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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
malicious delay; enforcement; penalty
Purpose
Prohibits a county or the state or a state agency from maliciously delaying a response to a license, approval or permit and prohibits a municipality from maliciously delaying the statutory licensing time frames for single-family residential construction. 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 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 a county or state agency maliciously delaying a response to a license, approval or permit.
3. Subjects a county 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. Specifies that malicious, for a county or state agency:
a) 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; and
b) does not include any delays due to resource constraints, good faith errors or enforcement of identified rules or standards.
5. Prohibits a municipality from maliciously delaying adopted licensing time frames pursuant to statutory requirements for single-family residential construction or a response to an application for single-family residential construction.
6. Allows the AG, based on a written complaint by a property owner with an application before a municipality, to enforce the prohibition on a municipality maliciously delaying the statutory licensing time frames.
7. Subjects a municipality, following an investigation and findings by the AG, to a civil penalty of $5,000 per violation regardless of the duration of the delay.
8. Specifies that the prohibition on a municipality maliciously delaying the licensing time frames 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.
9. Specifies that malicious, for a municipality:
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 statutory requirements for single-family residential construction or delays resulting from other pending applications by the same applicant; and
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.
10. Defines
application, for a municipality, as a site plan, development plan, land
division, lot line adjustment, lot tie, preliminary plat, final plat, plat
amendment or building permit for
single-family construction.
11. Becomes effective on the general effective date.
Amendments Adopted by Committee
2. Specifies that the outlined prohibition for a municipality does not modify the authority of a building code official to withhold a certificate of occupancy.
3. Specifies that the AG may only enforce the outlined prohibition for a municipality based on a written complaint.
4. Specifies that a municipality is subject to the prescribed civil penalty only following an investigation and findings by the AG with clear and convincing evidence.
5. Defines application.
6. Redefines malicious for a municipality.
Senate Action
GOV 2/18/26 DPA 3-2-2
Prepared by Senate Research
February 19, 2026
AN/ci