House committee substitute to the 1st edition makes the following changes. Adds a new requirement to the definition of no-impact home-based business under new GS 160A-205.8 (preventing cities from barring such businesses within its jurisdiction, as described) so that the business activities do not involve the storage of merchandise, equipment, supplies, products, or materials outside of the premises. Now prevents a municipality from requiring the owner or occupant of any building or structure subject to the Residential Building Code (was, owner of single-family detached residential dwelling or any residential dwelling with no more than two dwelling units) to install or equip the property with fire sprinklers as a condition of operating a no-impact home-based business.
HOME-BASED BUSINESS FAIRNESS ACT.
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| View NCGA Bill Details(link is external) | 2025-2026 Session |
AN ACT PROVIDING THAT CITIES SHALL NOT PROHIBIT CERTAIN HOME-BASED BUSINESSES WITHIN THEIR JURISDICTIONAL LIMITS.Intro. by Johnson, Chesser, Rhyne, Schietzelt.
Bill History:
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Tue, 11 Mar 2025 House: Filed(link is external)
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Wed, 12 Mar 2025 House: Passed 1st Reading(link is external)
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Tue, 1 Apr 2025 House: Reptd Fav Com Substitute(link is external)
Bill Summaries:
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Bill H 372 (2025-2026)Summary date: Apr 1 2025 - View Summary
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Bill H 372 (2025-2026)Summary date: Mar 11 2025 - View Summary
Enacts new GS 160A-205.8 prohibiting cities from adopting ordinances or regulations that prohibit no-impact home-based businesses within its jurisdictional limits or require a person to apply, register, or obtain any permit, license, variance, or other approval to operate a non-impact home-based business within its jurisdictional limits. Defines a no-impact home-based business as a non-impact home-based business for which: (1) the total number of on-site employees and clients do not exceed the municipality's occupancy limit for the residential property and (2) the business activities are limited to the sale of lawful goods and services, do not generate on-street parking or a substantial increase in traffic through the residential area, occur inside or in the yard of the residential dwelling, and are not visible from the street. Allows a city to impose reasonable, narrowly tailored, restrictions on these businesses for the purpose of: (1) ensuring the protection of public health and safety, as allowed by law; (2) ensuring that the business activity is compatible with the residential use of the property and surrounding residential use, is secondary to the use of the property as a residential dwelling, and complies with State and federal law, including the payment of applicable taxes; and (3) prohibiting or limiting the use of no-impact home-based businesses for the purpose of selling illegal drugs, liquor, operating or maintaining a structured sober living home, pornography, obscenity, or nude or topless dancing or other adult-oriented businesses. Prohibits a municipality from requiring the owner or occupant to do the following as a condition of operating such a business: (1) submit a petition for rezoning the property for commercial use or (2) install or equip fire sprinklers in a single-family detached residential dwelling or any residential dwelling with no more than two dwelling units. Specifies that this statue does not apply if the operation of a non-impact home-based business is prohibited by the terms of any deed, covenant, or agreement restricting the use of the land, or by any master deed, bylaws, or other documents applicable to a homeowners association.