Bill > S469

This bill establishes the Improper Action Claims Act, which creates a legal mechanism for citizens to bring civil actions against public entities that knowingly fail to comply with legal obligations. The act allows individuals (called qui tam plaintiffs) to file lawsuits on behalf of the state when they discover a public entity is not following a statute, regulation, or other legally adopted directive. If the Attorney General chooses to intervene, the plaintiff can receive between 15-25% of any recovered damages; if the Attorney General does not intervene, the plaintiff can receive 25-30% of the damages. Public entities found in violation can be subject to civil penalties ranging from $5,500 to $11,000, and the lawsuit can proceed despite any existing governmental immunity. The bill includes detailed provisions for how such actions can be filed, including requirements that complaints be initially filed under seal and served on the Attorney General, who then decides whether to take over the case. The act also provides protections for employees or contractors who report such improper actions, protecting them from retaliation. Additionally, the Attorney General is empowered to issue civil investigative demands to gather evidence and is required to submit annual reports on qui tam cases to legislative committees. The law is designed to encourage accountability and transparency in government operations by creating a legal pathway for citizens to challenge noncompliance with established legal obligations.

https://www.ncleg.gov/BillLookUp/2025/S469