Commerce bill, including HOA ombudsperson, loosened lead-key ban passed by House, Senate

— UPDATED at 6:44 p.m. after Senate vote

A bill that would create a homeowner’s association ombudsperson and relax the state’s ban on lead keys has received the OK from the House.

After little debate Monday, the House easily passed SSHF4, the commerce policy and budget bill that also funds the Department of Commerce and Office of Cannabis Management.

Following the 112-19 vote, the bill was passed 48-18 by the Senate. It's next stop is Gov. Tim Walz.

“In addition to preventing new mandates from becoming law, the commerce proposal includes needed work in the Medicare supplement policy area and extends the successful reinsurance program. This will ensure a stable and orderly health insurance market in Minnesota,” bill sponsor Rep. Tim O'Driscoll (R-Sartell) said in a statement.

[MORE: Commerce bill language, spreadsheet]

Policies

The bill would relax the state’s lead and cadmium ban, which will prohibit cadmium paint and lead keys after July 1 this year.

Per the bill, keys containing lead that are imported, manufactured, sold or distributed before July 1, 2028 would be exempt from the ban. Keys containing lead equal to or less than 1.5% by total weight that are imported, manufactured, sold or distributed after July 1, 2028 would also be exempt. Artist materials including paints, pastels, pigments, ceramic glazes, markers and encaustics, as well as ink pens and mechanical pencils, would, too, be exempt.

The bill would create a new ombudsperson position to facilitate disputes between unit owners and homeowner associations and assist unit owners, tenants and associations in understanding their rights. The new position would cost $347,000 a year beginning in fiscal year 2026.

A task force would be created to provide legislative recommendations on the affordability of property insurance for single-family homes, multifamily rental housing and common interest communities.

And it would require places of entertainment with an occupancy of at least 100 people to provide, at ticketed events, free water to attendees and allow attendees to bring in sealed bottled water or an empty water bottle to fill.

Funding

The bill calls for $79.34 million in spending for the Department of Commerce, a $4.78 million increase over the February base, in fiscal years 2026-27 and $69.79 million in spending for the Office of Cannabis Management, a $6.65 million decrease over the February base.

For fiscal years 2028-29, the bill would appropriate $79.99 million to the Department of Commerce, a $5.46 million increase over the February base, and $63.17 million to the Office of Cannabis Management, a $15.89 million decrease from the February base.

The Office of Cannabis Management’s cuts are to funding for the CanRenew Grant, which provides money to organizations that work with communities where residents are eligible to be social equity applicants.

The Department of Commerce would receive an operating increase of $3 million and the Office of Cannabis Management would receive an operating increase of $842,000 in fiscal years 2026-27.

To fund the reinsurance program, $145 million would be transferred from the Health Care Access Fund to combine with $99.81 million in federal funding and existing funds in the Premium Security Account in fiscal years 2026-27. Federal funding of $99.81 million in fiscal year 2028 would be combined with an assessment estimated to total $266.83 million imposed on group health carriers in fiscal year 2029. The carriers would then be able to claim a tax credit for that assessment in fiscal year 2030.

The addition of four full-time equivalent staff for the securities unit would cost $543,000 each fiscal year beginning with fiscal year 2026. That cost is expected to be covered by an increase in licensing fees for investment advisors and brokers.