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SF 2106

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/22/2021 11:24am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to state government; modifying various provisions governing or
administered by the secretary of state; amending Minnesota Statutes 2020, sections
5.02; 5.08, subdivision 2; 5B.02; 5B.05; 5B.10, subdivision 1; 13.045, subdivisions
1, 2, 3, 4a; 336.9-510; 336.9-516; 336A.09, subdivision 2; proposing coding for
new law in Minnesota Statutes, chapters 336; 609; repealing Minnesota Statutes
2020, section 5.23, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 5.02, is amended to read:


5.02 ASSISTANTS.

The secretary of state shall appoint an assistant secretary of state, who shall perform all
the duties of the office when the secretary is absent or disabled. deleted text beginThe secretary may also
employ a chief clerk, a recording clerk, and a stenographer, who, besides the duties indicated
by their titles, shall perform such services in connection with the office as the secretary or
the assistant may require.
deleted text end

Sec. 2.

Minnesota Statutes 2020, section 5.08, subdivision 2, is amended to read:


Subd. 2.

Distribution.

deleted text begin 10,000 copies of the legislative manual shall be printed and
distributed as follows:
deleted text end

deleted text begin (1) up to 20 copies shall be available to each member of the legislature on request;
deleted text end

deleted text begin (2) 50 copies to the State Historical Society;
deleted text end

deleted text begin (3) 25 copies to the state university;
deleted text end

deleted text begin (4) 60 copies to the state library;
deleted text end

deleted text begin (5) two copies each to the Library of Congress, the Minnesota veterans homes, the
universities, the high schools, academies, seminaries, and colleges of the state, and the
public libraries of the state;
deleted text end

deleted text begin (6) one copy each to other state institutions, the elective state officials, the appointed
heads of departments, the officers and employees of the legislature, the justices of the
supreme court, the judges of the court of appeals and the district court, the senators and
representatives in Congress from this state, and the county auditors, recorders, and attorneys;
deleted text end

deleted text begin (7) one copy to each school, to be distributed through the superintendent of each school
district; and
deleted text end

deleted text begin (8) the remainder may be disposed of as the secretary of state deems best.
deleted text end

new text begin The secretary of state must consult with the following to determine the number of
legislative manuals to print and distribute:
new text end

new text begin (1) the State Historical Society;
new text end

new text begin (2) the state university;
new text end

new text begin (3) the state library;
new text end

new text begin (4) Department of Veterans Affairs;
new text end

new text begin (5) the school board association; and
new text end

new text begin (6) the legislature.
new text end

Sec. 3.

Minnesota Statutes 2020, section 5B.02, is amended to read:


5B.02 DEFINITIONS.

(a) For purposes of this chapter and unless the context clearly requires otherwise, the
definitions in this section have the meanings given them.

(b) "Address" means an individual's work address, school address, or residential street
address, as specified on the individual's application to be a program participant under this
chapter.

(c) "Applicant" means an adult, a parent or guardian acting on behalf of an eligible
minor, or a guardian acting on behalf of an incapacitated person, as defined in section
524.5-102.

(d) "Domestic violence" means an act as defined in section 518B.01, subdivision 2,
paragraph (a), and includes a threat of such acts committed against an individual in a domestic
situation, regardless of whether these acts or threats have been reported to law enforcement
officers.

(e) "Eligible person" means an adult, a minor, or an incapacitated person, as defined in
section 524.5-102 for whom there is good reason to believe (1) that the eligible person is a
victim of domestic violence, sexual assault, or harassment or stalking, or (2) that the eligible
person fears for the person's safety, the safety of another person who resides in the same
household, or the safety of persons on whose behalf the application is made. An individual
must reside in Minnesota in order to be an eligible person. A person registered or required
to register as a predatory offender under section 243.166 or 243.167, or the law of another
jurisdiction, is not an eligible person.

(f) "Mail" means first class letters and flats delivered via the United States Postal Service,
including priority, express, and certified mail, and excluding deleted text beginpackages, parcels,deleted text endnew text begin (1)new text end
periodicalsdeleted text begin,deleted text end and catalogues,new text begin and (2) packages and parcelsnew text end unless they are clearly identifiable
asnew text begin nonrefrigeratednew text end pharmaceuticals or clearly indicate that they are sent bynew text begin the federal
government or
new text end a state or county government agencynew text begin of the continental United States, Hawaii,
District of Columbia, or United States territories
new text end.

(g) "Program participant" means an individual certified as a program participant under
section 5B.03.

(h) "Harassment" or "stalking" means acts criminalized under section 609.749 and
includes a threat of such acts committed against an individual, regardless of whether these
acts or threats have been reported to law enforcement officers.

Sec. 4.

Minnesota Statutes 2020, section 5B.05, is amended to read:


5B.05 USE OF DESIGNATED ADDRESS.

(a) When a program participant presents the address designated by the secretary of state
to any personnew text begin or entitynew text end, that address must be accepted as the address of the program
participant. The person may not require the program participant to submit any address that
could be used to physically locate the participant either as a substitute or in addition to the
designated address, or as a condition of receiving a service or benefit, unless the service or
benefit would be impossible to provide without knowledge of the program participant's
physical location. Notwithstanding a person's or entity's knowledge of a program participant's
physical location, the person or entity must use the program participant's designated address
for all mail correspondence with the program participant.

(b) A program participant may use the address designated by the secretary of state as
the program participant's work address.

(c) The Office of the Secretary of State shall forward all mail sent to the designated
address to the proper program participants.

(d) If a program participant has notified a person in writing, on a form prescribed by the
program, that the individual is a program participant and of the requirements of this section,
the person must not knowingly disclose the program participant's name, home address, work
address, or school address, unless the person to whom the address is disclosed also lives,
works, or goes to school at the address disclosed, or the participant has provided written
consent to disclosure of the participant's name, home address, work address, or school
address for the purpose for which the disclosure will be made. This paragraph applies to
the actions and reports of guardians ad litem, except that guardians ad litem may disclose
the program participant's name. This paragraph does not apply to records of the judicial
branch governed by rules adopted by the supreme court or government entities governed
by section 13.045.

Sec. 5.

Minnesota Statutes 2020, section 5B.10, subdivision 1, is amended to read:


Subdivision 1.

Display by landlord.

If a program participant has notified the program
participant's landlord in writing that the individual is a program participant and of the
requirements of this section, a local ordinance deleted text beginor the landlorddeleted text end must not require the display
ofnew text begin, and the landlord shall not display,new text end the program participant's name at an address otherwise
protected under this chapter.

Sec. 6.

Minnesota Statutes 2020, section 13.045, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

As used in this section:

(1) "program participant" has the meaning given in section 5B.02, paragraph (g);

(2) "location data" means deleted text beginanydeleted text end data new text beginthe participant specifies new text endthat may be used to physically
locate a program participant, deleted text beginincluding but not limited todeleted text end new text beginsuch as new text endthe program participant's
residential address, work address, deleted text beginanddeleted text end new text beginor new text endschool address, and that is collected, received, or
maintained by a government entity prior to the date a program participant's certification
expires, or the date the entity receives notice that the program participant has withdrawn
from the program, whichever is earlier;

(3) "identity data" means data that may be used to identify a program participant,
including the program participant's name, phone number, e-mail address, address designated
under chapter 5B, Social Security number, or driver's license number, and that is collected,
received, or maintained by a government entity before the date a program participant's
certification expires, or the date the entity receives notice that the program participant has
withdrawn from the program, whichever is earlier;

(4) "county recorder" means the county official who performs the functions of the county
recorder or registrar of titles to record a document as part of the county real estate document
recording system, regardless of title or office; and

(5) "real property records" means any record of data that is maintained deleted text beginby a countydeleted text end as
part of the county real estate document recording system for use by the publicnew text begin, data on
assessments, data on real or personal property taxation, and other data on real property
new text end.

Sec. 7.

Minnesota Statutes 2020, section 13.045, subdivision 2, is amended to read:


Subd. 2.

Notification of certification.

(a) A program participant may deleted text beginsubmit a notice,
in writing, to
deleted text end new text beginnotify new text endthe responsible authority of any government entity other than the county
recorder new text beginin writing, on a form prescribed by the secretary of state, new text endthat the participant is
certified in the Safe at Home address confidentiality program pursuant to chapter 5B. The
notice must include the program participant's name, deleted text beginnames of other program participants
in the household,
deleted text end new text begindate of birth, new text endaddress designated under chapter 5B, program participant
signature, new text beginsignature of the participant's parent or guardian if the participant is a minor, new text enddate
the program participant's certification in the program expires, and any other information
specified by the secretary of state. A program participant may submit a subsequent notice
of certification, if the participant's certification is renewed. The contents of the notification
of certification are private data on individuals.new text begin A notice provided pursuant to this paragraph
is a request to protect location data unless the participant requests that specific identity data
also be protected.
new text end

(b) To affect real property records, deleted text beginincluding but not limited to documents maintained
in a public recording system, data on assessments and taxation, and other data on real
property,
deleted text end a program participant must submit a real property notice in writing to the county
recorder in the county where the property identified in the real property notice is located.new text begin
To affect real property records maintained by any other government entity, a program
participant must also submit a real property notice in writing to the other government entity's
responsible authority.
new text end A real property notice must be on a form prescribed by the secretary
of state and must include:

(1) the full legal name of the program participant, including middle name;

(2) the last four digits of the program participant's Social Security number;

new text begin (3) the participant's date of birth;
new text end

deleted text begin (3)deleted text end new text begin(4) new text endthe designated address of the program participant as assigned by the secretary of
state, including lot number;

deleted text begin (4) the date the program participant's certification in the program expires;
deleted text end

(5) the legal description and street address, if any, of the real property affected by the
notice;

(6) the address of the Office of the Secretary of State; and

(7) the signature of the program participant.

Only one parcel of real property may be included in each notice, but more than one notice
may be presented to the county recordernew text begin or another governmental entitynew text end. The county recorder
new text begin or another governmental entity receiving the notice new text endmay require a program participant to
provide additional information necessary to identify the records of the program participant
or the real property described in the notice. A program participant must submit a subsequent
real property notice for the real property if the participant's deleted text begincertification is reneweddeleted text endnew text begin legal
name changes
new text end. The real property notice is private data on individuals.

Sec. 8.

Minnesota Statutes 2020, section 13.045, subdivision 3, is amended to read:


Subd. 3.

Classification of identity and location data;new text begin amendment of records;new text end sharing
and dissemination.

(a) Identity and location data deleted text beginondeleted text endnew text begin for whichnew text end a program participant deleted text beginwho
submits a notice
deleted text endnew text begin seeks protectionnew text end under subdivision 2, paragraph (a), that are not otherwise
classified by law are private data on individuals. deleted text beginNotwithstanding any provision of law to
the contrary, private or confidential location data on a program participant who submits a
notice under subdivision 2, paragraph (a), may not be shared with any other government
entity or nongovernmental entity except as provided in paragraph (b).
deleted text end

(b) deleted text beginPrivate or confidential location data on a program participant must not be shared or
disclosed by a government entity
deleted text endnew text begin Notwithstanding any provision of law to the contrary,
private or confidential location data on a program participant who submits a notice under
subdivision 3, paragraph (a), may not be shared with any other government entity or
nongovernmental entity
new text end unless:

(1) the program participant has expressly consented in writing to sharing or dissemination
of the data for the purpose for which the sharing or dissemination will occur;

(2) the data are subject to sharing or dissemination pursuant to court order under section
13.03, subdivision 6;

(3) the data are subject to sharing pursuant to section 5B.07, subdivision 2;

(4) the location data related to county of residence are needed to provide public assistance
or other government services, or to allocate financial responsibility for the assistance or
services;

(5) the data are necessary to perform a government entity's health, safety, or welfare
functions, including the provision of emergency 911 services, the assessment and
investigation of child or vulnerable adult abuse or neglect, or the assessment or inspection
of services or locations for compliance with health, safety, or professional standards; or

(6) the data are necessary to aid an active law enforcement investigation of the program
participant.

(c) Data disclosed under paragraph (b), clauses (4) to (6), may be used only for the
purposes authorized in this subdivision and may not be further disclosed to any other person
or government entity. Government entities receiving or sharing private or confidential data
under this subdivision shall establish procedures to protect the data from further disclosure.

(d) Real property record data are governed by subdivision 4a.

new text begin (e) Notwithstanding sections 15.17 and 138.163, a government entity may amend records
to replace a participant's location data with the participant's designated address.
new text end

Sec. 9.

Minnesota Statutes 2020, section 13.045, subdivision 4a, is amended to read:


Subd. 4a.

Real property records.

(a) If a program participant submits a notice deleted text beginto a
county recorder
deleted text end under subdivision 2, paragraph (b), the deleted text begincounty recorderdeleted text end new text beginentity new text endmust not
disclose the program participant's identity data in conjunction with the property identified
in the written noticenew text begin in the entity's real property recordsnew text end, unless:

(1) the program participant has consented to sharing or dissemination of the data for the
purpose identified in a writing acknowledged by the program participant;

(2) the data are subject to sharing or dissemination pursuant to court order under section
13.03, subdivision 6; deleted text beginor
deleted text end

(3) the secretary of state authorizes the sharing or dissemination of the data under
subdivision 4b for the purpose identified in the authorizationdeleted text begin.deleted text endnew text begin; or
new text end

new text begin (4) the data is shared with a governmental entity subject to this chapter for the purpose
of administering assessment and taxation laws.
new text end

This subdivision does not prevent deleted text beginthedeleted text end new text begina new text endcounty recorder from returning original documents
to the individuals that submitted the documents for recording. This subdivision does not
prevent the public disclosure of the participant's name and address designated under chapter
5B in the county reception index if the participant's name and designated address are not
disclosed in conjunction with location data. Each deleted text begincounty recorderdeleted text end new text beginentity new text endshall establish
procedures for recording or filing documents to comply with this subdivision. These
procedures may include masking identity or location data and making documents or
certificates of title containing the data private and not viewable except as allowed by this
paragraph. The procedure must comply with the requirements of chapters 386, 507, 508,
and 508A and other laws as appropriate, to the extent these requirements do not conflict
with this section. The procedures must provide public notice of the existence of recorded
documents and certificates of title that are not publicly viewable and the provisions for
viewing them under this subdivision. Notice that a document or certificate is private and
viewable only under this subdivision or subdivision 4b is deemed constructive notice of the
document or certificate.

(b) deleted text beginA real property notice is notice only to the county recorder. A notice that does not
conform to the requirements of a real property notice under subdivision 2, paragraph (b),
is not effective as a notice to the county recorder.
deleted text end On receipt of a real property notice, the
deleted text begin county recorderdeleted text endnew text begin government entitynew text end shall provide a copy of the notice to the person who
maintains the property tax records in that county,new text begin to the county's responsible authority,new text end and
provide a copy to the secretary of state at the address specified by the secretary of state in
the notice.

(c) Paragraph (a) applies only to the records recorded or filed concurrently with the real
property notice specified in subdivision 2, paragraph (b), and real property records affecting
the same real propertynew text begin created ornew text end recorded subsequent to the deleted text begincounty'sdeleted text end new text beginentity's new text endreceipt of the
real property notice.

(d) The prohibition on disclosure in paragraph (a) continues until:

(1) the program participant has consented to the termination of the real property notice
in a writing acknowledged by the program participantnew text begin. Notification under this paragraph
must be given by the government entity to the secretary of state within 90 days of the
termination
new text end;

(2) the real property notice is terminated pursuant to a court ordernew text begin. Notification under
this paragraph must be given by the government entity to the secretary of state within 90
days of the termination
new text end;

(3) the program participant no longer holds a record interest in the real property identified
in the real property noticenew text begin. Notification under this paragraph must be given by the government
entity to the secretary of state within 90 days of the termination
new text end; or

(4) the secretary of state has given written notice to the deleted text begincounty recorderdeleted text endnew text begin government
entity's responsible authority
new text end who provided the secretary of state with a copy of a participant's
real property notice that the program participant's certification has terminated. Notification
under this paragraph must be given by the secretary of state within 90 days of the termination.

Upon termination of the prohibition of disclosure, the deleted text begincounty recorderdeleted text endnew text begin government entitynew text end
shall make publicly viewable all documents and certificates of title relative to the participant
that were previously partially or wholly private and not viewable.

Sec. 10.

Minnesota Statutes 2020, section 336.9-510, is amended to read:


336.9-510 EFFECTIVENESS OF FILED RECORD.

(a) Filed record effective if authorized. A filed record is effective only to the extent
that it was filed by a person that may file it under section 336.9-509new text begin or by the filing office
under section 336.9-5135
new text end.

(b) Authorization by one secured party of record. A record authorized by one secured
party of record does not affect the financing statement with respect to another secured party
of record.

(c) Continuation statement not timely filed. A continuation statement that is not filed
within the six-month period prescribed by section 336.9-515(d) is ineffective.

Sec. 11.

new text begin [336.9-5135] TERMINATION OF WRONGFULLY FILED FINANCING
STATEMENT; REINSTATEMENT.
new text end

new text begin (a) Intent to harass. "Intent to harass" means from the totality of the information
provided in the record it appears obvious to the filing office that there is no valid basis for
the filing of the record.
new text end

new text begin (b) Affidavit of wrongful filing. A person identified as the debtor in a filed financing
statement may deliver to the filing office a notarized affidavit that identifies the financing
statement by file number, indicates the person's mailing address, and states that the person
believes the filed record identifying the person as the debtor was not authorized to be filed
and was communicated or caused to be communicated to the office with the intent to harass
or defraud the person identified as the debtor. The office may reject an affidavit that is
incomplete or that the office believes was delivered with the intent to harass or defraud the
secured party. The secretary of state must provide a form of affidavit for use under this
section.
new text end

new text begin (c) Termination statement by filing office. If an affidavit is delivered to the filing
office under subsection (b) and is not rejected under subsection (b), the office must promptly
file a termination statement with respect to the financing statement identified in the affidavit.
The termination statement must identify by its file number the initial financing statement
it relates to and must indicate that it was filed pursuant to this section. A termination
statement filed under this subsection is not effective until 20 days after the date it is filed.
new text end

new text begin (d) No fee charged or refunded. The filing office must not charge a fee to file an
affidavit under subsection (b) or a termination statement under subsection (c). The office
must not return any fee paid to file the financing statement identified in the affidavit, whether
or not the financing statement is reinstated under subsection (g).
new text end

new text begin (e) Notice of termination statement. On the same day a filing office files a termination
statement under subsection (c), it must send to the secured party of record for the financing
statement the termination statement relates to a notice stating the termination statement has
been filed and becomes effective 20 days after the date the termination statement was filed.
The notice must be sent by certified mail, return receipt requested, to the address provided
for the secured party of record in the financing statement, with a copy sent by e-mail to the
e-mail address provided by the secured party of record, if any.
new text end

new text begin (f) Administrative review; action for reinstatement. If a secured party believes in
good faith the filed record identified in an affidavit and delivered to the filing office under
subsection (b) was authorized to be filed and was not communicated or caused to be
communicated to the filing office with the intent to harass or defraud, the secured party may
do the following:
new text end

new text begin (1) before the termination statement takes effect, request that the filing office conduct
an expedited review of the filed record and any documentation provided by the secured
party. The filing office may, as a result of the review, remove from the record the termination
statement filed by it under subsection (c) before it takes effect; or
new text end

new text begin (2) at any time, commence an action against the filing office seeking reinstatement of
the financing statement the filed record relates to. The action must be commenced before
the expiration of six months after the date the termination statement was filed under
subsection (c) becomes effective. If the person identified as the debtor is not named as a
defendant in the action, the secured party must send a copy of the complaint to the person
identified as the debtor at the address indicated in the affidavit. The exclusive venue for the
action is the district court for the county where the filing office in which the financing
statement was filed is located. The action must be considered by the court on an expedited
basis.
new text end

new text begin (g) Office to file notice of action for reinstatement. Within ten days after being served
with process in an action under subsection (f), the filing office must file a notice indicating
the action has been commenced. The notice must indicate the file number of the initial
financing statement it relates to.
new text end

new text begin (h) Action for reinstatement successful. In an action under subsection (f), if the court
determines the financing statement was authorized to be filed and was not communicated
or caused to be communicated to the filing office with the intent to harass or defraud the
person identified as the debtor, the court must order that the financing statement is reinstated.
If a reinstatement order is issued by the court, the filing office must promptly file a record
that identifies by its file number the initial financing statement the record relates to and
indicates the financing statement has been reinstated.
new text end

new text begin (i) Effect of reinstatement. Upon the filing of a record reinstating a financing statement
under subsection (h), the effectiveness of the financing statement is reinstated and the
financing statement is considered to never have been terminated under this section. A
continuation statement filed under section 336.9-515(d) after the effective date of a
termination statement filed under subsection (c) becomes effective if the financing statement
is reinstated.
new text end

new text begin (j) Liability for wrongful filing. In an action under subsection (f), if the court determines
the filed record identified in an affidavit delivered to the filing office under subsection (b)
was not authorized to be filed and was communicated or caused to be communicated to the
filing office with the intent to harass or defraud the person identified as the debtor, the filing
office and the person identified as the debtor may recover from the secured party that filed
the action the costs and expenses, including reasonable attorney fees, that the filing office
and the person identified as the debtor incurred in the action. The recovery is under this
subsection in addition to any recovery the person identified as the debtor is entitled to under
section 336.9-625.
new text end

Sec. 12.

Minnesota Statutes 2020, section 336.9-516, is amended to read:


336.9-516 WHAT CONSTITUTES FILING; EFFECTIVENESS OF FILING.

(a) What constitutes filing. Except as otherwise provided in subsection (b),
communication of a record to a filing office and tender of the filing fee or acceptance of
the record by the filing office constitutes filing.

(b) Refusal to accept record; filing does not occur. Filing does not occur with respect
to a record that a filing office refuses to accept because:

(1) the record is not communicated by a method or medium of communication authorized
by the filing office. For purposes of filing office authorization, transmission of records using
the Extensible Markup Language (XML) format is authorized by the filing office after the
later of July 1, 2007, or the determination of the secretary of state that the central filing
system is capable of receiving and processing these records;

(2) an amount equal to or greater than the applicable filing fee is not tendered;

(3) the filing office is unable to index the record because:

(A) in the case of an initial financing statement, the record does not provide a name for
the debtor;

(B) in the case of an amendment or information statement, the record:

(i) does not identify the initial financing statement as required by section 336.9-512 or
336.9-518, as applicable; or

(ii) identifies an initial financing statement whose effectiveness has lapsed under section
336.9-515;

(C) in the case of an initial financing statement that provides the name of a debtor
identified as an individual or an amendment that provides a name of a debtor identified as
an individual which was not previously provided in the financing statement to which the
record relates, the record does not identify the debtor's surname; or

(D) in the case of a record filed or recorded in the filing office described in section
336.9-501 (a)(1), the record does not provide a sufficient description of the real property
to which it relates;

(4) in the case of an initial financing statement or an amendment that adds a secured
party of record, the record does not provide a name and mailing address for the secured
party of record;

(5) in the case of an initial financing statement or an amendment that provides a name
of a debtor which was not previously provided in the financing statement to which the
amendment relates, the record does not:

(A) provide a mailing address for the debtor; or

(B) indicate whether the name provided as the name of the debtor is the name of an
individual or an organization;

(6) in the case of an assignment reflected in an initial financing statement under section
336.9-514 (a) or an amendment filed under section 336.9-514 (b), the record does not provide
a name and mailing address for the assignee; deleted text beginor
deleted text end

(7) in the case of a continuation statement, the record is not filed within the six-month
period prescribed by section 336.9-515 (d)deleted text begin.deleted text endnew text begin; or
new text end

new text begin (8) in the case of an initial financing statement or an amendment that provides a name
of a debtor not previously provided in the financing statement to which the amendment
relates, the office reasonably believes the record was communicated or caused to be
communicated (i) with the intent to harass or defraud the person identified as the debtor, or
(ii) for another unlawful purpose. The office has no duty to form a belief as to whether a
record was communicated or caused to be communicated with the intent to harass or defraud
the person identified as the debtor or for another unlawful purpose, and has no duty to
investigate or ascertain facts relevant to whether the intent or purpose was present. The
secretary of state is not required to return an image of a filing rejected under this clause.
new text end

(c) Rules applicable to subsection (b). For purposes of subsection (b):

(1) a record does not provide information if the filing office is unable to read or decipher
the information; and

(2) a record that does not indicate that it is an amendment or identify an initial financing
statement to which it relates, as required by section 336.9-512, 336.9-514, or 336.9-518, is
an initial financing statement.

(d) Refusal to accept record; record effective as filed record. A record that is
communicated to the filing office with tender of the filing fee, but which the filing office
refuses to accept for a reason other than one set forth in subsection (b), is effective as a filed
record except as against a purchaser of the collateral which gives value in reasonable reliance
upon the absence of the record from the files.

new text begin (e) Effectiveness of record; purchaser in good faith. A record that the filing office
initially refuses to accept under subsection (b)(8) but later accepts after receiving additional
information is effective as if the office had not initially refused to accept the record, except
as against a purchaser of the collateral that gives value in reasonable reliance upon the
absence of the record from the files.
new text end

Sec. 13.

Minnesota Statutes 2020, section 336A.09, subdivision 2, is amended to read:


Subd. 2.

Searches; fees.

(a) If a person makes a request, the filing officer shall conduct
a search of the computerized filing system for effective financing statements or lien notices
and statements of continuation of a particular debtor. The filing officer shall produce a
report including the date, time, and results of the search by issuing:

(1) a listing of the file number, date, and hour of each effective financing statement
found in the search and the names and addresses of each secured party on the effective
financing statements or of each lien notice found in the search and the names and address
of each lienholder on the lien notice; or

(2) upon request, both the report and photocopies of the effective financing statements
or lien notices.

(b) The uniform fee for conducting a search and for preparing a report is $20 per debtor
name. A fee as set by section 5.12 will be charged for photocopies of effective financing
statements, lien notices, continuation statements, or termination statements.

deleted text begin (c) Search fees collected by a satellite office must be deposited in the general fund of
the county where the satellite office is located.
deleted text end

Sec. 14.

new text begin [609.7476] RECORDS FILED WITH INTENT TO HARASS OR DEFRAUD.
new text end

new text begin (a) A person is prohibited from communicating or causing to be communicated to the
filing office, as defined in section 336.9-102 (a) (37), to file a record if:
new text end

new text begin (1) the person is not authorized to file the record under section 336.9-509, 336.9-708,
or 336.9-808;
new text end

new text begin (2) the record is not related to an existing or anticipated transaction governed by chapter
336, article 9; and
new text end

new text begin (3) the record is filed with the intent to harass or defraud the person identified as the
debtor in the record.
new text end

new text begin (b) A person that violates paragraph (a) is guilty of a gross misdemeanor for a first
offense and a felony for a second or subsequent offense.
new text end

Sec. 15. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, section 5.23, subdivision 3, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 21-02094

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.