A member of the NSW Liberals is facing up to five years' suspension for publicly criticising an MP who was caught falsely swearing to have lived in her electorate for a decade.

Liberal headquarters is moving to suspend barrister Juris Laucis for up to five years for criticising Felicity Wilson, the party's candidate for North Shore.

During a close preselection battle, Ms Wilson was revealed to have falsely sworn to have lived in the electorate for a decade.

On the eve of the April byelection, Ms Wilson said she should have been more careful with her wordsamid a burgeoning media scandal about inconsistencies in her claimed connection to the electorate.

Writing for The Spectator, Mr Laucis described the affair as a "running sore" for the party.

"The honourable thing to do, even at the 11th hour, would have been for the Liberal Party to withdraw from the race, and thereby demonstrate that it is a Party that commands the moral high ground," he wrote.

"The election of Felicity Wilson is a running sore that will plague the Berejiklian government all the way to the next election."

Liberal party state director Chris Stone commenced suspension proceedings against Mr Laucis for those comments this week.

"Mr Laucis did not obtain authority from the State Director prior to publishing the article and has therefore breached [regulations]," a motion from the Department of Party Affairs and passed by the Liberals' ruling state executive read.

But Mr Laucis was unrepentant.

"They're trying to set up a Stalinist regime," he told Fairfax Media. "The reason I speak out is the only way that culture is going to change is if it comes out in the public domain.

"Within the Liberal Party there's no mechanism we can [use to] stop whatever the executive is doing."

Mr Laucis' fate will be determined by a meeting of the party's all-powerful state executive on July 28.

In her first tilt at Parliament, Ms Wilson retained the seat of North Shore for the Liberals, notwithstanding a swing of more than 15 per cent.

Last week she was revealed to have presented her third different account of her ties to the electorate in a speech to party members that significantly watered down her initial apology.

A spokesman for the NSW Liberal party declined to comment.

The Liberal Party maintains famously strict rules that prohibit members from discussing "internal party matters" in the media.

Ex-federal MP Ross Cameron recently fell foul of the rule and was recently suspended for four-and-a-half years for critical comments he made about now-Premier Gladys Berejiklian.

Mr Laucis was also previously suspended last year, along with former MP Charlie Lynn and Mr Cameron, for a period of six months, for comments critical of party preselection processes made to the ABC's 7.30 program.

Read more:

Liberal faces five-year suspension for criticising MP Felicity Wilson - The Sydney Morning Herald