This bill proposes significant changes to the powers of entities operating under Minnesota law, specifically regarding their ability to engage in election and ballot-issue activities. It establishes that entities, which include various forms of corporations, partnerships, and associations, exist solely by the grant of the state and possess only the powers expressly provided by law. The bill retracts all powers related to election and ballot-issue activities, asserting that such powers are not necessary for the lawful business or charitable purposes of these entities. Furthermore, any language in organizational documents that attempts to confer authority for these activities is deemed void.

The bill does, however, create exceptions for political funds or committees registered under Minnesota or federal law, allowing them to engage in election and ballot-issue activities as long as they exist solely for that purpose and do not claim any entity benefits beyond limited liability. Additionally, it clarifies that bona fide news stories and commentaries distributed through certain media do not constitute election or ballot-issue activities unless controlled by a political entity. Entities that violate these provisions by engaging in unauthorized election or ballot-issue activities will forfeit their entity benefits. The bill also includes a severability clause to ensure that if any part of the law is found invalid, the remaining provisions will still be enforceable.