Bill > SF4240

This bill, titled "Certain powers of entities modification," proposes to redefine the powers granted to various entities operating in Minnesota, including corporations, limited liability companies, partnerships, and trusts, as well as foreign entities authorized to do business in the state. The core of the bill is to retract all existing powers of these entities and then specifically re-grant only those powers deemed necessary for their lawful business or charitable purposes, explicitly excluding powers related to "election activity" (spending money to support or oppose candidates or political parties) and "ballot-issue activity" (spending money to support or oppose ballot questions). The bill defines "entity benefit" as privileges conferred by the state, such as limited liability or perpetual duration, and states that these benefits do not authorize election or ballot-issue activity, with entities engaging in such activities forfeiting these benefits. An exception is made for registered political funds or committees, which are permitted to engage in election and ballot-issue activities if they exist solely for that purpose and only claim limited liability as an entity benefit. Additionally, the bill clarifies that bona fide news stories, commentary, or editorials distributed through various media outlets are not considered election or ballot-issue activity, unless those media facilities are controlled by a political party, committee, or candidate. Any language in an entity's founding documents that attempts to grant election or ballot-issue authority is declared void. The bill also states that this change does not invalidate existing contracts or obligations entered into before August 1, 2026, but it does not authorize any election or ballot-issue activity after that date, nor does it affect an entity's ability to wind up its affairs and dissolve.

Justice

https://www.revisor.mn.gov/bills/94/2026/0/SF/4240/