HOUSE BILL REPORT
HB 1175
As Reported by House Committee On:
Local Government
Appropriations
Title: An act relating to allowing small business establishments in residential zones.
Brief Description: Allowing small business establishments in residential zones.
Sponsors: Representatives Klicker, Leavitt, Taylor, Parshley, Richards, Ryu, Thai, Barkis, Fitzgibbon, Dye, Macri, Doglio, Wylie, Kloba, Nance and Bernbaum.
Brief History:
Committee Activity:
Local Government: 1/21/25, 1/24/25 [DPS];
Appropriations: 2/17/25, 2/25/25 [DP2S(w/o sub LG)].
Brief Summary of Second Substitute Bill
  • Requires cities and towns to allow neighborhood stores and neighborhood cafés to be permitted in residential zones.
HOUSE COMMITTEE ON LOCAL GOVERNMENT
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass.Signed by 7 members:Representatives Duerr, Chair; Parshley, Vice Chair; Klicker, Ranking Minority Member; Stuebe, Assistant Ranking Minority Member; Griffey, Hunt and Zahn.
Staff: Elizabeth Allison (786-7129).
Background:

Local governments divide land within their jurisdictions into regulated zones that designate land into different uses and purposes.  These include residential, commercial, and industrial zones.  Each local government adopts a zoning map which provides visualization of various zones throughout the jurisdiction.  Residential zones include land that is permitted for residential use.

 

Residential zones may allow single-family residences and multi-family residences.

Summary of Substitute Bill:

A city or town must allow neighborhood stores and neighborhood cafés in any zone allowing residential uses, provided that a café must offer food if alcoholic drinks are offered.

 

Cities may regulate parking, limit the hours of operation, and establish additional regulations as necessary, including maximum square footage requirements.  Neighborhood stores and cafés must be permitted to operate for at least 12 consecutive hours.

 

A neighborhood café is an establishment that has at least 500 square feet of gross floor area.

 

A neighborhood store is a convenience grocery store or mini-market that provides a variety of convenience items that may include food, beverages, and household items.  A neighborhood store must have at least 500 square feet of gross floor area.

Substitute Bill Compared to Original Bill:

The substitute bill removes language regarding a limited food menu from the definition of "neighborhood café."  The timeline for implementation requires cities that plan under the Growth Management Act with comprehensive plan updates due in 2027 to implement the requirements in their 2027 comprehensive plans.  All other cities must implement the requirements within two years of the bill's effective date.

Appropriation: None.
Fiscal Note: Available.
Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony:

(In support) Many people want this bill.  It is important to residents and it creates community.  This was highlighted during the COVID-19 pandemic.  It creates walkable communities and opens the door for new entrepreneurial opportunities.  It also increases the revenue for the state and will be a catalyst for economic development.  Cafés provide a welcoming environment for individuals of many backgrounds.  This will serve as a positive change to allow more secure neighborhoods by getting to know your neighbors.  This bill requires cities to allow neighborhood cafés and stores.  The bill did not make it through the Senate last year, but this version allows cities to have more control.

 

(Opposed) None.

 

(Other) "Limited menu of food items" could be hard to regulate.  "Infeasible" is an ambiguous term.

Persons Testifying:

(In support) Representative Mark Klicker, prime sponsor; Katie Beeson, Washington Food Industry Association (WFIA); Bryce Yadon, Futurewise; Sean DeWitz, Washington Hospitality Association; Mark Schuller, City of Cheney; Rachel Mazur, Hillis, Clark, Martin and Peterson; and Paul Woods.

(Other) Carl Schroeder, Association of Washington Cities.
Persons Signed In To Testify But Not Testifying: None.
HOUSE COMMITTEE ON APPROPRIATIONS
Majority Report: The second substitute bill be substituted therefor and the second substitute bill do pass and do not pass the substitute bill by Committee on Local Government.Signed by 30 members:Representatives Ormsby, Chair; Gregerson, Vice Chair; Macri, Vice Chair; Couture, Ranking Minority Member; Connors, Assistant Ranking Minority Member; Penner, Assistant Ranking Minority Member; Schmick, Assistant Ranking Minority Member; Berg, Bergquist, Burnett, Caldier, Callan, Corry, Cortes, Doglio, Dye, Fitzgibbon, Keaton, Leavitt, Lekanoff, Manjarrez, Marshall, Peterson, Pollet, Rude, Ryu, Springer, Street, Thai and Tharinger.
Staff: Jackie Kauble (786-7125).
Summary of Recommendation of Committee On Appropriations Compared to Recommendation of Committee On Local Government:

The Appropriations Committee recommends:

  • allowing cities to regulate signage and advertising that are visible from the street for neighborhood stores and cafés;
  • prohibiting neighborhood stores and cafés permitted in residential zones from having signage, displays, or advertising visible from a sidewalk or street for products that are illegal to sell to individuals under 21 years old;
  • prohibiting neighborhood stores and cafés permitted in residential zones from selling products containing nicotine;
  • allowing cities to regulate neighborhood cafés and neighborhood stores in the same manner as other uses in the same zoning district, provided that such regulations are consistent with the bill's requirements, and are not more restrictive than other development regulations governing residential uses within the same zoning district; and
  • exempting development and zoning regulations allowing for neighborhood cafés and neighborhood stores from the State Environment Policy Act.
Appropriation: None.
Fiscal Note: Available.
Effective Date of Second Substitute Bill: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony:

(In support) This bill has been worked on in a bipartisan manner to ensure that local control is maintained while opening up new experiences to first time business owners.  There are already businesses around the state that operate within neighborhoods, but securing new space for operation is often challenging due to local zoning restrictions.  This bill creates opportunities to share treats and build great experiences with neighborhoods and communities throughout Washington. 

 

(Opposed) This could kill small businesses.  There is a neighborhood market that is located in a center with a historic theater and several other eateries and coffee shops that is struggling due to high prices because vendors have more requirements.  It also has the potential to upend conditions and restrictions of legally established homeowners' associations.  Cities should decide what is best for their city.  This can be seen as legislative overreach.

Persons Testifying:

(In support) Sean DeWitz, Washington Hospitality Association.

(Opposed) Kathleen Hansen, An HOA on Bainbridge Island.
Persons Signed In To Testify But Not Testifying: None.