The proposed bill, titled "The Home-Based Business Fairness Act," aims to permit home-based businesses within residential dwellings in Minnesota. It defines key terms such as "home-based business," "no-impact home-based business," and "residential dwelling." A no-impact home-based business is characterized by specific criteria, including limitations on the number of employees and clients, restrictions on visibility from the street, and compliance with municipal occupancy limits. The bill establishes that the use of a residential dwelling for a home-based business is permitted, provided it does not conflict with existing deed restrictions or community agreements.

Furthermore, the bill prohibits municipalities from requiring permits or prior approvals for no-impact home-based businesses, while allowing them to impose reasonable regulations to protect public health and safety, ensure compatibility with residential use, and prevent illegal activities. It also specifies that municipalities cannot condition the operation of a home-based business on rezoning or the installation of fire sprinklers in certain residential properties. The bill emphasizes that any regulations enacted must be supported by clear and convincing evidence to ensure compliance with the established guidelines.