AZ SB1566

Prohibits cities, towns, and counties from "maliciously delaying" single-family residential construction applications or other license/permit requests, with malicious defined as imposing unauthorized requirements, repeated unexplained delays exceeding twice the adopted time frame, or selective enforcement without legitimate health or safety concerns.

Authorizes the Attorney General to enforce violations against cities and towns based on written complaints from property owners, and allows the Attorney General or county attorney to enforce against counties.

Imposes a $5,000 civil penalty per violation against local governments found to have maliciously delayed applications, with cities, towns, and counties able to challenge findings in court.

Creates expedited judicial review procedures for property rights claims and land use disputes, requiring courts to hold initial case management conferences within 10 days of filing and prioritize scheduling for discovery, motions, trials, and appeals.

Excludes from the definition of malicious delay any delays caused by resource constraints, applicant or third-party actions, good faith errors, or enforcement of adopted technical codes including fire, building, transportation, and utility codes.