House Bill 1113

AN ACT TO CREATE THE "HOME-BASED PROSPERITY ACT"; TO PROVIDE CERTAIN DEFINITIONS; TO PROHIBIT LOCAL UNITS OF GOVERNMENT FROM PROHIBITING CERTAIN HOME-BASED BUSINESSES; TO PROVIDE THAT LOCAL UNITS OF GOVERNMENT MAY ESTABLISH REASONABLE REGULATIONS FOR HOME-BASED BUSINESSES IF THE REGULATIONS ARE NARROWLY TAILORED FOR CERTAIN PURPOSES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. As used in this act, the following words and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "Local unit of government" means a county, municipality, local taxing entity or any local political subdivision thereof.

(b) "Home-based work" means any legal occupation, lawful under both federal and state law, performed by a resident within a residential home or accessory structure, which is clearly incidental and secondary to the use of the dwelling unit for residential purposes.

(c) "Home-based business" means any business for the manufacture, provision or sale of goods or services, lawful under both federal and state law, that is owned and operated by the owner or tenant of the residential home or accessory structure.

(d) "No-impact home-based business" means a home-based business for which all of the following apply:

(i) The total number of on-site employees and clients do not exceed the municipal occupancy limit for the residential property; and

(ii) The business activities are characterized by all of the following:

1. The business activities are limited to the sale of lawful goods and services;

2. The business activities do not generate on-street parking or a substantial increase in traffic through the residential area;

3. The business activities occur inside the residential dwelling, accessory structure or in the yard of the residential dwelling or accessory structure; and

4. The business activities are not visible from the street.

(e) "Goods" means any merchandise, equipment, products, supplies or materials that may be lawfully sold under both federal and state law.

SECTION 2. The application of this act does not supersede any deed restriction, covenant or agreement restricting the use of land or any master deed, by-law or other document applicable to a common interest ownership community.

SECTION 3. A local unit of government shall not prohibit a no-impact home-based business.

SECTION 4. A local unit of government may establish reasonable regulations for a home-based business if the regulations are narrowly tailored for any of the following purposes:

(a) The protection of the public health and safety, including rules and regulations related to fire and building codes, health and sanitation, transportation or traffic control, solid or hazardous waste, pollution and noise control;

(b) Ensuring that the home-based work is: (i) Compatible with residential use of the property and surrounding residential use;

(ii) Secondary to the use as a residential dwelling;

(iii) Complying with state and federal law and paying applicable taxes; and

(iv) Limiting or prohibiting the use of a home-based business for the purposes of selling illegal drugs, liquor, operating or maintaining a structured sober living home, pornography, obscenity, nude or topless dancing and other adult-oriented businesses.

SECTION 5. A local unit of government shall not require a person as a condition of operating a home-based business to:

(a) Rezone the property for commercial use;

(b) Install or equip fire sprinklers in a single family detached residential dwelling or any residential dwelling with not more than two (2) dwelling units.

SECTION 6. A person alleging a violation of this act may bring a civil action for appropriate relief, including reasonable attorney and witness fees and costs for the prevailing party.

SECTION 7. This act shall take effect and be in force from and after July 1, 2023.