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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
malicious delay; enforcement; penalty
Purpose
Prohibits a municipality, county or the state or a state agency from maliciously delaying a response to a license, approval or permit or any similar application or request. Allows the Attorney General (AG) to enforce the prohibition on maliciously delaying a response and subjects a municipality, county or the state or a state agency to a civil penalty of $5,000 per violation.
Background
A municipality, county or state agency must post time frames during which the entity will either grant or deny each type of license that the entity issues, with specified exceptions. The overall timeframe must separately state the administrative completeness review timeframe and the substantive review timeframe. During the substantive review timeframe, a municipality or county may make one comprehensive and one supplemental written or electronic request for corrections. A state agency may make one comprehensive and one supplemental request for additional information.
In establishing a substantive review time frame, a municipality, county
or state agency must consider: 1) the complexity of the licensing subject
matter; 2) the resources of the agency granting or denying the license; 3) the
economic impact of delay on the regulated community;
4) the impact of the licensing decision on public health and safety; 5) the
possible use of volunteers with expertise in the subject matter area; 6) the
possible increased use of general licenses for similar types of licensed
businesses of facilities; 7) the possible increased cooperation between the
entity and the regulated community; and 8) increased flexibility in structuring
the licensing process and personnel. If a municipality, county or state agency
does not issue a written or electronic notice of administrative completeness or
deficiencies within the administrative completeness review time frame, then the
application is deemed administratively complete. If the entity issues a timely
written notice of deficiencies, then an application is not complete until the
entity receives all requested information (A.R.S. §§ 9-835;
11-1605;
41-1073;
41-1074;
and 41-1075).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits, notwithstanding any other law, a municipality, county or the state or a state agency from maliciously delaying a response to a license, approval or permit or any similar application or request.
2. Allows the AG to enforce the prohibition on maliciously delaying a response to a license, approval or permit.
3. Subjects a municipality, county or the state or a state agency that violates the prohibition on maliciously delaying a response as outlined to a civil penalty of $5,000 per violation.
4. Defines malicious as 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.
5. Specifies that malicious does not include any delays due to resource constraints, good faith errors or enforcement of identified rules or standards.
6. Becomes effective on the general effective date.
Prepared by Senate Research
February 16, 2026
AN/ci