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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: GOV DPA 3-2-2-0 | Third Read 17-12-1-0-0House: COM DP 7-3-0-1 |
SB1566: malicious delay; enforcement; penalty
Sponsor: Senator Petersen, LD 14
House Engrossed
Overview
Establishes municipal and county prohibitions on malicious delays relating to licensing time frames or responding to applications for single-family residential construction.
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
1. Prohibits a city, town or county (local government) from maliciously delaying adopted licensing time frames or a response to an application for single-family residential construction. (Sec. 1, 2)
2. Authorizes the Attorney General (AG) to enforce the prohibition. (Sec. 1, 2)
3. Allows the AG, for local governments that are found to have violated the prohibition, to impose a $5,000 civil penalty per violation. (Sec. 1, 2)
4. Asserts the prohibition does not modify the authority of a building code official to withhold a certificate of occupancy in accordance with a local government's adopted codes and ordinances. (Sec. 1, 2)
5. Allows a local government to challenge the AG's finding of a malicious delay by bringing an action in a court with appropriate jurisdiction. (Sec. 1, 2)
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 local government's adopted licensing time frame for single-family residential construction; or
c. delays resulting from other pending applications by the same applicant. (Sec. 1, 2)
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, 2)
Property Right and Land Use Malicious Delay Claims
8. Entitles a plaintiff filing a malicious delay claim in superior court for a single-family residential application to expedited judicial review. (Sec. 3)
9. 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)
10. 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)
11. 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)
12. Provides for an expedited process relating to an appeal of malicious delay claim in the court of appeals. (Sec. 3)
Miscellaneous
13. Defines application. (Sec. 1, 2, 3)
14. Contains a legislative findings clause. (Sec. 4)
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18. Initials PB/ZE SB 1566
19. 4/14/2026 Page 0 House Engrossed
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