ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2333: home-based businesses; local regulation |
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PRIME SPONSOR: Representative Weninger, LD 17 BILL STATUS: Commerce
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Related to local restrictions on home businesses.
Provisions
Municipalities & Counties – Restrictions on Home Businesses
1. Declares the right to use a Residence for a home-based business, except when there are land use restrictions or any master deed, bylaw or other document that applies to an HOA. (Sec. 1, 2)
2. Stipulates that a municipality or county cannot restrict Business operations or require any license, permit, registration, variance or prior approval to function. (Sec. 1, 2)
3. Details qualifications of a Business as follows:
a. The employees of the business are residents of the home or immediate family members and no more than three employees are not residents.
b. Business is conducted as follows: the sale of goods and services is lawfully conducted inside the Residence; involve more than one client on the premises at a time (current law for counties); require no on-street parking or increase in traffic (current law for counties); activities are not visible from the street and do not violate municipal or county regulations. (Sec. 1, 2)
4. Authorizes a municipality or county to enact reasonable regulations on a home-based business as follows:
a. Protect the public health and safety as outlined.
b. Ensure compatibility with the residential use of the property, secondary to its use as a Residence.
c. Prohibit home-based business activity for any of the following: selling illegal drugs or liquor; operating or maintaining a structured sober living home; pornography; obscenity; having nude or topless dancing; or, other adult-oriented business. (Sec. 1, 2)
5. Prohibits a municipality or county to require a person, as a condition to operate a home-based business, to do any of the following:
a. Rezone the property for commercial use.
b. Obtain a Business license or any other license.
c. Install or equip the Residence with fire sprinklers. (Sec. 1, 2)
6. Establishes that whether a regulation complies with the bill's provisions is a judicial question and the municipality or county that enacted a certain regulation must establish by clear and convincing evidence that the regulation complies with the provisions of this bill. (Sec. 1, 2)
Miscellaneous
7. Prescribes defined terms for municipalities: goods; home-based business; immediate family member; no-impact home-based business. (Sec. 1)
8. Defines and revises the definitions section for counties: home-based business; no-impact home-based business. (Sec. 2)
9. Strikes the requirement to obtain a county home-based business license. (Sec. 2)
Current Law
A county ordinance may not restrict a licensed home-based business from the following:
a) Installing fixtures for use by the home-based business.
b) Displaying a 24-inch by 24-inch temporary sign during business hours.
c) Offering or selling goods.
d) Traffic generated by the home-based business, if the traffic remains reasonable and does not obstruct access.
e) Having more than one customer on the property at one time.
f) Employing a resident of the home, an immediate family member, or one or two individuals from outside of the home.
The county may impose reasonable operating requirements on a home-based business (A.R.S. § 11-820).
Additional Information
Laws 2017, Chapter 228 added county ordinance exemptions for licensed home-based business regarding traffic generated by the home-based business, having more than one customer on the property at one time and employing a resident of the home, an immediate family member, or one or two individuals from outside of the home.
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Fifty-third Legislature HB 2333
Second Regular Session Version 1: Commerce
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