Senate committee hears bill to let Secretary of State delete fraudulent business filings

Senate File 17-34, the Minnesota Business Filing Fraud Prevention Act, was presented to the State and Local Government Committee on Thursday, March 27. Senator Steve Klein, sponsor of the bill, said the measure would create an administrative pathway for victims of business-identity fraud to have wrongful filings challenged and removed without first going to court.

The bill would allow someone who believes a filing was made in their name to submit a declaration to the Secretary of State’s office. According to Deputy General Counsel Lauren Bethke of the Secretary of State’s office, staff would notify the filer and give them 21 days to respond; if the filer does not respond, the office would presume the filing fraudulent and could issue an order. If staff make a preliminary or final determination, the nonprevailing party may seek judicial review in district court.

Bethke said a final order could mark a filing as fraudulent or unauthorized in the state’s business filings database and redact names or other personal information used without authorization. She emphasized that the office currently lacks statutory authority to remove a filing without a court order and that the bill seeks to provide due-process steps prior to any removal.

Supporters told the committee the bill addresses a frequent problem: business owners and private citizens discovering they are listed on filings for enterprises they never formed and facing bills or tax liabilities as a result. Senator Karin McQueen, speaking during the hearing, praised the bill for easing administrative burdens on victims of fraud.

The committee laid Senate File 17-34 over for possible inclusion; no final vote on passage occurred at this hearing. The Secretary of State’s office indicated appeal rights and judicial review would remain available under the proposed process.

Senate File 17-34 is now available for further consideration as it moves through the committee process.