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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a municipality to regulate a |
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home-based business. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 229, Local Government |
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Code, is amended by adding Section 229.902 to read as follows: |
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Sec. 229.902. AUTHORITY TO REGULATE HOME-BASED BUSINESSES. |
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(a) In this section: |
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(1) "Business" has the meaning assigned by Section |
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1.002, Business Organizations Code. |
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(2) "Home-based business" means a business that is |
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operated: |
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(A) from a residential property; |
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(B) by the owner or tenant of the property; and |
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(C) for the purpose of: |
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(i) manufacturing, providing, or selling a |
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lawful good; or |
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(ii) providing a lawful service. |
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(3) "No-impact home-based business" means a |
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home-based business that: |
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(A) has at any time on the property where the |
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business is operated a total number of employees and clients or |
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patrons of the business that does not exceed the municipal |
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occupancy limit for the property; |
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(B) does not generate on-street parking or a |
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substantial increase in traffic through the area; and |
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(C) operates in a manner in which none of its |
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activities are visible from a street. |
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(b) The governing body of a municipality may not adopt or |
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enforce an ordinance, regulation, or other measure that: |
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(1) prohibits the operation of a no-impact home-based |
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business; |
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(2) requires a person that operates a no-impact |
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home-based business or that owns the property where the business is |
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operated to obtain a license, permit, or other approval to operate |
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the business; or |
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(3) requires a person that operates a home-based |
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business or that owns the property where the business is operated |
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to: |
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(A) rezone the property for a non-residential |
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use; or |
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(B) install a fire sprinkler protection system if |
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the residence where the business is operated consists only of: |
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(i) a single-family detached residential |
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structure; or |
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(ii) a multi-family residential structure |
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with not more than two residential units. |
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(c) Subject to Subsection (b), the governing body of a |
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municipality may: |
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(1) require that a home-based business be: |
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(A) in compliance with federal, state, and local |
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law, including: |
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(i) a municipal fire and building code; and |
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(ii) a municipal regulation related to: |
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(a) health and sanitation; |
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(b) transportation or traffic |
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control; |
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(c) solid or hazardous waste; or |
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(d) pollution and noise control; |
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(B) compatible with the residential use of the |
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property where the business is located; and |
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(C) secondary to the use of the property as a |
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residential dwelling; and |
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(2) limit or prohibit the operation of a home-based |
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business that: |
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(A) sells alcohol or illegal drugs; |
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(B) is a structured sober living home; or |
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(C) is a sexually oriented business as defined by |
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Section 243.002. |
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(d) This section does not prohibit a person from enforcing a |
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rule or deed restriction imposed by a homeowners' association or by |
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other private agreement. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |