In a move that took many by surprise, Republican lawmakers introduced significant changes to state campaign finance laws on Thursday. This unexpected proposal led all 20 Senate Democrats to stage a walkout in protest as the bill was swiftly brought to a vote, resulting in its passage with a 28-0 vote by the remaining Republicans. The House is expected to consider the measure next week.
The proposed changes were added to a conference committee report on a contentious bill addressing punishments for unlawful protests and mask-wearing. The new legislation would allow large donors to channel significant sums of money anonymously to support North Carolina political candidates.
Republicans argued that the proposal was intended to “level the playing field” with Democrats, referencing a 2020 advisory opinion from the State Board of Elections that they claimed favored the Democratic Governors Association. However, Democratic legislators and good government groups criticized both the content of the proposal and the process used to introduce it.
Complex but Impactful Changes
Campaign finance watchdog Bob Hall, former executive director of Democracy North Carolina, noted that the changes are complex but will likely have a significant impact. The amendments would permit wealthy individuals to contribute large amounts of money to national “527 committees” like the Republican Governors Association or Democratic Governors Association. These committees could then donate to state party committees or candidates without disclosing the original donor’s identity.
Hall explained that this could incentivize politicians to create front groups to funnel large donations, making it difficult to trace the money’s true source. Additionally, the legislation would limit disclosure requirements and hinder the State Board of Elections’ ability to review questionable contributions by repealing a provision requiring federal committees to designate a state resident authorized to produce relevant records.
Critics like Melissa Price Kromm of North Carolina For the People highlighted the irony of the proposal being attached to a bill about masks, stating that the changes would further obscure the flow of money into North Carolina politics.
Hall disputed the claim that the changes were meant to correct an imbalance, stating that the State Board of Elections’ advisory opinion under a Republican-controlled board actually blocked new ways for federal committees to donate to state candidates or parties.
Democratic Walkout
Following their walkout, Senate Democrats addressed the media outside the Legislative Building, condemning the legislation as a means to funnel campaign contributions to GOP gubernatorial candidate Mark Robinson.
Senate Democratic Whip Jay Chaudhuri criticized the last-minute introduction of the proposal, which was unveiled Thursday morning and brought to a vote without committee hearings or opportunities for amendment. He called the process an “eleventh-hour change.”
“Senate Democrats walked out today because this election bill literally allows convicted felons and millionaires to buy our coming elections,” Chaudhuri said. “We walked out today because it is critical we shine a light on a dark-of-night rushed process that will undermine our democratic process.”
Chaudhuri also pointed out that the rule change coincided with recent ads highlighting Robinson’s extreme abortion stance.
Sen. Michael Garrett of Guilford County echoed Chaudhuri’s concerns about the rushed process, emphasizing the need for a thorough review to ensure transparency and integrity in campaign finance.
The House has referred the conference report to the House Rules Committee, which is expected to review it early next week. House Democratic leader Robert Reives confirmed that his members would oppose the changes, criticizing the lack of transparency and the potential for unlimited out-of-state donations to influence the election.
“This new campaign finance legislation has never been seen before, but Republicans have attached it to an unrelated conference report that cannot be amended,” Reives said. “This eviscerates individual campaign finance limits and allows billionaires from out of state to funnel unlimited money into a committee. They are changing the rules in the middle of an election that is already underway in an attempt to buy the governor’s mansion in North Carolina.”