1.1                          A bill for an act 
  1.2             relating to employment; limiting attorneys' fees for 
  1.3             certain claims against the state; limiting damages; 
  1.4             mandating mediation for certain claims against the 
  1.5             state; amending Minnesota Statutes 1994, section 
  1.6             3.736, by adding a subdivision.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 3.736, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 4b.  [HARASSMENT CLAIMS.] (a) [DEFINITION.] For 
  1.11  purposes of this subdivision, "harassment" includes sexual 
  1.12  harassment as defined in section 363.01, subdivision 41, and 
  1.13  willful or wanton acts of discrimination against a person 
  1.14  because of race, color, creed, religion, national origin, sex, 
  1.15  marital status, status with regard to public assistance, 
  1.16  membership or activity in a local commission, disability, sexual 
  1.17  orientation, or age.  
  1.18     (b)  [ATTORNEYS' FEES.] Attorneys' fees on a harassment 
  1.19  claim against the state shall not exceed 25 percent of the first 
  1.20  $4,000 and ten percent of the remainder of an award.  
  1.21     (c)  [DAMAGES.] Damages awarded on a harassment claim 
  1.22  against the state are limited to actual economic damages.  The 
  1.23  state will not pay punitive damages or damages for pain and 
  1.24  suffering on a harassment claim.  
  1.25     (d)  [MEDIATION.] Prior to the filing of a civil action 
  1.26  against the state based on a claim of harassment, the claimant 
  2.1   and the state shall enter into an agreement to mediate as 
  2.2   defined in section 572.33, subdivision 3.  The claimant and the 
  2.3   state will make good faith efforts to resolve the controversy 
  2.4   through mediation.  The state court administrator, in 
  2.5   consultation with the bureau of mediation services, shall adopt 
  2.6   rules to implement this section and may use portions of existing 
  2.7   rules of alternative dispute resolution programs that would 
  2.8   further the purposes of this section. 
  2.9      Sec. 2.  [EFFECTIVE DATE.] 
  2.10     Section 1 is effective August 1, 1996, and applies to 
  2.11  claims arising from incidents occurring on or after that date.