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HF2566 (Legislative Session 94 (2025-2026))

Process for removing fraudulent business filings established, rulemaking authorized, and money appropriated.

Related bill: SF1734

AI Generated Summary

Purpose of the Bill

The bill aims to establish a formal process for identifying and removing fraudulent business filings in Minnesota. It provides a legal framework for addressing wrongful business filings to protect individuals and institutions involved.

Main Provisions

  • Introduction of Minnesota Business Filing Fraud Prevention Act: This act outlines the method for removing unauthorized or fraudulent business filings.

  • Declaration of Wrongful Filing: An individual (complainant) who believes that a document was filed fraudulently can submit a declaration to the Office of the Secretary of State. The complaint must include specific information such as file number, the complainant’s details, and evidence that supports the claim.

  • Review Process: Upon receiving a declaration, the Office of the Secretary of State must review and decide to accept or reject it. Incomplete or harassing declarations may be rejected.

  • Notification and Response: Once a declaration is accepted, both the complainant and the alleged filer are notified. The filer then has 21 days to respond with evidence refuting the allegations.

  • Final Determination: If the filer does not respond, the filing is marked as fraudulent. If a response is received, a further investigation will determine the legitimacy of the filing. Final decisions can declare a filing as either fraudulent or valid.

  • Judicial Review: Aggrieved parties can appeal decisions to district courts, which have the authority to re-evaluate the final orders issued by the Office of the Secretary of State.

  • Data Handling: Data submitted under this process are classified as nonpublic or private, though final orders are public with certain privacy restrictions on complainant and filer contact information.

  • Rulemaking Authority: The Secretary of State is authorized to adopt rules to enforce this act without a time constraint on creating such rules.

Significant Changes to Existing Law

  • New Legal Process: Establishes a clearly defined legal process specifically for dealing with fraudulent business filings, which includes the ability to issue final orders and initiate judicial reviews.

  • Privacy Protections: Introduces specific classifications for data protection pertaining to business filings and related personal information.

Relevant Terms

  • Fraudulent Business Filings
  • Declaration of Wrongful Filing
  • Office of the Secretary of State
  • Judicial Review
  • Data Classification
  • Minnesota Business Filing Fraud Prevention Act

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025HouseFloorActionIntroduction and first reading, referred toJudiciary Finance and Civil Law
March 26, 2025HouseFloorActionCommittee report, to adopt as amended and re-refer toCommerce Finance and Policy
April 01, 2025HouseFloorActionCommittee report, to adopt and re-refer toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the legal implication of making false statements under the existing law on perjury and false swearing.",
      "modified": [
        "Clarifies penalties related to false material statements of fact in declarations and other documents under sections 300.70 to 300.78."
      ]
    },
    "citation": "609.48",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This legislation refers to the service of notices under the business filing procedures.",
      "modified": [
        "Provides a mechanism to serve notice to filers using existing service procedures when a mailing address cannot be identified."
      ]
    },
    "citation": "5.25",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the data practices structure defining nonpublic data.",
      "modified": [
        "Classifies certain types of data as nonpublic in the context of business filing declarations."
      ]
    },
    "citation": "13.02",
    "subdivision": "subdivision 9"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the data practices structure defining private data on individuals.",
      "modified": [
        "Classifies personal contact information as private data in the context of business filing declarations."
      ]
    },
    "citation": "13.02",
    "subdivision": "subdivision 12"
  }
]

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