The Home-Based Business Fairness Act is a proposed Minnesota state law that would allow the operation of home-based businesses in residential dwellings. The key provisions of the bill include:

1. Definitions

   • A home-based business is defined as any business for manufacturing, providing, or selling goods or services that is owned and operated by the occupant of a residential dwelling.
     
   • A no-impact home-based business is a home-based business that meets specific criteria, such as:
     • Not exceeding the municipal occupancy limit for employees or clients.
     • Selling only lawful goods and services.
     • Not generating excessive street parking or traffic.
     • Operating inside the home or yard, without visible impact from the street.

2. Permitted Use of Residential Property for Home-Based Businesses

   • Home-based businesses are allowed by default in residential dwellings.
     
   • However, this provision does not override existing private restrictions such as deed restrictions, covenants, or homeowner association rules.
     
   • Municipalities cannot require special permits, licenses, or approvals for no-impact home-based businesses.
     

3. Municipal Regulations

   • Municipalities may impose certain regulations, but only if they are narrowly tailored for purposes such as:
     
     • Protecting public health and safety (fire codes, health standards, traffic control, noise limits, etc.).
       
     • Ensuring compatibility with surrounding residential uses.
       
     • Preventing businesses related to illegal drugs, liquor sales, adult entertainment, or structured sober living homes.
       
   • Municipalities cannot:
     
     • Require a home-based business owner to rezone their property for commercial use.
       
     • Require the installation of fire sprinklers in single-family or duplex homes.
       

4. Legal Oversight

   • If a municipality imposes regulations on home-based businesses, it must prove by clear and convincing evidence that the regulations comply with this law.
     

In summary, this bill aims to protect home-based businesses from unnecessary municipal restrictions while still allowing local governments to impose reasonable regulations related to health, safety, and residential compatibility.