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SF1734 (Legislative Session 94 (2025-2026))

Minnesota Business Filing Fraud Prevention Act

Related bill: HF2566

AI Generated Summary

Purpose of the Bill

The bill aims to establish a process to tackle fraudulent business filings in Minnesota. It authorizes rulemaking and appropriates funds to ensure effective implementation. This initiative is to protect businesses and individuals from unauthorized or deceptive documentation that can harm reputations and operations.

Main Provisions

  • Establishment of Fraud Prevention Act: Sections 300.70 to 300.78 are introduced as the Minnesota Business Filing Fraud Prevention Act.

  • Declaration Process:

    • A person who suspects a fraudulent filing can submit a declaration of wrongful filing to the Secretary of State.
    • The declaration should outline the reasons for alleging fraud, such as unauthorized modifications or identity misuse.

  • Office's Role:

    • The Secretary of State’s Office is responsible for accepting or rejecting these declarations based on provided evidence.
    • If a filing is deemed fraudulent, it must be treated as non-existent legally, and any associated registered business may be considered dissolved.

  • Notification and Response:

    • Upon accepting a declaration, a notice is sent to both the complainant and the filer.
    • Filers have 21 days to respond with information refuting the allegations.

  • Investigation and Orders:

    • If no response is received, the filing is automatically deemed fraudulent.
    • If a response is submitted, further investigation may occur, leading to a final order.
    • A final order will either label the filing fraudulent or dismiss the declaration if insufficient evidence is found.

  • Judicial Review:

    • Parties affected by the final order can appeal the decision in district court without incurring filing fees.

  • Data Management:

    • Data provided during this process is classified as nonpublic or private, except for final orders that are public with redacted personal information.

  • Rulemaking Authority:

    • The Secretary of State may adopt rules for implementing these provisions, with no time restrictions on this authority.

Significant Changes to Existing Law

  • The bill amends Minnesota Statutes sections 13.485 and 609.48, introducing new sections in chapter 300.
  • It formalizes a state-level procedure for identifying and handling fraudulent business filings, previously not defined in such detail.

Relevant Terms

  • Fraudulent business filings
  • Minnesota Business Filing Fraud Prevention Act
  • Declaration of wrongful filing
  • Secretary of State
  • Final order
  • Judicial review
  • Nonpublic data
  • Rulemaking

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2025SenateFloorActionIntroduction and first reading
February 19, 2025HouseFloorActionIntroduction and first reading
February 19, 2025SenateFloorActionReferred toJudiciary and Public Safety
February 19, 2025HouseFloorActionReferred toJudiciary and Public Safety
March 12, 2025SenateFloorActionAuthor added
March 23, 2025SenateFloorActionComm report: To pass as amended and re-refer toState and Local Government
March 23, 2025SenateFloorActionComm report: To pass as amended and re-refer toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new data privacy subdivision was added."
      ],
      "removed": [
        ""
      ],
      "summary": "Modifications to data practices regarding business filings.",
      "modified": [
        "Updates to existing privacy protections for business filing data."
      ]
    },
    "citation": "13.485",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Procedures for serving legal notices by mail updated.",
      "modified": [
        "Clarifies methods of serving notice when standard addresses are unavailable."
      ]
    },
    "citation": "5.25",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Relates to penalties for false statements in business filings.",
      "modified": [
        "Integration of new consequences for fraudulent business activity."
      ]
    },
    "citation": "609.48",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Defines 'nonpublic data' in the context of business filings.",
      "modified": [
        "Definitions aligned with new regulations."
      ]
    },
    "citation": "13.02",
    "subdivision": "subdivision 9"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Clarifies privacy definition for individual data within business filings.",
      "modified": [
        "Definitions clarified for applicability to new business filing practices."
      ]
    },
    "citation": "13.02",
    "subdivision": "subdivision 12"
  }
]

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