| 1 | 1 | | 89R4654 CS-D |
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| 2 | 2 | | By: Hefner H.B. No. 2464 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the authority of a municipality to regulate a |
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| 10 | 10 | | home-based business. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter Z, Chapter 229, Local Government |
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| 13 | 13 | | Code, is amended by adding Section 229.902 to read as follows: |
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| 14 | 14 | | Sec. 229.902. AUTHORITY TO REGULATE HOME-BASED BUSINESSES. |
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| 15 | 15 | | (a) In this section: |
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| 16 | 16 | | (1) "Business" has the meaning assigned by Section |
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| 17 | 17 | | 1.002, Business Organizations Code. |
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| 18 | 18 | | (2) "Home-based business" means a business that is |
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| 19 | 19 | | operated: |
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| 20 | 20 | | (A) from a residential property; |
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| 21 | 21 | | (B) by the owner or tenant of the property; and |
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| 22 | 22 | | (C) for the purpose of: |
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| 23 | 23 | | (i) manufacturing, providing, or selling a |
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| 24 | 24 | | lawful good; or |
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| 25 | 25 | | (ii) providing a lawful service. |
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| 26 | 26 | | (3) "No-impact home-based business" means a |
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| 27 | 27 | | home-based business that: |
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| 28 | 28 | | (A) has at any time on the property where the |
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| 29 | 29 | | business is operated a total number of employees and clients or |
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| 30 | 30 | | patrons of the business that does not exceed the municipal |
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| 31 | 31 | | occupancy limit for the property; |
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| 32 | 32 | | (B) does not generate on-street parking or a |
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| 33 | 33 | | substantial increase in traffic through the area; and |
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| 34 | 34 | | (C) operates in a manner in which none of its |
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| 35 | 35 | | activities are visible from a street. |
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| 36 | 36 | | (b) The governing body of a municipality may not adopt or |
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| 37 | 37 | | enforce an ordinance, regulation, or other measure that: |
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| 38 | 38 | | (1) prohibits the operation of a no-impact home-based |
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| 39 | 39 | | business; |
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| 40 | 40 | | (2) requires a person that operates a no-impact |
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| 41 | 41 | | home-based business or that owns the property where the business is |
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| 42 | 42 | | operated to obtain a license, permit, or other approval to operate |
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| 43 | 43 | | the business; or |
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| 44 | 44 | | (3) requires a person that operates a home-based |
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| 45 | 45 | | business or that owns the property where the business is operated |
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| 46 | 46 | | to: |
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| 47 | 47 | | (A) rezone the property for a non-residential |
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| 48 | 48 | | use; or |
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| 49 | 49 | | (B) install a fire sprinkler protection system if |
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| 50 | 50 | | the residence where the business is operated consists only of: |
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| 51 | 51 | | (i) a single-family detached residential |
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| 52 | 52 | | structure; or |
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| 53 | 53 | | (ii) a multi-family residential structure |
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| 54 | 54 | | with not more than two residential units. |
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| 55 | 55 | | (c) Subject to Subsection (b), the governing body of a |
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| 56 | 56 | | municipality may: |
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| 57 | 57 | | (1) require that a home-based business be: |
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| 58 | 58 | | (A) in compliance with federal, state, and local |
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| 59 | 59 | | law, including: |
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| 60 | 60 | | (i) a municipal fire and building code; and |
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| 61 | 61 | | (ii) a municipal regulation related to: |
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| 62 | 62 | | (a) health and sanitation; |
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| 63 | 63 | | (b) transportation or traffic |
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| 64 | 64 | | control; |
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| 65 | 65 | | (c) solid or hazardous waste; or |
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| 66 | 66 | | (d) pollution and noise control; |
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| 67 | 67 | | (B) compatible with the residential use of the |
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| 68 | 68 | | property where the business is located; and |
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| 69 | 69 | | (C) secondary to the use of the property as a |
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| 70 | 70 | | residential dwelling; and |
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| 71 | 71 | | (2) limit or prohibit the operation of a home-based |
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| 72 | 72 | | business that: |
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| 73 | 73 | | (A) sells alcohol or illegal drugs; |
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| 74 | 74 | | (B) is a structured sober living home; or |
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| 75 | 75 | | (C) is a sexually oriented business as defined by |
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| 76 | 76 | | Section 243.002. |
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| 77 | 77 | | (d) This section does not prohibit a person from enforcing a |
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| 78 | 78 | | rule or deed restriction imposed by a homeowners' association or by |
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| 79 | 79 | | other private agreement. |
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| 80 | 80 | | SECTION 2. This Act takes effect immediately if it receives |
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| 81 | 81 | | a vote of two-thirds of all the members elected to each house, as |
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| 82 | 82 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 83 | 83 | | Act does not receive the vote necessary for immediate effect, this |
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| 84 | 84 | | Act takes effect September 1, 2025. |
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