Business services corrections and modernization provisions

A bill for an act

relating to business organizations; modernizing and correcting provisions governing

business services; changing positions appointed by the secretary of state; reducing

printing requirements for the legislative manual; amending Minnesota Statutes

2024, sections 5.02; 5.08; 5.23, subdivision 1; 268.058, subdivision 1.

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

Section 1.

Minnesota Statutes 2024, section 5.02, is amended to read:

5.02 ASSISTANTS.

The secretary of state shall appoint
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an assistant
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a deputy
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secretary of state, who shall

perform all the duties of the office when the secretary is absent or disabled. The secretary

may also employ
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a chief clerk, a recording clerk, and a stenographer,
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and at pleasure dismiss

two additional deputies and an executive assistant
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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.
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This section does not increase the complement of the secretary of state.
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Sec. 2.

Minnesota Statutes 2024, section 5.08, is amended to read:

5.08 LEGISLATIVE MANUAL.

Subdivision 1.

Preparation.

The secretary of state shall prepare, compile, edit, and

distribute for use at each regular legislative session, a convenient manual, properly indexed,

and containing: The federal and state constitutions; the acts of Congress relating to the

organization of the territory and state; the rules of order and joint rules of the two houses,

and lists of their members, committees and employees; the names of all state officials,

whether elected or appointed, and of all persons holding office from this state under the

national government; the
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places
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municipalities
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where the said several officials reside, and

the annual compensation of each; and statistical and other information of the kind heretofore

published in the legislative manuals.

Subd. 2.

Distribution.

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10,000
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5,000
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copies of the legislative manual shall be printed

and distributed as follows:

(1) up to
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20
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five
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copies shall be available to each member of the legislature on request;

(2)
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50
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12
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copies to the State Historical Society;

(3)
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25
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two
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copies to the state university;

(4)
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60
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30
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copies to the state library;

(5)
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two copies
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one copy
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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;

(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;
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and
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(7)
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one copy to each school, to be distributed through the superintendent of each school

district; and
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(8)
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the remainder may be disposed of as the secretary of state deems best.

Sec. 3.

Minnesota Statutes 2024, section 5.23, subdivision 1, is amended to read:

Subdivision 1.

Failure to pay filing fee.

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(a)
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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
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is
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may take the actions
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authorized
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under this subdivision.
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(b) The secretary of state is authorized
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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.

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(c) 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.

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(d)
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The secretary may
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also
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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.

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(e)
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The secretary may impose restrictions on the manner of payment that will be accepted

for any future filings.

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(f)
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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. 4.

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 mail
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,
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or
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personal delivery
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, 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 delivered
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.

(d) County recorders and the secretary of state must enter information on lien notices,

renewals, and releases into the
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central database of the secretary of state
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respective databases

established for lien notices, renewals, and releases
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.
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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.
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(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.