I don't think its a "state" law thing, but more of an insurance company policy thing. I would check your policy out, even do an anonymous call,
"I will be buying a home soon, and want to know of any policy restrictions on dogs."
As for people, ignore their ignorance. Prove your dog deserves to be part of the community by obviously training him well, but show that you take extra precautions. Its our responsibilities to never underestimate our dogs. Also, I take the time to explain to the neighborhood kids why they shouldn't "rush" a dog, even if they know the dog. What hugs mean, and explain a dog's body language. Its taken some time, but I feel that my neighbors now trust me with my dog, and let their kids hang out with us, or play with us, even though they themselves won't come near us. lol.
Ya know what suckers most people in, is dog tricks. Yep, its an almost instant "awwwwwwww", combines cute with obedient.