SB 1566: malicious delay; enforcement; penalty - Arizona

Senate Engrossed Version (03/02/2026) → Chaptered Version · 6 edits

MODERATE

This bill was changed from a Senate version to a Chaptered (enacted) version, finalizing the text for implementation. The core policy shifts focus from general licensing delays to specifically protecting single-family residential construction from malicious delays. It clarifies that counties cannot intentionally stall these projects beyond their own adopted timeframes and allows the Attorney General to enforce this rule based on property owner complaints. The definition of 'malicious' was updated to include delays exceeding twice the county's standard timeframes or delays caused by other pending applications from the same builder.

Scope change

The bill's scope narrowed from general license approvals to specifically target single-family residential construction applications.

SCOPE

The protected activities were narrowed from general licenses and permits to specifically include single-family residential construction applications.

ENFORCEMENT

Enforcement authority was modified to require a written complaint from a property owner before the Attorney General can act.

DEFINITION

New definitions were added to clarify what constitutes an 'application' and to define 'malicious' delays based on specific timeframes and intent.

REQUIREMENT

The definition of malicious delay was expanded to include delays resulting from other pending applications by the same applicant.

A new provision was added stating that this law does not allow building officials to withhold certificates of occupancy if county codes require it.

TECHNICAL

The bill title was updated from 'Senate Engrossed' to 'House Engrossed' and the header was changed to reflect the final Chaptered version.

Introduced Version → House Engrossed Version (05/05/2026) · 5 edits · May 26, 2026

MODERATE

This bill was updated to shift its focus from general government licensing delays to specifically addressing malicious delays in single-family residential construction. The changes clarify that cities, counties, and state agencies cannot impose unreasonable delays on home builders, while explicitly exempting legitimate code enforcement and resource constraints. Additionally, a new section was added to ensure that lawsuits regarding these delays are handled through an expedited court process.

Scope change

The bill's scope narrowed from general state licensing to specifically single-family residential construction, and a new section was added to cover expedited judicial review for malicious delay claims.

SCOPE

The bill now specifically targets single-family residential construction instead of all licenses and permits.

DEFINITION

The definition of 'malicious' was updated to include delays exceeding twice the adopted licensing timeframe and delays caused by other pending applications by the same builder.

New definitions were added to clarify that legitimate enforcement of adopted technical codes (fire, building, traffic, etc.) and resource constraints are not considered malicious delays.

ENFORCEMENT

A new section establishes an expedited court process, requiring quick discovery, summary judgment rulings, and trial dates for malicious delay lawsuits.

ELIGIBILITY

Enforcement authority for cities and counties now requires a written complaint from a property owner with an active application.

House Engrossed Version (05/05/2026) → Senate Engrossed Version (03/02/2026) · 5 edits · May 26, 2026

MODERATE

The bill was revised from a House version to a Senate version, shifting the focus from single-family residential construction to broader state government matters. The most significant change is the removal of specific references to 'single-family residential construction' in favor of a more general definition covering licenses, approvals, permits, and similar requests. Additionally, the enforcement authority was expanded to include county attorneys alongside the attorney general, and the definition of 'malicious' was updated to include bad faith and selective enforcement.

Scope change

The bill's scope expanded from specifically targeting single-family residential construction delays to covering a broader range of state government applications, licenses, and permits.

SCOPE

Changed the bill's subject matter from 'residential construction' to 'state government' to broaden its application beyond just housing projects.

ELIGIBILITY

Removed the specific limitation to 'single-family residential construction' applications, replacing it with a general reference to licenses, approvals, permits, or similar requests.

DEFINITION

Updated the definition of 'Malicious' to include acting in 'bad faith' and 'selective enforcement,' while removing specific exclusions related to resource constraints and third-party delays.

ENFORCEMENT

Added 'county attorney' to the list of officials authorized to enforce the new malicious delay laws, expanding who can take legal action.

REQUIREMENT

Deleted specific language regarding the authority of building code officials to withhold certificates of occupancy, simplifying the section's scope.

malicious delay; enforcement; penalty

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