Panel approves budget for Commerce Department, cannabis office

A new ombudsperson to facilitate disputes between residents and homeowner associations and a task force on property insurance affordability are included in the proposed commerce budget for the next biennium.

Although the Department of Commerce and Office of Cannabis Management have small budgets, it took bipartisan work to get them to the finish line in the House Commerce Finance and Policy Committee.

Committee Co-chair Rep. Kaohly Vang Her (DFL-St. Paul) said the omnibus commerce budget bill is equally the work of herself and Co-chair Rep. Tim O'Driscoll (R-Sartell) to ensure they had it right and it represented both of their values.

“I appreciate the compromise and the thoughtfulness. We had some really hard conversations,” said Her, the bill sponsor.

HF2443, as amended by a delete-all amendment and another amendment, calls for the 2026-27 biennium spending to total $79.72 million for the Department of Commerce and $75.8 million for the Office of Cannabis Management. Coupled with a one-time $200,000 appropriation to the Legislative Coordinating Commission in fiscal year 2025 for a task force on homeowners and commercial property insurance, the budgets meet the target of a $3 million increase over the February forecast base set by House leaders.

[MORE: View the full spreadsheet, change items]

The House Commerce Finance and Policy Committee approved HF2443 Thursday, sending it to the House Ways and Means Committee.

In new spending, the budget would allocate $343,000 annually beginning in fiscal year 2026 to create a ombudsperson position at the Department of Commerce solely focused on common interest communities, such as homeowner associations. Appointed by the governor, the ombudsperson would assist unit owners, tenants and associations in understanding their rights and facilitate disputes between unit owners and associations.

The budget also allocates $200,000 to the Legislative Coordinating Committee in fiscal year 2025 to create a new task force. It would provide recommendations on property insurance affordability in relation to single-family homes, multifamily rental housing, common interest communities, cooperatives and small businesses. Its members would include legislators and insurance and housing representatives.

Looking ahead to the 2028-29 biennium budget, Taubel raised concerns Thursday that the committee is proposing to cut $15 million from the CanRenew Community Restoration Grants as part of the adjustments to reach the target of cutting $10 million set by House leadership. The cannabis office recently received $22 million in requests in its first round of grant applications but only has only $1 million available. Grants are intended for organizations that make investments in communities where residents are eligible to be social equity applicants for cannabis licenses.

“Supported widely by industry and community partners, this program represents an opportunity for the state to repair the harms caused by cannabis prohibition in communities across Minnesota,” Taubel wrote.

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The following are selected bills that have been incorporated in part or in whole into the omnibus commerce finance bill:

• HF856 (Moller)
• HF1615 (Stephenson)
• HF2228 (Elkins)