Official Summary Text
SB1566 - 572R - Senate Fact Sheet
Assigned to
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PASSED BY ADD COW
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
S.B. 1566
malicious delay;
enforcement; penalty
Purpose
Prohibits a
county 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 or county to a civil penalty of $5,000 per violation.
Grants an expedited judicial review of a claim to a plaintiff who files a malicious
delay claim in the superior court.
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
and
11-1605
).
There is no anticipated fiscal impact to the state General Fund
associated with this legislation.
Provisions
1.
Prohibits a county, notwithstanding any other law, 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 maliciously delaying a response
to a license, approval or permit.
3.
Subjects
a county that violates the prohibition on maliciously delaying a response as
outlined to a civil penalty of $5,000 per violation.
4.
Allows
a county, if the AG or the county attorney finds that the county violated the
prohibition on maliciously delaying a response, to bring an action in a court
with appropriate jurisdiction to challenge the finding of a malicious delay.
5.
Prohibits
a municipality, notwithstanding any other law, 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.
Allows
a city or town, if the AG or the county attorney finds that the county violated
the prohibition on maliciously delaying a response, to bring an action in a
court with appropriate jurisdiction to challenge the finding of a malicious
delay.
9.
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.
10.
Deems that a plaintiff who
files a complaint in superior court that asserts a malicious delay claim for a
single-family residential application is entitled to expedited judicial review
of the claim.
11.
Requires the court, within
10 calendar days after serving the complaint, to set an initial case management
conference with the parties to establish an expediated schedule for discovery,
briefings and hearings.
12.
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.
13.
Requires the court to
consider and rule on all motions for summary judgment or other dispositive
motions as soon as practicable.
14.
Requires the court to set a
trial or final hearing date as soon as practicable after the case management
conferences, absent a finding of good cause.
15.
Declares that an appeal to
the Arizona Court of Appeals from a superior court judgement in an action
regarding a property right claim of land use determination is entitled to a
scheduling preference on the appellate docket.
16.
Requires the Arizona Court
of Appeals to expedite briefing schedule and oral argument consistent with the
interests of justice unless the court finds for good cause that expedited
review is not feasible.
17.
Allows a party to petition
for special action relief in the Arizona Court of Appeals or the Arizona
Supreme Court.
18.
Requires the special action
relief to receive expedited processing.
19.
Specifies that
malicious
,
for a county:
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.
20.
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.
21.
Defines
application
,
for a single-family residential development, as a site plan, development plan,
land division, lot line adjustment, lot tie, preliminary plat, final plat, plat
amendment or building permit.
22.
Contains a statement of
legislative findings.
23.
Becomes effective on the general
effective date.
Amendments
Adopted by Committee
1.
Narrows the prohibition on maliciously delaying a license, approval or
permit for a municipality to only apply to maliciously delaying the statutory
licensing time frames for single-family residential construction.
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.
Amendment
Adopted by Committee of the Whole
1.
Allows
a city or town or county, if the AG or a county attorney finds that a city or
town or county violated the prohibition on malicious delay, to bring an action
in the court with appropriate jurisdiction to challenge the finding of a
malicious delay.
2.
Grants
an expedited judicial review of a claim to a plaintiff who files a property
right claim or review of a state or local land use determination in the
superior court.
3.
Outlines
requirements for the expedited judicial review.
4.
Allows
a party to petition for special action relief in the Arizona Court of Appeals
or the Arizona Supreme Court.
5.
Outlines
requirements for the special action relief.
6.
Removes
the prohibition on the state or a state agency maliciously delaying a response
to a license, approval or permit or any similar application or request.
7.
Adds
a statement of legislative findings.
8.
Defines
terms.
9.
Makes
technical and conforming changes.
Amendments Adopted by Additional
Committee of the Whole
1.
Removes
the entitlement to an expedited judicial review for a property right claim or a
complaint that seeks review of a state or local land use determination.
2.
Specifies
that a plaintiff who files a complaint in superior court that asserts a
malicious delay claim for a single-family residential application is entitled
to expedited judicial review of the claim.
3.
Requires
the court, within 10 calendar days after the service of the complaint, to set,
rather than conduct, an initial case management conference with the parties to
establish an expedited schedule for discovery, briefings and hearing.
4.
Modifies
the definition of
application
.
5.
Modifies
the statement of legislative findings.
6.
Removes
the definitions for
land use determination
and
property right claim.
7.
Makes
conforming changes.
Senate
Action
GOV������� 2/18/26������� DPA������� 3-2-2
Prepared by Senate Research
March 2, 2026
AN/ci
Current Bill Text
Read the full stored bill text
SB1566 - 572R - S Ver
Senate Engrossed
malicious delay;
enforcement; penalty
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1566
AN
ACT
Amending title 9, chapter 4, article 8,
Arizona Revised Statutes, by adding section 9-500.54; amending title 11,
chapter 2, article 4, Arizona Revised Statutes, by adding section 11-269.31;
amending title 12, chapter 8, article 2.1, Arizona Revised Statutes, BY ADDING
SECTION 12-1139; relating to state government.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Title 9, chapter 4, article 8,
Arizona Revised Statutes, is amended by adding section 9-500.54, to read:
START_STATUTE
9-500.54.
Malicious delay; attorney general; violation; civil penalty;
definitions
A. NOTWITHSTANDING
any other law, A city or town in this state may not maliciously delay
adopted licensing time frames pursuant to section 9-835 for
single-family residential construction or a response to an application
for single-family residential construction.
B. The attorney general
, based on a written complaint by a property owner with an application
before a city or town, may enforce this section.
C.
FOLLOWING AN
INVESTIGATION AND FINDINGS BY the ATTORNEY GENERAL, A city or town in this
state that
is found to have violated this section
BY CLEAR AND CONVINCING EVIDENCE is subject to a civil penalty of
$5,000 per violation
REGARDLESS OF THE DURATION OF THE
DELAY.
D. This section 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.
E. If the attorney general finds that
a city or town violated this section, the city or town may bring an action in a
court with appropriate jurisdiction to challenge the finding of a malicious
delay.
F. For the purposes of this section
:
1. "Application" means a
site plan, development plan, land division, lot line adjustment, lot tie,
preliminary plat, final plat, plat amendment or building permit for single-family
residential construction.
2. "Malicious":
(
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
section 9-835 for single-family residential construction or delays
resulting from other pending applications by the same applicant.
(
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.
END_STATUTE
Sec.
2.
Title 11, chapter 2, article 4, Arizona
Revised Statutes, is amended by adding section 11-269.31, to read:
START_STATUTE
11-269.31.
Malicious
delay; attorney general; county attorney; violation; civil penalty; definition
A. NOTWITHSTANDING any
other law, A county in this state may not maliciously delay a response to a
license, approval or permit or Any similar application or request.
B. The attorney general
or county attorney may enforce this section.
C. A county in this
state that violates this section is subject to a civil penalty of $5,000 per
violation.
D. If the attorney general or the
county attorney finds that a county violated this section, the county may bring
an action in a court with appropriate jurisdiction to challenge the finding of
a malicious delay.
E. For the purposes of
this section, "Malicious":
1. 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.
2. Does not include Any
delays due to resource constraints, good faith errors or enforcement of
identified codes, ordinances or standards.
END_STATUTE
Sec. 3. Title 12, chapter 8, article 2.1,
Arizona Revised Statutes, is amended by adding section 12-1139, to read:
START_STATUTE
12-1139.
Property right claims; malicious delay; land use claims;
expedited review; definitions
A. A plaintiff that files a complaint
in superior court that asserts a
malicious delay claim
pursuant to sections 9-500.54 or 11-269.31 for a single-family
residential application is entitled to expedited judicial review of the claim.
B. Within ten calendar days after the
service of the complaint, the court shall
set an initial case management conference with the parties to
establish an expedited schedule for discovery, briefing and hearings.
C. Unless otherwise ordered for good
cause, all fact discovery in the action shall be completed as expeditiously as
possible after the initial case conference.
D. The court shall consider and rule
on all motions for summary judgment or other dispositive motions as soon as
practicable.
E. The court shall set a trial or
final hearing date as soon as practicable after the case management conference,
absent a finding of good cause.
F. An appeal to the court of appeals
from a superior court judgment in an action described in subsection A of this
section is entitled to a scheduling preference on the appellate docket, and the
court of appeals shall expedite briefing schedules and oral argument consistent
with the interests of justice unless the court finds for good cause that
expedited review is not feasible.
G. A party may petition for special
action relief in the court of appeals or supreme court and such actions shall
receive expedited processing.
H. For
the purposes of this section:
1. "Application"
means any of the following for single-family residential development:
(
a
) A site
plan.
(
b
) A
development plan.
(
c
) A Land
division.
(
d
) A lot line
adjustment.
(
e
) A lot tie.
(
f
) A
preliminary or final plat.
(
g
) A plat
amendment.
(
h
) A building
permit.
END_STATUTE
Sec. 4.
Legislative
findings
The legislature finds and declares
that the purpose of section 12-1139, Arizona Revised Statutes, as added
by this act, is to ensure that actions in which a plaintiff asserts a
malicious delay property claim pursuant to section 9-500.54
or 11-269.31, Arizona Revised Statutes, as added by this act for a
single-family residential application is resolved in a timely and efficient
manner to prevent undue harm resulting from prolonged uncertainty.