This bill, titled "The Homebased Business Fairness Act," proposes new legislation under Minnesota Statutes Chapter 462 to regulate home-based businesses in residential areas.

Key Provisions:

1. Definitions:

   • Home-based business: A business that manufactures, provides, or sells goods or services and is operated by the owner or tenant of a residential dwelling.
   • No-impact home-based business: A business that does not exceed the municipal occupancy limit, does not generate significant traffic or on-street parking, and is not visible from the street.

2. Permitted Use of Residential Dwellings for Home-based Businesses:

   • Home-based businesses are generally permitted by right within residential dwellings.
   • However, this law does not override private covenants, deed restrictions, or homeowners' association rules.

3. Municipal Regulations & Limitations:

   • Municipalities cannot require permits, licenses, variances, or approvals for no-impact home-based businesses.
   • Municipalities may impose reasonable regulations only for:
     • Health & safety (e.g., fire codes, transportation, pollution, noise).
     • Ensuring the business is compatible with residential uses.
     • Compliance with state & federal laws (including taxes).
     • Prohibiting illegal or adult-oriented activities (e.g., drug sales, liquor, adult entertainment).
   • Municipalities cannot require a home-based business to:
     • Rezone the property for commercial use.
     • Install fire sprinklers in a single-family home or duplex.

4. Judicial Review:

   • If a municipality enacts regulations, it must prove by clear and convincing evidence that the regulations comply with this law.

Summary:

The bill seeks to protect the rights of individuals to operate businesses from their homes while limiting municipal restrictions. It ensures that no-impact businesses can operate without government interference while allowing cities to regulate businesses that could negatively affect residential communities.