HF 2678

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/01/2022 11:43am

A bill for an act
relating to common interest communities; creating a common interest community
ombudsperson; appropriating money for the Office of the Common Interest
Community Ombudsperson; proposing coding for new law in Minnesota Statutes,
chapter 45.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

[45.0137] COMMON INTEREST COMMUNITY OMBUDSPERSON.

Subdivision 1.

Definitions.

(a) For purposes of this section, the terms defined in this
subdivision have the meanings given.

(b) "Association" has the meaning given in section 515B.1-103, clause (4).

(c) "Common interest community" has the meaning given in section 515B.1-103, clause
(10).

(d) "Data on individuals" has the meaning given in section 13.02, subdivision 5.

(e) "Nonpublic data" has the meaning given in section 13.02, subdivision 9.

(f) "Ombudsperson" means the common interest community ombudsperson.

(g) "Private data on individuals" has the meaning given in section 13.02, subdivision
12.

(h) "Unit" has the meaning given in section 515B.1-103, clause (35).

(i) "Unit owner" has the meaning given in section 515B.1-103, clause (37).

Subd. 2.

Establishment.

A common interest community ombudsperson position is
established within the Department of Commerce 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. 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. A
person is prohibited from serving as ombudsperson while holding another public office.
The ombudsperson is a member of the Minnesota State Retirement Association.

Subd. 3.

Duties.

(a) The ombudsperson must advocate on behalf of unit owners and
compile complaints against common interest communities made by unit owners. Upon the
request of a unit owner, the ombudsperson must provide dispute resolution services in
disputes between a unit owner and an association concerning chapter 515B or the governing
documents of the common interest community or association, except where: (1) there is a
pending complaint based on the same issue filed in any court or administrative tribunal; or
(2) the issue has already been or is currently in arbitration, mediation, or another alternative
dispute resolution process.

(b) The ombudsperson must assist unit owners to understand the rights and responsibilities
for unit owners under chapter 515B and the governing documents of the specific unit owner's
association, including publishing materials related to the rights and responsibilities. The
ombudsperson must maintain a website containing, at a minimum:

(1) the text of chapter 515B and any other relevant statutes or rules;

(2) information regarding the services provided by the Office of the Common Interest
Community Ombudsperson, including assistance with dispute resolution;

(3) information regarding alternative dispute resolution methods and programs; and

(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.

(c) When requested or as the ombudsperson deems necessary, the ombudsperson must
provide reports and recommendations to the legislative committees with jurisdiction over
common interest communities.

Subd. 4.

Powers limited.

(a) 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.

(b) 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.

Subd. 5.

Rulemaking authority.

The commissioner may adopt rules to carry out the
purposes of this section.

Subd. 6.

Data.

(a) Data maintained on individuals by the office of the ombudsperson
under this section are private data on individuals or nonpublic data. Data on individuals
may be released only with the consent of the individual or by court order.

(b) Data maintained by the office that does not relate to the identity of a unit owner or
other individual may be released at the discretion of the ombudsperson responsible for
maintaining the data.

EFFECTIVE DATE.

This section is effective July 1, 2023.

Sec. 2. APPROPRIATION; OFFICE OF THE COMMON INTEREST COMMUNITY
OMBUDSPERSON.

$....... in fiscal year 2022 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.

EFFECTIVE DATE.

This section is effective the day following final enactment.