Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Serrato
LAST UPDATED
ORIGINAL DATE 2/21/2025
SHORT TITLE Statewide Construction Templates
BILL
NUMBER House Bill 582
ANALYST Ortega
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
RLD
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Regulation and Licensing Department (RLD)
Agency Analysis was Solicited but Not Received From
Department of Finance and Administration (DFA)
SUMMARY
Synopsis of House Bill 582
House Bill 582 (HB582) adds a new section to the Construction Industries Licensing Act
requiring the Construction Industries Division of the Regulation and Licensing Department
(RLD) to develop and implement standardized statewide procedures and templates for
construction permit applications. The bill sets specific timelines for approval or denial of permit
applications, with automatic approval if deadlines are not met. Additionally, the bill limits
municipal and county zoning authority over certain developments, including master plan projects
with fewer than 2,500 dwelling units.
HB582 also states the division must adopt rules in accordance with these provisions by
December 1, 2025, and ensure that procedures are made available for electronic download on the
website and the websites of authorities with jurisdiction. The effective date of this bill is July 1,
2025.
FISCAL IMPLICATIONS
House Bill 582 does not include an appropriation for its implementation but may have a minimal
fiscal impact on the Regulation and Licensing Department (RLD). The department anticipates House Bill 582 – Page 2
minor costs to the Construction Industries Division related to staff time required for developing
standardized templates and conducting a public rule hearing. Because the division already
oversees construction permitting processes, any additional administrative burden could be
absorbed within existing resources.
SIGNIFICANT ISSUES
RLD notes HB582 could limit local governments' ability to enforce zoning laws and building
codes suited to their communities. A standardized approach may conflict with existing
regulations, particularly in areas with unique development priorities, historic districts, or
environmental considerations. Additionally, the department raises concerns regarding the bill’s
provision for automatic permit approval if deadlines are not met, cautioning that this could lead
to insufficient oversight because thorough reviews are essential to ensure compliance with
structural, fire, and environmental safety standards.
RLD also states the development of standardized templates and procedures will require broad
stakeholder engagement. Without input from local governments, industry professionals, and
community members, the templates may not adequately address the needs of each county or
municipality.
ADMINISTRATIVE IMPLICATIONS
RLD notes that requiring application decisions to be sent through certified mail could increase
costs to the permitting process. The department suggests only requiring application decisions to
be sent via email notification instead.
TECHNICAL ISSUES
RLD raises concerns regarding the bill's implementation timeline, stating that the December 1,
2025, deadline for adopting administrative rules and finalizing templates may be unrealistic
given the need for broad stakeholder engagement. RLD suggests extending the deadline to July
1, 2026, to ensure the templates effectively address the needs of the authorities with jurisdiction.
AO/hj/hg