AZ HB2333

Establishes home-based businesses as a permitted use in residential dwellings, subject to deed restrictions, covenants, and common interest community rules.

Prohibits municipalities and counties from requiring permits, licenses, or prior approval for "no-impact home-based businesses" that meet specified criteria including limited employees (residents, immediate family, or up to 3 non-residents), lawful goods/services only, zero or more clients at a time, no visible street activity, and operations confined to inside the dwelling.

Allows municipalities and counties to establish narrowly tailored regulations protecting public health and safety (fire codes, building codes, traffic control, pollution, noise) and ensuring business compatibility with residential use and secondary to residential purposes.

Prohibits municipalities and counties from requiring rezoning, home-based business licenses, or fire sprinkler installation in single-family or duplex dwellings as conditions of operating a home-based business.

Specifies that regulations must be "narrowly tailored" for counties, with the county bearing the burden of proving by clear and convincing evidence that any regulation complies with the statute; applies similar restrictions to municipalities with "tailored" requirement instead.