Bill Text: TX HB2464 | 2025-2026 | 89th Legislature | Enrolled

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Bill Title: Relating to the authority of a municipality to regulate a home-based business.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2025-06-12 - Effective immediately [HB2464 Detail]

Download: Texas-2025-HB2464-Enrolled.html

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H.B. No. 2464

AN ACT
relating to the authority of a municipality to regulate a
home-based business.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 229, Local Government
Code, is amended by adding Section 229.902 to read as follows:
Sec. 229.902. AUTHORITY TO REGULATE HOME-BASED BUSINESSES.
(a) In this section:
(1) "Business" has the meaning assigned by Section
1.002, Business Organizations Code.
(2) "Home-based business" means a business that is
operated:
(A) from a residential property;
(B) by the owner or tenant of the property; and
(C) for the purpose of:
(i) manufacturing, providing, or selling a
lawful good; or
(ii) providing a lawful service.
(3) "No-impact home-based business" means a
home-based business that:
(A) has at any time on the property where the
business is operated a total number of employees and clients or
patrons of the business that does not exceed the municipal
occupancy limit for the property;
(B) does not generate on-street parking or a
substantial increase in traffic through the area;
(C) operates in a manner in which none of its
activities are visible from a street; and
(D) does not substantially increase noise in the
area or violate a municipal noise ordinance, regulation, or rule.
(b) The governing body of a municipality may not adopt or
enforce an ordinance, regulation, or other measure that:
(1) prohibits the operation of a no-impact home-based
business;
(2) requires a person that operates a no-impact
home-based business or that owns the property where the business is
operated to obtain a license, permit, or other approval to operate
the business; or
(3) requires a person that operates a home-based
business or that owns the property where the business is operated
to:
(A) rezone the property for a non-residential
use; or
(B) install a fire sprinkler protection system if
the residence where the business is operated consists only of:
(i) a single-family detached residential
structure; or
(ii) a multi-family residential structure
with not more than two residential units.
(c) Subject to Subsection (b), the governing body of a
municipality may:
(1) require that a home-based business be:
(A) in compliance with federal, state, and local
law, including:
(i) a municipal fire and building code; and
(ii) a municipal regulation related to:
(a) health and sanitation;
(b) transportation or traffic
control;
(c) solid or hazardous waste; or
(d) pollution and noise control;
(B) compatible with the residential use of the
property where the business is located; and
(C) secondary to the use of the property as a
residential dwelling; and
(2) limit or prohibit the operation of a home-based
business that:
(A) sells alcohol or illegal drugs;
(B) is a structured sober living home; or
(C) is a sexually oriented business as defined by
Section 243.002.
(d) This section does not prohibit:
(1) a person from enforcing a rule or deed restriction
imposed by a homeowners' association or by other private agreement;
or
(2) a municipality from adopting or enforcing an
ordinance regulating the operation of a short-term rental unit.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2464 was passed by the House on May
14, 2025, by the following vote: Yeas 128, Nays 4, 4 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2464 was passed by the Senate on May
25, 2025, by the following vote: Yeas 29, Nays 2.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor