Review Granted on Issues 1 and 2 and Denied on other Issues April 23, 1996.
OPINION
FIDEL, Judge.
The State appeals from a declaratory judgment that required it to indemnify Allen Heinze, the executive director of the Arizona Prosecuting Attorneys' Advisory Council ("APAAC"), for damages that he caused by sexually harassing APAAC employees. This lawsuit does not concern the direct liability of APAAC, a State entity, for creating or tolerating a hostile...
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