GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	1
HOUSE BILL 1225
     

 
Short Title:	Open Meetings Pending Litigation.	()	
Sponsors:	Representative Nesbitt.	
Referred to:	Judiciary I.	
April 12, 2001

A BILL TO BE ENTITLED
AN ACT RELATING TO DISCUSSION OF PENDING LITIGATION IN CLOSED SESSIONS.

The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 143‑318.11(a)(3) reads as rewritten:
"(3)	To consult with an attorney employed or retained by the public body Regarding pending litigation, when discussion in open session concerning the pending litigation would prejudice the position of the public body in the litigation, or for any other purpose permitted by this subsection. General policy matters may not be discussed in the closed session and nothing herein shall be construed to permit a public body to close a meeting that otherwise would be open merely because an attorney employed or retained by the public body is a participant. The public body may consider and give instructions to its attorney concerning the handling or settlement of pending litigation. If the public body has approved or considered a settlement, other than a malpractice settlement by or on behalf of a hospital, in closed session, the terms of that settlement shall be reported to the public body and entered into its minutes as soon as possible within a reasonable time after the settlement is concluded. For purposes of this Article, all expressions of the attorney-client privilege other than those provided in this subdivision are hereby abrogated. This subdivision is the exclusive expression of the attorney-client privilege for purposes of conducting closed sessions pursuant to this Article.
a.	For purposes of this subdivision "litigation" means any adjudicatory proceeding, including eminent domain, before a court, administrative body exercising its adjudicatory authority, hearing officer, or arbitrator.
b.	For purposes of this subdivision, litigation shall be considered pending when any of the following circumstances exist:
1.	Litigation, to which the public body is a party, has been initiated formally.
2.	A point has been reached where, in the opinion of the public body on the advice of its attorney, there is significant exposure to litigation against the public body.
3.	The public body is meeting only to decide whether a closed session is authorized pursuant to sub-subdivision (3)b.2. of this subsection.
4.	The public body has decided to initiate or is deciding whether to initiate litigation.
c.	For purposes of this subdivision, a public body shall be considered to be a "party" or to have a "significant exposure to litigation" if a member or employee of the public body is a party or has significant exposure to litigation concerning prior or prospective activities or alleged activities during the course and scope of that person's office or employment, including litigation in which it is an issue whether an activity is outside the course and scope of the office or employment.
d.	An attorney employed or retained by a public body who participates in a closed session for any purpose permitted by G.S. 143-318.11(a) shall prepare a memorandum stating the specific reasons and legal authority for the closed session. If the closed session is pursuant to G.S. 143-318.11(a)(3)b.1., the memorandum shall include the title of the existing litigation. If the closed session is for any other purpose permitted by this subsection, the memorandum shall include the existing facts and circumstances authorizing the closed session. The attorney shall prepare the memorandum before the closed session, if feasible, and in any case no later than one week after the closed session. The memorandum shall be made part of the account of the closed session required by G.S. 143-318.10(e) and, like the rest of the account, may be withheld from public inspection only so long as public inspection would frustrate the purpose of the closed session."
SECTION 2.  This act becomes effective December 1, 2001.