Assigned to RAGE                                                                                              AS PASSED BY COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

 

AMENDED

FACT SHEET FOR S.B. 1241

 

municipalities; counties; private permitting providers

Purpose

Authorizes a property owner to elect to use a private permitting provider to conduct a building plan review or inspection, without approval from a municipality or county, for any
single-trade residential construction project.

Background

Statute authorizes municipalities and counties to adopt zoning ordinances and building codes to conserve and promote the public health, safety, convenience and general welfare regarding the regulation of buildings, structures and land (A.R.S. §§ 9-462.01; 11-811; and
11-861).

In 2025, the Legislature authorized qualified third-party reviews of single-family residential building permit applications in municipalities with a population of 30,000 persons or more if the municipality does not approve, conditionally approve or respond with required additions or revisions to a building permit application within 15 working days after the date the application is submitted. Any required review of the application to be performed by a qualified third party must be selected by the municipality. A municipality must maintain a list of at least three third party reviewers who are eligible to be hired by the municipality to perform a building permit application review. A municipality that issues a permit, approval or certificate of occupancy after a third party review is granted qualified immunity in accordance with statute (Laws 2025, Ch.187; A.R.S. § 9-470.01).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Authorizes a property owner or the property owner's contractor or agent to elect to use a private permitting provider to conduct a building plan review or inspection, without approval from a municipality or county, for any single-trade residential construction project.

2.   Requires the private permitting provider, on completion of a building plan review for a single-trade residential construction project, and if it is determined that the building plan complies with applicable building codes, to issue a private permit.

3.   Requires the private permitting provider to submit a copy of the private permit to the municipality or county within 48 hours after issuing the private permit.

4.   Prohibits a municipality or county from requiring the private permitting provider to submit the building plan to the municipality or county for review.

5.   Requires the municipality or county to accept and track the private permit in the same manner as a building permit that is issued by the municipality or county.

6.   Requires the private permitting provider, on completion of an inspection of a single-trade residential construction project, and if it is determined that the project complies with the building permit application and all applicable building codes, to issue a private certificate of completion.

7.   Allows the private permitting provider to use photographs, recorded videos or live video streams to conduct the inspection.

8.   Requires the private permitting provider to submit a copy of the private certificate of completion to the municipality or county within 48 hours after issuing the private certificate of completion.

9.   Requires the municipality or county to accept and track the private certificate of completion in the same manner as a certificate of completion that is issued by the municipality or county.

10.  Prohibits a municipality and county from imposing any fees related to the review or processing of a private permit or private certificate of completion that is issued by a private permitting provider other than reasonable recording fees.

11.  Prohibits a municipality and county from taking any discriminatory action against the property owner or the property owner's contractor or agent for using a private permitting provider.

12.  Allows a private permitting provider to use a software that is designed to automate the required review and building permit or certificate of completion process without the performance of an additional manual review by the private permitting provider.

13.  Requires a private permitting provider to maintain applicable professional liability insurance in the amount established by the private permitting provider's registration or certification regulations.

14.  Requires a municipality and county to post on the corresponding website all building codes and permitting fee schedules.

15.  Allows a private permitting provider to rely on applicable international model building safety codes to determine code compliance and conduct an inspection if a municipality or county does not post all building codes and permitting fee schedules on the corresponding website.

16.  Prohibits a municipality or county that has not posted all building codes and permitting fee schedules on the corresponding website from charging a permitting fee for a single-trade residential construction project that is permitted or inspected in accordance with the private permitting provider requirements.

17.  Grants a municipality or county that issues a permit, approval or certificate of occupancy, after a plan review or inspection conducted by a private permitting provider, absolute and qualified immunity in accordance with statute.

18.  Defines building codes to includes

a)   plumbing and mechanical codes;

b)   electric codes;

c)   residential construction codes;

d)   energy conservation codes;

e)   zoning and planning codes;

f) building construction codes;

g)   property maintenance codes; and

h)   antiblight codes.

19.  Defines private certificate of completion as a certificate of completion that is issued by a private permitting provider.

20.  Defines private permit as a building permit that is issued by a private permitting provider.

21.  Defines private permitting provider as:

a)   a person or firm that is registered to practice architecture or engineering; or

b)   an inspector or plans examiner who is certified by an organization that develops model codes and standards for building safety or by a national professional electrical trade association.

22.  Defines single-trade residential construction project as any construction project on the property of a single family or multifamily residential dwelling unit that requires a building permit and that is limited to a single construction discipline

23.  Specifies that a single-trade residential construction project includes erecting, installing, enlarging, altering, repairing, removing, converting or replacing:

a)   a single utility system;

b)   a heating, ventilation or air conditioning system;

c)   a water heater or water treatment appliance;

d)   a solar photovoltaic system, a solar thermal system, an energy storage system or a combination;

e)   roofing;

f) exterior openings;

g)   stucco, plaster or siding; and

h)   fencing.

24.  Becomes effective on the general effective date.

Amendments Adopted by Committee

1.   Grants a municipality or county that issues a permit, approval or certificate of occupancy, after a plan review or inspection conducted by a private permitting provider, absolute and qualified immunity in accordance with statute.

2.   Makes technical and conforming changes.

Senate Action

RAGE     2/11/26        DPA       5-2-0

Prepared by Senate Research

February 11, 2026

JT/NRG/ci