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HB2544 - 572R - I Ver
REFERENCE TITLE:
utilities; restrictions; prohibitions; preemption; repeal
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 2544
Introduced by
Representative
Mathis
AN
ACT
amending section 9-467, arizona
revised statutes; repealing section 9-810, arizona revised statutes;
amending section 11-321, arizona revised statutes; repealing section 11-867,
arizona revised statutes; relating to building permits.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 9-467, Arizona Revised
Statutes, is amended to read:
START_STATUTE
9-467.
Building permits; issuance; distribution of copies; subsequent
owner
A. Any municipality requiring the issuance of a
building permit shall transmit one copy of the permit to the county assessor
and one copy to the director of the department of revenue.� Permit copies shall
provide the permit number, issue date and parcel number. On the
issuance of the certificate of occupancy or the certificate of completion or on
the expiration or cancellation of the permit, the assessor and the department
of revenue shall be notified in writing or in electronic format of the permit
number, parcel number, issue date and completion date.
B. The regulation of a utility
provider's authority to operate and serve customers is a matter of statewide
concern. The regulation of building permits as it relates to a
building permit applicant's ability to use a utility provider that is capable
and authorized to provide utility service is allowed solely in accordance with
subsections C and D of this section.� A building permit applicant's ability to
use a utility provider that is capable and authorized to provide utility service
is not subject to further regulation by a municipality.
C. A
municipality requiring the issuance of a building permit may not deny a permit
application based on the utility provider proposed to provide utility service
to the project.
D. A municipality issuing a building
permit shall ensure that all applicable permits and associated fees assessed on
a building permit applicant contain requirements and amounts that do not exceed
the requirements and amounts for use of other utility providers and do not have
the effect of restricting a permit applicant's ability to use the services of a
utility provider that is capable and authorized to provide utility service.
E.
b.
A
municipality may not require an applicant for a building permit to hold a
transaction privilege tax license or business license as a condition for
issuing the building permit.� A
city or town
municipality
may require a person that has been issued a
building permit and that does not otherwise hold a business license from the
municipality to apply for a business license within thirty days after issuing
the building permit.
F.
c.
If
a person has constructed a building or an addition to a building without
obtaining a building permit, a municipality shall not require a subsequent
owner to obtain a permit for the construction or addition done by the prior
owner before issuing a permit for a building addition except that this section
does not prohibit
a municipality from
enforcing an
applicable ordinance or code provision that affects the public health or
safety.
G. This section does not prohibit a
municipality from recovering reasonable costs associated with reviewing and
issuing a building permit.
H. This section does not affect any
authority of a municipality to manage or operate a municipally owned utility.
I. For the purposes of this section:
1. "Municipality" means a
city or town organized in accordance with law, including a home rule or charter
city.
2. "Utility service" means
water, wastewater, natural gas, including propane gas, or electric service
provided to an end user.
END_STATUTE
Sec. 2.
Repeal
Section 9-810, Arizona Revised
Statutes, is repealed.
Sec. 3. Section 11-321, Arizona Revised
Statutes, is amended to read:
START_STATUTE
11-321.
Building permits; issuance; distribution of copies; subsequent
owner
A. Except in those cities and towns that have an
ordinance relating to the issuance of building permits, the board of
supervisors shall require a building permit for any construction of a building
or an addition to a building exceeding a cost of $1,000 within its
jurisdiction. The building permit shall be filed with the board of
supervisors or its designated agent.
B. The regulation of a utility
provider's authority to operate and serve customers is a matter of statewide
concern. The regulation of building permits as it relates to a
building permit applicant's ability to use a utility provider that is capable
and authorized to provide utility service is allowed solely in accordance with
subsections C and D of this section.� A building permit applicant's ability to
use a utility provider that is capable and authorized to provide utility service
is not subject to further regulation by a county.
C. A county may not deny a permit
application based on the utility provider proposed to provide utility service
to the project.
D. A county issuing a building permit
shall ensure that all applicable permits and associated fees assessed on a
building permit applicant contain requirements and amounts that do not exceed
the requirements and amounts for use of other utility providers and do not have
the effect of restricting a permit applicant's ability to use the services of a
utility provider that is capable and authorized to provide utility service.
E.
B.
The
board of supervisors may not require an applicant for a building permit to hold
a transaction privilege tax license or business license as a condition for
issuing the building permit.
F.
c.
Where
deemed of public convenience, the board of supervisors shall allow the
application for and the issuance of building permits by mail.
G.
d.
One
copy of the building permit required by the terms of subsection A of this
section shall be transmitted to the county assessor and one copy shall be
transmitted to the director of the department of revenue. The permit
copy provided to the assessor and the department of revenue shall have the
permit number, the issue date and the parcel number for which the permit is
issued. On the issuance of the certificate of occupancy or the
certificate of completion or on the expiration or cancellation of the permit,
the assessor and the department of revenue shall be notified in writing or in
electronic format of the permit number, parcel number, issue date and
completion date.
H.
e.
If
a person has constructed a building or an addition to a building without
obtaining a building permit, a county shall not require a subsequent owner to
obtain a permit for the construction or addition done by the prior owner before
issuing a permit for a building addition except that this section does not
prohibit
a county from
enforcing an applicable ordinance
or code provision that affects the public health or safety.
I. This section does not prohibit a
county from recovering reasonable costs associated with reviewing and issuing a
building permit.
J. This section does not affect any
authority of a county to manage or operate a county-owned utility.
K. For the purposes of this section,
"utility service" means water, wastewater, natural gas, including
propane gas, or electric service provided to an end user.
END_STATUTE
Sec. 4.
Repeal
Section 11-867, Arizona Revised
Statutes, is repealed.