The Homebased Business Fairness Act (S.F. No. 1767) is a proposed Minnesota law that seeks to regulate home-based businesses operating within residential dwellings. Below is a summary of the key provisions:

1. Definitions

• "Homebased business": A business operated from a residential dwelling by the homeowner or tenant.
• "No-impact homebased business": A business that:
  • Complies with municipal occupancy limits.
  • Sells lawful goods or services.
  • Does not generate significant street parking or traffic increases.
  • Operates within the residence or yard and is not visible from the street.

2. Permitted Use of Residential Dwellings for Homebased Businesses

• Homebased businesses are considered a permitted use in residential areas.
• However, the law does not override:
  • Deed restrictions or covenants.
  • Rules set by homeowner associations or similar governing documents.
• Municipal Restrictions:
  • Municipalities cannot require permits, licenses, or approvals for no-impact homebased businesses.
  • Municipalities can impose regulations if they are narrowly tailored for:
  • Public health and safety (fire codes, sanitation, traffic, pollution, noise control).
  • Ensuring the business remains secondary to the residential use.
  • Compliance with state and federal laws, including tax obligations.
  • Prohibiting certain businesses (e.g., illegal drug sales, liquor stores, adult-oriented businesses).
• Local governments cannot:
  • Require the property to be rezoned for commercial use.
  • Mandate the installation of fire sprinklers in one- or two-unit residential dwellings.

3. Legal Challenges

• Any municipal regulation under this law must be justified with clear and convincing evidence.
• Courts will determine whether local regulations comply with the act.

Overall, this bill aims to protect home-based businesses from excessive local regulation while allowing reasonable rules to ensure compatibility with residential neighborhoods.