A BILL TO BE ENTITLED
AN ACT to provide a civil remedy for damages to persons in a community injured by an individual's use of illegal controlled substances and to appropriate funds to help implement this act.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 90 of the General Statutes is amended by adding a new Article to read:
"Article 5D.
"Drug Dealer Liability Act.
"§ 90‑113.48.  Title of Article.
This Article shall be known and may be cited as the 'Drug Dealer Liability Act'.
"§ 90‑113.49.  Purpose.
The purpose of this Article is to provide a civil remedy for damages to persons in a community injured by an individual's use of illegal drugs. It establishes a cause of action against drug dealers for damages for monetary, noneconomic, and physical losses incurred as a result of an individual's use of an illegal controlled substance. This Article will shift the cost of the damage caused by the marketing of illegal drugs to those who illegally profit from that market, as well as deter others from entering the illegal drug market by subjecting them to substantial monetary loss. This Article will also provide an incentive for individual users to identify drug marketers and recover from them the costs of their own drug treatment.
"§ 90‑113.50.  Definitions.
(1)	'Illegal controlled substance' means a controlled substance as defined and covered under Article 5 of this Chapter.
(2)	'Individual user' means the individual whose use of an illegal controlled substance that is not obtained directly from, or pursuant to, a valid prescription or order of a licensed physician or practitioner is the basis of an action brought under this Article.
(3)	'Level one offense' means the illegal possession with the intent to distribute less than four ounces or the illegal distribution of less than one ounce of an illegal controlled substance.
(4)	'Level two offense' means the illegal possession with intent to distribute four ounces or more but less than eight ounces, or the illegal distribution of one ounce or more, but less than two ounces, of an illegal controlled substance.
(5)	'Level three offense' means the illegal possession with intent to distribute eight ounces or more but less than 16 ounces, or the illegal distribution of two ounces or more, but less than four ounces, of an illegal controlled substance.
(6)	'Level four offense' means the illegal possession with intent to distribute 16 ounces or more, or the illegal distribution of four ounces or more, of an illegal controlled substance.
(7)	'Marketing of an illegal controlled substance' means the possession with intent to distribute or distribution of a specified illegal controlled substance which is a violation of Article 5 of this Chapter.
(8)	'Participate in the marketing of an illegal controlled substance' means to distribute, possess with intent to distribute, commit an act intended to facilitate the marketing or distribution of, or agree to distribute, possess with an intent to distribute, or commit an act intended to facilitate the marketing and distribution of an illegal drug. 'Participate in the marketing of an illegal controlled substance' does not include the purchase or receipt of an illegal controlled substance for personal use only.
(9)	'Period of illegal use' means, in relation to the individual user of an illegal controlled substance, the time from the individual's first illegal use of an illegal controlled substance to the accrual of the cause of action.
(10)	'Person' means a natural person, governmental entity, or corporation, partnership, firm, trust, or incorporated or unincorporated association, existing under or authorized by the laws of this State, another state, or a foreign country.
(11)	'Place of illegal activity' means, in relation to the individual user of an illegal controlled substance, each county in which the individual illegally possesses or uses an illegal controlled substance during the period of the individual's use of an illegal controlled substance.
(12)	'Place of participation' means, in relation to a defendant in an action brought under this Article, each county in which the person participates in the marketing of illegal controlled substances during the period of the person's participation in the marketing of illegal controlled substances.
(13)	'Conviction' means a conviction, guilty plea, or plea of nolo contendere and includes being convicted of a violation of a law of any other state or a city or county ordinance.
(14)	'Prior convictions' means felonies and misdemeanors, prior convictions not classified at the time of convictions, federal or out‑of‑state convictions, and juvenile adjudications if the offenses would be felonies if committed by an adult.
"§ 90‑113.51.  Persons who may bring action; persons against whom actions may be brought; damages recoverable.
(a)	Any one or more of the following persons may bring an action for damages caused by an individual's use of an illegal controlled substance against those persons enumerated in subsection (b) of this section:
(1)	A parent, legal guardian, child, spouse, or sibling of the individual user;
(2)	An individual who was exposed to an illegal controlled substance in utero;
(3)	An employer of the individual user;
(4)	A medical facility, insurer, employer, governmental entity, or other legal entity that funds a drug treatment program or other employee assistance program for, or that otherwise expends money on, behalf of the individual user; or
(5)	A person injured as a result of the willful, reckless, or negligent actions of an individual user.
(b)	A person entitled to bring an action pursuant to subsection (a) of this section may seek damages from one or more of the following:
(1)	A person who sold, administered, or furnished an illegal controlled substance to the individual user; or 
(2)	A person who knowingly participated in the marketing of an illegal controlled substance, if all of the following apply:
a.	The place of illegal activity by the individual user is within the municipality, county, or unincorporated area of the county in which the defendant's place of participation is situated.
b.	The defendant's participation in the marketing of illegal controlled substances was connected with the same type of illegal controlled substance used by the individual user and the defendant has been convicted of an offense for that type of specified illegal controlled substance, which the defendant committed in the same county as the individual user's place of use.
c.	The defendant participated in the marketing of illegal controlled substances at anytime during the period in which the individual user used the illegal controlled substance.
(c)	As used in subdivision (b)(2) of this section, 'knowingly participated in the marketing of an illegal controlled substance' means an individual was convicted of possession with the intent to distribute or distribution of an illegal controlled substance in violation of Chapter 90 of the General Statutes.
(d)	A person entitled to bring an action under this section may recover all of the following damages:
(1)	Economic damages including, but not limited to, the cost of treatment and rehabilitation, medical expenses, loss of economic or educational potential, loss of productivity, absenteeism, support expenses, accidents or injury, and any other pecuniary loss proximately caused by the use of an illegal controlled substance;
(2)	Noneconomic damages including, but not limited to, physical and emotional pain and suffering, physical impairment, emotional distress, mental anguish, disfigurement, loss of enjoyment, loss of companionship, services, and consortium, and other nonpecuniary losses proximately caused by an individual's use of an illegal controlled substance;
(3)	Exemplary damages;
(4)	Reasonable attorney fees; and
(5)	Costs of suit including, but not limited to, reasonable expenses for expert testimony.
"§ 90‑113.52.  Actions by individual users; damages recoverable.
(a)	An individual user is entitled to bring an action for damages caused by the use of an illegal controlled substance only if all of the following conditions are met:
(1)	Not less than six months before filing the action, the individual personally discloses to a law enforcement agency all of the information known to the individual regarding the individual's  sources of illegal controlled substances.
(2)	The individual has not used an illegal controlled substance within 30 days before filing the action.
(3)	The individual does not use an illegal controlled substance while the action is pending.
(b)	The individual user entitled to bring an action under this section may recover only the following damages:
(1)	Economic damages including, but not limited to, the cost of treatment, rehabilitation, and medical expenses, loss of economic or educational potential, loss of productivity, absenteeism, accidents or injury, and any other pecuniary loss proximately caused by the person's use of an illegal controlled substance;
(2)	Reasonable attorney fees; and 
(3)	Costs of suit including, but not limited to, reasonable expenses for expert testimony.
(c)	The individual user entitled to bring an action under this section may seek damages only from a person who distributed or possessed with the intent to distribute the illegal controlled substance actually used by the individual user.
"§ 90‑113.53.  Assignment of cause of action.
A cause of action authorized by this Article shall not be assigned, either expressly, by subrogation, or by any other means, directly or indirectly, to any public or publicly funded agency or institution.
"§ 90‑113.54.  Responsibility for damages; level of offense.
Any person whose participation in the marketing of illegal controlled substances constitutes any of the following levels of offense shall be subject to a rebuttal presumption of responsibility in the following amounts:
(1)	For a level one offense, twenty‑five percent (25%) of the damages;
(2)	For a level two offense, fifty percent (50%) of the damages;
(3)	For a level three offense, seventy‑five percent (75%) of the damages; or
(4)	For a level four offense, one hundred percent (100%) of the damages.
"§ 90‑113.55.  Multiple parties to action; relief according to respective liabilities.
(a)	Two or more persons may join in one action under this Article as plaintiffs if their respective actions have at least one market for illegal controlled substances in common and if any portion of the period of use of an illegal controlled substance is concurrent with the period of use of an illegal controlled substance for every other plaintiff.
(b)	Two or more persons may be joined in one action under this Article as defendants if those persons are liable to at least one plaintiff.
(c)	A plaintiff need not participate in obtaining, and a defendant need not participate in defending, against all of the relief demanded. Judgment may be given for one or more plaintiffs according to their respective rights to relief  and against one or more defendants according to their respective liabilities.
"§ 90‑113.56.  Standard of proof; effect of conviction for distribution of controlled substance. 
(a)	Proof of liability in an action brought under this Article shall be by a preponderance of the evidence.
(b)	A person against whom recovery is sought who has been convicted of the distribution of an illegal controlled substance under Chapter 90 of the General Statutes or under the Comprehensive Drug Abuse Prevention and Control Act of 1970, 21 U.S.C. § 801, et seq., is precluded from denying participation in the marketing of an illegal controlled substance.     
"§ 90‑113.57.  Defense; liability of law enforcement officer or agency.
(a)	It is a defense to any action brought under this Article that the person who possessed with the intent to distribute or distributed an illegal controlled substance did so under the authority of law as a licensed physician or practitioner, as an ultimate user of the illegal controlled substance pursuant to a lawful prescription, or as a person otherwise authorized by law.
(b)	A law enforcement officer or agency, the State, or any person acting at the direction of a law enforcement officer or agency of the State is not liable for participating in the marketing of an illegal controlled substance if the participation is in furtherance of an illegal investigation.
"§ 90‑113.58.  Seizure of property; injunctions.
A person authorized to file an action under this Article may seek a seizure or injunction or other remedial action against all assets of a defendant sufficient to satisfy a potential award, except an asset named in or seized pursuant to a forfeiture action by the State or federal agency before a plaintiff commences an action pursuant to this Article, unless the asset is released by the agency that seized it.
"§ 90‑113.59.  Statute of limitations.
(a)	Except as otherwise provided in this section, a cause of action under this Article shall not be brought more than two years after the cause of action accrues. A cause of action accrues under this Article when a person who may recover has reason to know of the harm from illegal drug use that is the basis for the cause of action and has reason to know that the illegal drug use is the cause of the harm.
(b)	For a plaintiff, the statute of limitation under this section is tolled while the individual potential plaintiff is incapacitated by the use of an illegal controlled substance to the extent that the individual cannot reasonably be expected to seek recovery under this Article or as otherwise provided by law. For a defendant, the statute of limitation under this section is tolled until six months after the individual potential defendant is convicted under Chapter 90 of the General Statutes or as otherwise provided by law.
"§ 90‑113.60.  Continuance pending completion of criminal investigation.
On motion by a governmental entity involved in an investigation or prosecution involving an illegal controlled substance, an action brought under this Article shall be continued until the completion of the criminal investigation or prosecution that gave rise to the motion for a continuance of the action."
SECTION 2.  The Administrative Office of the Courts shall develop forms needed to a file a cause of action under this Article and provide training to judicial personnel.
SECTION 3.  There is appropriated from the General Fund to the Administrative Office of the Courts the sum of fifty thousand dollars ($50,000) to be used to develop forms, to train judicial personnel, and to otherwise implement this Article.
SECTION 4.  This act becomes effective December 1, 2005.