House supports new HOA ombudsperson in commerce budget bill

The omnibus commerce finance bill continued to garner little controversy or debate.

The House passed HF2443/SF2216* on a 122-10 vote Tuesday after a few minutes of encouragement to support the bill from Rep. Kaohly Vang Her (DFL-St. Paul) and Rep. Tim O'Driscoll (R-Sartell), co-chairs of the House Commerce Finance and Policy Committee.

The bill now goes to the Senate for concurrence, but a conference committee will likely be needed. The Senate passed its version 35-29 April 23.

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Her, who sponsors the bill, called it a “good compromise bill.” She said committee leaders did their best to be fiscally responsible by honoring the many financial requests the committee received.

For the fiscal years 2026-27, it lays out $79.72 million in spending for the Department of Commerce and $75.8 million for the Office of Cannabis Management, which meets House leaders’ target of a $3 million increase over the February forecast base.

The operating increase for the Department of Commerce would be $3 million and $842,000 for the cannabis office during the biennium.

The bill contains two policy provisions, as well.

It would create a new ombudsperson to facilitate disputes between unit owners and homeowner associations. The ombudsperson would assist unit owners, tenants and associations in understanding their rights and facilitate disputes between unit owners and associations. The new position would cost $343,000 a year beginning in fiscal year 2026.

The bill would also allocate $200,000 to the Legislative Coordinating Commission in fiscal year 2025 to create a task force to provide recommendations to the Legislature on property insurance affordability in relation to single-family homes, multifamily rental housing, common interest communities, cooperatives and small businesses.

The bill would also expand securities staff at the Department of Commerce who regulate an industry that has $11 billion in assets. Four full-time equivalent positions would be added in fiscal year 2026 and one in fiscal year 2027, for a total of $735,000. That cost is expected to be covered by an increase in licensing fees for investment advisors and brokers.