Senate Bill 564 Summary

• Creates the "Improper Action Claims Act" allowing North Carolina citizens to sue public entities that knowingly fail to comply with state legislation, seeking civil penalties of $5,500 to $11,000 plus costs.

• Establishes qui tam provisions enabling private citizens to bring civil actions on behalf of the State, with the State able to intervene within 120 days; successful qui tam plaintiffs receive 15-25% of recovered proceeds if State intervenes or 25-30% if they proceed alone.

• Waives governmental and statutory immunity for public entities sued under this Act and restricts actions against General Assembly members, judges, and senior executive branch officials when based on evidence already known to the State.

• Grants the Attorney General authority to investigate violations, issue civil investigative demands for documents, and pursue enforcement actions; prohibits duplicate actions based on publicly disclosed information unless plaintiff is the original source.

• Sets statute of limitations at six years from violation date or three years from when facts were known, whichever is later, but not exceeding 10 years total; includes retaliation protections for employees and contractors reporting violations.