Bill Summary for S 368 (2017-2018)

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Summary date: 

Jun 14 2018

Bill Information:

View NCGA Bill Details2017-2018 Session
Senate Bill 368 (Public) Filed Thursday, March 23, 2017
AN ACT TO ALIGN THE NORTH CAROLINA FALSE CLAIMS ACT WITH THE FEDERAL FALSE CLAIMS ACT; TO EXTEND THE TERMS FOR THE CURRENT MEMBERS OF THE ADVISORY COUNCIL ON RARE DISEASES; AND TO EXTEND PARTICIPATION IN THE HIE NETWORK FOR CERTAIN PROVIDERS.
Intro. by Hise, Pate, Krawiec.

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Bill summary

House committee substitute makes the following changes to the 1st edition. Deletes all content of the previous edition and replaces it with the following, making conforming title changes.

Amends GS 1-606, which sets out the definitions for the False Claims Act by removing the definition of  "Public employee," "public official," and "public employment".

Amends GS 1-607 to allow civil penalties imposed for the listed false claim related violations to be adjusted by Section 5 of the Federal Civil Penalties Inflation Adjustment Act.

Amends GS 1-608 to allow a civil action for a violation of GS 1-607 to be dismissed only upon the court and Attorney General's written consent to the dismissal and requires reasons for consenting (was, no reasons were required and the action may be dismissed only voluntarily by the person bringing the action). Provides that when a person brings an action under GS 1-608(b) (was, (b) or the Federal False Claims act or any similar provision in another state), no person other than the State may intervene or bring a related action based on the facts underlying the action. Deletes language allowing a person to amend a pending action in another jurisdiction to allege a claim under (b).

Amends GS 1-610 by removing references to federal level actions.

Amends GS 1-611 by deleting (c) and (d) concerning bringing civil actions against a public employee or public official and jurisdiction over actions based on specified public disclosure of allegations or transactions and replace them with the following. Unless opposed by the State, the court must dismiss an action or claim if substantially the same allegations or transactions as alleged in the action or claim were publicly disclosed by any of the following: (1) a State criminal, civil, or administrative hearing in which the State or its agent is a party; (2) a State legislative, Office of the State Auditor, or other State report, hearing, audit, or investigation; or (3) the news media. Excludes any action brought by the Attorney General or when the person bringing the action is an original source of the information. Amends the definition of original source.

Amends GS 1-613 to clarify that the relief includes relief necessary to make employees, contractors, or agents whole (currently just employees). Provides a three-year statute of limitations for claims based on retaliation under this statute. Makes technical changes.

Amends GS 126-84 to make it state policy that state employees have a duty to (was, are encouraged to) report evidence of any of the specified wrongdoings.

Extends the current membership of the Advisory Council on Rare Diseases until July 31, 2023. Effective when the act becomes law.

Amends GS 90-414.4, concerning required participation in the HIE Network, to require that ambulatory surgical centers and dentists begin submitting data by June 1, 2021, and that pharmacists registered with the NC Board of Pharmacy and licensed pharmacists begin submitting claims data by June 1, 2021. Makes conforming changes. Requires a pharmacy or pharmacist to only be required to submit claims data related to services provided to Medicaid and other state funded health care program beneficiaries and paid for with funds from those programs. Limits the number of times that a pharmacist or pharmacy must submit claims data through the HIE Network to once daily.