Commerce committee adopts DE1, sends HF2443 to Ways and Means with HOA ombudsman, fees and cannabis grant changes

The House Commerce Finance and Policy Committee adopted amendment A5 and the DE1 version of House File 2443 on March 1 and re‑referred the bill to the House Ways and Means Committee.

Committee co‑chairs presented a finance and policy package that covers the Minnesota Department of Commerce and the Office of Cannabis Management (OCM). The package includes operating adjustments for state agencies, changes to examiner/transfer fees for investment advisors and broker‑dealers, creation of a Common Interest Community (homeowners association) ombudsperson in Commerce and provisions affecting the OCM's CANRenew community reinvestment grants.

Grace Arnold, commissioner of the Minnesota Department of Commerce, summarized the governor's budget priorities for the agency and said the administration is requesting a general‑fund operating increase of just over $3,000,000. "This is an essential investment in the department that will ensure that consumers and businesses we regulate can continue to rely on high quality service and support," Arnold said, describing pressures from compensation, insurance and IT costs.

Arnold also described a proposal to authorize the Department of Commerce's Weights and Measures unit to test and inspect electric vehicle charging stations and to fund those activities via a $100 per‑port inspection fee. She warned that, without stable reinsurance funding for the individual market premium security plan, premiums could increase "25% or more," which she said would reduce coverage and access to primary care.

Eric Taubel, interim director of the Office of Cannabis Management, described requests to support launch activities and to preserve the CANRenew Community Reinvestment Grant program. Taubel said the OCM has received more than 150 CANRenew applications and urged continued funding; committee fiscal staff's spreadsheet reflected reductions to CANRenew of $1,484,000 in the first biennium and $15,000,000 in the second biennium under the DE1.

House fiscal staff walked members through a detailed spreadsheet showing the committee's targets: the commerce package aimed for $3,000,000 above base in the near term and $10,000,000 in reduced tails. Line items highlighted included a $1,470,000 fee‑supported examiner expansion for investment adviser and broker‑dealer oversight, a Commerce operating adjustment of $3,002,000 (first biennium) and $3,680,000 (second biennium), and an ombudsperson for homeowners and common interest communities with a cost of $686,000 per biennium.

Representative Herr offered the heavily negotiated A5 amendment to add insurance‑industry and multifamily representation to a homeowners and commercial property insurance task force; members adopted the amendment by voice vote. The co‑chairs then renewed the motion to adopt the DE1 as amended; members voted by voice to send HF2443 to Ways and Means.

Public testimony included a representative of a law firm representing homeowners associations, who urged adding appropriate data‑classification protections to the ombudsman provisions. A member of the public offered broader remarks on cannabis commercialization during the testimony period.

Action summary: the committee adopted amendment A5 and DE1 (as amended) and re‑referred House File 2443 to the Ways and Means Committee; bipartisan staff were authorized to make technical edits to reflect the committee's intent.

Next steps: HF2443 will be considered by the House Ways and Means Committee and may be amended further before floor action or conference negotiations.