July 3, 2000

Meg Scott Phipps
Candidate for Commissioner of Agriculture
225 Hillsborough St., Suite 110
Raleigh, NC 27603

Dear Ms. Phipps,

I write to bring an important matter to your attention: Despite repeated warnings, your campaign is in apparent violation of N.C. General Statute 163-278.9(j), which requires statewide candidates to file their campaign finance reports in an electronic format that makes them readily accessible to the public.

Full and rapid disclosure is the most basic component of an election system that is fair, free from corruption, and accountable to the public. In recognition of this fact, the 1997 General Assembly passed a set of disclosure requirements, including the electronic reporting requirement for statewide candidates (and political committees supporting them) that have more than $5,000 in activity in a reporting period. The first such report was due on April 24, covering the first quarter of 2000.

Many statewide candidates are complying with this new law, including Democrats Mike Easley, Dennis Wicker, and Elaine Marshall and Republicans Betsy Cochrane and Dan Boyce. They are using, or adapting, the computer program furnished free by the State Board of Election to submit their reports in an electronic format that can be rapidly processed, read on a public terminal at the Board's office, and posted on the Internet for public access across the state..

We understand that there were initial problems with the State Board's computer program, but a fully functional program has been available from their web site or office for two months. The Board also offers technical assistance to facilitate the translation of data from one program to another.

None of this should come as a surprise. Seven weeks ago, the State Board of Election notified your campaign treasurer, Linda Saunders, in a letter dated May 11, that the campaign was out of compliance with G.S. 163-278.9(j). The files show several subsequent letters to your campaign. Numerous earlier notices from the Board have described the electronic reporting requirement, including one sent three months ago, which described the requirements for the first quarter reports, due April 24, 2000.

Perhaps there are legitimate reasons why your campaign has had difficulty in fulfilling its disclosure obligation. But at some point, the excuses must stop and a serious commitment must be made to get the job done. I'm sure you would agree that this is the kind of leadership the public should expect of a candidate for state office.

The second quarter of 2000 has now ended and another disclosure report is due in a matter of days. I sincerely hope your campaign committee will furnish both that report and the one for the first quarter in an electronic format that satisfies the law and the Board's requirements. If non-compliance persists, we feel duty bound to ask the Board to impose the penalty called for under NCGS 168-278.34, which could go up to $10,000. Thank you for your prompt and personal attention to this important matter.

Sincerely,

Peter MacDowell
Executive Director