HB 2464

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