North Carolina HB 1229: Unemployment Insurance Program Integrity.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1229

Short Title: Strip Corporations of Political Spending. (Public)
Sponsors: Representatives Morey, Butler, Harrison, and Cook (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
May 11, 2026
*H1229-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AMEND THE NORTH CAROLINA CONSTITUTION TO LIMIT CORPORATE 2
POLITICAL SPENDING POWERS. 3
Whereas, corporations are artificial entities created by state law for the purpose of 4
furthering certain economic goals; and 5
Whereas, corporations do not exist without law; and 6
Whereas, Citizens United granted corporations the right to unlimited political 7
spending with little transparency but did not prohibit states from exercising their authority to 8
define corporate entities; and 9
Whereas, Citizens United greatly compromised our system of democracy and diluted 10
individuals' voices; and 11
Whereas, only the State can grant corporations the power to spend politically; and 12
Whereas, a 2023 Pew Research poll found that eight in 10 Americans, including large 13
majorities of both Democrats and Republicans, believe there is too much corporate money in 14
politics; and 15
Whereas, elections are about people, not unlimited corporate spending and control; 16
and 17
Whereas, this act will return power back to the voters and restore integrity in 18
elections; Now, therefore, 19
The General Assembly of North Carolina enacts: 20
SECTION 1. Article VIII of the North Carolina Constitution is amended by adding 21
a new section to read: 22
"Sec. 3. Limitation on corporate powers. 23
A person, other than a human being, may not exercise political spending power in this State. 24
This limitation does not apply to political committees acting in a manner prescribed by law or to 25
a person distributing bona fide news, commentary, or editorial content if the person publishing 26
the content is owned or controlled by a political party, a political committee, or a candidate. Any 27
action violating the limitation of this section is ultra vires and void and shall result, as a matter 28
of law, in the withdrawal of all legal benefits the State confers on the person, including existence, 29
limited liability, or the authorization to transact business, subject only to reinstatement by act of 30
the General Assembly. A person organized or existing under the laws of another jurisdiction that 31
directly or indirectly undertakes, finances, or directs the exercise of political spending power in 32
this State is conclusively deemed to be transacting business in this State. For purposes of this 33
section, political spending power is the legal capacity to expend money or anything of value to 34
influence the outcome of a vote of the electorate." 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 1229-First Edition
SECTION 2. The amendment set out in Section 1 of this act shall be submitted to 1
the qualified voters of the State at the statewide general election to be held on November 3, 2026, 2
which election shall be conducted under the laws governing elections at that time. The question 3
to be used in the voting systems and ballots shall be: 4
"[ ] FOR [ ] AGAINST 5
Constitutional amendment to (i) limit corporate powers regarding the ability to spend 6
money or anything of value to influence the outcome of a vote of the electorate and the exceptions 7
to that limitation; (ii) declare actions taken outside of those powers regarding political spending 8
are void and result in the withdrawal of State-conferred privileges, subject to legislative action 9
to reinstate such privileges; and (iii) define what constitutes political spending power." 10
SECTION 3. The State Board of Elections shall certify the results of the referendum 11
conducted under Section 2 of this act. If a majority of votes cast on the question are in favor of 12
the amendment set out in Section 1 of this act, the Secretary of State shall enroll the amendment 13
among the permanent records of that office. If a majority of votes cast on the question are against 14
the amendment set out in Section 1 of this act, the amendment shall have no effect. 15
SECTION 4. If the certification from the State Board of Elections under Section 3 16
of this act reflects that a majority of votes cast on the question are in favor of the amendment set 17
out in Section 1 of this act, the amendment set out in Section 1 of this act is effective upon 18
certification. 19
SECTION 5. Except as otherwise provided, this act is effective when it becomes 20
law. 21