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Senate Engrossed
malicious delay; enforcement; penalty |
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State of Arizona Senate Fifty-seventh Legislature Second Regular Session 2026
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SENATE BILL 1566 |
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AN ACT
Amending title 9, chapter 4, article 8, Arizona Revised Statutes, by adding section 9-500.54; amending title 11, chapter 2, article 4, Arizona Revised Statutes, by adding section 11-269.31; amending title 12, chapter 8, article 2.1, Arizona Revised Statutes, BY ADDING SECTION 12-1139; relating to state government.
(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 8, Arizona Revised Statutes, is amended by adding section 9-500.54, to read:
9-500.54. Malicious delay; attorney general; violation; civil penalty; definitions
A. NOTWITHSTANDING any other law, A city or town in this state may not maliciously delay adopted licensing time frames pursuant to section 9-835 for single-family residential construction or a response to an application for single-family residential construction.
B. The attorney general, based on a written complaint by a property owner with an application before a city or town, may enforce this section.
C. FOLLOWING AN INVESTIGATION AND FINDINGS BY the ATTORNEY GENERAL, A city or town in this state that is found to have violated this section BY CLEAR AND CONVINCING EVIDENCE is subject to a civil penalty of $5,000 per violation REGARDLESS OF THE DURATION OF THE DELAY.
D. This section does not modify the authority of a building code official to withhold a certificate of occupancy in accordance with a city's or town's adopted codes and ordinances.
E. If the attorney general finds that a city or town violated this section, the city or town may bring an action in a court with appropriate jurisdiction to challenge the finding of a malicious delay.
F. For the purposes of this section:
1. "Application" means a site plan, development plan, land division, lot line adjustment, lot tie, preliminary plat, final plat, plat amendment or building permit for single-family residential construction.
2. "Malicious":
(a) Means acting with specific intent to obstruct approval of an application by imposing requirements not specifically authorized by code, ordinance, standard or other legal requirements, repeated unexplained delays of more than twice the city's or town's adopted licensing time frame pursuant to section 9-835 for single-family residential construction or delays resulting from other pending applications by the same applicant.
(b) Does not include Any delays due to resource constraints, delays caused by the applicant or a third party, good faith errors or enforcement of ADOPTED TECHNICAL CODES, INCLUDING FIRE, BUILDING, TRANSPORTATION AND TRAFFIC, UTILITIES FACILITIES AND PUBLIC NUISANCE CODES, ordinances or standards.
Sec. 2. Title 11, chapter 2, article 4, Arizona Revised Statutes, is amended by adding section 11-269.31, to read:
11-269.31. Malicious delay; attorney general; county attorney; violation; civil penalty; definition
A. NOTWITHSTANDING any other law, A county in this state may not maliciously delay a response to a license, approval or permit or Any similar application or request.
B. The attorney general or county attorney may enforce this section.
C. A county in this state that violates this section is subject to a civil penalty of $5,000 per violation.
D. If the attorney general or the county attorney finds that a county violated this section, the county may bring an action in a court with appropriate jurisdiction to challenge the finding of a malicious delay.
E. For the purposes of this section, "Malicious":
1. Means acting in bad faith or with specific intent to obstruct approval of a license, approval or permit or any similar application or request by imposing requirements not specifically authorized by code, ordinance or standard or engaging in selective enforcement, repeated unexplained delays or actions taken without a legitimate health, safety or planning concern.
2. Does not include Any delays due to resource constraints, good faith errors or enforcement of identified codes, ordinances or standards.
Sec. 3. Title 12, chapter 8, article 2.1, Arizona Revised Statutes, is amended by adding section 12-1139, to read:
12-1139. Property right claims; malicious delay; land use claims; expedited review; definitions
A. A plaintiff that files a complaint in superior court that asserts a malicious delay claim pursuant to sections 9-500.54 or 11-269.31 for a single-family residential application is entitled to expedited judicial review of the claim.
B. Within ten calendar days after the service of the complaint, the court shall set an initial case management conference with the parties to establish an expedited schedule for discovery, briefing and hearings.
C. Unless otherwise ordered for good cause, all fact discovery in the action shall be completed as expeditiously as possible after the initial case conference.
D. The court shall consider and rule on all motions for summary judgment or other dispositive motions as soon as practicable.
E. The court shall set a trial or final hearing date as soon as practicable after the case management conference, absent a finding of good cause.
F. An appeal to the court of appeals from a superior court judgment in an action described in subsection A of this section is entitled to a scheduling preference on the appellate docket, and the court of appeals shall expedite briefing schedules and oral argument consistent with the interests of justice unless the court finds for good cause that expedited review is not feasible.
G. A party may petition for special action relief in the court of appeals or supreme court and such actions shall receive expedited processing.
H. For the purposes of this section:
1. "Application" means any of the following for single-family residential development:
(a) A site plan.
(b) A development plan.
(c) A Land division.
(d) A lot line adjustment.
(e) A lot tie.
(f) A preliminary or final plat.
(g) A plat amendment.
(h) A building permit.
Sec. 4. Legislative findings
The legislature finds and declares that the purpose of section 12-1139, Arizona Revised Statutes, as added by this act, is to ensure that actions in which a plaintiff asserts a malicious delay property claim pursuant to section 9-500.54 or 11-269.31, Arizona Revised Statutes, as added by this act for a single-family residential application is resolved in a timely and efficient manner to prevent undue harm resulting from prolonged uncertainty.