SF 1767

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/25/2025 09:20 a.m.

A bill for an act
relating to local government; permitting home-based businesses in residential
dwellings; proposing coding for new law in Minnesota Statutes, chapter 462.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [462.3575] THE HOME-BASED BUSINESS FAIRNESS ACT.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Goods" means any merchandise, equipment, products, supplies, or materials.
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new text begin (c) "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 tenant of the residential
dwelling.
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new text begin (d) "No-impact home-based business" means a home-based business for which all of
the following apply:
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new text begin (1) the total number of on-site employees and clients does not exceed the municipal
occupancy limit for the residential property; and
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new text begin (2) the business activities are characterized by all of the following:
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new text begin (i) are limited to the sale of lawful goods and services;
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new text begin (ii) do not generate on-street parking or a substantial increase in traffic through the
residential area;
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new text begin (iii) occur inside the residential dwelling or in the yard; and
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new text begin (iv) are not visible from the street.
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new text begin (e) "Residential dwelling" has the meaning provided in section 326B.163, subdivision
19.
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new text begin Subd. 2. new text end

new text begin Permitted use of residential dwelling for home-based business. new text end

new text begin (a) The use
of a residential dwelling for a home-based business is a permitted use, except that this
authority does not supersede any of the following:
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new text begin (1) any deed restriction, covenant, or agreement restricting the use of land; or
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new text begin (2) any master deed, bylaw, or other document applicable to a common interest ownership
community.
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new text begin (b) A municipality must not require an application, registration, or any permit, license,
variance, or other type of prior approval for a no-impact home-based business to operate in
the municipality.
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new text begin (c) A municipality may establish reasonable regulations on a home-based business if
the regulations are narrowly tailored for any of the following purposes:
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new text begin (1) protecting public health and safety, including establishing rules and regulations
related to fire and building codes, health and sanitation, transportation or traffic control,
solid or hazardous waste, pollution, and noise control;
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new text begin (2) ensuring the business activity is:
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new text begin (i) compatible with residential use of the property and surrounding residential use;
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new text begin (ii) secondary to the use as a residential dwelling; and
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new text begin (iii) complying with state and federal law and paying applicable taxes; or
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new text begin (3) limiting or prohibiting the use of a home-based business for the purposes of selling
illegal drugs, liquor, operating or maintaining a structured sober living home, pornography,
obscenity, nude or topless dancing, and other adult-oriented businesses.
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new text begin (d) A municipality must not condition the operation of a home-based business on a
requirement for a person to:
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new text begin (1) rezone the property for commercial use; or
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new text begin (2) install or equip fire sprinklers in a single-family detached residential dwelling or any
residential dwelling with not more than two dwelling units.
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new text begin (e) The question of whether a regulation complies with this section is a judicial question
and a municipality that enacts a regulation under this section must establish by clear and
convincing evidence that the regulation complies with this section.
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