Session of 2025 HOUSE BILL No. 2343 By Committee on Commerce, Labor and Economic Development Requested by Representative Turk 2-7 AN ACT concerning economic development; creating the no-impact home-based business fairness act; providing that such businesses shall be a permitted use and prohibiting additional permit or licensing requirements by a municipality; requiring that municipal regulations be narrowly-tailored with respect to such businesses; supporting the development and growth of such business by limiting the regulatory powers of municipalities. Be it enacted by the Legislature of the State of Kansas: Section 1. Sections 1 through 8, and amendments thereto, shall be known and may be cited as the no-impact home-based business fairness act. Sec. 2. As used in this act: (a) "Goods" means any merchandise, equipment, products, supplies or materials; (b) "home-based business" means any business for the manufacture, provision or sale of goods or services that is owned by the owner or tenant of a residential dwelling and operated by the owner or tenant at the location of the residential dwelling; (c) "municipality" means any city, county or consolidated city and county; (d) "no-impact home-based business" means a home-based business for which: (1) The total number of on-site employees and clients does not exceed the municipal occupancy limit for the residential property; and (2) the business activities: (A) Are limited to the sale of lawful goods and services; (B) do not generate on-street parking or a substantial increase in traffic through the residential area; (C) occur inside the residential dwelling or within the private premises; and (D) are not visible from the street; and (e) "rural no-impact home-based business" means a home-based business located outside the boundaries of a city or with private premises exceeding 1 acre in size and for which the business activities: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 HB 2343 2 (1) Are limited to the sale of lawful goods and services; and (2) occur inside the residential dwelling or within the property limits. Sec. 3. The use of a residential dwelling for a no-impact home-based business or a rural no-impact home-based business shall be a permitted use. This permitted use shall supersede any deed restriction, covenant or agreement restricting the use of land or any master deed, bylaw or other document applicable to a common interest ownership community entered into by a no-impact home-based business or a rural no-impact home-based business on or after July 1, 2025. Sec. 4. A municipality shall not prohibit a no-impact home-based business or a rural no-impact home-based business or otherwise require a person to apply, register or obtain any permit, license, variance or other type of prior approval from the municipality to operate a no-impact home- based business or a rural no-impact home-based business. Sec. 5. A municipality may establish or enforce regulations on a no- impact home-based business if the regulations are narrowly tailored for any of the following purposes: (a) The protection of the public health and safety limited to regulations for fire and building codes, health and sanitation, transportation or traffic control, solid or hazardous waste, pollution and noise control; (b) compliance with state and federal laws; and (c) payment of applicable taxes. When considering the establishment or enforcement of a regulation in a narrowly tailored manner with respect to a rural no-impact home-based business, the municipality shall identify factors differentiating the circumstances of a rural no-impact home-based business as compared to residences that are no-impact home-based businesses, including, but not limited to, the relative isolation of the rural no-impact home-based business, relative size of the premises and proximity to other residences and shall apply an analysis favoring less regulation for a rural no-impact home-based business based on such factors. Sec. 6. A no-impact home-based business shall not be used for the purposes of selling illegal drugs or liquor, operating or maintaining a structured sober living home for drug or alcohol based recovery, selling pornography or providing nude or topless dancing or other adult-oriented businesses. Sec. 7. A municipality shall not require a person as a condition of operating a no-impact home-based business to seek rezoning of the property for commercial use or install fire sprinklers in a single family detached residential dwelling, any residential dwelling consisting of more than two dwelling units or any additional buildings on the property. A municipality shall not require a rural no-impact home-based business or a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2343 3 no-impact home-based business to undergo fire or building inspections, unless such codes or inspections are also applied to similar residences not operating a rural no-impact home-based business or a no-impact home- based business. Sec. 8. The question of whether a regulation of a municipality complies with this act shall be a judicial question. The municipality that enacted the regulation shall establish by clear and convincing evidence that the regulation complies with this act. Sec. 9. This act shall take effect and be in force from and after its publication in the statute book. 1 2 3 4 5 6 7 8 9 10