AZ SB1387

Establishes home-based businesses as permitted uses in residential dwellings in Arizona, subject to deed restrictions and common interest ownership community rules.

Prohibits municipalities and counties from requiring permits, licenses, or prior approval for "no-impact home-based businesses" that meet specific criteria including limited employees, no more than three clients on property at one time, and activities occurring inside the dwelling and not visible from the street.

Allows municipalities and counties to establish reasonable regulations for home-based businesses related to public health and safety, residential zoning compatibility, and prohibiting illegal drugs, alcohol sales, sober living homes, pornography, obscenity, and adult-oriented businesses.

Prohibits requiring rezoning for commercial use, obtaining home-based business licenses, or installing fire sprinklers in single-family dwellings or duplexes as conditions of operation.

Defines key terms including "home-based business," "goods," and "immediate family member" to clarify what activities and employment relationships qualify under the new protections.