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 combat fraudulent business filings in Minnesota. It establishes a legal process to identify, investigate, and remove fraudulent documents filed with the Office of the Secretary of State.
Main Provisions
- Declaration of Wrongful Filing: Allows individuals ("complainants") who believe a business filing is fraudulent to submit a declaration to the state detailing the offending document.
- Review Process: The Office of the Secretary of State must swiftly assess these declarations, deciding whether to accept or reject them based on completion and intent.
- Notification and Response: If the declaration is accepted, both the complainant and the accused party ("filer") are notified, and the filer has 21 days to respond with evidence refuting the allegations.
- Fraud Determination: If the filer fails to respond or the investigation confirms fraud, the filing will be marked as fraudulent, effectively nullifying its legal existence. The office then takes steps to protect personal information and prevent future unauthorized actions by the business.
- Judicial Review: Aggrieved parties have the right to appeal any decisions in court without paying a filing fee, and courts can demand further evidence if needed.
- Data Privacy: Maintains confidentiality for individuals involved, classifying certain data as nonpublic to protect personal information.
Significant Changes to Existing Law
- New Legal Framework: Introduces a structured framework for addressing fraudulent business filings, which previously lacked an explicit statutory procedure.
- Authority of the Secretary of State: Grants the Secretary of State's office authority to mark and handle fraudulent filings, including retaining or redacting data as necessary.
- Rulemaking Authority: Provides the Secretary of State the power to adopt rules to implement these new procedures, with no time constraints on when such rules must be established.
Relevant Terms
fraudulent business filings, wrongful filing, Secretary of State, declaration of wrongful filing, judicial review, data privacy, rulemaking authority, unauthorized business registration.
Past committee meetings
- State Government Finance and Policy on: April 03, 2025 08:15
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 19, 2025 | House | Floor | Action | Introduction and first reading, referred to | Judiciary Finance and Civil Law |
| March 26, 2025 | House | Floor | Action | Committee report, to adopt as amended and re-refer to | Commerce Finance and Policy |
| April 01, 2025 | House | Floor | Action | Committee report, to adopt and re-refer to | State Government Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"New provisions apply section 609.48 to false statements made in declarations of wrongful filing."
],
"removed": [],
"summary": "The bill strengthens the legal ramifications for making false statements in business filings by invoking section 609.48 on perjury.",
"modified": []
},
"citation": "609.48"
}
]