1.1                          A bill for an act 
  1.2             relating to civil action; providing protection for 
  1.3             disclosure of job reference information; requiring 
  1.4             disclosure of data between school districts and 
  1.5             charter schools relating to acts of violence or 
  1.6             inappropriate sexual contact with students; regulating 
  1.7             the right of an employee to inspect personnel records 
  1.8             concerning the employee; regulating actions involving 
  1.9             fault; regulating actions involving certain insurance 
  1.10            practices; amending Minnesota Statutes 2002, sections 
  1.11            13.43, subdivision 16; 181.961, subdivision 1; 604.01, 
  1.12            subdivision 1; 604.02, subdivision 1; proposing coding 
  1.13            for new law in Minnesota Statutes, chapters 181; 604. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 2002, section 13.43, 
  1.16  subdivision 16, is amended to read: 
  1.17     Subd. 16.  [SCHOOL DISTRICT OR CHARTER SCHOOL DISCLOSURE OF 
  1.18  VIOLENCE OR INAPPROPRIATE SEXUAL CONTACT.] With the written, 
  1.19  informed consent of the subject of the data, The superintendent 
  1.20  of a school district or the superintendent's designee, or a 
  1.21  person having administrative control of a charter school, must 
  1.22  release to a requesting school district or charter school 
  1.23  private personnel data on a current or former employee related 
  1.24  to documented acts of violence toward or sexual contact with a 
  1.25  student, if an investigation conducted by or on behalf of the 
  1.26  school district or law enforcement affirmed the allegations in 
  1.27  writing prior to release and the investigation resulted in the 
  1.28  resignation of the subject of the data.  Nothing in this 
  1.29  subdivision affects or restricts the general requirements of 
  2.1   this chapter governing the release of private data with the 
  2.2   informed consent of the subject. 
  2.3      Sec. 2.  Minnesota Statutes 2002, section 181.961, 
  2.4   subdivision 1, is amended to read: 
  2.5      Subdivision 1.  [RIGHT TO REVIEW; FREQUENCY.] Upon written 
  2.6   request by an employee, the employer shall provide the employee 
  2.7   with an opportunity to review the employee's personnel record.  
  2.8   An employer is not required to provide an employee with an 
  2.9   opportunity to review the employee's personnel record if the 
  2.10  employee has reviewed the personnel record during the previous 
  2.11  six months; except that, upon separation from employment, an 
  2.12  employee may review the employee's personnel record only once at 
  2.13  any time within one each year after separation for as long as 
  2.14  the personnel record is maintained. 
  2.15     Sec. 3.  [181.967] [EMPLOYMENT REFERENCES.] 
  2.16     Subdivision 1.  [DEFINITIONS.] For purposes of this section:
  2.17     (1) "employee" means a person who performs services for 
  2.18  hire and includes an officer of a corporation; 
  2.19     (2) "employer" means a person who has one or more employees 
  2.20  and includes a designated employee or agent who discloses 
  2.21  information on behalf of an employer; 
  2.22     (3) "personnel record" has the meaning given in section 
  2.23  181.960; 
  2.24     (4) "private employer" means an employer that is not a 
  2.25  government entity, as defined in section 13.02; and 
  2.26     (5) "public employer" means an employer that is a 
  2.27  government entity, as defined in section 13.02. 
  2.28     Subd. 2.  [CAUSES OF ACTION LIMITED.] No action may be 
  2.29  maintained against an employer by an employee or former employee 
  2.30  for the disclosure of information listed in subdivisions 3 to 5 
  2.31  about the employee to a prospective employer or employment 
  2.32  agency as provided under this section, unless the employee or 
  2.33  former employee demonstrates by clear and convincing evidence 
  2.34  that: 
  2.35     (1) the information was false and defamatory; and 
  2.36     (2) the employer knew or should have known the information 
  3.1   was false and acted with malicious intent to injure the current 
  3.2   or former employee. 
  3.3      Subd. 3.  [EMPLOYMENT REFERENCE INFORMATION DISCLOSURE BY 
  3.4   PRIVATE EMPLOYERS.] (a) Subdivision 2 applies to the disclosure 
  3.5   of the following information by a private employer in response 
  3.6   to a request for the information: 
  3.7      (1) dates of employment; 
  3.8      (2) compensation and wage history; 
  3.9      (3) job description and duties; 
  3.10     (4) training and education provided by the employer; and 
  3.11     (5) acts of violence, theft, harassment, or illegal conduct 
  3.12  documented in the personnel record that resulted in disciplinary 
  3.13  action or resignation and the employee's written response, if 
  3.14  any, contained in the employee's personnel record. 
  3.15     A disclosure under clause (5) must be in writing with a 
  3.16  copy sent contemporaneously by regular mail to the employee's 
  3.17  last known address.  
  3.18     (b) With the written authorization of the current or former 
  3.19  employee, subdivision 2 also applies to the written disclosure 
  3.20  of the following information by a private employer: 
  3.21     (1) written employee evaluations conducted before the 
  3.22  employee's separation from the employer, and the employee's 
  3.23  written response, if any, contained in the employee's personnel 
  3.24  record; 
  3.25     (2) written disciplinary warnings and actions in the five 
  3.26  years before the date of the authorization, and the employee's 
  3.27  written response, if any, contained in the employee's personnel 
  3.28  record; and 
  3.29     (3) written reasons for separation from employment. 
  3.30     The employer must contemporaneously provide the employee or 
  3.31  former employee with a copy of information disclosed under this 
  3.32  paragraph and to whom it was disclosed by mailing the 
  3.33  information to the employee or former employee. 
  3.34     (c) A prospective employer or employment agency shall not 
  3.35  disclose written information received under this section without 
  3.36  the written authorization of the employee. 
  4.1      Subd. 4.  [DISCLOSURE OF PERSONNEL DATA BY PUBLIC 
  4.2   EMPLOYER.] Subdivision 2 applies to the disclosure of all public 
  4.3   personnel data and to the following private personnel data under 
  4.4   section 13.43 by a public employer if the current or former 
  4.5   employee gives written consent to the release of the private 
  4.6   data:  
  4.7      (1) written employee evaluations conducted before the 
  4.8   employee's separation from the employer, and the employee's 
  4.9   written response, if any, contained in the employee's personnel 
  4.10  record; and 
  4.11     (2) written reasons for separation from employment. 
  4.12     Subd. 5.  [SCHOOL DISTRICT DISCLOSURE OF VIOLENCE OR 
  4.13  INAPPROPRIATE SEXUAL CONTACT.] (a) Subdivision 2 applies to a 
  4.14  disclosure by the superintendent of a school district or the 
  4.15  superintendent's designee, or a person having administrative 
  4.16  control of a charter school, to another school district or 
  4.17  charter school of:  (1) public personnel data under section 
  4.18  13.43, subdivision 2, relating to acts of violence toward or 
  4.19  inappropriate sexual contact with a student that resulted in 
  4.20  disciplinary action; and (2) private personnel data under 
  4.21  section 13.43, subdivision 16. 
  4.22     (b) A disclosure under this subdivision must be in writing 
  4.23  with a copy sent contemporaneously by regular mail to the 
  4.24  employee's last known address.  
  4.25     Subd. 6.  [APPLICATION; RELATION TO OTHER LAW.] (a) This 
  4.26  section does not affect the availability of other limitations on 
  4.27  liability under common law.  
  4.28     (b) This section does not apply to an action involving an 
  4.29  alleged violation of chapter 363 or other statute. 
  4.30     (c) This section does not diminish or impair the rights of 
  4.31  a person under a collective bargaining agreement. 
  4.32     Sec. 4.  Minnesota Statutes 2002, section 604.01, 
  4.33  subdivision 1, is amended to read: 
  4.34     Subdivision 1.  [SCOPE OF APPLICATION.] Contributory fault 
  4.35  does not bar recovery in an action by any person or the person's 
  4.36  legal representative to recover damages for fault resulting in 
  5.1   death, in injury to person or property, or in economic loss, if 
  5.2   the contributory fault was not greater than the aggregate fault 
  5.3   of the person persons against whom recovery is sought, but any 
  5.4   damages allowed must be diminished in proportion to the amount 
  5.5   of fault attributable to the person recovering.  The court may, 
  5.6   and when requested by any party shall, direct the jury to find 
  5.7   separate special verdicts determining the amount of damages and 
  5.8   the percentage of fault attributable to each party and the court 
  5.9   shall then reduce the amount of damages in proportion to the 
  5.10  amount of fault attributable to the person recovering. 
  5.11     Sec. 5.  Minnesota Statutes 2002, section 604.02, 
  5.12  subdivision 1, is amended to read: 
  5.13     Subdivision 1.  [JOINT LIABILITY.] When two or more persons 
  5.14  are jointly severally liable, contributions to awards shall be 
  5.15  in proportion to the percentage of fault attributable to each, 
  5.16  except that each is the following persons are jointly and 
  5.17  severally liable for the whole award.  Except in cases where: 
  5.18     (1) a person whose fault is equal to or greater than 50 
  5.19  percent; 
  5.20     (2) two or more persons acting illegally or within a 
  5.21  conspiracy that results in injury; 
  5.22     (3) two or more persons acting within a joint venture or 
  5.23  enterprise or acting within a concerted plan or scheme that 
  5.24  results in injury; 
  5.25     (4) a person who commits an intentional tort; or 
  5.26     (5) a person whose liability arises under chapters 18B - 
  5.27  pesticide control, 115 - water pollution control, 115A - waste 
  5.28  management, 115B - environmental response and liability, 115C - 
  5.29  leaking underground storage tanks, and 299J - pipeline safety, 
  5.30  public nuisance law for damage to the environment or the public 
  5.31  health, any other environmental or public health law, or any 
  5.32  environmental or public health ordinance or program of a 
  5.33  municipality as defined in section 466.01, a person whose fault 
  5.34  is 15 percent or less is liable for a percentage of the whole 
  5.35  award no greater than four times the percentage of fault, 
  5.36  including any amount reallocated to that person under 
  6.1   subdivision 2. 
  6.2      If the state or a municipality as defined in section 466.01 
  6.3   is jointly liable, and its fault is less than 35 percent, it is 
  6.4   jointly and severally liable for a percentage of the whole award 
  6.5   no greater than twice the amount of fault, including any amount 
  6.6   reallocated to the state or municipality under subdivision 2. 
  6.7      Sec. 6.  [604.17] [BAD FAITH INSURANCE PRACTICES.] 
  6.8      Subdivision 1.  [PROHIBITED CONDUCT.] (a) An insurer shall 
  6.9   not act in bad faith in connection with any matter involving a 
  6.10  claim under an insurance policy. 
  6.11     (b) Insurer bad faith includes insurer delay or denial of 
  6.12  benefits offered or paid without an objectively reasonable basis 
  6.13  for its offer, delay, or denial.  An insurer also acts in bad 
  6.14  faith if the insurer engages in any fraud, false pretense, false 
  6.15  promise, misrepresentation, misleading statement, or deceptive 
  6.16  practice that others rely on in connection with any matter 
  6.17  involving a claim under an insurance policy.  
  6.18     (c) For purposes of this section: 
  6.19     (1) "insurance policy" means an insurance policy or 
  6.20  contract issued, executed, renewed, maintained, or delivered in 
  6.21  this state, other than a workers' compensation insurance policy 
  6.22  or contract; and 
  6.23     (2) "insurer" means an individual, corporation, 
  6.24  association, partnership, or other legal entity that issues, 
  6.25  executes, renews, maintains, or delivers an insurance policy in 
  6.26  this state. 
  6.27     Subd. 2.  [PENALTIES AND REMEDIES.] A person violating 
  6.28  subdivision 1 is acting against the public interest and is 
  6.29  liable for costs, damages, and reasonable attorney's fees. 
  6.30     Sec. 7.  [APPLICATION; EFFECTIVE DATE.] 
  6.31     (a) Section 5 applies to claims arising from events that 
  6.32  occur on or after August 1, 2003.  Section 6 is effective August 
  6.33  1, 2003, and applies to causes of action commenced on or after 
  6.34  that date. 
  6.35     (b) Section 3 is effective August 1, 2003, and applies to 
  6.36  disclosures of information made on or after that date.