HF 4021

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/08/2024 08:07am

A bill for an act
relating to human rights; making changes to provisions in the Minnesota Human
Rights Act; providing for civil penalty and punitive damages; amending Minnesota
Statutes 2022, sections 363A.03, subdivisions 12, 13, 18, 29; 363A.06, subdivision
4; 363A.07, subdivision 4; 363A.19; 363A.28, subdivision 5; 363A.29, subdivisions
1, 2; 363A.33, subdivisions 1, 6, by adding subdivisions; Minnesota Statutes 2023
Supplement, sections 363A.02, subdivision 1; 363A.04; 363A.16, subdivision 1;
repealing Minnesota Statutes 2022, section 363A.03, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2023 Supplement, section 363A.02, subdivision 1, is
amended to read:

Subdivision 1.

Freedom from discrimination.

(a) It is the public policy of this state to
secure for persons in this state, freedom from discrimination:

(1) in employment because of new text begin one or more of the following: new text end race, color, creed, religion,
national origin, sex, gender identity, marital status, disability, status with regard to public
assistance, sexual orientation, familial status, and age;

(2) in housing and real property because of new text begin one or more of the following: new text end race, color,
creed, religion, national origin, sex, gender identity, marital status, disability, status with
regard to public assistance, sexual orientation, and familial status;

(3) in public accommodations because of new text begin one or more of the following: new text end race, color,
creed, religion, national origin, sex, gender identity, sexual orientation, and disability;

(4) in public services because of new text begin one or more of the following: new text end race, color, creed, religion,
national origin, sex, gender identity, marital status, disability, sexual orientation, and status
with regard to public assistance; and

(5) in education because of new text begin one or more of the following: new text end race, color, creed, religion,
national origin, sex, gender identity, marital status, disability, status with regard to public
assistance, sexual orientation, and age.

(b) Such discrimination threatens the rights and privileges of the inhabitants of this state
and menaces the institutions and foundations of democracy. It is also the public policy of
this state to protect all persons from wholly unfounded charges of discrimination. Nothing
in this chapter shall be interpreted as restricting the implementation of positive action
programs to combat discrimination.

Sec. 2.

Minnesota Statutes 2022, section 363A.03, subdivision 12, is amended to read:

Subd. 12.

Disability.

"Disability" means any condition or characteristic that renders a
person a disabled person. A disabled person is any person who (1) has a physical, sensory,
or mental impairment which materially limits one or more major life activities; (2) has a
record of such an impairment; deleted text begin or deleted text end (3) is regarded as having such an impairment new text begin ; or (4) has
an impairment that is episodic or in remission and would materially limit a major life activity
when active new text end .

Sec. 3.

Minnesota Statutes 2022, section 363A.03, subdivision 13, is amended to read:

Subd. 13.

Discriminate.

The term "discriminate" includes segregate deleted text begin or deleted text end new text begin , new text end separate deleted text begin and,
for purposes of discrimination based on sex, it includes sexual deleted text end new text begin , or new text end harassment.

Sec. 4.

Minnesota Statutes 2022, section 363A.03, subdivision 18, is amended to read:

Subd. 18.

Familial status.

"Familial status" means the condition of one or more minors
deleted text begin being domiciled deleted text end new text begin having legal status or custody new text end with (1) deleted text begin their deleted text end new text begin the minor's new text end parent or parents
or the minor's legal guardian new text begin or guardians new text end or (2) the designee of the parent or parents or
guardian new text begin or guardians new text end with the written permission of the parent or parents or guardian new text begin or
guardians new text end . new text begin Familial status also means residing with and caring for one or more individuals
who lack the ability to meet essential requirements for physical health, safety, or self-care
because the individual or individuals are unable to receive and evaluate information or make
or communicate decisions. new text end The protections afforded against discrimination on the basis of
family status apply to any person who is pregnant or is in the process of securing legal
custody of an individual who has not attained the age of majority.

Sec. 5.

Minnesota Statutes 2022, section 363A.03, subdivision 29, is amended to read:

Subd. 29.

Party in interest.

"Party in interest" means the complainant, respondent, new text begin or new text end
commissioner deleted text begin or board member deleted text end .

Sec. 6.

Minnesota Statutes 2023 Supplement, section 363A.04, is amended to read:

363A.04 CONSTRUCTION AND EXCLUSIVITY.

The provisions of this chapter shall be construed liberally for the accomplishment of the
purposes thereof. Nothing contained in this chapter shall be deemed to repeal any of the
provisions of the civil rights law or of any other law of this state relating to discrimination
because of race, creed, color, religion, sex, gender identity, age, disability, marital status,
status with regard to public assistance, national origin, sexual orientation, or familial status;
but, as to acts declared unfair by sections 363A.08 to 363A.19, and 363A.28, subdivision
10, the new text begin administrative new text end procedure herein provided shall, while pending, be exclusive. new text begin The
rights and remedies herein provided are in addition to, and shall not preclude, those available
at law or in equity.
new text end

Sec. 7.

Minnesota Statutes 2022, section 363A.06, subdivision 4, is amended to read:

Subd. 4.

Publication of case account.

The commissioner may publish an account of a
case in which the complaint has been dismissed or the terms of settlement of a case that has
been voluntarily deleted text begin adjusted deleted text end new text begin resolved with the Department of Human Rights new text end . deleted text begin Except as provided
in other sections of this chapter, the commissioner shall not disclose any information
concerning efforts in a particular case to eliminate an unfair discriminatory practice through
education, conference, conciliation and persuasion.
deleted text end

Sec. 8.

Minnesota Statutes 2022, section 363A.07, subdivision 4, is amended to read:

Subd. 4.

Withdrawal from local commission.

Notwithstanding the provisions of any
law or ordinance to the contrary, a person who has filed a charge with a local commission
may bring a civil action as provided in section 363A.34 at the following times:

(1) within deleted text begin 45 deleted text end new text begin 90 new text end days after receipt of notice that the local commission has determined
that there is no probable cause to credit the allegations contained in the charge; receipt of
notice is presumed to be five days from the date of service by mail of the written notice; or

(2) after 45 days from the filing of the charge if a hearing has not been held or if the
local commission has not entered into a conciliation agreement to which the charging party
is a signator. The charging party shall notify the local commission of an intention to bring
a civil action, which shall be commenced within 90 days of giving the notice.

A charging party bringing a civil action shall mail by registered or certified mail a copy
of the summons and complaint to the local commission and upon their receipt the local
commission shall terminate all proceedings before the local commission relating to the
charge. No charge shall be filed or reinstituted with the local commission after a civil action
relating to the same unfair discriminatory practice has been brought unless the civil action
has been dismissed without prejudice.

Sec. 9.

Minnesota Statutes 2023 Supplement, section 363A.16, subdivision 1, is amended
to read:

Subdivision 1.

Personal or commercial credit.

It is an unfair discriminatory practice
to discriminate in the extension of personal or commercial credit to a person, or in the
requirements for obtaining credit, because of race, color, creed, religion, disability, national
origin, sex, gender identity, sexual orientation, new text begin familial status, new text end or marital status, or due to
the receipt of federal, state, or local public assistance including medical assistance.

Sec. 10.

Minnesota Statutes 2022, section 363A.19, is amended to read:

363A.19 DISCRIMINATION AGAINST deleted text begin BLIND, DEAF, OR OTHER deleted text end PERSONS
WITH deleted text begin PHYSICAL OR SENSORY deleted text end DISABILITIES PROHIBITED.

(a) It is an unfair discriminatory practice for an owner, operator, or manager of a hotel,
restaurant, public conveyance, or other public place to prohibit a deleted text begin blind or deaf person or a deleted text end
person with a deleted text begin physical or sensory deleted text end disability from taking a service animal into the public
place or conveyance to aid deleted text begin blind or deaf persons or deleted text end persons with deleted text begin physical or sensory deleted text end
disabilities, and if the service animal is properly harnessed or leashed so that the deleted text begin blind or
deaf person or a deleted text end person with a deleted text begin physical or sensory deleted text end disability may maintain control of the
service animal.

(b) No person shall require a deleted text begin blind, physically disabled, or deaf deleted text end person new text begin with a disability
new text end to make an extra payment or pay an additional charge when taking a service animal into
any of the public places referred to in paragraph (a).

(c) For purposes of this section, "service animal" means a service animal as defined by
the federal Americans with Disabilities Act, as amended.

Sec. 11.

Minnesota Statutes 2022, section 363A.28, subdivision 5, is amended to read:

Subd. 5.

Alternative dispute resolution.

new text begin Charging parties and respondents shall be
offered and may request an opportunity to resolve a charge through mediation or another
alternative dispute resolution process. Neutrals providing mediation and alternative dispute
resolution processes for parties are bound by the Code of Ethics for Court-Annexed ADR
Neutrals. new text end The running of the 12-month period during which the commissioner must make
a determination of probable cause to credit allegations is suspended during a period of time
specified by the commissioner during which the parties are involved in mediation or other
alternative dispute resolution new text begin process new text end that has been sanctioned by the commissioner.

Sec. 12.

Minnesota Statutes 2022, section 363A.29, subdivision 1, is amended to read:

Subdivision 1.

Conduct of hearings.

A deleted text begin complaint deleted text end new text begin determination new text end issued by the
commissioner deleted text begin shall deleted text end new text begin may new text end be heard as a contested case, except that the report of the
administrative law judge shall be binding on all parties to the proceeding and if appropriate
shall be implemented by an order as provided for in subdivision 3. new text begin The party contesting the
determination issued by the commissioner may file a request with the commissioner to
appear at a hearing on the party's own behalf or through a private attorney. The commissioner
shall forward the request for hearing to the Office of Administrative Hearings, which shall
promptly set the matter for hearing. new text end The hearing shall be conducted at a place designated
by the commissioner, within the county where the unfair discriminatory practice occurred
or where the respondent resides or has a principal place of business. The hearing shall be
conducted in accordance with sections 14.57 to 14.62, and is subject to appeal in accordance
with sections 14.63 to 14.68.

Sec. 13.

Minnesota Statutes 2022, section 363A.29, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Hearings 180 days after charge deleted text end new text begin Tolling during investigation new text end .

deleted text begin At any time
after 180 days from the filing of a charge, if there has been neither a finding of probable
cause nor of no probable cause, the charging party may file a request with the commissioner
to appear at a hearing on the party's own behalf or through a private attorney. deleted text end new text begin The
commissioner shall make a determination of probable cause or no probable cause within
one year of the filing of a case in which the time has not been tolled. new text end The amount of time
during which a case is involved in significant settlement negotiations, is being investigated
by another enforcement agency under a work sharing agreement, or has been referred to
mediation or to a local human rights commission for no fault grievance processing is deleted text begin not
counted in computing the 180 days deleted text end new text begin tolled new text end . Tolling of the time during settlement negotiations
requires written approval of the charging party or the party's attorney. deleted text begin The right of a charging
party to file a request for hearing does not apply in cases that have been certified as complex
by the commissioner within 60 days of the filing of the charge. A case may not be certified
as complex unless it involves multiple parties or issues, presents complex issues of law or
fact, or presents substantially new issues of law in the discrimination area. Within five days
of certifying a case as complex, the commissioner shall give notice of the certification to
the charging party and the respondent. The commissioner shall make a determination of
probable cause or no probable cause within one year of the filing of a case in which the
time has not been counted or a case certified as complex. Upon receipt of the request, the
commissioner shall review the documents and information held in the department's files
concerning the charge and shall release to the charging party and respondent all documents
and information that are accessible to the charging party and respondent under chapter 13.
The commissioner shall forward the request for hearing to the Office of Administrative
Hearings, which shall promptly set the matter for hearing. If the charging party prevails at
this hearing, the administrative law judge may require the respondent to reimburse the
charging party for reasonable attorney's fees.
deleted text end

Sec. 14.

Minnesota Statutes 2022, section 363A.33, subdivision 1, is amended to read:

Subdivision 1.

Court actions, suits by private parties, intervention.

The commissioner
or a person may bring a civil action seeking redress for an unfair discriminatory practice
directly to district court. In addition, a person may bring a civil action:

(1) within deleted text begin 45 deleted text end new text begin 90 new text end days after receipt of notice that the commissioner has dismissed a charge
because it is frivolous or without merit, because the charging party has failed to provide
required information, because the commissioner has determined that further use of department
resources is not warranted, or because the commissioner has determined that there is no
probable cause to credit the allegations contained in a charge filed with the commissioner;

(2) within deleted text begin 45 deleted text end new text begin 90 new text end days after receipt of notice that the commissioner has reaffirmed a
determination of no probable cause if the charging party requested a reconsideration of the
no probable cause determination, or has decided not to reopen a dismissed case that the
charging party has asked to be reopened; or

(3) after 45 days from the filing of a charge pursuant to section 363A.28, subdivision 1,
if a hearing has not been held pursuant to section 363A.29 or if the commissioner has not
entered into a conciliation agreement to which the charging party is a signator. The charging
party shall notify the commissioner of an intention to bring a civil action, which shall be
commenced within 90 days of giving the notice.

For purposes of clauses (1) and (2), receipt of notice is presumed to be five days from
the date of service by mail of the written notice.

Sec. 15.

Minnesota Statutes 2022, section 363A.33, subdivision 6, is amended to read:

Subd. 6.

District court jurisdiction.

Any action brought pursuant to this section shall
be filed in the district court of the county wherein the unlawful discriminatory practice is
alleged to have been committed or where the respondent resides or has a principal place of
business.

A person bringing a civil action seeking redress for an unfair discriminatory practice or
a respondent is entitled to a jury trial.

If the court or jury finds that the respondent has engaged in an unfair discriminatory
practice, it shall issue an order or verdict directing appropriate relief as provided by new text begin this
new text end section deleted text begin 363A.29, subdivisions 3 to 6 deleted text end .

When the court issues an order providing for payment to the state of a civil penalty
pursuant to new text begin this new text end section deleted text begin 363A.29, subdivisions 3 to 6 deleted text end , it shall serve a copy of that order upon
the attorney general at the same time as it makes service upon the parties.

Sec. 16.

Minnesota Statutes 2022, section 363A.33, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Civil penalty; punitive damages. new text end

new text begin (a) The court shall order any respondent
found to be in violation of any provision of sections 363A.08 to 363A.19 and 363A.28,
subdivision 10, to pay a civil penalty to the state. This penalty is in addition to all damages
recoverable at law and punitive damages to be paid to an aggrieved party. The court shall
determine the amount of the civil penalty to be paid, taking into account the seriousness
and extent of the violation, the public harm occasioned by the violation, whether the violation
was intentional, and the financial resources of the respondent. Any penalties imposed under
this provision shall be paid into the general fund of the state. In all cases where the court
finds that the respondent has engaged in an unfair discriminatory practice, the court shall
order the respondent to pay an aggrieved party, who has suffered discrimination,
compensatory damages, including mental anguish or suffering, in an amount up to three
times the actual damages sustained. In all cases, the court may also order the respondent to
pay an aggrieved party punitive damages pursuant to section 549.20. In any case under this
chapter that is decided by a jury, the jury shall determine the amount of all damages to be
awarded.
new text end

new text begin (b) In any case where a political subdivision is a respondent, the total of punitive damages
awarded an aggrieved party may not exceed $25,000 and if there are two or more respondents
the punitive damages may be apportioned among them. Punitive damages may only be
assessed against a political subdivision in its capacity as a corporate entity and no regular
or ex officio member of a governing body of a political subdivision shall be personally
liable for payment of punitive damages pursuant to this section.
new text end

Sec. 17.

Minnesota Statutes 2022, section 363A.33, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Other remedies. new text end

new text begin In addition to the remedies in subdivision 8, where a case
involves discrimination in:
new text end

new text begin (1) employment, the court may order: (i) the hiring, reinstatement, or upgrading of an
aggrieved party who has suffered discrimination, with or without back pay; (ii) admission
or restoration to membership in a labor organization; (iii) admission to or participation in
an apprenticeship training program, on-the-job training program, or other retraining program;
or (iv) any other relief the court deems just and equitable; or
new text end

new text begin (2) housing, the court may order: (i) the sale, lease, or rental of the housing
accommodation or other real property to an aggrieved party who has suffered discrimination;
(ii) the sale, lease, or rental of a like accommodation or other real property owned by or
under the control of the person against whom the complaint was filed, according to the
terms as listed with a real estate broker, or if no such listing has been made, as advertised
or offered by the vendor or lessor; or (iii) any other relief the court deems just and equitable.
new text end

Sec. 18. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 363A.03, subdivision 3, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H4021-1

363A.03 DEFINITIONS.

Subd. 3.

Board.

"Board" means the state Board of Human Rights.