| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to local government; permitting home-based businesses in residential |
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| 3 | 3 | | 1.3 dwellings; proposing coding for new law in Minnesota Statutes, chapter 462. |
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| 4 | 4 | | 1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 5 | 5 | | 1.5 Section 1. [462.3575] THE HOME-BASED BUSINESS FAIRNESS ACT. |
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| 6 | 6 | | 1.6 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have |
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| 7 | 7 | | 1.7the meanings given. |
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| 8 | 8 | | 1.8 (b) "Goods" means any merchandise, equipment, products, supplies, or materials. |
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| 9 | 9 | | 1.9 (c) "Home-based business" means any business for the manufacture, provision, or sale |
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| 10 | 10 | | 1.10of goods or services that is owned and operated by the owner or tenant of the residential |
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| 11 | 11 | | 1.11dwelling. |
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| 12 | 12 | | 1.12 (d) "No-impact home-based business" means a home-based business for which all of |
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| 13 | 13 | | 1.13the following apply: |
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| 14 | 14 | | 1.14 (1) the total number of on-site employees and clients does not exceed the municipal |
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| 15 | 15 | | 1.15occupancy limit for the residential property; and |
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| 16 | 16 | | 1.16 (2) the business activities are characterized by all of the following: |
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| 17 | 17 | | 1.17 (i) are limited to the sale of lawful goods and services; |
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| 18 | 18 | | 1.18 (ii) do not generate on-street parking or a substantial increase in traffic through the |
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| 19 | 19 | | 1.19residential area; |
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| 20 | 20 | | 1.20 (iii) occur inside the residential dwelling or in the yard; and |
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| 21 | 21 | | 1Section 1. |
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| 22 | 22 | | 25-02804 as introduced02/12/25 REVISOR MS/AC |
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| 23 | 23 | | SENATE |
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| 24 | 24 | | STATE OF MINNESOTA |
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| 25 | 25 | | S.F. No. 1767NINETY-FOURTH SESSION |
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| 26 | 26 | | (SENATE AUTHORS: UTKE) |
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| 27 | 27 | | OFFICIAL STATUSD-PGDATE |
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| 28 | 28 | | Introduction and first reading02/24/2025 |
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| 29 | 29 | | Referred to State and Local Government 2.1 (iv) are not visible from the street. |
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| 30 | 30 | | 2.2 (e) "Residential dwelling" has the meaning provided in section 326B.163, subdivision |
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| 31 | 31 | | 2.319. |
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| 32 | 32 | | 2.4 Subd. 2.Permitted use of residential dwelling for home-based business.(a) The use |
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| 33 | 33 | | 2.5of a residential dwelling for a home-based business is a permitted use, except that this |
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| 34 | 34 | | 2.6authority does not supersede any of the following: |
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| 35 | 35 | | 2.7 (1) any deed restriction, covenant, or agreement restricting the use of land; or |
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| 36 | 36 | | 2.8 (2) any master deed, bylaw, or other document applicable to a common interest ownership |
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| 37 | 37 | | 2.9community. |
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| 38 | 38 | | 2.10 (b) A municipality must not require an application, registration, or any permit, license, |
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| 39 | 39 | | 2.11variance, or other type of prior approval for a no-impact home-based business to operate in |
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| 40 | 40 | | 2.12the municipality. |
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| 41 | 41 | | 2.13 (c) A municipality may establish reasonable regulations on a home-based business if |
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| 42 | 42 | | 2.14the regulations are narrowly tailored for any of the following purposes: |
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| 43 | 43 | | 2.15 (1) protecting public health and safety, including establishing rules and regulations |
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| 44 | 44 | | 2.16related to fire and building codes, health and sanitation, transportation or traffic control, |
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| 45 | 45 | | 2.17solid or hazardous waste, pollution, and noise control; |
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| 46 | 46 | | 2.18 (2) ensuring the business activity is: |
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| 47 | 47 | | 2.19 (i) compatible with residential use of the property and surrounding residential use; |
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| 48 | 48 | | 2.20 (ii) secondary to the use as a residential dwelling; and |
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| 49 | 49 | | 2.21 (iii) complying with state and federal law and paying applicable taxes; or |
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| 50 | 50 | | 2.22 (3) limiting or prohibiting the use of a home-based business for the purposes of selling |
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| 51 | 51 | | 2.23illegal drugs, liquor, operating or maintaining a structured sober living home, pornography, |
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| 52 | 52 | | 2.24obscenity, nude or topless dancing, and other adult-oriented businesses. |
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| 53 | 53 | | 2.25 (d) A municipality must not condition the operation of a home-based business on a |
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| 54 | 54 | | 2.26requirement for a person to: |
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| 55 | 55 | | 2.27 (1) rezone the property for commercial use; or |
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| 56 | 56 | | 2.28 (2) install or equip fire sprinklers in a single-family detached residential dwelling or any |
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| 57 | 57 | | 2.29residential dwelling with not more than two dwelling units. |
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| 58 | 58 | | 2Section 1. |
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| 59 | 59 | | 25-02804 as introduced02/12/25 REVISOR MS/AC 3.1 (e) The question of whether a regulation complies with this section is a judicial question |
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| 60 | 60 | | 3.2and a municipality that enacts a regulation under this section must establish by clear and |
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| 61 | 61 | | 3.3convincing evidence that the regulation complies with this section. |
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| 62 | 62 | | 3Section 1. |
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| 63 | 63 | | 25-02804 as introduced02/12/25 REVISOR MS/AC |
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