SB 2237

This bill requires a local government responsible for reviewing a development application, development plan, or a site inspection submitted by a developer for the purpose of developing real property in this state to either (i) approve the development app lication, development plan, or site inspection, or (ii) provide the developer with a written report of deficiencies with the development application, development plan, or site inspection within 30 business days of the date of submission. This bill requires a local government to make all efforts to consolidate all change requests pertaining to a single application into a single deliverable document or set of documents when sending change requests to an applicant. If a local government fa ils to issue an approval or an initial written report of deficiencies within 30 business days from the date the application is received by the local government, then the application is deemed approved. If a local government issued a written report of deficiencies and subsequently received documentation that each deficiency has been satisfactorily resolved, then this bill requires the local government to issue the requested permit within 30 business day s of receipt of the new documentation. This bill prohibits a local government reviewing a development application, development plan, or site inspection from issuing more than two written reports of deficiencies. If deficiencies identified in a second written report are not satisfactorily res olved, then the local government must deny the application and provide written justification of the denial based upon specific evidence of noncompliance with one or more statutory or regulatory requirements. Upon such denial, the local government must re tu rn to the developer 50% of the total amount of fees the developer paid to the local government during the review process. If an initial development application, development plan, or a site inspection submitted by a developer is incomplete, then this bill requires the local government to notify the developer of such incompleteness in writing within 30 business days of receip t of the submission. Notification of incompleteness does not constitute a written report of deficiency. CONTRACTS BETWEEN LOCAL GOVERNMENTS AND CONTRACTORS OR DEVELOPERS This bill prohibits a local government from amending or otherwise changing a contract to which the local government and a contractor or developer are parties unless the parties agree to the modification in writing. If a registered land surveyor or professional engineer determines upon conducting an independent inspection that a contractor or developer has completed all work required by a contract between the contractor or developer and the local government, then th is bill requires the local government to release the contractor or developer from its required bond within 30 days of the local government receiving the written inspection report. This bill also prohibits local government from requiring a contractor or developer to fund, build, or contribute to the development of infrastructure that is not included in a contract to which the contractor or developer is a party. However, this prohi bition does not prohibit a local government and a contractor or developer from contracting for infrastructure development. APPLICABILITY This bill does not repeal, modify, or apply to any contract existing on December 31, 2026. ON APRIL 21, 2026, THE HOUSE ADOPTED AMENDMENT #2 AND PASSED HOUSE BILL 2552, AS AMENDED. AMENDMENT #2 makes the following changes:  Revises the requirements for a local government responsible for reviewing a development application, development plan, or a site inspection submitted by a developer for the purpose of developing real property in this state by providing that a local government must (i) within 60 business days of the submission, either approve the development application, development plan, or site inspection, or add the submission to the next available agenda of either the planning commission or the governing body, (ii) within 30 business days of the submission, provide the developer with a written report of deficiencies with the development application, development plan, or site inspection, or (iii) within 30 business days of the submission, request additional information necessary to ensure compliance with applicable regulations.  Provides that for purposes of the timeframes established above , a day on which a local government's offices are closed for business during a state of emergency declared under present law does not count as a business day. If a local government fails to take any of the actions listed above within the timeframes established, then the submission is deemed approved.  P rovide s that if a local government issued a written report of deficiencies and subsequently received documentation that each deficiency has been satisfactorily resolved, then the local government must either approve the development application, development plan, or a site inspection, or place the submission on the next available agenda of either the planning commission or the governing body within 30 business days of receipt of documentation that each deficiency has been satisfactorily resolved.  Adds the option that if deficiencies identified in a second written report are not satisfactorily resolved, for the local government to conditionally approve the development application, development plan, or site inspection, or place the development application, development plan, or site inspection on the next available agenda of either the planning commission or governing body for conditional approval.  Replaces provisions pertaining to prohibited conduct and, instead, describ es the release of bonds . I f a professional engineer determines upon conducting an independent inspection that a contractor or developer has completed all work required by a contract between the contractor or developer and the local government, then (i) no later than 120 business days after receiving the written inspection report, the local government must either place the release of the bond on the next available agenda of either the planning commission or governing body, or approve the release, or (ii) no later than 20 business days after receiving the written inspection report, respond in writing with its reason or reasons for not releasing the contractor or developer from its required bond, and specify what work is required by the contract that the local government asserts has not been completed by the contractor or developer. For purposes of the timeframes established, a day on which a local government's offices are closed for business during a state of emergency declared under present law does not count as a business day.