Relating to the authority of a municipality to regulate a home-based business, the official text

H.B. No. 2464

AN ACT

relating to the authority of a municipality to regulate a

home-based business.

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.

(a) In this section:

(1) "Business" has the meaning assigned by Section

1.002, Business Organizations Code.

(2) "Home-based business" means a business that is

operated:

(A) from a residential property;

(B) by the owner or tenant of the property; and

(C) for the purpose of:

(i) manufacturing, providing, or selling a

lawful good; or

(ii) providing a lawful service.

(3) "No-impact home-based business" means a

home-based business that:

(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;

(C) operates in a manner in which none of its

activities are visible from a street; and

(D) does not substantially increase noise in the

area or violate a municipal noise ordinance, regulation, or rule.

(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

business;

(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

the business; or

(3) requires a person that operates a home-based

business or that owns the property where the business is operated

to:

(A) rezone the property for a non-residential

use; or

(B) install a fire sprinkler protection system if

the residence where the business is operated consists only of:

(i) a single-family detached residential

structure; or

(ii) a multi-family residential structure

with not more than two residential units.

(c) Subject to Subsection (b), the governing body of a

municipality may:

(1) require that a home-based business be:

(A) in compliance with federal, state, and local

law, including:

(i) a municipal fire and building code; and

(ii) a municipal regulation related to:

(a) health and sanitation;

(b) transportation or traffic

control;

(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

residential dwelling; and

(2) limit or prohibit the operation of a home-based

business that:

(A) sells alcohol or illegal drugs;

(B) is a structured sober living home; or

(C) is a sexually oriented business as defined by

Section 243.002.

(d) This section does not prohibit:

(1) a person from enforcing a rule or deed restriction

imposed by a homeowners' association or by other private agreement;

or

(2) a municipality from adopting or enforcing an

ordinance regulating the operation of a short-term rental unit.

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.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 2464 was passed by the House on May

14, 2025, by the following vote: Yeas 128, Nays 4, 4 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 2464 was passed by the Senate on May

25, 2025, by the following vote: Yeas 29, Nays 2.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor