Assigned to FICO AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
FACT SHEET FOR S.B. 1665
municipal developments; permits; review
Purpose
Authorizes third party reviews for single-family residential building permits and
inspections relating to applications for 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 A municipality may consider an application withdrawn if, by 30 days or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.
§ 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 respond with required
revisions to an application for a single-family residential building permit within 15 working
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 – Amended
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 a third party vendor identified on a list of approved vendors
by the municipality, provided the list contains more than one vendor;
b) a person who is employed by another municipality to review residential building permit
applications;
c) a registered engineer or architect; or
d) a person who is certified by an international council on model codes and standards for
building safety.
3. Allows, if a municipality does not conduct an inspection required as a condition of obtaining
a certificate of occupancy for a single-family residential dwelling unit within two working days
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 a person with a financial interest in the work that is the subject of the application
from being a qualified third party who reviews a single-family residential building permit.
6. Prohibits the applicant or a person whose work is the subject of the application from being a
qualified third party who reviews a single-family residential building permit application or
who performs an inspection.
7. Requires a third party who reviews a single-family residential building permit application or
who performs an inspection required to obtain a single-family residential dwelling unit
certificate of occupancy to:
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.
8. Allows a municipality to prescribe a reasonable format for the notice required to be provided
by a third party.
9. Prohibits a municipality from requesting or requiring an applicant to waive a deadline or other
required procedure.
10. 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 single-family
residential building permit application;
b) a decision made by a qualified third party authorized to review a residential building
permit; FACT SHEET – Amended
S.B. 1665
Page 3
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.
11. Requires an appeal to be filed in a manner required by the municipality within 15 days after
the date the decision being appealed was made.
12. 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.
13. Requires a municipality that issues a permit, approval or certificate of occupancy following a
third party plan review or inspection to have qualified immunity in accordance with statute.
Municipal Licensing Time Frames
14. Requires a municipality, in establishing licensing time frames, to consider the third party
review and inspection time frames.
15. Requires, within 10 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.
16. 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.
17. 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 in response to modifications made by the applicant; 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.
18. Allows a municipality to require evidence of monetary damages.
19. Requires the payment for monetary damages to be made within 30 working days after the
applicant provides the required evidence.
20. 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
21. Defines application as a plan, permit or other document that is related to building construction
and that is necessary for the construction of a single-family residential dwelling unit. FACT SHEET – Amended
S.B. 1665
Page 4
22. Excludes from the definition of application a certificate of occupancy.
23. Makes technical and conforming changes.
24. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Limits a third party review or inspection to single-family residential dwelling units.
2. Allows a third party building permit review to be performed if the municipality does not
respond with required revisions to the application, rather than does not deny an application.
3. Clarifies that a municipality has 15 working days, rather than 15 days, to review a building
permit before an applicant may select a third party review.
4. Adds a person with a financial interest in the application to the list of persons prohibited from
being selected as a qualified third party for building permit reviews.
5. Eliminates a person who is employed by the municipality from the list of qualified third parties
for building permit reviews.
6. Adds to the list of qualified third parties for building permit reviews:
a) a person who is employed by a third party vendor identified on a list of approved vendors
by the municipality, provided the list contains more than one vendor; and
b) a person who is certified by an international council on model codes and standards for
building safety.
7. Clarifies that a municipality has two working days after a request, rather than 48 hours, before
an applicant may select a third party inspection.
8. Requires a municipality that issues a permit, approval or certificate of occupancy following a
third party plan review or inspection to have qualified immunity in accordance with statute.
9. Requires an appeal to a decision relating to a third party review or inspection to be filed in a
manner required by the municipality, rather than with the governing body.
10. Requires a municipality, in establishing licensing time frames, to consider the third party
review and inspection time frames.
11. Increases the time period, from 5 to 10 working days, within which a municipality must meet
or discuss with the applicant the request for corrections.
12. Specifies that a request for supplemental revisions may be in response to modifications made
by an applicant.
13. Clarifies the definition of application as a plan, permit or other document that is related to
building construction and that is necessary for the construction of a single-family residential
dwelling unit. FACT SHEET – Amended
S.B. 1665
Page 5
14. Excludes from the definition of application a certificate of occupancy.
15. Makes conforming changes.
Senate Action
FICO 2/12/24 DP 5-2-0
Prepared by Senate Research
March 6, 2024
JT/cs/slp