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SB1566 • 2026

malicious delay; enforcement; penalty

SB1566 - malicious delay; enforcement; penalty

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Warren Petersen
Last action
2026-05-29
Official status
Chapter 71
Effective date
Not listed

Plain English Breakdown

The bill summary and text do not provide specific details on how delays due to resource constraints are handled, leaving some uncertainty.

Malicious Delay; Enforcement and Penalties

This law prohibits municipalities and counties from maliciously delaying the licensing process for single-family home construction and sets penalties if they do.

What This Bill Does

  • Prohibits municipalities and counties from maliciously delaying adopted licensing time frames for single-family residential construction or a response to an application for such construction.
  • Allows the Attorney General to enforce this prohibition based on written complaints by property owners with applications before these entities.
  • Imposes a $5,000 civil penalty per violation found by clear and convincing evidence.
  • Grants expedited judicial review for plaintiffs who file malicious delay claims in superior court.

Who It Names or Affects

  • Municipalities and counties in Arizona
  • Property owners applying for single-family residential construction licenses

Terms To Know

Malicious Delay
Intentionally obstructing the approval of an application by imposing unauthorized requirements or causing unexplained delays.
Civil Penalty
A fine imposed for violating specific regulations or laws.

Limits and Unknowns

  • The bill does not specify how delays due to resource constraints are handled.
  • It is unclear what happens if a city or county disagrees with the Attorney General's findings and challenges them in court.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: PAUL BENNY 4/13/2026 (602) 926-3848 ARIZONA HOUSE OF REPRESENTATIVES FLOOR AMENDMENT EXPLANATION 57th Legislature, 2nd Regular Session Majority Research Staff SB 1566: malicious delay; enforcement; penalty WENINGER FLOOR AMENDMENT 1.

  • PAUL BENNY 4/13/2026 (602) 926-3848 ARIZONA HOUSE OF REPRESENTATIVES FLOOR AMENDMENT EXPLANATION 57th Legislature, 2nd Regular Session Majority Research Staff SB 1566: malicious delay; enforcement; penalty WENINGER FLOOR AMENDMENT 1.
  • Modifies the provisions outlining the county prohibitions on malicious delays to mirror the municipal prohibitions on malicious delays.
  • Fifty-seventh Legislature Weninger Second Regular Session S.B.
  • 1566 WENINGER FLOOR AMENDMENT HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Fifty-seventh Legislature Government Second Regular Session S.B.

  • Fifty-seventh Legislature Government Second Regular Session S.B.
  • 1566 PROPOSED SENATE AMENDMENTS TO S.B.
  • 1566 (Reference to printed bill) The bill as proposed to be amended is reprinted as follows: 1 Section 1.
  • Title 9, chapter 4, article 8, Arizona Revised Statutes, 2 is amended by adding section 9-500.54, to read: 3 9-500.54.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Fifty-seventh Legislature Government Second Regular Session S.B.

  • Fifty-seventh Legislature Government Second Regular Session S.B.
  • 1566 COMMITTEE ON GOVERNMENT SENATE AMENDMENTS TO S.B.
  • 1566 (Reference to printed bill) The bill as proposed to be amended is reprinted as follows: 1 Section 1.
  • Title 9, chapter 4, article 8, Arizona Revised Statutes, 2 is amended by adding section 9-500.54, to read: 3 9-500.54.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Amendment explanation prepared by Anna Nguyen 2/24/2026 Bill Number: S.B.

  • Amendment explanation prepared by Anna Nguyen 2/24/2026 Bill Number: S.B.
  • 1566 Petersen #1 Floor Amendment Reference to: GOVERNMENT Committee Amendment Amendment drafted by: Leg.
  • Council F LOOR AMENDMENT EXPLANATION 1.
  • Allows a city or town, if the Attorney General finds that a city or town violated the prohibition on maliciously delaying licensing time frames for single-family residential construction, to bring an action in the court with appropriate jurisdiction to challenge the finding of a malicious delay.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Amendment explanation prepared by Anna Nguyen 2/24/2026 Bill Number: S.B.

  • Amendment explanation prepared by Anna Nguyen 2/24/2026 Bill Number: S.B.
  • 1566 Petersen #2 Floor Amendment Reference to: GOVERNMENT Committee Amendment Amendment drafted by: Leg.
  • Council F LOOR AMENDMENT EXPLANATION 1.
  • Allows a city or town, if the Attorney General finds that a city or town violated the prohibition on maliciously delaying licensing time frames for single-family residential construction, to bring an action in the court with appropriate jurisdiction to challenge the finding of a malicious delay.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Amendment explanation prepared by Anna Nguyen 2/27/2026 Bill Number: S.B.

  • Amendment explanation prepared by Anna Nguyen 2/27/2026 Bill Number: S.B.
  • 1566 Petersen ADD COW Floor Amendment Reference to: Senate engrossed bill Amendment drafted by: Anna Nguyen FLOOR AMENDMENT EXPLANATION 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.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Bill History

  1. 2026-05-26 Senate

    Governor signed

  2. 2026-05-26 Senate

    Senate passed

  3. 2026-05-26 Senate

    Senate passed

  4. 2026-05-18 Senate

    Senate minority caucus

  5. 2026-05-05 Senate

    Transmitted to Senate

  6. 2026-05-05 House

    House third read passed

  7. 2026-04-14 House

    House committee of the whole

  8. 2026-03-24 House

    House minority caucus

  9. 2026-03-24 House

    House majority caucus

  10. 2026-03-23 House

    House consent calendar

  11. 2026-03-10 House

    House second read

  12. 2026-03-09 House

    House Rules: C&P

  13. 2026-03-09 House

    House Commerce: DP

  14. 2026-03-09 House

    House first read

  15. 2026-03-02 House

    Transmitted to House

  16. 2026-03-02 Senate

    Senate third read passed

  17. 2026-03-02 Senate

    Senate amended committee of the whole

  18. 2026-02-25 Senate

    Senate committee of the whole

  19. 2026-02-23 Senate

    Senate minority caucus

  20. 2026-02-23 Senate

    Senate majority caucus

  21. 2026-02-04 Senate

    Senate second read

  22. 2026-02-03 Senate

    Senate Rules: PFC

  23. 2026-02-03 Senate

    Senate Government: DPA

  24. 2026-02-03 Senate

    Senate first read

Official Summary Text

SB1566 - 572R - Senate Fact Sheet

Assigned to
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PASSED BY HOUSE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

AMENDED

FACT SHEET FOR
S.B. 1566

malicious delay;
enforcement; penalty

Purpose

Prohibits a municipality
or county 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 municipality or county, 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.

2.

Allows
the AG, based on a written complaint by a property owner with an application
before a municipality or county, to enforce the prohibition on maliciously
delaying the statutory licensing time frames.

3.

Subjects
a municipality or county, following an investigation and findings by the AG, to
a civil penalty of $5,000 per violation regardless of the duration of the
delay.

4.

Allows
a municipality or county, if the AG finds that the municipality or county
violated the prohibition on malicious delay, to bring an action in a court with
appropriate jurisdiction to challenge the finding.

5.

Specifies
that the prohibition on 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 codes and ordinances.

6.

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.

7.

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.

8.

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.

9.

Requires
the court to consider and rule on all motions for summary judgment or other
dispositive motions as soon as practicable.

10.

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.

11.

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.

12.

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.

13.

Allows a party to petition
for special action relief in the Arizona Court of Appeals or the Arizona
Supreme Court.

14.

Requires the special action
relief to receive expedited processing.

15.

Specifies that
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 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.

16.

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.

17.

Contains a statement of
legislative findings.

18.

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.

Amendments Adopted by the
House of Representatives

1.

Modifies the prescribed prohibition on a county maliciously delaying a
license to align with the prescribed prohibition on a city or town maliciously
delaying the adopted licensing time frames for single-family residential
construction.

2.

Removes the authority for a county attorney to enforce the prohibition
relating to malicious delay.

3.

Modifies the definition of
malicious
for a county.

4.

Makes technical and conforming changes.

Senate Action
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House
Action

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Prepared by Senate Research

March 2, 2026

AN/ci

Current Bill Text

Read the full stored bill text
Chapter 0071 - 572R - H Ver of SB1566

House Engrossed
Senate Bill

malicious delay;
enforcement; penalty

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

CHAPTER 71

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 residential construction.

(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; violation; civil penalty;
definitions

A. NOTWITHSTANDING
any other law, A county in this state may not maliciously delay
adopted licensing time frames 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 county, may enforce this section.

C.
Following an investigation and findings by the attorney general, a
county 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 county's adopted codes and
ordinances.

E. If the attorney general 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.

F. For
the purposes of this section
:

1. "APPLICATION"
means a site plan, development plan, land division, lot line adjustment, lot
tile, 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 or standard or
other legal
requirements, repeated unexplained delays of more than twice the county's
adopted licensing time frame 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. 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.

APPROVED BY THE GOVERNOR MAY 29, 2026.

FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 29, 2026.