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ENGROSSED SENATE
BILL NO. 316 By: Bergstrom of the Senate
and
McDugle of the House
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:
1. "Goods" means any merchandise, equipment, p roducts, supplies
or materials;
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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:
1. Any deed restriction , covenant or agreement restricting the
use of land including, but not limited to, a pro perty lease
agreement; or
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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, register 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
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.
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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.
Passed the Senate the 9th day of March, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2021.
Presiding Officer of the House
of Representatives