Assigned to FICO FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1665
municipal developments; permits; review
Purpose
Authorizes third party reviews for residential building permits and inspections relating to
applications for land development and building construction. Modifies municipal licensing time
frame requirements.
Background
Municipalities must post time frames during which the municipality will either grant or
deny each license required by an ordinance or code, 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 may make:
1) one comprehensive request for corrections; and 2) supplemental requests for corrections limited
to previously identified issues, if the applicant fails to resolve an issue identified in the
comprehensive request for corrections. The substantive review timeframe and overall timeframe
are suspended from the date a request for corrections is issued until the date the municipality
receives the corrections. A municipality may consider an application withdrawn if, by 30 days or
more after the date of notice, the applicant does not supply the documentation or information
requested or an explanation of why the information cannot be provided within the established time
period. If a municipality does not issue the applicant a written or electronic notice granting or
denying a license within the overall time frame or within mutually agreed on time frame extension,
the municipality must refund to the applicant all fees charged for reviewing and acting on the
application for the license and excuse payment of any fees that have not yet been paid.
The statutory requirements do not apply to a license that is: 1) necessary for residential lot
construction or development, including swimming pools, hardscape and property walls, a
subdivision or a master planned community; 2) issued within seven working days after initial
application receipt; and 3) a permit that expires within 21 working days after issuance (A.R.S.
ยง 9-835).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
Third Party Reviews
1. Allows, if a municipality does not approve, conditionally approve or deny an application for a
residential building permit within 15 days after the date the application is submitted, any
required review of the application to be performed by a qualified third party selected by the
applicant. FACT SHEET
S.B. 1665
Page 2
2. Allows any of the following to be the qualified third party selected by the applicant:
a) a person who is employed by the municipality that is reviewing the application;
b) a person who is employed by another municipality to review residential building permit
applications; or
c) a registered engineer or architect.
3. Allows, if a municipality does not conduct an inspection required as a condition of obtaining
a certificate of occupancy for a residential dwelling unit within 48 hours after an inspection
request, any required inspection to be performed by a qualified third party selected by the
applicant.
4. Allows any of the following to be the qualified third party selected by the applicant to conduct
the inspection:
a) a person who is certified to inspect buildings by an international council on model codes
and standards for building safety;
b) a person who is employed by the municipality as a building inspector;
c) a person who is employed by another municipality as a building inspector; or
d) a registered engineer or architect.
5. Prohibits the applicant or a person whose work is the subject of the application from being a
qualified third party who reviews a residential building permit application or who performs an
inspection.
6. Requires a third party who reviews a residential building permit application or who performs
an inspection required to obtain a residential dwelling unit certificate of occupancy to do both
of the following:
a) review the application or conduct the inspection and take all other related actions in
accordance with all requirements adopted by the municipality where the application was
submitted; and
b) provide notice to the municipality of the results of the review or inspection.
7. Allows a municipality to prescribe a reasonable format for the notice required to be provided
by a third party.
8. Prohibits a municipality from requesting or requiring an applicant to waive a deadline or other
required procedure.
9. Allows a person to appeal to the governing body of the municipality any of the following:
a) a decision by the municipality to approve, conditionally approve or deny a residential
building permit application;
b) a decision made by a qualified third party authorized to review a residential building
permit;
c) the results of an inspection conducted by the municipality; or
d) the results of an inspection conducted by a qualified third party authorized to conduct an
inspection.
10. Requires an appeal to be filed with the governing body within 15 days after the date the
decision being appealed was made. FACT SHEET
S.B. 1665
Page 3
11. Requires, if the governing body hearing the appeal does not affirm the decision being appealed
within 60 days after the appeal is filed, the application that is the subject of the appeal to be
deemed approved or the inspection that is the subject of the appeal to be waived.
Municipal Licensing Time Frames
12. Requires, within five working days after a request by the applicant, a municipality to meet or
discuss with the applicant the request for corrections and provide sufficient information and
instruction to allow the applicant to provide the requested corrections.
13. Prohibits, except for an application submitted for a change in zoning, a municipality from
denying a license application that is necessary for land development or building construction
unless the municipality considers the application withdrawn.
14. Requires a municipality to refund to an applicant all fees charged for reviewing and acting on
an application for a license, to excuse payment of any fees that have not yet been paid and to
pay any monetary damages resulting from any delay if:
a) the municipality makes more than one comprehensive written or electronic request for
corrections and one supplemental written or electronic request for corrections limited to
previously identified issues; or
b) does not issue an applicant the written or electronic notice granting, conditionally granting
or denying a license within the overall times frames or a mutually agreed on time frame
extension.
15. Allows a municipality to require evidence of monetary damages.
16. Requires the payment for monetary damages to be made within 30 working days after the
applicant provides the required evidence.
17. Eliminates the exemption of licensing time frame requirements for the construction or
development of a residential lot, including swimming pools, hardscape and property walls,
subdivisions or master planned community.
Miscellaneous
18. Defines application as a plat, plan, permit or other document that is related to land development
and building construction and that is necessary for the construction of a residential dwelling
unit.
19. Makes technical and conforming changes.
20. Becomes effective on the general effective date.
Prepared by Senate Research
February 8, 2024
JT/cs