Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF1063 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to common interest communities; creating a common interest community
3	3		1.3 ombudsperson; establishing a register for common interest communities; classifying
4	4		1.4 certain data; appropriating money for the Office of the Common Interest
5	5		1.5 Community Ombudsperson; appropriating money for a register; proposing coding
6	6		1.6 for new law in Minnesota Statutes, chapters 45; 515B.
7	7		1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8		1.8 ARTICLE 1
9	9		1.9 COMMON INTEREST COMMUNITY OMBUDSPERSON
10	10		1.10 Section 1. [45.0137] COMMON INTEREST COMMUNITY OMBUDSPERSON.
11	11		1.11 Subdivision 1.Definitions.(a) For purposes of this section, the terms defined in this
12	12		1.12subdivision have the meanings given.
13	13		1.13 (b) "Association" has the meaning given in section 515B.1-103, clause (4).
14	14		1.14 (c) "Common interest community" has the meaning given in section 515B.1-103, clause
15	15		1.15(10).
16	16		1.16 (d) "Nonpublic data" has the meaning given in section 13.02, subdivision 9.
17	17		1.17 (e) "Private data on individuals" has the meaning given in section 13.02, subdivision
18	18		1.1812.
19	19		1.19 (f) "Unit owner" has the meaning given in section 515B.1-103, clause (37).
20	20		1.20 Subd. 2.Establishment.A common interest community ombudsperson position is
21	21		1.21established within the Department of Commerce to assist unit owners in enforcing their
22	22		1.22rights and to facilitate resolution of disputes between unit owners and associations. The
23	23		1Article 1 Section 1.
24		-	S1063-~~2 2nd~~ EngrossmentSF1063 REVISOR MS
	24	+	S1063-1 1st EngrossmentSF1063 REVISOR MS
25	25		SENATE
26	26		STATE OF MINNESOTA
27	27		S.F. No. 1063NINETY-FOURTH SESSION
28		-	(SENATE AUTHORS: ~~PHA~~, ~~Marty~~ and Lucero)
	28	+	(SENATE AUTHORS: MARTY, Pha and Lucero)
29	29		OFFICIAL STATUSD-PGDATE
30	30		Introduction and first reading30302/06/2025
31	31		Referred to Judiciary and Public Safety
32		-	Comm report: To pass as amended and re-refer to Commerce and Consumer Protection994a03/24/2025
33		-	Chief author stricken, shown as co-author Marty111303/27/2025
34		-	Chief author added Pha
35		-	Comm report: To pass as amended and re-refer to State and Local Government04/01/2025 2.1ombudsperson is appointed by the governor, serves in the unclassified service, and may be
	32	+	Comm report: To pass as amended and re-refer to Commerce and Consumer Protection03/24/2025 2.1ombudsperson is appointed by the governor, serves in the unclassified service, and may be
36	33		2.2removed only for just cause.
37	34		2.3 Subd. 3.Qualifications.The ombudsperson must be selected without regard to political
38	35		2.4affiliation, must be qualified and experienced to perform the duties of the office, and must
39	36		2.5be skilled in dispute resolution techniques. The ombudsperson must not be a unit owner,
40	37		2.6be employed by a business entity that provides management or consulting services to an
41	38		2.7association, or otherwise be affiliated with an association or management company. A
42	39		2.8person is prohibited from serving as ombudsperson while holding another public office.
43	40		2.9 Subd. 4.Duties.(a) The ombudsperson must assist unit owners, their tenants, and
44	41		2.10associations to understand and enforce their rights under chapter 515B and the governing
45	42		2.11documents of the specific unit owner's association, including by:
46	43		2.12 (1) creating and publishing plain language explanations of common provisions of common
47	44		2.13interest community declarations and bylaws; and
48	45		2.14 (2) publishing materials and providing resources and referrals related to the rights and
49	46		2.15responsibilities of unit owners and associations.
50	47		2.16 (b) Upon the request of a unit owner or association, the ombudsperson must provide
51	48		2.17dispute resolution services, including acting as a mediator, in disputes between a unit owner
52	49		2.18and an association concerning chapter 515B or the governing documents of the common
53	50		2.19interest community, except where:
54	51		2.20 (1) there is a complaint based on the same dispute pending in a judicial or administrative
55	52		2.21proceeding; or
56	53		2.22 (2) the same disputed issue has been addressed or is currently in arbitration, mediation,
57	54		2.23or another alternative dispute resolution process.
58	55		2.24 (c) The ombudsperson may provide dispute resolution services for disputes between the
59	56		2.25tenant of a unit owner and an association, if the unit owner agrees to participate in the dispute
60	57		2.26resolution process.
61	58		2.27 (d) The ombudsperson must compile and analyze complaints against common interest
62	59		2.28communities made by unit owners to identify issues and trends. When assisting a unit owner
63	60		2.29in enforcing their rights under this section, the ombudsperson may inform them of the
64	61		2.30existence of other complaints from other unit owners in the same common interest
65	62		2.31community, subject to subdivision 7.
66	63		2.32 (e) The ombudsperson must maintain a website containing, at a minimum:
67	64		2Article 1 Section 1.
68		-	S1063-~~2 2nd~~ EngrossmentSF1063 REVISOR MS 3.1 (1) the text of chapter 515B and any other relevant statutes or rules;
	65	+	S1063-1 1st EngrossmentSF1063 REVISOR MS 3.1 (1) the text of chapter 515B and any other relevant statutes or rules;
69	66		3.2 (2) information regarding the services provided by the Office of the Common Interest
70	67		3.3Community Ombudsperson, including assistance with dispute resolution;
71	68		3.4 (3) information regarding alternative dispute resolution methods and programs; and
72	69		3.5 (4) any other information that the ombudsperson determines is useful to unit owners,
73	70		3.6associations, common interest community boards of directors, and common interest
74	71		3.7community property management companies.
75	72		3.8 (f) When requested or as the ombudsperson deems appropriate, the ombudsperson must
76	73		3.9provide reports and recommendations to the legislative committees with jurisdiction over
77	74		3.10common interest communities.
78	75		3.11 (g) In the course of assisting to resolve a dispute, the ombudsperson may, at reasonable
79	76		3.12times, enter and view premises within the control of the common interest community.
80	77		3.13 Subd. 5.Powers limited.The ombudsperson and the commissioner are prohibited from
81	78		3.14rendering a formal legal opinion regarding a dispute between a unit owner and an association.
82	79		3.15The ombudsperson and commissioner are prohibited from making a formal determination
83	80		3.16or issuing an order regarding disputes between a unit owner and an association. Nothing in
84	81		3.17this subdivision limits the ability of the commissioner to execute duties or powers under
85	82		3.18any other law.
86	83		3.19 Subd. 6.Cooperation.Upon request, unit owners and associations must participate in
87	84		3.20the dispute resolution process and make good faith efforts to resolve disputes under this
88	85		3.21section.
89	86		3.22 Subd. 7.Data.Data collected, created, or maintained on unit owners, their tenants, or
90	87		3.23other complainants by the office of the ombudsperson under this section are private data
91	88		3.24on individuals or nonpublic data.
92	89		3.25 Subd. 8.Landlord and tenant law.Nothing in this section modifies, supersedes, limits,
93	90		3.26or expands the rights and duties of landlords and tenants established under chapter 504B or
94	91		3.27any other law.
95	92		3.28 EFFECTIVE DATE.This section is effective July 1, 2026.
96	93		3Article 1 Section 1.
97		-	S1063-~~2 2nd~~ EngrossmentSF1063 REVISOR MS 4.1 Sec. 2. APPROPRIATION; OFFICE OF THE COMMON INTEREST COMMUNITY
	94	+	S1063-1 1st EngrossmentSF1063 REVISOR MS 4.1 Sec. 2. APPROPRIATION; OFFICE OF THE COMMON INTEREST COMMUNITY
98	95		4.2OMBUDSPERSON.
99	96		4.3 $....... in fiscal year 2025 is appropriated from the general fund to the commissioner of
100	97		4.4commerce to establish and maintain the Office of the Common Interest Community
101	98		4.5Ombudsperson. This appropriation is added to the base.
102	99		4.6 EFFECTIVE DATE.This section is effective the day following final enactment.
103	100		4.7 ARTICLE 2
104	101		4.8 COMMON INTEREST COMMUNITY REGISTRATION
105	102		4.9 Section 1. [515B.5-101] COMMON INTEREST COMMUNITY REGISTRATION.
106	103		4.10 Subdivision 1.Definitions.(a) For purposes of this section, the terms defined in this
107	104		4.11subdivision have the meanings given.
108	105		4.12 (b) "Association" has the meaning given in section 515B.1-103, clause (4).
109	106		4.13 (c) "Common interest community" has the meaning given in section 515B.1-103, clause
110	107		4.14(10).
111	108		4.15 (d) "Master declaration" has the meaning given in section 515B.1-103, clause (22).
112	109		4.16 (e) "Master developer" has the meaning given in section 515B.1-103, clause (23).
113	110		4.17 (f) "Unit" has the meaning given in section 515B.1-103, clause (35).
114	111		4.18 Subd. 2.Establishment.The Department of Commerce must establish a register that
115	112		4.19contains the information required under subdivision 3 regarding each common interest
116		-	4.20community or similar association governed by ~~this chapter~~, operating within Minnesota.
	113	+	4.20community or similar association governed by chapter 515B, operating within Minnesota.
117	114		4.21 Subd. 3.Registration required.(a) A common interest community or similar association
118		-	4.22governed by ~~this chapter~~ must annually register under this section if they own any number
	115	+	4.22governed by chapter 515B must annually register under this section if they own any number
119	116		4.23of units in the state of Minnesota.
120		-	4.24 (b) A common interest community or similar association governed by ~~this~~ chapter ~~must~~
121		-	4.~~25provide~~ the following information to the department when registering:
	117	+	4.24 (b) A common interest community or similar association governed by chapter 515B
	118	+	4.25must provide the following information to the department when registering:
122	119		4.26 (1) the common interest community or association's legal name;
123	120		4.27 (2) the common interest community or association's federal employer identification
124	121		4.28number;
125	122		4.29 (3) the common interest community or association's telephone number, email address,
126	123		4.30and mailing and physical address;
127	124		4Article 2 Section 1.
128		-	S1063-~~2 2nd~~ EngrossmentSF1063 REVISOR MS 5.1 (4) the current board officers' full names, titles, email addresses, and other contact
	125	+	S1063-1 1st EngrossmentSF1063 REVISOR MS 5.1 (4) the current board officers' full names, titles, email addresses, and other contact
129	126		5.2information;
130	127		5.3 (5) a copy of the common interest community or association's governing documents,
131	128		5.4including but not limited to declarations, bylaws, rules, and any amendments;
132	129		5.5 (6) the total number of parcels in the common interest community or association; and
133	130		5.6 (7) the total amount of revenues and expenses from the common interest community or
134	131		5.7association's annual budget.
135		-	5.8 (c) For common interest communities or associations governed by ~~this~~ chapter that ~~are~~
136		-	5.~~9under~~ the control of a master developer, the register must also include the following
	132	+	5.8 (c) For common interest communities or associations governed by chapter 515B that
	133	+	5.9are under the control of a master developer, the register must also include the following
137	134		5.10information:
138	135		5.11 (1) the master developer's legal name;
139	136		5.12 (2) the master developer's telephone number, email address, and mailing and physical
140	137		5.13address;
141	138		5.14 (3) the master developer's federal employer identification number;
142	139		5.15 (4) the total number of parcels owned by the master developer on the date of reporting;
143	140		5.16 (5) the master developer's master declaration as required by section 515B.2-121;
144	141		5.17 (6) the master developer's anticipated timeline to transfer control to the owners; and
145	142		5.18 (7) how the master developer will transfer control to the owners.
146		-	5.19 (d) Common interest communities or associations governed by ~~this chapter~~ that contract
	143	+	5.19 (d) Common interest communities or associations governed by chapter 515B that contract
147	144		5.20with a property management company must also provide the following information:
148	145		5.21 (1) the property management company's legal name;
149	146		5.22 (2) the property management company's telephone number, email address, and mailing
150	147		5.23and physical address;
151	148		5.24 (3) a brief description of the property management company's legal obligations under
152	149		5.25the terms of the contract; and
153	150		5.26 (4) the total cost of the contract.
154	151		5.27 Subd. 4.Registration fee.Each common interest community or association must pay
155		-	5.28a registration fee. The amount of the registration fee is determined by the ~~number~~ of units
	152	+	5.28a registration fee. The amount of the registration fee is determined by the amount of units
156	153		5.29owned by the common interest community or association according to the following schedule:
157	154		5Article 2 Section 1.
158		-	S1063-~~2 2nd~~ EngrossmentSF1063 REVISOR MS Fee6.1 Units
	155	+	S1063-1 1st EngrossmentSF1063 REVISOR MS Fee6.1 Units
159	156		...6.2 Under 20 units
160	157		...6.3 20 to 80 units
161	158		...6.4 Over 80 units
162	159		6.5 Subd. 5.Data classification.A board member's email address and other contact
163	160		6.6information collected, created, received, or maintained pursuant to this section is private
164	161		6.7data on individuals, as defined in section 13.02, subdivision 12.
165	162		6.8 Subd. 6.Enforcement.(a) A common interest community or association's failure to
166	163		6.9register under this section is an unlawful business practice. The Department of Commerce
167	164		6.10must provide notice to a common interest community or association who fails to register.
168	165		6.11The common interest community or association must register as provided under this section
169	166		6.12within 60 days after receiving the notice to register.
170	167		6.13 (b) The attorney general has authority to enforce this section under section 8.31.
171	168		6.14 EFFECTIVE DATE.This section is effective January 1, 2026.
172	169		6.15 Sec. 2. APPROPRIATION; COMMON INTEREST COMMUNITY REGISTER.
173	170		6.16 $....... in fiscal year 2025 is appropriated from the general fund to the commissioner of
174	171		6.17commerce to establish the common interest community register under Minnesota Statutes,
175	172		6.18section 515B.5-101. This is a onetime appropriation.
176	173		6.19 EFFECTIVE DATE.This section is effective the day following final enactment.
177	174		6Article 2 Sec. 2.
178		-	S1063-~~2 2nd~~ EngrossmentSF1063 REVISOR MS Page.Ln 1.8COMMON INTEREST COMMUNITY OMBUDSPERSON ..............ARTICLE 1
	175	+	S1063-1 1st EngrossmentSF1063 REVISOR MS Page.Ln 1.8COMMON INTEREST COMMUNITY OMBUDSPERSON ..............ARTICLE 1
179	176		Page.Ln 4.7COMMON INTEREST COMMUNITY REGISTRATION..................ARTICLE 2
180	177		1
181	178		APPENDIX
182		-	Article locations for S1063-2
	179	+	Article locations for s1063-1