Office of the Revisor of Statutes
SF 1063
2nd Engrossment - 94th Legislature (2025 - 2026)
Posted on 07/15/2025 10:28 a.m.
Bill Text Versions
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Introduction
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Posted on 02/04/2025 | |
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1st Engrossment
PDF
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Posted on 03/24/2025 | |
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2nd Engrossment
PDF
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Posted on 04/01/2025 |
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A bill for an act
relating to common interest communities; creating a common interest community
ombudsperson; establishing a register for common interest communities; classifying
certain data; appropriating money for the Office of the Common Interest
Community Ombudsperson; appropriating money for a register; proposing coding
for new law in Minnesota Statutes, chapters 45; 515B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
COMMON INTEREST COMMUNITY OMBUDSPERSON
Section 1.
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[45.0137] COMMON INTEREST COMMUNITY OMBUDSPERSON.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the terms defined in this
subdivision have the meanings given.
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(b) "Association" has the meaning given in section 515B.1-103, clause (4).
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(c) "Common interest community" has the meaning given in section 515B.1-103, clause
(10).
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(d) "Nonpublic data" has the meaning given in section 13.02, subdivision 9.
new text end
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(e) "Private data on individuals" has the meaning given in section 13.02, subdivision
12.
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(f) "Unit owner" has the meaning given in section 515B.1-103, clause (37).
new text end
new text begin Subd. 2. new text end
new text begin Establishment. new text end
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A common interest community ombudsperson position is
established within the Department of Commerce to assist unit owners in enforcing their
rights and to facilitate resolution of disputes between unit owners and associations. The
ombudsperson is appointed by the governor, serves in the unclassified service, and may be
removed only for just cause.
new text end
new text begin Subd. 3. new text end
new text begin Qualifications. new text end
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The ombudsperson must be selected without regard to political
affiliation, must be qualified and experienced to perform the duties of the office, and must
be skilled in dispute resolution techniques. The ombudsperson must not be a unit owner,
be employed by a business entity that provides management or consulting services to an
association, or otherwise be affiliated with an association or management company. A
person is prohibited from serving as ombudsperson while holding another public office.
new text end
new text begin Subd. 4. new text end
new text begin Duties. new text end
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(a) The ombudsperson must assist unit owners, their tenants, and
associations to understand and enforce their rights under chapter 515B and the governing
documents of the specific unit owner's association, including by:
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(1) creating and publishing plain language explanations of common provisions of common
interest community declarations and bylaws; and
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(2) publishing materials and providing resources and referrals related to the rights and
responsibilities of unit owners and associations.
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(b) Upon the request of a unit owner or association, the ombudsperson must provide
dispute resolution services, including acting as a mediator, in disputes between a unit owner
and an association concerning chapter 515B or the governing documents of the common
interest community, except where:
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(1) there is a complaint based on the same dispute pending in a judicial or administrative
proceeding; or
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(2) the same disputed issue has been addressed or is currently in arbitration, mediation,
or another alternative dispute resolution process.
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(c) The ombudsperson may provide dispute resolution services for disputes between the
tenant of a unit owner and an association, if the unit owner agrees to participate in the dispute
resolution process.
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(d) The ombudsperson must compile and analyze complaints against common interest
communities made by unit owners to identify issues and trends. When assisting a unit owner
in enforcing their rights under this section, the ombudsperson may inform them of the
existence of other complaints from other unit owners in the same common interest
community, subject to subdivision 7.
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(e) The ombudsperson must maintain a website containing, at a minimum:
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(1) the text of chapter 515B and any other relevant statutes or rules;
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(2) information regarding the services provided by the Office of the Common Interest
Community Ombudsperson, including assistance with dispute resolution;
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(3) information regarding alternative dispute resolution methods and programs; and
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(4) any other information that the ombudsperson determines is useful to unit owners,
associations, common interest community boards of directors, and common interest
community property management companies.
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(f) When requested or as the ombudsperson deems appropriate, the ombudsperson must
provide reports and recommendations to the legislative committees with jurisdiction over
common interest communities.
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(g) In the course of assisting to resolve a dispute, the ombudsperson may, at reasonable
times, enter and view premises within the control of the common interest community.
new text end
new text begin Subd. 5. new text end
new text begin Powers limited. new text end
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The ombudsperson and the commissioner are prohibited from
rendering a formal legal opinion regarding a dispute between a unit owner and an association.
The ombudsperson and commissioner are prohibited from making a formal determination
or issuing an order regarding disputes between a unit owner and an association. Nothing in
this subdivision limits the ability of the commissioner to execute duties or powers under
any other law.
new text end
new text begin Subd. 6. new text end
new text begin Cooperation. new text end
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Upon request, unit owners and associations must participate in
the dispute resolution process and make good faith efforts to resolve disputes under this
section.
new text end
new text begin Subd. 7. new text end
new text begin Data. new text end
new text begin
Data collected, created, or maintained on unit owners, their tenants, or
other complainants by the office of the ombudsperson under this section are private data
on individuals or nonpublic data.
new text end
new text begin Subd. 8. new text end
new text begin Landlord and tenant law. new text end
new text begin
Nothing in this section modifies, supersedes, limits,
or expands the rights and duties of landlords and tenants established under chapter 504B or
any other law.
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new text begin EFFECTIVE DATE. new text end
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This section is effective July 1, 2026.
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Sec. 2. new text begin APPROPRIATION; OFFICE OF THE COMMON INTEREST COMMUNITY
OMBUDSPERSON.
new text end
new text begin
$....... in fiscal year 2025 is appropriated from the general fund to the commissioner of
commerce to establish and maintain the Office of the Common Interest Community
Ombudsperson. This appropriation is added to the base.
new text end
new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
new text end
ARTICLE 2
COMMON INTEREST COMMUNITY REGISTRATION
Section 1.
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[515B.5-101] COMMON INTEREST COMMUNITY REGISTRATION.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the terms defined in this
subdivision have the meanings given.
new text end
new text begin
(b) "Association" has the meaning given in section 515B.1-103, clause (4).
new text end
new text begin
(c) "Common interest community" has the meaning given in section 515B.1-103, clause
(10).
new text end
new text begin
(d) "Master declaration" has the meaning given in section 515B.1-103, clause (22).
new text end
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(e) "Master developer" has the meaning given in section 515B.1-103, clause (23).
new text end
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(f) "Unit" has the meaning given in section 515B.1-103, clause (35).
new text end
new text begin Subd. 2. new text end
new text begin Establishment. new text end
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The Department of Commerce must establish a register that
contains the information required under subdivision 3 regarding each common interest
community or similar association governed by this chapter, operating within Minnesota.
new text end
new text begin Subd. 3. new text end
new text begin Registration required. new text end
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(a) A common interest community or similar association
governed by this chapter must annually register under this section if they own any number
of units in the state of Minnesota.
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(b) A common interest community or similar association governed by this chapter must
provide the following information to the department when registering:
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(1) the common interest community or association's legal name;
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(2) the common interest community or association's federal employer identification
number;
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(3) the common interest community or association's telephone number, email address,
and mailing and physical address;
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(4) the current board officers' full names, titles, email addresses, and other contact
information;
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(5) a copy of the common interest community or association's governing documents,
including but not limited to declarations, bylaws, rules, and any amendments;
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(6) the total number of parcels in the common interest community or association; and
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(7) the total amount of revenues and expenses from the common interest community or
association's annual budget.
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(c) For common interest communities or associations governed by this chapter that are
under the control of a master developer, the register must also include the following
information:
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(1) the master developer's legal name;
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(2) the master developer's telephone number, email address, and mailing and physical
address;
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(3) the master developer's federal employer identification number;
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(4) the total number of parcels owned by the master developer on the date of reporting;
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(5) the master developer's master declaration as required by section 515B.2-121;
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(6) the master developer's anticipated timeline to transfer control to the owners; and
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(7) how the master developer will transfer control to the owners.
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(d) Common interest communities or associations governed by this chapter that contract
with a property management company must also provide the following information:
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(1) the property management company's legal name;
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(2) the property management company's telephone number, email address, and mailing
and physical address;
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(3) a brief description of the property management company's legal obligations under
the terms of the contract; and
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(4) the total cost of the contract.
new text end
new text begin Subd. 4. new text end
new text begin Registration fee. new text end
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Each common interest community or association must pay
a registration fee. The amount of the registration fee is determined by the number of units
owned by the common interest community or association according to the following schedule:
new text end
|
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Units new text end |
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Fee new text end |
|
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Under 20 units new text end |
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... new text end |
|
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20 to 80 units new text end |
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... new text end |
|
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Over 80 units new text end |
new text begin
... new text end |
new text begin Subd. 5. new text end
new text begin Data classification. new text end
new text begin
A board member's email address and other contact
information collected, created, received, or maintained pursuant to this section is private
data on individuals, as defined in section 13.02, subdivision 12.
new text end
new text begin Subd. 6. new text end
new text begin Enforcement. new text end
new text begin
(a) A common interest community or association's failure to
register under this section is an unlawful business practice. The Department of Commerce
must provide notice to a common interest community or association who fails to register.
The common interest community or association must register as provided under this section
within 60 days after receiving the notice to register.
new text end
new text begin
(b) The attorney general has authority to enforce this section under section 8.31.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2026.
new text end
Sec. 2. new text begin APPROPRIATION; COMMON INTEREST COMMUNITY REGISTER.
new text end
new text begin
$....... in fiscal year 2025 is appropriated from the general fund to the commissioner of
commerce to establish the common interest community register under Minnesota Statutes,
section 515B.5-101. This is a onetime appropriation.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end