requesting that the Commission date-stamp a copy at the time of hand-delivery.

History

• Authority G.S. 1A-1; 138A-10(a)(2); 138A-10(a)(4); 138A-10(a)(10); 138A-22
• Eff. January 1, 2011.

30 NCAC 05A .0107 Receipt Date {#sec-30-ncac-05a-.0107 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05A .0107}

For the purpose of determining compliance with filing deadlines, the postmarked date on a Statement of Economic Interest filed by U.S. Mail shall be used. For electronic filing and commercial or hand-delivery, the receipt date is the actual date received by the Commission.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(4); 138A-10(a)(10); 138A-22
• Eff. January 1, 2011.

Subchapter B

30 NCAC 05B .0101 Definition of Immediate Family {#sec-30-ncac-05b-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05B .0101}

A child of a covered person who is 18 years of age or older and who temporarily resides away from home is "residing in the covered person's household" for each year in which the child is claimed as a dependent on the covered person's Federal Income Tax Return.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(4); 138A-10(a)(10); 138A-24(a)
• Eff. January 1, 2011.

30 NCAC 05B .0102 Reportable Stock Holding Threshold Is Per Company {#sec-30-ncac-05b-.0102 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05B .0102}

The ten thousand dollar ($10,000) threshold that triggers reporting of stocks is per company and not the cumulative value of stocks held in multiple companies.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(4); 138A-10(a)(10); 138A-24(a)(2)(e)
• Eff. January 1, 2011.

30 NCAC 05B .0103 Second Mortgage Not Reportable {#sec-30-ncac-05b-.0103 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05B .0103}

A second mortgage is another form of "indebtedness on the filing person's primary personal residence. Therefore, that debt is not reportable on that individual's Statement of Economic Interest.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(4); 138A-10(a)10); 138A-24(a)(2)(k)
• Eff. January 1, 2011.

30 NCAC 05B .0104 Reportable Liability Threshold Is Per Creditor {#sec-30-ncac-05b-.0104 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05B .0104}

The ten thousand dollar ($10,000) threshold that triggers reporting of liabilities is per creditor and not the cumulative value of multiple debts.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(4); 138A-10(a)10); 138A-24(a)(2)(k)
• Eff. January 1, 2011.

30 NCAC 05B .0105 Definition of Income {#sec-30-ncac-05b-.0105 omnilex-key=us-nc-regs-official--title-30--30 NCAC 05B .0105}

In addition to the types of income listed in G.S. 138A-24(a)(3) that must be reported on the Statement of Economic Interest, income shall also include all types of income required to be reported on the filer's federal tax return.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(10); 138A-24(a)(3)
• Eff. January 1, 2013.

Chapter 07 Gifts

Subchapter A

30 NCAC 07A .0101 "interested Persons" {#sec-30-ncac-07a-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 07A .0101}

For purposes of this Chapter, "interested persons" are those persons listed in G.S. 138A-32(d).

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(10);138A-32(d)
• Eff. January 1, 2011.

Subchapter B

30 NCAC 07B .0101 Gatherings Open to the General Public {#sec-30-ncac-07b-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 07B .0101}

For purposes of G.S. 138A-32(e)(1)b., if the general public is required to pay a fee to attend a gathering, while individual public servants, legislators, or legislative employees are not charged the same fee, the gathering is not "open to the general public."

History

• Authority G.S. 120C-101(a); 120C-303; 138A-10(a)(2); 138A-10(a)(10); .138A-32(c); 138A-32(d); 138A-32(d1); 138A-32(e)(1)b
• Eff. January 1, 2011.

30 NCAC 07B .0102 Associated with the Person or Governmental Unit {#sec-30-ncac-07b-.0102 omnilex-key=us-nc-regs-official--title-30--30 NCAC 07B .0102}

(a) For purposes of G.S. 138A-32(e)(1)c.1, when legislators or legislative employees are invited and the person or governmental unit sponsoring the gathering only consists of lobbyists, lobbyist principals, or liaison personnel, 10 individuals associated with that group must attend the gathering. For purposes of this Paragraph, "group" shall mean more than one sponsoring lobbyist, lobbyist principal or liaison personnel.

(b) For purposes of G.S. 138A-32(e)(1)c.1, when only public servants are invited or when public servants and legislators or legislative employees are invited and the person or governmental unit sponsoring the gathering only consists of interested persons, lobbyists or lobbyist principals, 10 individuals associated with that group must actually attend the gathering. For purposes of this Paragraph, "group" shall mean more than one sponsoring interested person, lobbyist or lobbyist principal.

(c) For purposes of G.S.138A-32(e)(1)c.1, "associated with the person or governmental unit" includes, where applicable:

(1) An employee;

(2) An individual who is a director, officer, partner, or holds another leadership position;

(3) An owner of a legal, equitable, or beneficial interest of ten thousand dollars ($10,000) or more, other than a trustee on a deed of trust;

(4) An owner of five percent or more of the business, other than a trustee on a deed of trust; and

(5) A registered lobbyist;

(d) The Commission will make an individualized determination regarding whether other relationships, such as a membership in an organization or other affiliations, qualify as being "associated with the person" or "associated with the governmental unit."

History

• Authority G.S. 120C-101(a); 120C-303; 138A-10(a)(2); 138A-10(a)(10); 138A-32(c); 138A-32(d); 138A-32(d1); 138A-32-(e)(1)c
• Eff. January 1, 2011.

30 NCAC 07B .0103 Invited {#sec-30-ncac-07b-.0103 omnilex-key=us-nc-regs-official--title-30--30 NCAC 07B .0103}

(a) For purposes of G.S. 138A-32(e)(1)c., a "specific qualifying group" means all members of one of the groups of public servants, legislators, or legislative employees listed in G.S. 138A-32(e)1.c.

(b) If more than one specific qualifying group is invited to a gathering, the requirements of G.S. 138A-32(e)(1)c. are satisfied if one host or sponsor provides written notice to all members of at least one of those specific qualifying groups.

(c) For purposes of G.S. 138A-32(e)(1)c., "written notice" includes a notice made by e-mail.

History

• Authority G.S. 120C-101(a); 120C-303; 138A-10(a)(2); 138A-10(a)(10); 138A-32(e)(1)c
• Eff. January 1, 2011.

Subchapter C

30 NCAC 07C .0101 Educational Meeting Criteria {#sec-30-ncac-07c-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 07C .0101}

A determination as to whether an event qualifies as an "educational meeting" under G.S. 138A-32(e)(3)(i) shall be based upon consideration of the following non-exclusive factors:

(1) Whether the meeting's primary purpose is to influence a public servant, legislator, or legislative employee with respect to executive or legislative action or to promote learning for professional improvement notwithstanding a particular executive or legislative action. In applying this factor, the following facts shall be considered:

(a) Whether the meeting is directly related to an upcoming official vote, recommendation, or other action that the public servant, legislator, or legislative employee may take, such as the discussion of a legislative or executive proposal or specific concerns with respect to a matter that would require legislative or executive action to remedy.

(b) Whether the individual or entity hosting the meeting is attempting to influence particular legislative or executive action by the public servant, legislator, or legislative employee whose meeting expenditures will be paid or intends to request such action at the time the meeting is held.

(c) Whether the facts otherwise demonstrate that the individual's or entity's purpose in holding the meeting is to influence legislative or executive action.

(2) The type of individual or entity holding the meeting. In applying this factor, the following facts shall be considered:

(a) Whether the individual or entity is a State agency or governmental entity.

(b) Whether the individual or entity is an educational institution.

(c) Whether the individual or entity routinely sponsors meetings with educational content.

(d) Whether the individual or entity holding the meeting is a Lobbyist Principal.

(3) Whether the Lobbyist Principal that is providing the reasonable actual expenditures of the legislator, legislative employee, or public servant attending the meeting is also the sponsor or co-sponsor of the meeting.

(4) Whether the complete agenda of the meeting demonstrates that the meeting's primary purpose is to promote learning for professional improvement, rather than influence, a public servant, legislator, or legislative employee with respect to executive or legislative action. In applying this factor, the following facts shall be considered:

(a) The proportion of scheduled events that have a speaker, roundtable discussion, or other educational content.

(b) The proportion of scheduled events held in the absence of a meal or entertainment.

(c) The proportion of the meeting agenda that includes meals or entertainment provided in conjunction with formal educational content.

(d) Whether the meeting agenda has a company or entity-specific focus.

(e) Whether the meeting would take place regardless of the attendance of the public servant, legislator, or legislative employee whose meeting expenditures will be paid.

(f) Whether the speakers or panel participants at the meeting are associated with the Lobbyist Principal paying for the meeting expenditures of the public servant, legislator, or legislative employee, including its registered lobbyist.

(g) Whether the speakers are outside experts in their field.

(5) The relationship of the location of the meeting to the meeting's educational content. In applying this factor, the following facts shall be considered:

(a) Whether the meeting location was selected in order to make it accessible to all prospective meeting attendees.

(b) Whether the location of the meeting is integral to the meeting's educational content.

(c) Whether the meeting is sponsored by a state, national, or international organization for the benefit of its state, national, or international membership.

(d) Whether the quality of the educational benefit obtained by the public servant, legislator, or legislative employee is enhanced by attending the meeting.

(6) Whether the total length of the meeting is reasonably necessary to fulfilling its educational purpose.

History

• Authority G.S. 120C-101(a); 120C-303; 138A-10(a)(2); 138A-10(a)(10); 138A-32(e)(3)(i)
• Eff. January 1, 2011.

Chapter 08 Conflicts of Interest and Other Ethical Standards

30 NCAC 08 .0101 Use of Title {#sec-30-ncac-08-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 08 .0101}

(a) For purposes of G.S. 138A-31(b), the following definitions shall apply:

(1) "Advertising" means a written or oral communication that is published, disseminated, circulated, or placed before the public for the purpose of attracting public attention to a product, business, or service. "Advertising" excludes a letter sent to an individual or business concerning the qualifications or characteristics of an individual or business and that is not otherwise publicly distributed.

(2) "Nongovernmental advertising" means that the funding or resources used to produce and publicize the advertisement was not derived from the State, a political subdivision of the State, or the federal government.

(b) For purposes of G.S. 138A-31(b), an advertisement "advances the private interest" of a covered person or others when its primary purpose is to benefit a private, rather than a public, interest.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(10); 138A-31(b)
• Eff. January 1, 2013.

Chapter 09 Ethics Complaints

Subchapter A

30 NCAC 09A .0101 Scope {#sec-30-ncac-09a-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 09A .0101}

The rules in this Subchapter apply only to complaints filed pursuant to the State Government Ethics Act, Chapter 138A of the North Carolina General Statutes.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(5); 138A-10(a)(6); 138A-10(a)(10); 138A-12
• Eff. January 1, 2011.

30 NCAC 09A .0102 Forms {#sec-30-ncac-09a-.0102 omnilex-key=us-nc-regs-official--title-30--30 NCAC 09A .0102}

Complaints shall be filed in accordance with G.S. 138A-12(c). A form for filing a complaint is available on the Commission's website at www.ethicscommission.nc.gov or by contacting the Commission at (919) 715-2071, or any successive phone number published on the Commission's website.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(5); 138A-10(a)(6); 138A-10(a)(10); 138A-12(c)
• Eff. January 1, 2011.

Subchapter B

30 NCAC 09B .0101 Inquiry and Probable Cause Panels {#sec-30-ncac-09b-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 09B .0101}

(a) The preliminary inquiry and the determination of probable cause shall be made by a Commission panel of two Commission members, who shall not be of the same political party. The Chair shall appoint members of the panel to serve on a rotating basis. The Chair may appoint substitute panel members.

(b) After a preliminary inquiry, the Commission panel may dismiss a complaint if it determines the following:

(1) that the individual against whom the complaint was filed is not a covered person or legislative employee; or

(2) that the complaint did not allege facts sufficient to constitute a violation under G.S. 138A-12(b).

(c) If the Commission panel members cannot agree at the preliminary inquiry stage as to whether the complaint alleges facts sufficient to constitute a violation, the matter shall proceed to an investigation.

(d) If the Commission panel members disagree on the probable cause determination, the complaint shall proceed to the Commission for the probable cause determination with the panel members recusing themselves from voting.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(5); 138A-10(a)(6); 138A-10(a)(10); 138A-12
• Eff. January 1, 2011
• Amended Eff. September 1, 2016; June 1, 2014.

30 NCAC 09B .0102 Written Response After Preliminary Inquiry {#sec-30-ncac-09b-.0102 omnilex-key=us-nc-regs-official--title-30--30 NCAC 09B .0102}

(a) After a preliminary inquiry, if the covered person or legislative employee elects to file a response with the Commission pursuant to G.S. 138A-12(g), the covered person or legislative employee shall file the response no later than 30 calendar days after receiving the written notice that the Commission is conducting a further inquiry.

(b) The Executive Director may extend the deadline in Paragraph (a) of this Rule for up to 30 calendar days upon good cause shown.

History

• Authority G.S. 138A-10(a)(2); 138A-10(a)(5); 138A-10(a)(6); 138A-10(a)(10); 138A-12(g)
• Eff. January 1, 2011.

Chapter 10 Lobbying

Subchapter A

30 NCAC 10A .0101 Significant Part {#sec-30-ncac-10a-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10A .0101}

(a) For purposes of G.S. 120C-100(a)(10)d., a "significant part" of an employee's job duties include lobbying if during any rolling 30 day period either:

(1) five percent or more of an employee's actual duties included direct lobbying; or

(2) five percent or more of an employee's actual duties included goodwill lobbying.

(b) In making this determination:

(1) The amount of time an employee spends engaged in direct lobbying activities and in goodwill lobbying activities shall not be aggregated; and

(2) The amount of an employee's time spent on those activities that are otherwise exempt under G.S. 120C-700 shall be excluded.

(c) Once the amount of time spent by an employee engaged in direct lobbying or in goodwill lobbying during the prior 30 day period equals or exceeds five percent of his or her actual hours worked, the employee must register as a lobbyist within one business day.

(d) Once registered as a lobbyist pursuant to G.S. 120C-100(a)(10)(d), all payments for lobbying and lobbying services made to the lobbyist during the prior 30 day period shall be reported in the lobbyist principal's 120C-403(d) annual lobbying payment report filed with the Secretary of State.

History

• Authority G.S. 120C-100(a)(10)d.; 120C-101(a)
• Eff. January 1, 2013.

Subchapter C

30 NCAC 10C .0101 Calculating Value of Reportable Expenditures {#sec-30-ncac-10c-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10C .0101}

When determining if reporting is required pursuant to the ten dollar threshold of G.S. 120C-100(a)(12), the aggregate amount of all things of value made to, at the request of, for the benefit of, or on behalf of a designated individual and that designated individual's immediate family members on that calendar day shall be used.

History

• Authority G.S. 120C-100(a)(12); 120C-101(a); 120C-400; 120C-401; 120C-402; 120C-403
• Eff. January 1, 2011.

30 NCAC 10C .0102 Reportable Expenditures Made to or for the Benefit of a Designated Individual or a Designated Individual’s Immediate Family Member {#sec-30-ncac-10c-.0102 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10C .0102}

(a) A reportable expenditure made to or for the benefit of a designated individual or a designated individual's immediate family member shall be reported on the expense report filed for the month the reportable expenditure is received by the designated individual or the designated individual's immediate family member.

(b) When the reportable expenditure is made to or for the benefit of a designated individual or a designated individual's immediate family member, the date of the reportable expenditure is the date the reportable expenditure is received by the designated individual or the designated individual's immediate family member.

History

• Authority G.S. 120C-100(a)(12); 120C-101(a); 120C-400; 120C-401; 120C-402; 120C-403
• Eff. January 1, 2011.

30 NCAC 10C .0103 Reportable Expenditure Made at the Request of or on Behalf of a Designated Individual or a Designated Individual's Immediate Family Member {#sec-30-ncac-10c-.0103 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10C .0103}

(a) A reportable expenditure made at the request of or on behalf of a designated individual or a designated individual's immediate family member shall be reported on the expense report filed for the month the reportable expenditure is made by the giver.

(b) When the reportable expenditure is made at the request of or on behalf of a designated individual or a designated individual's immediate family member, the date of the reportable expenditure is the date the reportable expenditure is made by the giver.

History

• Authority G.S. 120C-100(a)(12); 120C-101(a); 120C-400; 120C-401; 120C-402; 120C-403
• Eff. January 1, 2011.

30 NCAC 10C .0104 Description of Reportable Expenditure {#sec-30-ncac-10c-.0104 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10C .0104}

(a) For purposes of G.S. 120C-401(b)(3), which requires that "a description" of the reportable expenditure be set forth on each report, the following information should be provided where applicable:

(1) An identification of what was given;

(2) An identification of the third party recipient of the item, service, monetary contribution, etc., made at the request of or on behalf of a designated individual or a member of his or her immediate family; and

(3) An identification, name or title of the event or meeting at which the item, service, monetary contribution, etc., was given and the date(s) of the event or meeting.

(b) The information required by G.S. 120C-403(b)(3) is in addition to the requirement in G.S. 120C-401(c) that the report list particular expenditure categories.

History

• Authority G.S. 120C-101(a); 120C-401(b)(3)
• Eff. January 1, 2013.

30 NCAC 10C .0105 Connected with Reportable Expenditure {#sec-30-ncac-10c-.0105 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10C .0105}

For purposes G.S. 120C-401(b)(5), the name of the designated individual or member of the designated individual's immediate family "connected with" a reportable expenditure means the designated individual or the immediate family member who:

(1) Received or benefited from the reportable expenditure, if the designated individual or immediate family member was the ultimate recipient of the expenditure; or

(2) Requested the reportable expenditure or on whose behalf the reportable expenditure was made, if a third party other than the designated individual or immediate family member was the ultimate recipient of the expenditure.

History

• Authority G.S. 120C-101(a); 120C-401(b)(5)
• Eff. January 1, 2013.

30 NCAC 10C .0200 reserved for future codification {#sec-30-ncac-10c-.0200 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10C .0200}

30 NCAC 10C .0301 Reasonably Allocated Estimates Allowed {#sec-30-ncac-10c-.0301 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10C .0301}

(a) For purposes of lobbyist principal reporting required by G.S 120C-403(d) and (e), a lobbyist's estimate does not need to be an exact calculation or determination but shall be reasonably allocated. "Lobbyist's estimate" means a lobbyist's estimate of the portion of the salary or other payment that is reasonably allocated for lobbying and lobbying services. "Lobbying services" are those communications and activities listed in G.S. 120C-403(e)(2).

(b) A lobbyist's estimate is reasonably allocated if it:

(1) Specifies the portion of the lobbyist's salary, fee, or retainer that is estimated to be in payment for lobbying and lobbying services (for example, "twenty-five percent" (25%), rather than "under forty percent" (40%) or "from ten percent to thirty percent" (10%-30%).

(2) Includes all payments for lobbying that the lobbyist principal conveyed to the lobbyist during the registration period under G.S. 120C-200(d);

(3) Includes all payments for lobbying services the lobbyist principal conveyed to the lobbyist during the registration period under G.S. 120C-200(d);

(4) Is consistent with the known facts and circumstances underlying the employment terms or compensation agreement between the lobbyist principal and the lobbyist;

(5) Is made retrospectively; and

(6) Is made in good faith.

(c) The estimate of the portion of the lobbyist's payment that is allocated for the purpose of lobbying shall be verifiable in some manner in the event the allocation is questioned.

History

• Authority G.S. 120C-101(a); 120C-400; 120C-403(d); 120C-403(e)
• Eff. January 1, 2011.

30 NCAC 10C .0302 Reportable Expenditures Made for Lobbying {#sec-30-ncac-10c-.0302 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10C .0302}

(a) For purposes of G.S. 120C-402(b)(1) and 120C-403(b)(1), when reporting expenditures for events held for lobbying, the entire cost of the event must be reported, not just the "gift" given or provided to the designated individual(s) attending the event. Examples of non-gift reportable expenditures made for lobbying are expenses and charges incurred for items and/or services provided in connection with the lobbying event, such as planning and organizing services, printing services and supplies, facility rental and set-up charges, food supplies and services, name badges, flowers, and other decorations.

(b) Reportable expenditures made for lobbying events shall be reported on the expense report filed with the Secretary of State for the month the lobbying event is held.

History

• Authority G.S. 120C-101(a); 120C-402(b)(1); 120C-403(b)(3)
• Eff. January 1, 2013.

Subchapter D

30 NCAC 10D .0101 Scope {#sec-30-ncac-10d-.0101 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0101}

The rules in this Subchapter execute the authority granted to the State Ethics Commission pursuant to the Lobbying Law, G.S. 120C of the North Carolina General Statutes regarding lobbying complaints.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0102 COMPLAINT rEQUIREMENTS {#sec-30-ncac-10d-.0102 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0102}

(a) Complaints shall be initiated in one of the following ways:

(1) a written complaint. A form is available on the Commission's website at www.ethicscommission.nc.gov or by contacting the Commission at (919) 715-2071. The form is not mandatory for a complaint to be valid and considered;

(2) an oral complaint. Oral complaints shall be confirmed in writing by Commission staff;

(3) a complaint based upon information through general notice. Commission staff or a member of the Commission may take general notice of available information, even if not formally provided to the Commission in the form of a complaint; or

(4) referrals from a local, state or federal agency.

(b) Complaints shall include the following information:

(1) the name and other contact information for the complainant;

(2) the name of the lobbyist, lobbyist principal, or other individual(s) subject to the Lobbying Law (respondent) against whom the complaint is filed; and

(3) the allegations and the basis upon which the complainant believes the allegations to be true, including specific facts about a potential violation as set forth in G.S. 120C.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0103 Acknowledgment {#sec-30-ncac-10d-.0103 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0103}

Within 10 business days of receipt of a Lobbying Law complaint from a third party or a referral, the Commission shall provide written acknowledgment as to the receipt of the complaint to the complainant. The acknowledgment shall indicate that an investigation has not begun, shall direct the complainant to preserve any potentially relevant information, and shall include the confidentiality provisions of G.S. 120C-601(c).

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0104 Notice to the Complainant of Referral {#sec-30-ncac-10d-.0104 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0104}

The Commission shall notify the complainant of a referral to the Secretary of State's Lobbying Compliance Division pursuant to G.S. 120C-601(a).

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0105 Panel Composition {#sec-30-ncac-10d-.0105 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0105}

The Commission panels referred to under this Subchapter shall be comprised of two Commission members, who shall not be of the same political party. The Chair shall appoint members of the panel to serve on a rotating basis. The Chair may appoint substitute panel members.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0201 General {#sec-30-ncac-10d-.0201 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0201}

(a) A preliminary inquiry is conducted to determine whether the individual against whom the complaint is filed is subject to the Lobbying Law and whether the facts are sufficient to allege a violation of the Lobbying Law.

(b) In preparing for a preliminary determination, Commission staff may take pre-investigative actions, including contacting the complainant to seek additional information, requesting the identity of the original source of the information, or contacting the source for further information. Any additional requested information shall be provided within no less than ten business days of the request.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0202 pRELIMINARY INQUIRY PROCEDURE {#sec-30-ncac-10d-.0202 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0202}

A preliminary inquiry decision shall be made by:

(1) The full Commission if the complaint is received from one of the following:

(a) any member of the Commission;

(b) a duly constituted panel of the Commission; or

(c) Commission staff.

(2) A Commission panel if the complaint is received from one of the following:

(a) a local, state or federal agency referral; or

(b) a third-party complainant.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0203 Timing {#sec-30-ncac-10d-.0203 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0203}

The preliminary inquiry shall conclude within 30 business days of receipt of the complaint. This provision may be extended by the Chair when necessary to comply with Rule .0201(b) of this Subchapter.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0204 Preliminary Inquiry Decisions {#sec-30-ncac-10d-.0204 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0204}

(a) Upon completion of the preliminary inquiry, the following actions may be taken:

(1) an investigation, if the information alleges a violation over which the Commission has jurisdiction under G.S. 120C.

(2) decline or dismiss a complaint for the following reasons:

(A) the complaint is not within the Commission's jurisdiction and authority under G.S. 120C;

(B) the facts are insufficient to constitute a violation under any provisions within the Commission's jurisdiction under G.S. 120C;

(C) the complaint is determined to be frivolous; or

(D) the respondent and the conduct complained of are the same actions or conduct that have been the subject of a prior complaint.

(3) refer to one of the following:

(A) the N.C. Secretary of State when a complaint relates to Article 2, 4, or 8 of G.S. 120C. The complainant shall be notified.

(B) other State, federal or local agencies or law enforcement authorities. The complainant shall be notified.

(4) stay. If other agencies or authorities are conducting an investigation of the same actions or conduct, the Commission may stay its inquiry pending final resolution of the other investigation. This provision does not prohibit the Secretary of State's Lobbying Compliance Division from exercising its investigative and enforcement authority for portions of a complaint subject to Article 2, 4, or 8.

(b) A panel decision to dismiss, decline, refer, or stay a complaint following a preliminary inquiry shall be considered by the Commission no later than its next regularly scheduled quarterly meeting. If the Commission rejects the panel's decision, the complaint shall be investigated.

(c) The following actions shall proceed without Commission approval upon a decision by the panel to investigate or if the panel members disagree on whether to investigate:

(1) an investigation; and

(2) a referral pursuant to Part (a)(3)(A) of this Rule.

(d) Upon receipt of a referral under Part (a)(3)(A) of this Rule, the Secretary of State may:

(1) investigate; or

(2) resume an investigation referred to the Commission pursuant to Article 6 of G.S. 120C.

History

• Authority G.S. 120C-101(a); 120C-600; 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0301 Notice of Investigation to Respondent {#sec-30-ncac-10d-.0301 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0301}

Within 10 business days of a decision by the Commission or a panel to investigate, the Commission shall notify the respondent in writing of:

(1) the general allegation(s);

(2) the potential statutory violations;

(3) the Commission's subpoena power;

(4) that the respondent shall retain any relevant information, including documents, correspondence, notes, electronic communications, electronically stored information and emails; and

(5) that respondent may respond within 30 calendar days after receiving the notice. The Executive Director may extend this deadline for up to 30 calendar days upon good cause shown.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0302 Mixed Complaint Investigations {#sec-30-ncac-10d-.0302 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0302}

A mixed complaint is a complaint alleging one or more violations under Article 1, 3, 5, or 7 of G.S. 120C and one or more violations under Article 2, 4, or 8 of G.S. 120C. Commission staff shall investigate the portions of the complaint subject to Article 1, 3, 5, and 7 of G.S. 120C. Commission staff may investigate the portions of the complaint subject to Articles 2, 4, and 8 of Chapter 120C as incidental to making a determination on the Article 1, 3, 5, and 7 allegations.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0303 Investigative Report {#sec-30-ncac-10d-.0303 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0303}

Upon completion of the investigation, Commission staff shall prepare an investigative report that contains the following:

(1) the allegations;

(2) investigative facts and findings;

(3) relevant statutory provisions;

(4) disposition options;

(5) if relevant, possible sanctions; and

(6) any response from the respondent.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0401 Panel Review and Recommendation {#sec-30-ncac-10d-.0401 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0401}

(a) For complaints initiated pursuant to Rule .0202(2) of this Subchapter, Commission staff shall present the investigative report to the same Commission panel that conducted the preliminary inquiry or a substitute panel appointed pursuant to Rule .0105 of this Subchapter.

(b) The Commission panel shall review the investigative report and shall take one or more of the following actions regarding the Article 1, 3, 5, and 7 allegations:

(1) direct Commission staff to conduct further investigation or obtain additional information;

(2) recommend that the Commission refer the lobbying complaint to another agency;

(3) recommend that the Commission dismiss the lobbying complaint or specific allegations within the complaint for lack of a violation of Article 1, 3, 5, or 7 of G.S. 120C.

(4) recommend that the Commission find a violation of Article 1, 3, 5, or 7 of G.S. 120C and that a specific sanction or sanctions should be imposed. A violation shall be shown to exist by a preponderance of the evidence.

(c) Recommendations shall be presented to the Commission no later than at the next regularly scheduled quarterly Commission meeting.

(d) If the panel members disagree on a decision under this Rule, the complaint shall go before the Commission for a decision pursuant to Rule .0404 of this Subchapter, with the panel members recusing themselves from voting.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014
• Amended Eff. September 1, 2016.

30 NCAC 10D .0402 Settlement of Complaints {#sec-30-ncac-10d-.0402 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0402}

(a) At any time, the respondent or his or her legal counsel may meet by mutual consent with the Commission staff to discuss the possibility of settlement of the complaint subject to Article 1, 3, 5, or 7 of G.S. 120C. Settlement of complaints subject to Article 2, 4, or 8 of G.S. 120C is within the Secretary of State's discretion. Resolution by settlement between the respondent and the Commission does not impact or impede the Secretary of States authority to determine that violations of Article 2, 4, or 8 have occurred, to assess penalties for those violations and to refer to a District Attorney.

(b) If a panel finds that an alleged violation has occurred, Commission staff shall provide the respondent with the panel's recommended determination and offer to engage in settlement discussions. Any recommended determinations provided to the respondent to facilitate settlement discussions shall redact information regarding Article 2, 4, or 8 to the extent possible under the circumstances.

(c) Staff shall present any proposed settlement to the panel. The panel may accept, reject, or modify the terms of the proposed settlement. The panel shall make a final recommendation regarding the settlement to the Commission for approval. If the panel members disagree on acceptance of a proposed settlement, the complaint shall go before the Commission for a decision with the panel members recusing themselves from voting.

(d) Upon the Commission's approval of a settlement under Rule .0404(1)(a) of this Subchapter, the complaint shall be closed as to the complaints subject to Article 1, 3, 5, or 7, subject to re-opening by the Commission if the settlement agreement is breached.

(e) The Commission shall only provide written notice of a settlement to the complainant and the complainant shall not receive a copy of the settlement agreement.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0403 COMMISSION review {#sec-30-ncac-10d-.0403 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0403}

(a) For complaint investigations initiated pursuant to Rule .0202(1) of this Subchapter, Commission staff shall present the investigative report to the full Commission, and the Commission shall determine the appropriate action as set forth in Rule .0404 of this Subchapter.

(b) For complaint investigations initiated pursuant to Rule .0202(2) of this Subchapter, upon receipt of a recommendation from the panel, the Commission shall determine the appropriate action as set forth in Rule .0404 of this Subchapter with the panel members recusing themselves from voting.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0404 Commission Actions on a Complaint {#sec-30-ncac-10d-.0404 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0404}

The Commission may take one or more of the following actions regarding the Article 1, 3, 5, or 7 allegations:

(1) accept, modify or reject any proposed settlement agreement.

(a) If accepted, the Commission shall notify the respondent of the Commission's decision.

(b) If modified, staff shall present the modifications to the respondent for approval.

(c) If rejected, the Commission shall proceed with any other action under Subparagraphs (2)-(5) of this Rule.

(2) direct Commission staff to conduct further investigation or obtain additional information;

(3) refer the complaint to another agency, and notify the respondent and the complainant of the referral.

(4) dismiss the complaint for lack of evidence if a violation of G.S. 120C is not established by a preponderance of the evidence. If dismissed, the Commission shall provide the following:

(a) Notice of Dismissal to respondent; and

(b) notice to the complainant that the complaint was dismissed because a violation was not established by a preponderance of the evidence. The complainant shall not receive a copy of the Notice of Dismissal.

(5) determine that a violation has occurred and proceed as appropriate under Rule .0501 of this Subchapter.

History

• Authority G.S. 120C-101(a); 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0405 Mixed Complaint Determinations {#sec-30-ncac-10d-.0405 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0405}

(a) In a mixed complaint, within 10 business days after determination by the Commission of the Article 1, 3, 5, and 7 portions of the complaint, Commission staff shall:

(1) provide the Secretary of State's Lobbying Compliance Division with:

(A) written notice of the Commission's final disposition, and

(B) access to, and, if requested, temporary possession and custody of, all investigative materials in mixed complaint investigations, excluding attorney work-product and items subject to the attorney-client privilege under current law;

(2) notify the respondent of a referral and their duty to retain any potentially relevant information, including documents, correspondence, notes, electronic communications, electronically stored information, and emails; and

(3) notify the complainant of a referral and direct them to retain any potentially relevant information, including documents, correspondence, notes, electronic communications, electronically stored information, and emails.

(b) Any Commission determinations provided to the respondent to facilitate settlement discussions shall redact information regarding Article 2, 4, or 8 to the extent possible under the circumstances.

History

• Authority G.S. 120C-101(a); 120C-600; 120C-601
• Eff. June 1, 2014.

30 NCAC 10D .0406 Notification of Violation to Respondent {#sec-30-ncac-10d-.0406 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0406}

If the Commission finds that a violation has occurred, the respondent shall be notified of the following:

(1) the Commission's decision;

(2) any sanctions imposed pursuant to Rule .0501 of this Subchapter;

(3) if it is a mixed complaint, the referral to the Secretary of State's Lobbying Compliance Division and the respondent's duty to retain any potentially relevant information, including documents, correspondence, notes, electronic communications, electronically stored information and emails;

(4) the respondent's right to appeal the determination by filing a petition with the Office of Administrative Hearings and that the Commission's determination shall become final upon a failure to appeal within 60 days;

(5) the respondent's opportunity to meet with Commission staff to discuss post-decision settlement; and

(6) the requirement that pursuant to G.S. 120C-603(a), apparent violations of G.S. 120C shall be reported to the district attorney.

History

• Authority G.S. 120C-101(a); 120C-601; 120C-603
• Eff. June 1, 2014.

30 NCAC 10D .0407 Notification of Violation to Complainant {#sec-30-ncac-10d-.0407 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0407}

If the Commission determines that a violation occurred, Commission staff shall notify the complainant that an Order has been entered and, if relevant that a referral has been made to the Secretary of State under Rule .0405 of this Subchapter.

History

• Authority G.S. 120C-101(a); 120C-601; 120C-603
• Eff. June 1, 2014.

30 NCAC 10D .0501 potential sanctions {#sec-30-ncac-10d-.0501 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0501}

Upon finding a violation and taking the criteria in Rule .0502 of this Subchapter into consideration, the Commission may:

(1) issue a letter of warning;

(2) impose a fine of up to five thousand dollars ($5,000) per violation;

(3) require a respondent to attend lobbying education as specified by the Commission; and

(4) impose other sanctions as provided in Chapter 120C.

History

• Authority G.S. 120C-101(a); 120C-300; 120C-601; 120C-602
• Eff. June 1, 2014.

30 NCAC 10D .0502 Sanction Criteria {#sec-30-ncac-10d-.0502 omnilex-key=us-nc-regs-official--title-30--30 NCAC 10D .0502}

The Commission may consider one or more of the following criteria in imposing sanctions:

(1) the length of time the respondent has been engaged in lobbying for payment;

(2) the length of time the respondent has been paying an individual to lobby on its behalf;

(3) the length of time the respondent has been registered as a lobbyist or liaison personnel;

(4) the length of time the respondent has been registered as a lobbyist principal;

(5) the number of past violations of G.S. 120C by the respondent;

(6) the number of times the respondent has received a warning letter;

(7) whether the respondent knew or should have known that the conduct or activity was a violation of Article 1, 3, 5, or 7 of G.S. 120C;

(8) the nature and number of violations in the complaint;

(9) the duration of the violation;

(10) whether the respondent attempted to correct the violation prior to a complaint being filed;

(11) the result or effect of the violation;

(12) whether the violation was inadvertent or intentional;

(13) whether the respondent has received advice, informal or formal, from the Commission regarding the conduct or activity giving rise to the violation;

(14) the scope of the lobbying activity concealed;

(15) the amount of the resources expended to violate the law;

(16) the amount of expenditures concealed; or

(17) any other criteria that the Commission deems reasonable to assist with the determination of sanctions.

History

• Authority G.S. 120C-101(a); 120C-601; 120C-602
• Eff. June 1, 2014.