Purpose of the Bill

The purpose of this bill is to modify commerce regulations in Minnesota by setting a specific payment deadline for certain corporations. It aims to ensure these corporations pay their suppliers in a timely manner.

Main Provisions

• The bill mandates that corporations whose stock is classified as a "federal covered security" must pay for goods and services within 45 days of receipt.
• This regulation also applies to subsidiaries that are wholly owned by such corporations, ensuring they also adhere to the 45-day payment requirement.

Significant Changes

• This bill introduces a new payment term for applicable corporations and their wholly-owned subsidiaries, establishing a maximum payment duration of 45 days for completed transactions. This creates a standardized timeline for payments, aiming to improve cash flow for businesses providing goods or services to these corporations.

Relevant Terms

Commerce, federal covered security, payment term, subsidiaries, goods and services payment, Minnesota Statutes chapter 325E.