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House Engrossed Senate Bill |
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State of Arizona Senate Fifty-third Legislature Second Regular Session 2018
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SENATE BILL 1387 |
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AN ACT
amending title 9, chapter 4, article 6.1, Arizona Revised Statutes, by adding section 9‑462.09; amending section 11-820, Arizona Revised Statutes; relating to local regulation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
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 9-462.09, to read:
9-462.09. Restriction on regulation; home-based business; exceptions; definitions
A. The use of a residential dwelling for a home-based business is a permitted use, except that this permission does not supersede any of the following:
1. Any deed restriction, covenant or agreement restricting the use of land, including without limitation restrictions to residential use.
2. Any master deed, bylaw or other document applicable to a common interest ownership community.
B. Except as prescribed in subsection C of this section, a municipality may not prohibit the operation of a no-impact home-based business or otherwise require a person to apply for, register for or obtain any permit, license, variance or other type of prior approval from the municipality to operate a no-impact home-based business. For the purposes of this section, a residential property qualifies for use as a no-impact home-based business if all of the following apply:
1. The employees of the business are limited to the following:
(a) Residents of the residential dwelling or immediate family members.
(b) Immediate family members of the owner of the home-based business.
(c) Not more than two individuals who are not residents of the residential dwelling.
2. The business activities are characterized by all of the following:
(a) Are limited to the sale of lawful goods and services.
(b) Have no more than three clients on the property at one time.
(c) Do not generate on-street parking or a substantial increase in traffic through the residential area.
(d) Occur inside the residential dwelling.
(e) Are not visible from the street.
(f) Do not violate any regulation established pursuant to subsection C of this section.
C. A municipality may establish reasonable regulations on a home‑based business if the regulations are tailored for any of the following purposes:
1. The protection of the public health and safety, including regulations related to fire and building codes, health and sanitation, transportation or traffic control, solid or hazardous waste, pollution and noise control.
2. Ensuring that the business activity is both of the following:
(a) Compatible with the residential zoning of the property and the surrounding residential use consistent with the municipality's zoning.
(b) Secondary to the property's use as a residential dwelling.
3. Limiting the use of a home-based business for any of the following purposes:
(a) Selling drugs that are illegal under state or federal law.
(b) Selling SPIRITUOUS liquor, beer or wine.
(c) Operating or maintaining a sober living home.
(d) Pornography.
(e) Obscenity.
(f) Nude or topless dancing.
(g) other adult-oriented businesses.
D. A municipality may not require a person as a condition of operating a home-based business to:
1. Rezone the property for commercial use.
2. Obtain a home-based 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 in violation of section 9-807.
E. The municipality that enacted the regulation shall establish that the regulation complies with this section.
F. This section does not diminish the privileges or rights of a vacation rental or short‑term rental as defined in section 9‑500.39.
G. 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 dwelling.
3. "Immediate family member" means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild or stepsibling whether related by adoption or blood.
Sec. 2. Section 11-820, Arizona Revised Statutes, is amended to read:
11-820. Restriction on regulation; home-based business; 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:
A. The use of a residential dwelling for a home-based business is a permitted use, except that this permission does not supersede any of the following:
1. Any deed restriction, covenant or agreement restricting the use of land, including without limitation restrictions to residential use.
2. Any master deed, bylaw or other document applicable to a common interest ownership community.
B. Except as prescribed in subsection C of this section, a county may not prohibit the operation of a no-impact home-based business or otherwise require a person to apply for, register for or obtain any permit, license, variance or other type of prior approval from the county to operate a no-impact home-based business. For the purposes of this section, a residential property qualifies for use as a no-impact home‑based business if its activities are limited to the following:
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 lawful goods or services.
4. Generating traffic, or 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. 5. Employing any of the following:
(a) Residents of the primary residential dwelling or immediate family members.
(b) Immediate family members of the owner of the home-based business.
(c) One or two Not more than two individuals who are not residents of the primary residential 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.
6. Business activities that are characterized by all of the following:
(a) Have no more than three clients on the property at one time.
(b) Occur inside the residential dwelling.
(c) Are not visible from the street.
(d) Do not violate any regulation established pursuant to subsection C of this section.
C. A county may establish reasonable regulations on a home-based business if the regulations are tailored for any of the following purposes:
1. The protection of the public health and safety, including regulations related to fire and building codes, health and sanitation, transportation or traffic control, solid or hazardous waste, pollution and noise control.
2. Ensuring that the business activity is both of the following:
(a) Compatible with the residential zoning of the property and the surrounding residential use consistent with the county's zoning.
(b) Secondary to the property's use as a residential dwelling.
3. Limiting the use of a home-based business for any of the following purposes:
(a) Selling drugs that are illegal under state or federal law.
(b) Selling SPIRITUOUS liquor, beer or wine.
(c) Operating or maintaining a sober living home.
(d) Pornography.
(e) Obscenity.
(f) Nude or topless dancing.
(g) other adult-oriented businesses.
D. A county may not require a person as a condition of operating a home-based business to:
1. Rezone the property for commercial use.
2. Obtain a home-based 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 in violation of section 11-861.
E. The county that enacted the regulation shall establish that the regulation complies with this section.
F. This section does not diminish the privileges or rights of a vacation rental or short‑term rental as defined in section 11‑269.17.
C. G. For the purposes of this section:
1. "Goods" means any merchandise, equipment, products, supplies or materials and does not include the manufacture or use of motor fuel, flammable finishes, combustible material, fireworks, explosives or any other dangerous or hazardous 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.