AZ HB2869

Allows applicants to contract with independent providers (licensed professionals) to review building permit applications or perform building inspections, with direct payment to the provider rather than the municipality.

Requires applicants to provide municipalities with provider information including name, license number, qualifications, insurance certificate, and an indemnification acknowledgment before work begins.

Mandates municipalities reduce permit and inspection fees by the amount they save by not performing the review or inspection themselves.

Requires independent providers to maintain professional liability insurance with minimum limits of $2,000,000 per occurrence/$4,000,000 aggregate for projects under $5,000,000 and $4,000,000 per occurrence/$8,000,000 aggregate for larger projects.

Establishes a five business day review timeline for municipalities to approve applications or provide written notice of noncompliance; applications deemed approved if deadline passes without response; allows applicants to sue municipalities for misinterpretation of codes, application rejection errors, insufficient fee reductions, or permit refusal.