AN ACT to revise how the amount of performance bonds for elections vendors is determined in this state.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 163‑165.7(a)(1) reads as rewritten:

(1)      That the vendor post a performance bond or letter of credit to cover damages resulting from defects in the voting system, expenses associated with State or federal decertification of the voting system, and to protect against the vendor's insolvency or financial inability to make State or federally mandated modifications or updates to the voting system. Damages may include, among other items, any costs of conducting a new county or statewide election attributable to those defects. The bond or letter of credit shall be maintained in the amount determined by the State Board as sufficient for the cost of a new statewide election or in the amount of ten million dollars ($10,000,000), whichever is greater.based on the estimated cost of conducting elections in the counties in which the vendor operates.

SECTION 2.  This act is effective when it becomes law and applies to bonds or letters of credit for vendors on or after that date.