AZ SB1161

Authorizes municipalities to adopt a comprehensive set of "streamlined local government policies" through municipal legislation, local initiative, or charter amendment that supersedes all contrary state and local laws.

Requires adopting municipalities to implement strict regulatory standards allowing only the least restrictive regulations necessary to address public health, safety, or welfare, with performance benchmarking and automatic approval of applications if deadlines are missed.

Establishes property rights protections including treating existing lawful land uses as vested interests, prohibiting advance waivers of claims, and requiring eminent domain compensation of at least 110% of fair market value plus relocation expenses and lost income.

Mandates managed competition for municipal services (except core public safety unless performance standards fail), with an independent review board overseeing transparent competitive bidding and prohibiting subsidies to private enterprise.

Imposes criminal law enforcement performance benchmarking with monthly improvement requirements and allows tax credits for private security services if police fail to meet standards for two years, with full managed competition required after five consecutive years of failure.