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