ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

Senate: GOV DPA 3-2-2-0 | Third Read 17-12-1-0-0

House: COM DP 7-3-0-1

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


SB1566: malicious delay; enforcement; penalty

Sponsor: Senator Petersen, LD 14

Caucus & COW

Overview

Establishes municipal and county prohibitions on malicious delays in responding to an application for single-family construction and applications for a license or permit.

History

For any new or existing ordinance or code requiring a license, a local government is required to have in place an overall time frame during which the local government will either grant or deny each type of license that it issues. The overall time must distinguish between the administrative completeness review time frame and the substantive review time frame (A.R.S. §§ 9-835, 11-1605).

Additionally, if  a municipality with a population of 30,000 persons or more does not approve, conditionally approve or respond with required additions or revisions to an application for a single-family residential building permit within 15 working days after the date the application is submitted, any required review of the application may be performed by a qualified third-party selected by the municipality (A.R.S. § 9-470.01).

Provisions

Prohibition on Malicious Delay; Municipalities

1.   Prohibits a city or town from maliciously delaying adopted licensing time frames or a response to an application for single-family residential construction. (Sec. 1)

2.   Authorizes the Attorney General (AG) to enforce the prohibition. (Sec. 1)

3.   Allows the AG, for municipalities that are found to have violated the prohibition, to impose a $5,000 civil penalty per violation. (Sec. 1)

4.   Asserts the prohibition does not modify the authority of a building code official to withhold a certificate of occupancy in accordance with a municipality's adopted codes and ordinances. (Sec. 1)

5.   Allows a municipality to challenge the AG's finding of a malicious delay by bringing an action in a court with appropriate jurisdiction. (Sec. 1)

6.   Defines malicious as:

a.   acting with specific intent to obstruct approval of an application by imposing requirements not specifically authorized by law;

b.   repeated unexplained delays of more than twice the municipality's adopted licensing time frame for single-family residential construction; or

c. delays resulting from other pending applications by the same applicant. (Sec. 1)

7.   Stipulates malicious does not include any delays due to resource constraints or by the applicant or a third party, good faith errors or enforcement of adopted technical codes, ordinances or standards. (Sec. 1)

Prohibition on Malicious Delay; Counties

8.   Prohibits a county from maliciously delaying a response to a license, approval or permit or any similar application or request. (Sec. 2)

9.   Authorizes the AG or county attorney to enforce the prohibition. (Sec. 2)

10.  Subjects a county that violates the prohibition to a civil penalty of $5,000 per violation. (Sec. 2)

11.  Allows a county to challenge the findings of malicious delay by the AG or the county attorney by bringing an action in a court with appropriate jurisdiction. (Sec. 2)

12.  Defines malicious as:

a.   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 law or engaging in selective enforcement; or

b.   repeated unexplained delays or actions taken without a legitimate health, safety or planning concern. (Sec. 2)

13.  Stipulates malicious does not include any delays due to resource constraints, good faith errors or enforcement of identified codes, ordinances or standards. (Sec. 2)

Property Right and Land Use Malicious Delay Claims

14.  Entitles a plaintiff filing a malicious delay claim in superior court for a single-family residential application to expedited judicial review. (Sec. 3)

15.  Requires the court to set an initial case management conference within 10 calendar days of the complaint being served to establish an expedited schedule for discovery, briefing and hearings. (Sec. 3)

16.  Requires all fact discovery in the action to be completed as expeditiously as possible after the initial case conference, unless otherwise ordered for good cause. (Sec. 3)

17.  Requires the court to:

a.   consider and rule on all motions for summary judgment or other dispositive motions as soon as practicable; and

b.   set a trial or final hearing date as soon as practicable after the case management conference, absent a finding of good cause. (Sec. 3)

18.  Provides for an expedited process relating to an appeal of malicious delay claim in the court of appeals. (Sec. 3)

Miscellaneous

19.  Defines application. (Sec. 1, 3)

20.  Contains a legislative findings clause. (Sec. 4)

21.   

22.   

23.  ---------- DOCUMENT FOOTER ---------

24.  Initials PB/ZE                 SB 1566

25.  3/11/2026  Page 0 Caucus & COW

26.   

27.  ---------- DOCUMENT FOOTER ---------