AANC Legislative Session Update (July 2024)
EXECUTIVE SUMMARY
Session overview
Lawmakers adjourned the short session on June 27 without reaching a budget deal. The decision to adjourn was influenced by the campaign season and fundraising restrictions. Lawmakers plan to reconvene monthly through the end of the year. Except for November's session, only specific items are eligible for consideration. The November session will allow all short session bills.
Quick summary of AANC proactive legislative initiatives
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HB 551/SB 553: Landlord-Tenant and HOA Changes (filed in 2023)
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HB 551 passed the House in 2023 but was incorporated into HB 556 due to strategic timing decisions. HB 556 passed both chambers but was vetoed by Governor Roy Cooper on July 3, 2024.
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HB 1070: Property Rights and Protections (filed in 2024)
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Due to strategic timing decisions, HB 1070’s contents were included in SB 445. SB 445 passed both chambers unanimously but was vetoed by the Governor on July 8, 2024.
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Next Steps
AANC plans to challenge the vetoes of HB 556 and SB 445 by working with legislative leaders and potentially working with the local affiliates to launch a grassroots campaign to keep these bills prioritized among lawmakers.
IN DEPTH
Session overview
On June 27, just over two months after convening in late April, lawmakers voted to adjourn the short session – for now. This decision came after lawmakers struggled to reach a budget deal, a conflict that played out publicly during recent weeks. With campaign season in full swing and with campaign finance laws barring General Assembly candidates from fundraising PAC dollars during session, the decision was made to adjourn and reconvene once a month through the end of the year. As always, the adjournment resolution is subject to change, but for now the resolution will bring lawmakers back to Raleigh on the following dates:
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July 10 (no vote session)
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July 29-August 1
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September 9-11
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October 9
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November 19-22 (all short session bills eligible)
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December 11-13
Except for November’s session, the only items eligible for these sessions include veto overrides, adoption of conference reports, bills related to appointments/confirmations, bills related to election law, bills responding to litigation of legislative enactments, and certain resolutions. The November session will be treated like a resumption of the short session – so any bill that made the crossover deadline or was otherwise eligible for the short session remains eligible during November’s session.
AANC’s 2023-2024 proactive legislative initiatives
In 2023, AANC worked with lawmakers to introduce HB 551/SB 553: Landlord-Tenant and HOA Changes. This bill encapsulated a majority of our 2023-2024 legislative agenda items, including:
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Enacts a statewide prohibition on local governments passing ordinances that make source of income a protected characteristic under state fair housing laws.
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Establishes much-needed protections to reduce fraudulent requests for emotional support and service animal accommodations.
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Clarifies existing law that late fees are chargeable once a rental payment is late by five calendar days or more.
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Seeks to address deliberate abuses of the judicial appeals process for summary ejectment cases through allowing reasonable attorneys’ fees if the eviction is based on a default other than nonpayment of rent.
HB 551 successfully met the crucial crossover deadline (the date by which most legislation must pass one chamber to be eligible for the rest of the 2023-2024 biennium), passing the House with a bipartisan vote of 87-26.
The nature of a quick short session sometimes requires creative strategies to pass bill language, including using an already-progressing bill as a vehicle. AANC’s lobbying team collaborated with our bill sponsors and Sen. Warren Daniel, a Judiciary Committee chair, to incorporate the majority of the contents of HB 551 into HB 556: Tenancy in Com./E-Notary/Small Claims Changes. PLEASE NOTE: Due to the need to compromise with Senate leadership to move the legislation, this version unfortunately did not include the emotional support and service animal provisions. AANC will be providing more in-depth summaries of each bill in the coming months and will go into more detail at that time. If any questions pop up prior to then about the ESA provisions, contact Sarah DuBose.
HB 556 passed the Senate with a bipartisan vote of 36-6 on June 20, 2024, and subsequently by the House on June 26, 2024, with a vote of 74-39. Regrettably, on July 3, 2024, Governor Roy Cooper vetoed the bill, stating: “this bill would make it harder for low-income families, the elderly and people with disabilities to find affordable rental housing by preventing local governments from protecting against rent discrimination based on lawful income. It also creates legal ambiguity regarding when eviction orders become effective and the potential for increased legal expenses for renters in disputes with landlords.”
Ahead of the 2024 short session, in late 2022 and early 2023, the AANC government affairs team worked with the Government Affairs Committee to identify any new issues that had popped up since the initial creation of the 2023-2024 legislative agenda, that should be addressed through legislative solutions. As a result, from member input, AANC added the following items to the legislative agenda:
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To combat courts delays caused by e-courts, begin the small claims appeal period when a judgment is rendered, instead of when it is entered by a magistrate.
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Establish a process for claiming indigency status by requiring written findings of indigency in small claims appeals.
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Require the clerk to disburse ongoing rental payments made during appeal or if resolved, any remaining undisbursed funds, within five days of request. Currently there is no timeline for disbursing funds.
The AANC lobbying team took these legislative agenda additions to Rep. John Bradford and several other lawmakers, who in turn filed HB 1070: Property Rights and Protections on May 9, 2024. HB 1070 included the above-discussed items and two additional provisions, supported by AANC:
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Increases the punishment for willful and wanton damage of at least $1,000 to the residential real property of another from a Class 1 misdemeanor to a Class I felony.
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Prohibits the fraudulent rental, lease or advertisement for sale or lease of residential real property, making it a felony.
HB 1070 passed the House Judiciary 2 Committee on June 26, 2024. However, facing the short session time constraints, on that same day, the contents of HB 1070 were placed into the already-moving SB 445: Recording of Court-Filed Documents in the House Rules Committee. Subsequently that day, the House passed the bill unanimously, 115-0, and the Senate followed suit the next day, passing the bill unanimously 44-0.
Unfortunately, on July 8, the Governor made the decision to veto SB 445, stating: “this bill creates legal ambiguity regarding when eviction orders become effective and may harm low-income individuals by making it harder for them to appeal as indigent in small claims court.”
In addition to these bills, AANC also worked within a coalition to introduce legislation to help combat the squatter issues popping up across the state and country. This legislation is still up for consideration.
Next steps
AANC strongly disagrees with Governor Cooper’s reasonings behind vetoing HB 556 and SB 445. The AANC lobbying team is working with legislative leadership in both chambers to have both bills included on the veto override list whenever the chambers schedule a veto override session this fall. We also anticipate working with our local affiliates to run a grassroots campaign to keep these bills at the top of mind for all 170 lawmakers over the following months.
Stakeholder engagement
Throughout the biennium, AANC has collaborated with numerous stakeholders to work through disagreements to find compromise, when possible, and to unite efforts in lobbying for or against various bills. A sample of these stakeholder groups include:
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Local governments and local government associations
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NC Chamber of Commerce
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NC Homebuilders Association
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NC Justice Center
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NC REALTORS
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NC Sheriffs’ Association
All tracked bills
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2023-2024 Session Laws |
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Bill |
Bill Title |
Category |
Position |
Status |
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Prevent Rioting and Civil Disorder |
Property Management |
Monitor |
Ch. SL 2023-6 |
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Energy Choice/Solar Decommissioning Rqmts |
Energy & Utilities |
Monitor |
Ch. SL 2023-58 |
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AOC Ct Changes/Amd Expunction |
Courts |
Monitor |
Ch. SL 2023-103 |
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Rev. Laws Tech., Clarifying, & Admin. Chngs. (Sec. 8 – HFA debt limit) |
State Government |
Monitor |
Ch. SL 2024-28 |
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Unfair Real Estate Agreements Act |
Real Estate |
Monitor |
Ch. SL 2023-117 |
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Code Council Reorg. and Var. Code Amend |
Building Code |
Monitor |
Ch. SL 2023-108 |
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Regulatory Reform Act of 2023 |
Development |
Monitor |
Ch. SL 2023-137 |
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Safety Requirements for Elevators |
Single Family |
Monitor |
Ch. SL 2023-68 |
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On-Site Wastewater Rules Implementation |
Energy & Utilities |
Monitor |
Ch. SL 2023-77 |
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Amend On-Site Wastewater/Environment Statutes |
Building Code |
Monitor |
Ch. SL 2023-90 |
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Human Trafficking Changes (Original draft inc. all rental, negotiations w/sponsor) |
Property Management - Vacation Rentals |
Monitor |
Ch. SL 2024-26 |
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Property Owners Protection Act |
Property Management |
Monitor |
Ch. SL 2023-85 |
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Hotel Safety Issues |
Landlord-Tenant (Ch. 42) |
Monitor |
Ch. SL 2023-5 |
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Wastewater Regulatory Relief Act |
Energy & Utilities |
Monitor |
Ch. SL 2023-55 |
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C-PACE Program |
Energy & Utilities |
Monitor |
Ch. SL 2024-44 |
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General Assembly Appointments (Secs. 1.47-1.49 = BCC) |
Building Code Council |
Monitor |
Ch. SL 2024-12 |
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Bills still up for consideration through 2024 |
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Bill |
Bill Title |
Category |
Position |
Status |
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Various Energy/Env. Changes |
Energy & Utilities |
Monitor |
Passed Senate, awaiting House concurrence vote |
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Various Environmental Amendments |
Energy & Utilities |
Monitor |
Conference Committee appointed |
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Tenancy in Com./E-Notary/SmallClaims Changes |
Landlord-Tenant (Ch. 42) |
Actively Support |
Vetoed 07/03/2024 |
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Removal of Squatters from Private Property |
Courts |
Actively Support |
Passed House, for consideration in Senate |
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2024 Bldg. Code Regulatory Reform |
Building Code |
Support |
Vetoed 07/05/2024 |
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Recording of Court-Filed Documents |
Courts |
Actively Support |
Vetoed 07/08/2024 |
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Defeated / no longer active bills |
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Bill |
Bill Title |
Category |
Position |
Last Action |
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Support Private Property Rights |
Real Estate |
Monitor |
Passe House in 2023, no Senate action |
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Make North Carolina Home Act of 2023 |
Building Code |
Monitor |
Filed in 2023, no action |
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Fire Investigation Law Revisions |
Insurance |
Monitor |
Passe House in 2023, no Senate action |
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Home Ownership Market Manipulation |
Real Estate |
Oppose |
Filed in 2023, no action |
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DOI Omnibus Bill.-AB |
Insurance |
Monitor |
Filed in 2023, no action |
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Govt. Agencies/Delivery of Permits |
Permitting |
Monitor |
Passe House in 2023, no Senate action |
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Low-Income Housing Tax Credits |
Financial Services |
Monitor |
Filed in 2023, no action |
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Multijurisdictional Property |
Planning & Zoning |
Monitor |
Passed House in 2023, no Senate action |
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Regulate EV Charging Stations |
Energy & Utilities |
Monitor |
Filed in 2023, no action |
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Local Governments/System Development Fees |
Local Ordinances |
Monitor |
Filed in 2023, no action |
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NC Housing Choice Incentive |
Financial Services |
Monitor |
Filed in 2023, no action |
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Streamline Comm./Multifam. Bldg. Plan Review |
Planning & Zoning |
Actively Engaged |
Passed House in 2023, no Senate action |
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Fair Use of Consumer Reports |
Courts |
Oppose |
Filed in 2023, no action |
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Regulation of Accessory Dwelling Units |
Local Ordinances |
Monitor |
Passed House in 2023, no Senate action |
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Private Parking Immobilization |
Property Management |
Monitor |
Filed in 2023, no action |
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Allow Temporary Dwellings During Construction |
Planning & Zoning |
Monitor |
Passed House in 2023, no Senate action |
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Facilitate Small Housing |
Planning & Zoning |
Monitor |
Filed in 2023, no action |
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Workforce Housing Act |
Planning & Zoning |
Actively Engaged |
Filed in 2023, no action |
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Landlord-Tenant and HOA Changes |
Courts |
Actively Support |
Majority of contents included in H556 |
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Addressing the Workforce Housing Crisis |
Local Ordinances |
Monitor |
Filed in 2023, no action |
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Mobile Home Park Act |
Landlord-Tenant (Ch. 42) |
Monitor |
Filed in 2023, no action |
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Rental Inspections |
Local Ordinances |
Oppose |
Committee hearing in 2023, AANC testified in opposition |
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Marketable Title Act-Restrictive Covenants |
Real Estate |
Monitor |
Filed in 2023, no action |
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Inclusionary Zoning/Workforce Housing Funds |
Local Ordinances |
Oppose |
Filed in 2023, no action |
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NC Junk Fee Prevention Act |
Consumer Protection |
Monitor |
Filed in 2023, no action |
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Prohibit Fire Sprinkler System Requirement |
Building Code |
Monitor |
Filed in 2023, no action |
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Eviction Record Expunction Act |
Courts |
Oppose |
Filed in 2023, no action |
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Eviction Post-Judgment Relief Agreements |
Courts |
Support Concept |
Filed in 2023, no action |
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Workforce Development & Housing Act |
Financial Services |
Monitor |
Filed in 2023, no action |
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Licensing Board/Contractors & Inspectors |
Building Code |
Monitor |
Passed House in 2023, no Senate action |
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Landlord-Tenant Assistance Pilot/Funds |
Financial Services |
Monitor |
Filed in 2023, no action |
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Private Commercial Building Inspection |
Building Code |
Monitor |
Passed House in 2023, no Senate action |
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Create Dept. of Housing and Comm. Development |
State Government |
Monitor |
Filed in 2024, no action |
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Highway Safety Omnibus/Addit'l Magistrates |
Courts |
Monitor |
Filed in 2024, no action |
|
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Various Changes to HOA Laws |
Single Family |
Monitor |
Filed in 2024, no action |
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Expedited Removal of Unauthorized Persons |
Courts |
Actively Support |
H984 passed House, this version no longer moving |
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Require Findings for Certain Indigent Appeals |
Courts |
Actively Support |
Language included in S445 |
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Property Rights and Protections |
Courts |
Actively Support |
Language included in S445 |
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Licensing Certain Fire Safety Equip. Work |
State Government |
Monitor |
Filed in 2023, no action |
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GSC Unif. Community Prop. Disp. at Death Act |
Courts |
Actively Engaged |
Passed Senate in 2023, no House action |
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Source of Income Nondiscrimination Act |
Property Management |
Oppose |
Filed in 2023, no action |
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Inspections/Immediate Threat to Occupants |
Property Management |
Monitor |
Filed in 2023, no action |
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Real Property-Tenancy in Common Changes |
Property Management |
Monitor |
Filed in 2023, included in H556 |
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Act to Permit Local Gov to Enact Rent Control |
Landlord-Tenant (Ch. 42) |
Oppose |
Filed in 2023, no action |
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Housing Extension |
Landlord-Tenant (Ch. 42) |
Oppose |
Filed in 2023, no action |
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Short Term Rentals |
Local Ordinances |
Monitor |
Filed in 2023, no action |
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Changes to Liens and Foreclosures by HOAs |
Single Family |
Monitor |
Filed in 2023, no action |
|
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Addressing the Workforce Housing Crisis |
Planning & Zoning |
Actively Engaged |
Filed in 2023, no action |
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Modify Victim and Sex Offense Registry Laws |
Landlord-Tenant (Ch. 42) |
Monitor |
Passed Senate in 2023, no House action |
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Development Regulations/Multijurisdiction |
Planning & Zoning |
Monitor |
Filed in 2023, no action |
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Expand Certain APA Standing Provisions |
Association Management |
Monitor |
Filed in 2023, no action |
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Restore the American Dream |
Financial Services |
Monitor |
Filed in 2023, no action |
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Property Tax Increase Limitation for Zoning |
Planning & Zoning |
Monitor |
Filed in 2023, no action |
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|
Development Moratoria/Transportation Projects |
Development |
Monitor |
Filed in 2023, no action |
|
|
Create Dept. of Housing and Comm. Development |
State Government |
Monitor |
Filed in 2023, no action |
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Housing Studies-Barriers and Homelessness |
State Government |
Monitor |
Filed in 2023, no action |
|
|
Regulation of Short-Term Rentals |
Local Ordinances |
Monitor |
Filed in 2023, no action |
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|
Stormwater Program Revisions |
Energy & Utilities |
Monitor |
Filed in 2023, no action |
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|
Community Solar Program Changes |
Development |
Monitor |
Filed in 2023, no action |
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|
Fuel Gas Detector Act |
Landlord-Tenant (Ch. 42) |
Monitor |
Filed in 2023, no action |
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|
Create Bldg. Code Permit Tech. Cert |
Building Code |
Monitor |
Filed in 2023, no action |
|
|
Hotel Safety Issues Related Matters |
Landlord-Tenant (Ch. 42) |
Monitor |
Filed in 2023, no action |
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|
Environmental Permitting Reforms |
Energy & Utilities |
Monitor |
Filed in 2023, no action |
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|
Expand Workforce Housing |
Financial Services |
Monitor |
Filed in 2024, no action |
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