Arizona 2023 Regular Session

Arizona Senate Bill SB1162 Compare Versions

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1-Senate Engrossed home-based businesses; restrictions; prohibition State of Arizona Senate Fifty-sixth Legislature First Regular Session 2023 SENATE BILL 1162 An Act amending title 9, chapter 4, article 6.1, Arizona Revised Statutes, by adding section 9-462.10; amending section 11-820, Arizona Revised Statutes; relating to planning and zoning. (TEXT OF BILL BEGINS ON NEXT PAGE)
1+REFERENCE TITLE: home-based businesses; restrictions; prohibition State of Arizona Senate Fifty-sixth Legislature First Regular Session 2023 SB 1162 Introduced by Senators Kaiser: Farnsworth, Mesnard, Rogers, Shamp, Wadsack An Act amending title 9, chapter 4, article 6.1, Arizona Revised Statutes, by adding section 9-462.10; amending section 11-820, Arizona Revised Statutes; relating to planning and zoning. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9-Senate Engrossed home-based businesses; restrictions; prohibition
9+REFERENCE TITLE: home-based businesses; restrictions; prohibition
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11-SENATE BILL 1162
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12+Introduced by Senators Kaiser: Farnsworth, Mesnard, Rogers, Shamp, Wadsack
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63- Be it enacted by the Legislature of the State of Arizona: Section 1. Title 9, chapter 4, article 6.1, Arizona Revised Statutes, is amended by adding section 9-462.10, to read: START_STATUTE9-462.10. Restriction on regulation; home-based businesses; no-impact home-based businesses; exceptions; definitions A. A home-based business shall be allowed as a use by right if the home-based business does not supersede any deed restriction, covenant or agreement restricting the use of land, a master deed or any other document applicable to a common interest ownership community. B. A municipality may not prohibit a no-impact home-based business or require a person to apply for, register or obtain a permit, license, variance or other type of prior municipal approval to operate a no-impact home-based business. C. A municipality may establish reasonable regulations on a home-based business if the regulations are narrowly tailored for the following purposes: 1. Protecting the public health and safety, including existing municipal regulations related to fire and building codes, health, sanitation, transportation or traffic control and solid or hazardous waste, pollution and noise control. 2. Limiting or prohibiting the use of a home-based business for the purposes of maintaining a structured sober living home, selling illegal drugs or liquor, pornography, obscenity, nude or topless dancing or other adult-oriented businesses. 3. Ensuring that the business activity is: (a) Compatible with residential use of the property and the surrounding residential area. (b) Secondary to the use of the property as a residential dwelling. (c) Complying with state and federal law and applicable taxes. D. A municipality may not require a person as a condition of operating a home-based business to: 1. Apply for rezoning of the property for commercial use. 2. Obtain a home-based business license or other general business license. 3. Install or equip fire sprinklers in a single-family detached residential dwelling or any residential dwelling with not more than two dwelling units. E. A question about whether an adopted municipal regulation complies with this section shall be a judicial question, and the municipality that enacted the regulation shall establish by clear and convincing evidence that the regulation complies with this section. F. For the purposes of this section: 1. "Goods" means any merchandise, equipment, products, supplies or materials. 2. "Home-based business" means any business for the manufacture, provision or sale of goods or services that is owned and operated by the owner or tenant of the residential property. 3. "Immediate family member" means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild or stepsibling of the homeowner or tenant, whether related by adoption or blood. 4. "No-impact home-based business" means: (a) Business activities that are limited to the sale of lawful goods or services. (b) A business that employs only the following: (i) Residents of the primary dwelling. (ii) Immediate family members of residents of the primary dwelling. (iii) Not more than three individuals who are not residents of the primary dwelling. (c) Business activities that: (i) Do not generate odor, noise, on-street parking or a substantial increase in traffic in the residential area. (ii) Occur inside the residential dwelling. (iii) Are not visible from the street. (iv) Do not violate any regulation established pursuant to subsection C of this section. END_STATUTE Sec. 2. Section 11-820, Arizona Revised Statutes, is amended to read: START_STATUTE11-820. Restriction on regulation; home-based businesses; no-impact home-based businesses; exceptions; definitions A. Any ordinance authorized by this chapter shall not restrict or otherwise regulate the owner of a home-based business that holds a valid license from: 1. Making residential property improvements to add doors, shelving or display racks for use by the home-based business. 2. Displaying a temporary commercial sign on the residential property during business hours, if the sign is not more than twenty-four inches by twenty-four inches. 3. Selling or offering for sale any goods. 4. Generating traffic, parking or delivery activity that does not cause on-street parking congestion or a substantial increase in traffic through the residential area. 5. Having more than one client on the property at one time. 6. Employing any of the following: (a) Residents of the primary dwelling. (b) Immediate family members. (c) One or two individuals who are not residents of the primary dwelling or immediate family members. B. This section does not preclude a county from imposing reasonable operating requirements on a home-based business or a residential property used by a home-based business. A. A home-based business shall be allowed as a use by right if the home-based business does not supersede any deed restriction, covenant or agreement restricting the use of land, a master deed or any other document applicable to a common interest ownership community. B. A county may not prohibit a no-impact home-based business or require a person to apply for, register or obtain a permit, license, variance or other type of prior county approval to operate a no-impact home-based business. C. A county may establish reasonable regulations on a home-based business if the regulations are narrowly tailored for the following purposes: 1. Protecting the public health and safety, including existing county regulations related to fire and building codes, health, sanitation, transportation or traffic control and solid or hazardous waste, pollution and noise control. 2. Limiting or prohibiting the use of a home-based business for the purposes of maintaining a structured sober living home, selling illegal drugs or liquor, pornography, obscenity, nude or topless dancing or other adult-oriented businesses. 3. Ensuring that the business activity is: (a) Compatible with residential use of the property and the surrounding residential area. (b) Secondary to the use of the property as a residential dwelling. (c) Complying with state and federal law and applicable taxes. D. A county may not require a person as a condition of operating a home-based business to: 1. Apply for rezoning of the property for commercial use. 2. Obtain a home-based business license or other general business license. 3. Install or equip fire sprinklers in a single-family detached residential dwelling or any residential dwelling with not more than two dwelling units. E. A question about whether an adopted county regulation complies with this section shall be a judicial question and the county that enacted the regulation shall establish by clear and convincing evidence that the regulation complies with this section. C. f. For the purposes of this section: 1. "Goods" means any merchandise, equipment, products, supplies or materials. 2. "Home-based business" means any business for the limited manufacture, provision or sale of goods or services that is owned and operated by the owner or tenant of the residential property. 3. "Immediate family member" means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild or stepsibling, whether related by adoption or blood. 4. "License" means any permit, certificate, approval, registration, charter or similar form of authorization that is required by law and that is issued by any agency, department, board or commission of this state or of any political subdivision of this state for the purpose of operating a business in this state or to an individual who provides a service to any person and the license is required to perform that service. 4. "No-impact home-based business" means: (a) Business activities that are limited to the sale of lawful goods or services. (b) A business that employs only the following: (i) Residents of the primary dwelling. (ii) Immediate family members of residents of the primary dwelling. (iii) Not more than three individuals who are not residents of the primary dwelling. (c) Business activities that: (i) Do not generate odor, noise, on-street parking or a substantial increase in traffic in the residential area. (ii) Occur inside the residential dwelling. (iii) Are not visible from the street. (iv) Do not violate any regulation established pursuant to subsection C of this section. END_STATUTE
78+ Be it enacted by the Legislature of the State of Arizona: Section 1. Title 9, chapter 4, article 6.1, Arizona Revised Statutes, is amended by adding section 9-462.10, to read: START_STATUTE9-462.10. Restriction on regulation; home-based businesses; no-impact home-based businesses; exceptions; definitions A. A home-based business shall be allowed as a use by right if the home-based business does not supersede any deed restriction, covenant or agreement restricting the use of land, a master deed or any other document applicable to a common interest ownership community. B. A municipality may not prohibit a no-impact home-based business or require a person to apply for, register or obtain a permit, license, variance or other type of prior municipal approval to operate a no-impact home-based business. C. A municipality may establish reasonable regulations on a home-based business if the regulations are narrowly tailored for the following purposes: 1. Protecting the public health and safety, including existing municipal regulations related to fire and building codes, health, sanitation, transportation or traffic control and solid or hazardous waste, pollution and noise control. 2. Limiting or prohibiting the use of a home-based business for the purposes of maintaining a structured sober living home, selling illegal drugs or liquor, pornography, obscenity, nude or topless dancing or other adult-oriented businesses. 3. Ensuring that the business activity is: (a) Compatible with residential use of the property and the surrounding residential area. (b) Secondary to the use of the property as a residential dwelling. (c) Complying with state and federal law and applicable taxes. D. A municipality may not require a person as a condition of operating a home-based business to: 1. Apply for rezoning of the property for commercial use. 2. Obtain a home-based business license or other general business license. 3. Install or equip fire sprinklers in a single-family detached residential dwelling or any residential dwelling with not more than two dwelling units. E. A question about whether an adopted municipal regulation complies with this section shall be a judicial question, and the municipality that enacted the regulation shall establish by clear and convincing evidence that the regulation complies with this section. F. For the purposes of this section: 1. "Goods" means any merchandise, equipment, products, supplies or materials. 2. "Home-based business" means any business for the manufacture, provision or sale of goods or services that is owned and operated by the owner or tenant of the residential property. 3. "Immediate family member" means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild or stepsibling of the homeowner or tenant, whether related by adoption or blood. 4. "No-impact home-based business" means: (a) Business activities that are limited to the sale of lawful goods or services. (b) A business that employs only the following: (i) Residents of the primary dwelling. (ii) Immediate family members of residents of the primary dwelling. (iii) Not more than three individuals who are not residents of the primary dwelling. (c) Business activities that: (i) Do not generate on-street parking or a substantial increase in traffic in the residential area. (ii) Occur inside the residential dwelling. (iii) Are not visible from the street. (iv) Do not violate any regulation established pursuant to subsection C of this section. END_STATUTE Sec. 2. Section 11-820, Arizona Revised Statutes, is amended to read: START_STATUTE11-820. Restriction on regulation; home-based businesses; no-impact home-based businesses; exceptions; definitions A. Any ordinance authorized by this chapter shall not restrict or otherwise regulate the owner of a home-based business that holds a valid license from: 1. Making residential property improvements to add doors, shelving or display racks for use by the home-based business. 2. Displaying a temporary commercial sign on the residential property during business hours, if the sign is not more than twenty-four inches by twenty-four inches. 3. Selling or offering for sale any goods. 4. Generating traffic, parking or delivery activity that does not cause on-street parking congestion or a substantial increase in traffic through the residential area. 5. Having more than one client on the property at one time. 6. Employing any of the following: (a) Residents of the primary dwelling. (b) Immediate family members. (c) One or two individuals who are not residents of the primary dwelling or immediate family members. B. This section does not preclude a county from imposing reasonable operating requirements on a home-based business or a residential property used by a home-based business. A. A home-based business shall be allowed as a use by right if the home-based business does not supersede any deed restriction, covenant or agreement restricting the use of land, a master deed or any other document applicable to a common interest ownership community. B. A county may not prohibit a no-impact home-based business or require a person to apply for, register or obtain a permit, license, variance or other type of prior county approval to operate a no-impact home-based business. C. A county may establish reasonable regulations on a home-based business if the regulations are narrowly tailored for the following purposes: 1. Protecting the public health and safety, including existing county regulations related to fire and building codes, health, sanitation, transportation or traffic control and solid or hazardous waste, pollution and noise control. 2. Limiting or prohibiting the use of a home-based business for the purposes of maintaining a structured sober living home, selling illegal drugs or liquor, pornography, obscenity, nude or topless dancing or other adult-oriented businesses. 3. Ensuring that the business activity is: (a) Compatible with residential use of the property and the surrounding residential area. (b) Secondary to the use of the property as a residential dwelling. (c) Complying with state and federal law and applicable taxes. D. A county may not require a person as a condition of operating a home-based business to: 1. Apply for rezoning of the property for commercial use. 2. Obtain a home-based business license or other general business license. 3. Install or equip fire sprinklers in a single-family detached residential dwelling or any residential dwelling with not more than two dwelling units. E. A question about whether an adopted county regulation complies with this section shall be a judicial question and the county that enacted the regulation shall establish by clear and convincing evidence that the regulation complies with this section. C. f. For the purposes of this section: 1. "Goods" means any merchandise, equipment, products, supplies or materials. 2. "Home-based business" means any business for the limited manufacture, provision or sale of goods or services that is owned and operated by the owner or tenant of the residential property. 3. "Immediate family member" means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild or stepsibling, whether related by adoption or blood. 4. "License" means any permit, certificate, approval, registration, charter or similar form of authorization that is required by law and that is issued by any agency, department, board or commission of this state or of any political subdivision of this state for the purpose of operating a business in this state or to an individual who provides a service to any person and the license is required to perform that service. 4. "No-impact home-based business" means: (a) Business activities that are limited to the sale of lawful goods or services. (b) A business that employs only the following: (i) Residents of the primary dwelling. (ii) Immediate family members of residents of the primary dwelling. (iii) Not more than three individuals who are not residents of the primary dwelling. (c) Business activities that: (i) Do not generate on-street parking or a substantial increase in traffic in the residential area. (ii) Occur inside the residential dwelling. (iii) Are not visible from the street. (iv) Do not violate any regulation established pursuant to subsection C of this section. END_STATUTE
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6580 Be it enacted by the Legislature of the State of Arizona:
6681
6782 Section 1. Title 9, chapter 4, article 6.1, Arizona Revised Statutes, is amended by adding section 9-462.10, to read:
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6984 START_STATUTE9-462.10. Restriction on regulation; home-based businesses; no-impact home-based businesses; exceptions; definitions
7085
7186 A. A home-based business shall be allowed as a use by right if the home-based business does not supersede any deed restriction, covenant or agreement restricting the use of land, a master deed or any other document applicable to a common interest ownership community.
7287
7388 B. A municipality may not prohibit a no-impact home-based business or require a person to apply for, register or obtain a permit, license, variance or other type of prior municipal approval to operate a no-impact home-based business.
7489
7590 C. A municipality may establish reasonable regulations on a home-based business if the regulations are narrowly tailored for the following purposes:
7691
7792 1. Protecting the public health and safety, including existing municipal regulations related to fire and building codes, health, sanitation, transportation or traffic control and solid or hazardous waste, pollution and noise control.
7893
7994 2. Limiting or prohibiting the use of a home-based business for the purposes of maintaining a structured sober living home, selling illegal drugs or liquor, pornography, obscenity, nude or topless dancing or other adult-oriented businesses.
8095
8196 3. Ensuring that the business activity is:
8297
8398 (a) Compatible with residential use of the property and the surrounding residential area.
8499
85100 (b) Secondary to the use of the property as a residential dwelling.
86101
87102 (c) Complying with state and federal law and applicable taxes.
88103
89104 D. A municipality may not require a person as a condition of operating a home-based business to:
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91106 1. Apply for rezoning of the property for commercial use.
92107
93108 2. Obtain a home-based business license or other general business license.
94109
95110 3. Install or equip fire sprinklers in a single-family detached residential dwelling or any residential dwelling with not more than two dwelling units.
96111
97112 E. A question about whether an adopted municipal regulation complies with this section shall be a judicial question, and the municipality that enacted the regulation shall establish by clear and convincing evidence that the regulation complies with this section.
98113
99114 F. For the purposes of this section:
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101116 1. "Goods" means any merchandise, equipment, products, supplies or materials.
102117
103118 2. "Home-based business" means any business for the manufacture, provision or sale of goods or services that is owned and operated by the owner or tenant of the residential property.
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105120 3. "Immediate family member" means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild or stepsibling of the homeowner or tenant, whether related by adoption or blood.
106121
107122 4. "No-impact home-based business" means:
108123
109124 (a) Business activities that are limited to the sale of lawful goods or services.
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111126 (b) A business that employs only the following:
112127
113128 (i) Residents of the primary dwelling.
114129
115130 (ii) Immediate family members of residents of the primary dwelling.
116131
117132 (iii) Not more than three individuals who are not residents of the primary dwelling.
118133
119134 (c) Business activities that:
120135
121-(i) Do not generate odor, noise, on-street parking or a substantial increase in traffic in the residential area.
136+(i) Do not generate on-street parking or a substantial increase in traffic in the residential area.
122137
123138 (ii) Occur inside the residential dwelling.
124139
125140 (iii) Are not visible from the street.
126141
127142 (iv) Do not violate any regulation established pursuant to subsection C of this section. END_STATUTE
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129144 Sec. 2. Section 11-820, Arizona Revised Statutes, is amended to read:
130145
131146 START_STATUTE11-820. Restriction on regulation; home-based businesses; no-impact home-based businesses; exceptions; definitions
132147
133148 A. Any ordinance authorized by this chapter shall not restrict or otherwise regulate the owner of a home-based business that holds a valid license from:
134149
135150 1. Making residential property improvements to add doors, shelving or display racks for use by the home-based business.
136151
137152 2. Displaying a temporary commercial sign on the residential property during business hours, if the sign is not more than twenty-four inches by twenty-four inches.
138153
139154 3. Selling or offering for sale any goods.
140155
141156 4. Generating traffic, parking or delivery activity that does not cause on-street parking congestion or a substantial increase in traffic through the residential area.
142157
143158 5. Having more than one client on the property at one time.
144159
145160 6. Employing any of the following:
146161
147162 (a) Residents of the primary dwelling.
148163
149164 (b) Immediate family members.
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151166 (c) One or two individuals who are not residents of the primary dwelling or immediate family members.
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153168 B. This section does not preclude a county from imposing reasonable operating requirements on a home-based business or a residential property used by a home-based business.
154169
155170 A. A home-based business shall be allowed as a use by right if the home-based business does not supersede any deed restriction, covenant or agreement restricting the use of land, a master deed or any other document applicable to a common interest ownership community.
156171
157172 B. A county may not prohibit a no-impact home-based business or require a person to apply for, register or obtain a permit, license, variance or other type of prior county approval to operate a no-impact home-based business.
158173
159174 C. A county may establish reasonable regulations on a home-based business if the regulations are narrowly tailored for the following purposes:
160175
161176 1. Protecting the public health and safety, including existing county regulations related to fire and building codes, health, sanitation, transportation or traffic control and solid or hazardous waste, pollution and noise control.
162177
163178 2. Limiting or prohibiting the use of a home-based business for the purposes of maintaining a structured sober living home, selling illegal drugs or liquor, pornography, obscenity, nude or topless dancing or other adult-oriented businesses.
164179
165180 3. Ensuring that the business activity is:
166181
167182 (a) Compatible with residential use of the property and the surrounding residential area.
168183
169184 (b) Secondary to the use of the property as a residential dwelling.
170185
171186 (c) Complying with state and federal law and applicable taxes.
172187
173188 D. A county may not require a person as a condition of operating a home-based business to:
174189
175190 1. Apply for rezoning of the property for commercial use.
176191
177192 2. Obtain a home-based business license or other general business license.
178193
179194 3. Install or equip fire sprinklers in a single-family detached residential dwelling or any residential dwelling with not more than two dwelling units.
180195
181196 E. A question about whether an adopted county regulation complies with this section shall be a judicial question and the county that enacted the regulation shall establish by clear and convincing evidence that the regulation complies with this section.
182197
183198 C. f. For the purposes of this section:
184199
185200 1. "Goods" means any merchandise, equipment, products, supplies or materials.
186201
187202 2. "Home-based business" means any business for the limited manufacture, provision or sale of goods or services that is owned and operated by the owner or tenant of the residential property.
188203
189204 3. "Immediate family member" means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild or stepsibling, whether related by adoption or blood.
190205
191206 4. "License" means any permit, certificate, approval, registration, charter or similar form of authorization that is required by law and that is issued by any agency, department, board or commission of this state or of any political subdivision of this state for the purpose of operating a business in this state or to an individual who provides a service to any person and the license is required to perform that service.
192207
193208 4. "No-impact home-based business" means:
194209
195210 (a) Business activities that are limited to the sale of lawful goods or services.
196211
197212 (b) A business that employs only the following:
198213
199214 (i) Residents of the primary dwelling.
200215
201216 (ii) Immediate family members of residents of the primary dwelling.
202217
203218 (iii) Not more than three individuals who are not residents of the primary dwelling.
204219
205220 (c) Business activities that:
206221
207-(i) Do not generate odor, noise, on-street parking or a substantial increase in traffic in the residential area.
222+(i) Do not generate on-street parking or a substantial increase in traffic in the residential area.
208223
209224 (ii) Occur inside the residential dwelling.
210225
211226 (iii) Are not visible from the street.
212227
213228 (iv) Do not violate any regulation established pursuant to subsection C of this section. END_STATUTE