Arizona 2024 2024 Regular Session

Arizona Senate Bill SB1665 Comm Sub / Analysis

Filed 05/01/2024

                      	SB 1665 
Initials SJ 	Page 1 	House Engrossed 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
Second Regular Session 
Senate: FICO DP 5-2-0-0 | 3
rd
 Read 20-10-0-0 
House: GOV DP 7-2-0-0 
 
SB 1665: municipal development; permits; review 
Sponsor: Senator Gowan, LD 19 
House Engrossed 
Overview 
Prescribes requirements for the review of an application for a single-family residential 
building permit. 
History 
Each new municipal ordinance or code that requires a license must have in place an overall 
time frame during which the municipality must either grant or deny each type of license that 
it issues. The overall time frame for each type of license must separately state the 
administrative completeness review time frame and the substantive review time frame and 
must be posted on the municipality's website or the website of an association of cities and 
towns if the municipality does not have a website (A.R.S. § 9-835). 
Provisions 
1. Authorizes a required review of an application for a single-family residential building 
permit to be performed by a qualified third party selected by the applicant if a 
municipality does not approve, conditionally approve or respond with required additions 
or revisions to an application within 15 working days after submission. (Sec. 1) 
2. Prohibits the qualified third party selected by the applicant from being the applicant, a 
person whose work is the subject of the application or a person with a financial or 
proprietary interest in the application or property that is the subject of the application 
other than compensation for the work performed. (Sec. 1) 
3. Allows a qualified third party selected by the applicant to be any of the following: 
a) a person employed by a third-party vendor identified on a list of approved vendors by 
the municipality if the list has more than one vendor; 
b) a registered engineer or architect; or 
c) a person who is certified by an international council on model codes and standards for 
building safety with a credential specific to the residential code on single-family 
dwelling construction and who attends a class offered by the municipality that 
exclusively reviews the adopted code amendments related to single-family dwelling 
construction, if the municipality requires the person to attend the class and the class 
is offered at least once a year. (Sec. 1) 
4. Permits a required inspection to be performed by a qualified third party selected by the 
applicant if a municipality does not conduct a required inspection within two working 
days after a request. (Sec. 1) 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note    	SB 1665 
Initials SJ 	Page 2 	House Engrossed 
5. Authorizes a qualified third party selected by the applicant to perform the inspection to 
be any of the following: 
a) a person who is certified to inspect buildings by an international council on model 
codes and standards for building safety with a credential specific to the residential 
code on single-family dwelling construction and who attends a class offered by the 
municipality that exclusively reviews the adopted code amendments related to single-
family dwelling construction, if the municipality requires the person to attend the 
class and the class is offered at least once a year; 
b) a registered engineer or architect; or 
c) a person who is employed by a third-party vendor that is identified on a list of 
approved vendors by the municipality if the list has more than one vendor. (Sec. 1) 
6. Directs a third party who reviews a single-family residential building permit application 
or performs a required inspection to:  
a) review the application or conduct the inspection and take all other related actions in 
accordance with requirements adopted by the municipality where the application was 
submitted; and 
b) provide notice to the municipality and the applicant of the results of the review or 
inspection. (Sec. 1) 
7. Allows a municipality to prescribe a reasonable format for the notice required for the 
results of the review or inspection. (Sec. 1) 
8. Prohibits a municipality from requesting or requiring an applicant to waive a deadline or 
other procedure. (Sec. 1) 
9. Authorizes an applicant to appeal 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 by a qualified third party to review a single-family residential building 
permit application; 
c) the results of an inspection conducted by the municipality; or 
d) the results of an inspection conducted by a qualified third party. (Sec. 1) 
10. Instructs an appeal to be filed in the manner required by the municipality within 15 
working days after the date of the decision or result being appealed. (Sec. 1) 
11. Establishes that the application that is the subject of the appeal is deemed approved or 
the inspection that is the subject of the appeal is waived if a decision is not rendered 
within 60 working days of filing. (Sec. 1) 
12. Specifies that a municipality has immunity when they issue a permit, approval or 
certificate of occupancy after a third-party plan review or inspection. (Sec. 1) 
13. Establishes that the applicant is responsible for any fees and costs associated with a 
third-party review or inspection and must pay them either directly to the third-party 
vendor or in an agreed alternative manner. (Sec. 1) 
14. Declares that a municipality is not responsible for assessing or collecting any fees or costs 
associated with a third-party review or inspection. (Sec. 1) 
15. Provides that outlined requirements do not apply to applications required to comply with 
a hillside development ordinance or for floodplain reviews required pursuant to federal 
floodplain regulations. (Sec. 1)    	SB 1665 
Initials SJ 	Page 3 	House Engrossed 
16. Specifies that this legislation does not modify the authority of a building official to 
withhold a certificate of occupancy in accordance with the municipality's adopted codes 
and ordinances. (Sec. 1) 
17. Directs municipalities, when establishing time frames, to additionally consider the time 
frames prescribed in this legislation. (Sec. 2) 
18. Prescribes that a municipality must, within 10 working days after a request by an 
applicant, 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. (Sec. 2) 
19. Prohibits a municipality, except for an application submitted pursuant to statute, from 
denying a license application that is necessary for land development or building 
construction unless the municipality considers the application withdrawn. (Sec. 2) 
20. Requires a municipality that makes more than one comprehensive written or electronic 
request for corrections and one supplemental request or that does not conditionally grant 
a license, to refund fees charged for reviewing and acting on the application. (Sec. 2) 
21. Prohibits a municipality from modifying, rescinding or requesting any subsequent 
modifications or revisions to an approved plan or permit for land development or building 
construction during construction if the construction is done in accordance with the 
approved plan or permit unless the modification, rescission or revision is: 
a) required to address a field condition that was unknown when the plan or permit was 
reviewed; 
b) is made at the request of the applicant if the property that is the subject of the 
approved plan or permit changes ownership; or 
c) is made by the municipality to correct noncompliance with an objective code 
requirement that was not identified by a third party who conducted a plan review. 
(Sec. 2) 
22. Specifies that any ambiguity or necessary interpretation must be construed in favor of 
the approved plan or permit. (Sec. 2) 
23. Removes the exemption for a license that is necessary for the construction or development 
of a residential lot from statute relating to failure to comply with licensing time frames. 
(Sec. 2) 
24. Defines: 
a) applicant; 
b) application; and 
c) objective. (Sec. 1, 2) 
25. Makes technical and conforming changes. (Sec. 2)