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Did Not Advance

Indiana bill limits municipal regulation and bans permit requirements for no-impact home-based businesses

Original title: Local regulation of no impact home based businesses.

Last action · January 6, 2026: First reading: referred to Committee on Local GovernmentSponsors: Robert Morris and 3 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Indiana House Bill 1309 establishes that operating a no-impact home-based business in a residential dwelling is a permitted use starting July 1, 2026. Under the measure, municipalities are prohibited from banning such businesses or requiring permits, licenses, s, or commercial rezoning. Local governments may still enforce narrowly tailored regulations for health, safety, and parking, while deed restrictions and homeowners associations remain unaffected.

Why it matters

Home-based business operators gain protection from local permit fees and bans, while municipalities retain authority to enforce health, safety, fire, and noise standards.

Background
  • Municipalities in Indiana traditionally exercise zoning and land-use control, which can include permitting requirements and restrictions on commercial activities conducted inside residential zones. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Home-based business owners

Operators are exempt from municipal permit, license, variance, and commercial rezoning requirements for qualifying home-based businesses.

Directly affected

Municipalities

Local governments lose the authority to prohibit qualifying home-based businesses or require operating permits, but retain power to enforce narrowly tailored health, safety, and noise standards.

Not affected

Homeowners associations

Existing deed restrictions, covenants, and association bylaws and documents are not superseded by the bill.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What qualifies as a no-impact home-based business under this bill?
A business owned and operated by a residential owner or tenant where on-site employees and clients do not exceed occupancy limits, activities occur inside the dwelling or yard, are not visible from the street, and do not generate substantial traffic or on-street parking.
Can my homeowners association still ban my home business?
Yes. The bill explicitly states that it does not supersede deed restrictions, covenants, or bylaws of a homeowners association or condominium association.
Can a city require me to install fire sprinklers or rezone my house?
No. Municipalities are explicitly prohibited from requiring commercial rezoning or mandating fire sprinklers in single-family detached dwellings or residential dwellings with not more than two units.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

3 actions
  1. Jan 6, 2026HouseIntroduced
    First reading: referred to Committee on Local Government
  2. Jan 6, 2026House
    Coauthored by Representatives Teshka, VanNatter, Judy
  3. Jan 6, 2026House
    Authored by Representative Morris

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Preemption of Local Licensing

The bill shifts regulatory power away from municipalities by stripping them of permit and licensing authority over qualifying home-based businesses.

Connected Entities

Committee on Local Government
OrganizationCommittee on Local Government“House committee referred the bill on January 6, 2026”Map →

Sources

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 60)
  • Controversy45
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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