H.B. No. 2464 amends the Local Government Code by adding Section 229.902, which grants municipalities the authority to regulate home-based businesses. The bill defines a "home-based business" as one operated from residential property by the owner or tenant, for the purpose of manufacturing, providing, or selling lawful goods or services. It also introduces the concept of a "no-impact home-based business," which must adhere to specific criteria, such as not exceeding municipal occupancy limits, not generating on-street parking, and not increasing noise levels or traffic.

The legislation restricts municipalities from adopting ordinances that prohibit or impose excessive requirements on no-impact home-based businesses, such as requiring licenses or permits, rezoning for non-residential use, or installing fire sprinkler systems in certain residential structures. However, municipalities can still enforce compliance with existing laws and regulations, limit businesses that sell alcohol or illegal drugs, and regulate sober living homes or sexually oriented businesses. The bill clarifies that it does not interfere with homeowners' association rules or regulations regarding short-term rental units.

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