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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 316 By: Bergstrom
AS INTRODUCED
An Act relating to home-based businesses; defining
terms; authorizing use of re sidential home for
certain businesses; construing permitted use;
limiting authority of municipality; allowing
municipal regulations for certain purposes;
prohibiting imposition of certain conditions on home-
based business; requiring certain evidence for
challenge to regulations; providing for codification;
and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Stat utes as Section 4300 of Title 59, unless there
is created a duplication in numbering, reads as follows:
A. For purposes of this section:
1. "Goods" means any merchandise, equipment, p roducts, supplies
or materials;
2. "Home-based business" means any business for the
manufacture, provision or sale of goods or ser vices that is owned
and operated by the owner or te nant of the residential dwelling ; and
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3. "No-impact home-based business" means a home-based business
for which the following apply:
a. the total number of on-site employees and clients do
not exceed the municipal occupancy limit for the
residential property , and
b. the business activities are characterized by all of
the following:
(1) are limited to the sale of lawful goods and
services,
(2) do not generate on-street parking or a
substantial increase in tr affic through the
residential area,
(3) occur inside the residential dwe lling or in the
yard, and
(4) are not visible from the street.
B. The use of a residential dwelling for a home -based business
is a permitted use, except that this permission does not supersede
any of the following:
1. Any deed restriction, covenant or ag reement restricting the
use of land including, but not limited to, a property lease
agreement; or
2. Any master deed or other document applicable to a common
interest ownership commun ity including, but not limited to, a
homeowner association (HOA).
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C. A municipality shall not prohibit a no -impact home-based
business or otherwise require a person to apply, regist er or obtain
any permit, license, variance or other type of prior approval from
the municipality to operate a no-impact home-based business.
D. A municipality may establish reasonable regulations for a
home-based business if the regulations are nar rowly tailored for any
of the following purposes:
1. The protection of the publi c health and safety including
rules and regulations related to fire and building codes, health and
sanitation, transportation or traffic control, solid or hazardous
waste, pollution and noise control ;
2. Ensuring that the business activity is:
a. compatible with residential use of the property and
surrounding residential use ,
b. secondary to the use as a residential dwelling , or
c. complying with state and federal law and paying
applicable taxes; or
3. Limiting or prohibiting th e use of a home-based business for
the purposes of sell ing illegal drugs, liquor, operating or
maintaining a structured sober living home, pornography, obscenity,
nude or topless dancing and other adult -oriented businesses.
E. A municipality shall not requ ire a person as a conditio n of
operating a home-based business to:
1. Rezone the property for commercial use ; or
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2. Install or equip fire sprinklers in a single family detache d
residential dwelling or any residential dwelling wit h not more than
two dwelling units.
F. The question whether a regulation complies with this section
shall be a judicial question, and the municipality that enacted the
regulation shall establis h by clear and convincing evidence that the
regulation complies with this section.
SECTION 2. This act shall become effective No vember 1, 2021.
58-1-398 NP 1/7/2021 5:56:22 PM