SENATE ECONOMIC GROWTH COMMITTEE

STATEMENT TO

SENATE, No. 116

with committee amendments

STATE OF NEW JERSEY

DATED: FEBRUARY 10, 2025

      The Senate Economic Growth Committee reports favorably and with committee amendments Senate Bill No. 116.

      This bill permits a home business to exist in a residential zone as a permitted accessory use, provided that the following conditions are met:

      (1)  the activity is compatible with the residential use of the property and surrounding residential uses;

      (2)  the volume of employees, invitees, or guests who visit the home business is not in excess of what is compatible with residential use in the neighborhood;

      (3)  there is no outside appearance of a home business including, but not limited to, parking, signs, or lights;

      (4)  the volume of deliveries, or truck and other vehicular traffic, or parking, is not in excess of what is normally associated with residential use in the neighborhood;

      (5)  the activity uses no equipment or process that creates noise, vibration, glare, fumes, odors, or electrical or electronic interference, including interference with radio or television reception, detectable by any neighbors;

      (6)  the activity does not generate any solid waste or sewage discharge, in volume or type, which is not normally associated with residential use in the neighborhood;

      (7)  the activity does not involve any illegal activity; and

      (8) the home business complies with certain liability insurance provisions.

      The bill does not supersede provisions of the governing documents of a common interest ownership community that prohibit operation of a home business in a dwelling unit within the common interest ownership community.

      The bill does not require a municipality to amend an existing ordinance pertaining to home businesses provided that the ordinance does not conflict with the provisions of the bill.

      The bill allows a municipality, by ordinance, to establish standards for the customary volume of invitees or guests within residential districts, as well as standards for the volume of delivery or truck traffic and parking that are acceptable within residential districts. 

      The bill does not limit the power of a municipality to protect the health, safety, and welfare of its residents, including the investigation and elimination of nuisances.

      This bill was prefiled for introduction in the 2024-2025 session pending technical review.  As amended and reported, the bill includes the changes required by technical review, which has been performed.

      As amended and reported by the committee, Senate Bill No. 116 is identical to Assembly Bill No. 2623, which was also amended and reported by the committee on this date.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1) update certain information in the bill’s findings and declarations;

      (2) add a requirement for home businesses to comply with the liability insurance provisions of N.J.S.A.40A:10A-1 et seq.;

      (3) extend the date of the bill’s effective date from the first day of the sixth month next following enactment to one year after the date of enactment;

      (4) correct the title of the bill; and

      (5) correct a reference to the “Home Business Jobs Creation Act.”