This bill requires that zoning ordinances be directly related to the promotion of the residents' health and safety. It prohibits local legislative bodies from adopting any ordinance that prohibits, regulates, or restricts the use of residential land or structures unless the ordinance directly conserves and promotes the health or safety of the community and residents. The ordinance must provide specific written findings of fact citing the best current scientific evidence relied upon by the legislative body. The bill also prohibits zoning ordinances from prohibiting, regulating, or restricting the use or types of housing, home sizes, building, energy, water, or septic technologies, lot sizes, or residential structures if they meet federal and state standards for health and safety. However, this prohibition does not apply to commercial structures in commercial zones, multifamily structures of 5 or more units, or subdivisions. Municipalities are allowed to adopt rights-based ordinances to restrict specific commercial practices in their jurisdiction if they are for the interest of the health and safety of the residents and based on the best scientific understanding of the direct effects of such practices. The bill does not allow municipalities to infringe on an individual's federal or state constitutional rights. The bill will take effect 60 days after its passage.

The New Hampshire Municipal Association states that the changes in local zoning laws will require extensive revisions to existing ordinances, incurring unknown municipal costs for drafting amendments and educating voters. The interconnection between residential regulations and statutes like septic/sewer restrictions might significantly affect public sewer systems, increasing local expenditures by an indeterminable amount. This fiscal impact is not expected to occur until FY 2025.