The State Board of Elections on Tuesday dismissed all complaints filed against two national party groups seeking to influence the fall elections in North Carolina using sibling organizations.

The dismissals came after three hours of hearings by the board about the Democratic Legislative Campaign Committee and the Republican Governors Association, the Associated Press reports.

Both political organizations have raised money which has been funneled to similar state political action committees they created.

The RGA North Carolina 2008 Political Action Committee has spent $3 million for ads and mailers to help GOP candidate for governor Pat McCrory. The DLCC North Carolina Political Action Committee has received more than $1 million since early 2007 for efforts to elect Democratic candidates to the General Assembly, according to campaign finance reports.

The board voted 3-2 against a motion that would have determined the groups violated state law, despite testimony by the board’s chief campaign finance investigator arguing the law had been broken. The board’s three Democratic members voted in the majority.

Board chairman Larry Leake, who cast the tie-breaking vote, said he didn’t believe the national groups’ fundraising practices violated the law, especially when taking into account competing forces of freedom of expression.

North Carolina's chief campaign finance investigator says two national party groups seeking to influence elections are breaking state law.

Kim Strach, deputy director of the State Board of Elections, testified Tuesday in a board hearing. The board is examining how the Democratic Legislative Campaign Committee and the Republican Governors Association raise and spend money for North Carolina, the Associated Press reports.

Strach said the two groups are raising money on behalf of sister organizations registered in North Carolina but aren't disclosing the contributions properly. The groups disagree.

The Republican sister group has spent $3 million to support GOP nominee for governor Pat McCrory. The Democratic group is supporting General Assembly candidates.

The elections board could order the groups to comply with the law or block them from spending in the state.

The Pitt County Republican Party and a voter are suing over Democratic fundraising methods.

In a lawsuit filed this week, the plaintiffs allege that the Democratic Legislative Campaign Committee is circumventing a law barring corporate money from being used in state campaigns, the Associated Press reports.

"The injunction sought in this lawsuit is essential to the voters in North Carolina if we are to have a fair and honest election conducted on a level playing field," said Kieran Shanahan, the plaintiffs' lawyer said in a news release.

Matt Compton, a spokesman for the DLCC in Washington, said the lawsuit would be dismissed.

"We feel that this is a classic publicity stunt lawsuit," he said. "There's nothing to it."

The GOP and voter Kimberley Hendrix allege that the DLCC accepts corporate contributions and transfers it to the DLCC North Carolina Political Action Committee.

The State Board of Elections is also investigating the PAC.

The State Board of Elections is looking into people who gave money to Jim Black.

Investigators are looking into how the former House speaker got $2,000 in cash from David "Slim" Baucom, owner of a dozen strip clubs through M.A.L. Entertainment of Charlotte.

They're also investigating a $30,000 contribution from the N.C. Amusement Machine Association, a video poker industry trade group, to the Democratic Legislative Campaign Committee in 2000.

Gary Bartlett, executive director of the board, said they were simply following the leads from Black's testimony, echoing the advice of Deep Throat in the movie version of "All the President's Men."

"We're following the money," he said. (Char-O)