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HB 765

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2025 Regular Session Introduced by Karrie Delaney

HB 765 tightens local land-use authority, requires consent for down-zoning, adds housing cost fiscal notes, tightens permits, and raises stormwater permit fees.

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Bill Summary · HB 765

Summary — HB 765: "Save the American Dream Act"

Status: Reported Favorably, Committee Substitute 2 (Reptd Fav Com Sub 2)
Introduced: Nov. 12, 2024
Primary focus: Reforms to local government development regulation procedures; (also) increases the NPDES general stormwater permit fee (fee increase language included in the bill title; specific fee amount not shown in documents provided).

Purpose / Intent

The bill seeks to standardize and constrain how local governments adopt and enforce land‑use and development regulations, strengthen procedural protections for property owners and developers, and add fiscal‑analysis requirements for actions that materially affect housing costs. It also includes a statutory increase to the National Pollutant Discharge Elimination System (NPDES) general stormwater permit fee.

Key provisions

  • Scope and limitation on local authority
    • Reiterates that local development regulation authority is limited to what Chapter 160D authorizes; local governments cannot enact more restrictive development regulations than state law (subject to limited exceptions).
  • Down‑zoning consent
    • Clarifies/limits down‑zoning: a zoning amendment that materially reduces allowed density or uses (a “down‑zone”) cannot be initiated, enacted, or enforced without written consent of all property owners affected—unless the local government itself initiates the down‑zone.
  • Definitions
    • Adds/clarifies several statutory definitions (e.g., “acre” as gross acreage for density calculations, “buffer yard,” “dwelling unit,” and “actual and legitimate needs of the community”) to reduce ambiguity in local regulation application.
  • Vesting, permits, and moratoria
    • Clarifies permit vesting rules and when vesting can lapse; provides tolling rules for the 24‑month discontinuance period while litigation or certain administrative proceedings are pending.
    • Tightens procedures for enacting development moratoria: requires legislative hearings, public notice, and exempting certain types of projects (permits already issued, site‑specific vesting plans, accepted subdivision plats, etc.).
  • Housing affordability fiscal notes
    • Requires fiscal notes for state legislation and local ordinances that could materially increase or decrease the cost of constructing, buying, owning, or selling a single‑family residence. For local ordinances, planning departments (or another designated department) must prepare a fiscal note prior to adoption.
  • Stormwater/NPDES permit fee
    • The bill increases the NPDES general stormwater permit fee (text indicates an increase but the provided excerpts do not show specific fee amounts or schedules).
  • Effective/retroactivity language
    • Drafting history shows retroactive and specified effective dates in different drafts (e.g., references to Dec. 11, 2024 and Oct. 1, 2025). Final effective dates should be confirmed in the enrolled bill text.

Who would be affected

  • Local governments (counties and municipalities): new procedural and reporting/fiscal note responsibilities; constraints on regulatory authority.
  • Property owners and developers: increased procedural protections (consent rules for down‑zoning; clearer vesting and moratoria exemptions).
  • Planning departments and local finance/planning staff: increased workload to prepare fiscal notes for housing‑affecting ordinances.
  • Permittees subject to NPDES stormwater permits: higher permit fees (amount TBD in bill text).
  • Residents and housing market: potential effects on local land‑use restrictions and housing supply/costs depending on how local governments respond.

Procedural / timeline notes

  • The bill is a multipart committee substitute (Committee Substitute #2) and has moved through multiple committee referrals in the legislative record provided. Because several drafts and cross‑references appear in the record, the final enrolled text should be consulted for precise statutory amendments, fee amounts, and effective dates.

Potential impacts / considerations

  • Likely to limit local regulatory flexibility and strengthen protections for property owners and existing permit holders, which advocates say supports development predictability.
  • Could shift burdens to local planning staffs (fiscal notes), and may constrain local tools intended to address community planning or housing goals.
  • The stormwater permit fee increase raises revenue for state environmental programs but will increase compliance costs for regulated entities.

For precise statutory text, effective dates, and the stormwater fee schedule, consult the final enrolled bill and session law.

Compiled from official sources — confirm details with the bill’s official record.

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