HF 3646
Introduction - 94th Legislature (2025 - 2026)
Posted on 02/23/2026 04:47 p.m.
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A bill for an act
relating to business organizations; modernizing and correcting provisions governing
business services; amending Minnesota Statutes 2024, sections 5.23, subdivision
1; 268.058, subdivision 1; 336A.08, subdivisions 1, 4; 336A.09, subdivision 1;
336A.13; repealing Minnesota Statutes 2024, section 5.23, subdivision 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 5.23, subdivision 1, is amended to read:
Subdivision 1.
Failure to pay filing fee.
new text begin (a) new text end If a person files an instrument authorized
to be filed with the secretary of state with a payment order or item that is rejected or
dishonored, the secretary of state deleted text begin isdeleted text end new text begin may take the actionsnew text end authorizednew text begin under this subdivision.
new text end
new text begin (b) The secretary of state is authorized new text end to refuse the filing of further instruments submitted
by that person or on behalf of the business entity or notary on whose behalf the prior
instrument was filed or relating to the same assumed name or trademark filing.
new text begin
(c)
new text end
new text begin
If a person makes a filing related to a business entity with a payment order or item
that is rejected or dishonored, the secretary of state is authorized to terminate the business
entity and change the business entity's filing status to inactive.
new text end
new text begin (d) new text end The secretary may deleted text begin alsodeleted text end pursue collection of the rejected or dishonored payment order
or item and recover the face amount of the payment order or item, any service fee, and any
additional collection costs incurred to collect the amount. If the payment order or item is
honored, or the delinquent amount is paid, the secretary of state must resume filing
instruments submitted by that person or on behalf of that business entity or notary or relating
to the same assumed name or trademark filing as of the date the payment order or item is
honored and an instrument is presented for filing.
new text begin (e) new text end The secretary may impose restrictions on the manner of payment that will be accepted
for any future filings.
new text begin (f) new text end This subdivision does not apply to financing statements filed under chapter 336 or
to an effective financing statement or lien notice filed under chapter 336A.
Sec. 2.
Minnesota Statutes 2024, section 268.058, subdivision 1, is amended to read:
Subdivision 1.
Lien.
(a) Any amount due under this chapter or section 116L.20, from
an applicant or an employer, becomes a lien upon all the property, within this state, both
real and personal, of the person liable, from the date of assessment. The term "date of
assessment" means the date the obligation was due.
(b) The lien is not enforceable against any purchaser, mortgagee, pledgee, holder of a
Uniform Commercial Code security interest, mechanic's lien, or judgment lien creditor,
until a notice of lien has been filed with the county recorder of the county where the property
is situated, or in the case of personal property belonging to a nonresident person in the Office
of the Secretary of State. When the notice of lien is filed with the county recorder, the fee
for filing and indexing is as provided in sections 272.483 and 272.484.
(c) Notices of liens, lien renewals, and lien releases, in a form prescribed by the
commissioner, may be filed with the county recorder or the secretary of state by maildeleted text begin ,deleted text end new text begin ornew text end
personal deliverydeleted text begin , or by electronic transmission into the computerized filing system of the
secretary of state. The secretary of state must, on any notice filed with that office, transmit
the notice electronically to the appropriate county recorder. The filing officer, whether the
county recorder or the secretary of state, must endorse and index a printout of the notice as
if the notice had been mailed or delivereddeleted text end .
(d) County recorders and the secretary of state must enter information on lien notices,
renewals, and releases into the deleted text begin central database of the secretary of statedeleted text end new text begin respective databases
established for lien notices, renewalnew text end new text begin s, and releasesnew text end . deleted text begin For notices filed electronically with the
county recorders, the date and time of receipt of the notice and county recorder's file number,
and for notices filed electronically with the secretary of state, the secretary of state's recording
information, must be entered into the central database before the close of the working day
following the day of the original data entry by the commissioner.
deleted text end
(e) The lien imposed on personal property, even though properly filed, is not enforceable
against a purchaser of tangible personal property purchased at retail or personal property
listed as exempt in sections 550.37, 550.38, and 550.39.
(f) A notice of lien filed has priority over any security interest arising under chapter 336,
article 9, that is perfected prior in time to the lien imposed by this subdivision, but only if:
(1) the perfected security interest secures property not in existence at the time the notice
of lien is filed; and
(2) the property comes into existence after the 45th calendar day following the day the
notice of lien is filed, or after the secured party has actual notice or knowledge of the lien
filing, whichever is earlier.
(g) The lien is enforceable from the time the lien arises and for ten years from the date
of filing the notice of lien. A notice of lien may be renewed before expiration for an additional
ten years.
(h) The lien is enforceable by levy under subdivision 2 or by judgment lien foreclosure
under chapter 550.
(i) The lien may be imposed upon property defined as homestead property in chapter
510 but may be enforced only upon the sale, transfer, or conveyance of the homestead
property.
(j) The commissioner may sell and assign to a third party the commissioner's right of
redemption in specific real property for liens filed under this subdivision. The assignee is
limited to the same rights of redemption as the commissioner, except that in a bankruptcy
proceeding, the assignee does not obtain the commissioner's priority. Any proceeds from
the sale of the right of redemption are credited to the contingent account.
Sec. 3.
Minnesota Statutes 2024, section 336A.08, subdivision 1, is amended to read:
Subdivision 1.
Compilation.
(a) The secretary of state shall compile the information on
effective financing statementsnew text begin and statutory liensnew text end in the computerized filing system into a
master listdeleted text begin :deleted text end new text begin , organized as provided in this subdivision.
new text end
new text begin
(b) The information on an effective filing statement must:
new text end
(1)new text begin benew text end organized according to farm product;
(2)new text begin benew text end arranged within each product:
(i) in alphabetical order according to the last name of the individual debtor or, in the
case of debtors doing business other than as individuals, the first word in the name of the
debtors;
(ii) in numerical order according to the unique identifier assigned by the secretary of
state to, and associated with, the Social Security number or tax identificationnew text begin central
notification systemnew text end number of the debtor;
(iii) geographically by county; and
(iv) by crop year;
(3) deleted text begin containingdeleted text end new text begin containnew text end the information provided on an effective financing statement; and
(4) deleted text begin designatingdeleted text end new text begin designatenew text end any applicable terminations of the effective financing statement.
deleted text begin (b) The secretary of state shall compile information from lien notices recorded in the
computerized filing system into a statutory lien master listdeleted text end new text begin (c) Information on statutory liens
must be compilednew text end in alphabetical order according to the last name of the individual debtor
or, in the case of debtors doing business other than as individuals, the first word in the name
of the debtors. The secretary of state may deleted text begin alsodeleted text end organize deleted text begin thedeleted text end new text begin information onnew text end statutory deleted text begin lien
master listdeleted text end new text begin liensnew text end according to one or more of the categories of information deleted text begin established indeleted text end new text begin
undernew text end paragraph deleted text begin (a)deleted text end new text begin (b)new text end . Any terminations of lien notices must be noted.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon certification by the secretary of
state that the United States Department of Agriculture, Grain Inspectors, Packers and
Stockyards Administration has approved the 2025 Minnesota central notification system
proposal. The secretary of state must notify the revisor of statutes when federal certification
is obtained.
new text end
Sec. 4.
Minnesota Statutes 2024, section 336A.08, subdivision 4, is amended to read:
Subd. 4.
Distribution of lists.
(a) The secretary of state shall maintain and distribute
the information on the effective financing statementnew text begin and farm products statutory liennew text end master
list to allow the buyer to sort:
(1) by farm product arranged alphabetically by debtor;
(2) by farm product arranged numerically by the unique identifier assigned by the
secretary of state to, and associated with, the deleted text begin Social Security number or taxdeleted text end new text begin central
notification systemnew text end identification number of the debtor; and
(3) by county arranged alphabetically by debtor.
deleted text begin
(b) Information in the farm products statutory lien master list must be included in the
effective financing statement master list, subject to the sort options in paragraph (a), clauses
(1) and (3).
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end The secretary of state shall distribute or make available the requested lists on a
monthly basis to farm product dealers registered under section 336A.11. deleted text begin Lists willdeleted text end new text begin The list
mustnew text end be distributed or made available on or before the tenth day of each month or on the
next business day thereafter if the tenth day is not a business day.
deleted text begin (d)deleted text end new text begin (c)new text end The secretary of state shall make the lists available deleted text begin as written or printed paper
documents anddeleted text end in an electronically transmitted medium.
deleted text begin
(e) There shall be no fee for lists distributed via an electronically transmitted medium.
The annual fee for paper partial lists is $250 and $400 for paper master lists.
deleted text end
deleted text begin (f)deleted text end new text begin (d)new text end A farm products dealer shall register pursuant to section 336A.11 to receive the
monthly lists requested by the farm products dealer starting with the lists created in the
month following the month in which registration takes place.
deleted text begin (g)deleted text end new text begin (e)new text end If a registered farm products dealer receives a monthly list that cannot be read or
is incomplete, the farm products dealer must immediately inform the secretary of statenew text begin of
the problemnew text end by deleted text begin telephone ordeleted text end email deleted text begin of the problem. The registered farm products dealer shall
confirm the existence of the problem by writing to the secretary of statedeleted text end . The secretary of
state shall provide the registered farm products dealer with new monthly lists deleted text begin in the medium
chosen by the registered farm products dealerdeleted text end no later than five business days after receipt
of the oral notice from the registered farm products dealer. A registered farm products dealer
is not considered to have received notice of the information on the monthly lists until the
duplicate list is received from the secretary of state or until five days have passed since the
duplicate lists were deleted text begin deposited in the mail ordeleted text end delivered electronically by the secretary of state,
whichever comes first.
deleted text begin (h)deleted text end new text begin (f)new text end On receipt of deleted text begin a writtendeleted text end new text begin an electronicnew text end noticenew text begin submittednew text end pursuant to section 336A.13,
the secretary of state shall duplicate the monthly lists requested by the registered farm
products dealer. The duplicate monthly lists must be deleted text begin deposited in the mail ordeleted text end delivered
electronically to the registered farm products dealer no later than five business days after
receipt of the written notice from the registered farm products dealer.
deleted text begin
(i) A registered farm products dealer may request monthly lists in one medium per
registration.
deleted text end
deleted text begin (j)deleted text end new text begin (g) Anew text end registered farm products deleted text begin dealersdeleted text end new text begin dealernew text end must deleted text begin renew their registrationdeleted text end new text begin purchase
a new subscription for the central notification system Farm Product Monthlynew text end on or before
the 12-month anniversary of their registration or subsequent 12-month anniversaries. Failure
to deleted text begin renew will resultdeleted text end new text begin purchase a new subscription resultsnew text end in the farm products dealer not
receiving the monthly lists.new text begin New subscriptions must be purchased on the secretary of state's
website. An annual subscription costs $25.
new text end
deleted text begin (k)deleted text end new text begin (h)new text end Registered farm products dealers will receive all of the information for the monthly
lists. New registrants shall receive monthly lists starting with the list created in the month
following registration.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon certification by the secretary of
state that the United States Department of Agriculture, Grain Inspectors, Packers and
Stockyards Administration has approved the 2025 Minnesota central notification system
proposal. The secretary of state must notify the revisor of statutes when federal certification
is obtained.
new text end
Sec. 5.
Minnesota Statutes 2024, section 336A.09, subdivision 1, is amended to read:
Subdivision 1.
Procedure.
(a) deleted text begin Online and written inquiriesdeleted text end new text begin An inquirynew text end regarding
information provided by the filing of effective financing statements or lien notices may be
submitted deleted text begin todeleted text end new text begin onnew text end the secretary of deleted text begin state during regular business hours or, if submitted online,deleted text end new text begin
state's websitenew text end at any time.
(b) The secretary of state must, upon receiving an inquiry, provide a prompt response
to the inquiry.
(c) The secretary of state shall maintain a record of inquiries made under this section
including:
(1) the date of the inquiry;
(2) the name of the debtor inquired about; and
(3) identification of the person making the request for inquiry.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon certification by the secretary of
state that the United States Department of Agriculture, Grain Inspectors, Packers and
Stockyards Administration has approved the 2025 Minnesota central notification system
proposal. The secretary of state must notify the revisor of statutes when federal certification
is obtained.
new text end
Sec. 6.
Minnesota Statutes 2024, section 336A.13, is amended to read:
336A.13 RECEIPT OF WRITTEN NOTICE.
deleted text begin For purposes of United States Code, title 7, section 1631, and this chapter, receipt of
written notice means the date the notice is actually received by a farm product dealer or the
first date that delivery is attempted by a carrier. For a mailed notice, a farm product dealer
is presumed to have received the notice by five business days after it was mailed unless by
ten days after it was mailed the farm product dealer notifies the secretary of state in writing
that it has not received the notice by that time.deleted text end For a notice provided by electronic
transmission or posting, a farm product dealer is presumed to have received the notice five
business days after the list required to be distributed or made available by section 336A.08,
subdivision 4, is posted on an electronic network or site accessible via the Internet, mobile
application, computer, mobile device, tablet, or other electronic device, together with a
separate notice of posting, which is provided by the secretary of state by electronic mail to
the address at which the farm product dealer has consented to receive notice of posting.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon certification by the secretary of
state that the United States Department of Agriculture, Grain Inspectors, Packers and
Stockyards Administration has approved the 2025 Minnesota central notification system
proposal. The secretary of state must notify the revisor of statutes when federal certification
is obtained.
new text end
Sec. 7. new text begin REVISOR INSTRUCTION.
new text end
new text begin
The revisor of statutes must change the term "master list" to "complete list" wherever
the term appears in chapter 336A.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon certification by the secretary of
state that the United States Department of Agriculture, Grain Inspectors, Packers and
Stockyards Administration has approved the 2025 Minnesota central notification system
proposal. The secretary of state must notify the revisor of statutes when federal certification
is obtained.
new text end
Sec. 8. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, section 5.23, subdivision 3,
new text end
new text begin
is repealed.
new text end
APPENDIX
Repealed Minnesota Statutes: 25-02424
5.23 REMOVAL OF DOCUMENTS FROM PUBLIC RECORD.
Subd. 3.
Failure to pay direct access charges.
If a customer who has subscribed with the secretary of state for direct computer access to the secretary's databases makes payment for information received with a payment order or item that is rejected or dishonored, the secretary shall immediately terminate the customer's access to the databases. The secretary may also pursue collection of the rejected or dishonored payment order or item and recover the face amount of the payment order or item and any additional costs incurred to collect the amount. If the payment order or item is honored, access may be restored and the secretary may impose restrictions on the methods of payment that will be acceptable.