Purpose of the Bill

The purpose of this bill is to improve cash flow and financial predictability for businesses by setting a standardized payment term for certain corporations operating in Minnesota.

Main Provisions

• The bill proposes that corporations whose stock is classified as a "federal covered security" must remit payments within 45 days upon receiving goods or services.
• The requirement also extends to subsidiaries that are wholly owned by these corporations.

Significant Changes

• This bill introduces a mandated payment timeline into Minnesota Statutes Chapter 325E, which affects corporations dealing with goods and services in Minnesota. The introduction of a 45-day payment term aims to regulate and streamline the payment process for certain major companies operating in the state.

Relevant Terms

federal covered security, payment term, 45 days, corporations, subsidiaries, Minnesota Statutes Chapter 325E