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 stipulates that municipalities cannot require permits or prior approvals for no-impact home-based businesses, although they may establish reasonable regulations to protect public health and safety, ensure compatibility with residential use, and prevent illegal activities.

Additionally, the bill clarifies 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. Municipalities are prohibited from imposing conditions such as rezoning for commercial use or requiring fire sprinkler installations in certain residential properties. The bill emphasizes that any regulations enacted by municipalities must be justified with clear and convincing evidence to ensure compliance with the provisions outlined in the act.