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SENATE FLOOR VERSION
February 11, 2021
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 316 By: Bergstrom
An Act relating to home-based businesses; creating
the Oklahoma Home-based Business Fairness Act;
providing short title; defining terms; autho rizing
use of residential 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 Statutes as Section 4300 of Title 59, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the “Oklah oma Home-
based Business Fairness Act”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Stat utes as Section 4300.1 of Title 59, unless there
is created a duplication in numb ering, reads as follows:
A. For purposes of this section:
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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 services that is owned
and operated by the owner or te nant of the residential dwelling ; and
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 traffic through the
residential area,
(3) occur inside the residential dwelling 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:
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1. Any deed restriction , covenant or agreement restricting the
use of land including, but not limited to, a pro perty lease
agreement; or
2. Any master deed or other document applicable to a common
interest ownership community including, but not limited to, a
homeowner association (HOA).
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 narrowly tailored for any
of the following purposes:
1. The protection of the public healt h and safety including
rules and regulations rela ted 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
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3. Limiting or prohibiting th e use of a home-based business for
the purposes of sell ing illegal drugs, liquor, o perating 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 condition of
operating a home-based business to:
1. Rezone the property for commercial use ; or
2. Install or equip fire sprinklers in a single family detached
residential dwelling or any residential dwelling wit h not more than
two dwelling units.
F. The question of whether a regulation complies with this
section shall be a judicial question, and the municipality that
enacted the regulation shall establ ish by clear and convincing
evidence that the regulation complie s with this section.
SECTION 3. This act shall become effective No vember 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM
February 11, 2021 - DO PASS AS AMENDED