H-1727.1

SECOND SUBSTITUTE HOUSE BILL 1175

ByHouse Appropriations (originally sponsored by Representatives Klicker, Leavitt, Taylor, Parshley, Richards, Ryu, Thai, Barkis, Fitzgibbon, Dye, Macri, Doglio, Wylie, Kloba, Nance, and Bernbaum)

AN ACT Relating to allowing small business establishments in residential zones; reenacting and amending RCW 43.21C.450; adding a new section to chapter 35.21 RCW; and adding a new section to chapter 35A.21 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1. A new section is added to chapter 35.21 RCW to read as follows:

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

(2) Cities and towns may regulate parking provided that the regulations are not infeasible.

(3) Hours of operation may be limited by the city or town provided that neighborhood cafés are permitted to operate for at least 12 consecutive hours.

(4) Neighborhood stores and cafes permitted under this section may not have signage, displays, or advertising visible from a sidewalk or street for products that are illegal to sell to individuals under 21 years of age. Neighborhood stores permitted in residential zones may not sell products containing nicotine, either as a tobacco product or manufactured nicotine.

(5) Cities may establish additional regulations as necessary, including regulations relating to signage and advertising that are visible from the street for neighborhood stores and cafes and maximum square footage requirements. Nothing in this section limits a city's zoning authority to regulate neighborhood cafes and neighborhood stores as the city would with other uses in the same zoning district provided that all such regulations adopted by a city are both consistent with this section and are no more restrictive than the development regulations governing residential uses within the same zoning district.

(6) Cities that plan under the growth management act and that are required to submit their next comprehensive plan update in 2027 pursuant to RCW 36.70A.130 must adopt or amend by ordinance, and incorporate into their development regulations, zoning regulations, and other official controls, the requirements of this section in their next comprehensive plan update. All other cities must implement the requirements of this section within two years of the effective date of this section.

(7) For the purposes of this section:

(a) "Neighborhood café" means an establishment that has at least 500 square feet of gross floor area; and

(b) "Neighborhood store" means a convenience grocery store or mini-market that provides a variety of convenience items that may include, but are not limited to, food, beverages, and household items. A neighborhood store must be at least 500 square feet of gross floor area.

NEW SECTION.  Sec. 2. A new section is added to chapter 35A.21 RCW to read as follows:

(1) A code city or town must allow neighborhood stores and neighborhood cafés to be permitted in any zone allowing residential uses provided that a café must offer food if alcoholic drinks are offered.

(2) Cities and towns may regulate parking provided that the regulations are not infeasible.

(3) Hours of operation may be limited by the city or town provided that neighborhood cafés are permitted to operate for at least 12 consecutive hours.

(4) Neighborhood stores and cafes permitted under this section may not have signage, displays, or advertising visible from a sidewalk or street for products that are illegal to sell to individuals under 21 years of age. Neighborhood stores permitted in residential zones may not sell products containing nicotine, either as a tobacco product or manufactured nicotine.

(5) Code cities may establish additional regulations as necessary, including regulations relating to signage and advertising that are visible from the street for neighborhood stores and cafes and maximum square footage requirements. Nothing in this section limits a code city's zoning authority to regulate neighborhood cafes and neighborhood stores as the code city would with other uses in the same zoning district provided that all such regulations adopted by a code city are both consistent with this section and are no more restrictive than the development regulations governing residential uses within the same zoning district.

(6) Code cities that plan under the growth management act and that are required to submit their next comprehensive plan update in 2027 pursuant to RCW 36.70A.130 must adopt or amend by ordinance, and incorporate into their development regulations, zoning regulations, and other official controls, the requirements of this section in their next comprehensive plan update. All other code cities must implement the requirements of this section within two years of the effective date of this section.

(7) For the purposes of this section:

(a) "Neighborhood café" means an establishment that has at least 500 square feet of gross floor area; and

(b) "Neighborhood store" means a convenience grocery store or mini-market that provides a variety of convenience items that may include, but are not limited to, food, beverages, and household items. A neighborhood store must be at least 500 square feet of gross floor area.

Sec. 3. RCW 43.21C.450 and 2023 c 332 s 9 and 2023 c 285 s 4 are each reenacted and amended to read as follows:

The following nonproject actions are categorically exempt from the requirements of this chapter:

(1) Amendments to development regulations that are required to ensure consistency with an adopted comprehensive plan pursuant to RCW 36.70A.040, where the comprehensive plan was previously subjected to environmental review pursuant to this chapter and the impacts associated with the proposed regulation were specifically addressed in the prior environmental review;

(2) Amendments to development regulations that are required to ensure consistency with a shoreline master program approved pursuant to RCW 90.58.090, where the shoreline master program was previously subjected to environmental review pursuant to this chapter and the impacts associated with the proposed regulation were specifically addressed in the prior environmental review;

(3) Amendments to development regulations that, upon implementation of a project action, will provide increased environmental protection, limited to the following:

(a) Increased protections for critical areas, such as enhanced buffers or setbacks;

(b) Increased vegetation retention or decreased impervious surface areas in shoreline jurisdiction; and

(c) Increased vegetation retention or decreased impervious surface areas in critical areas;

(4) Amendments to technical codes adopted by a county, city, or town to ensure consistency with minimum standards contained in state law, including the following:

(a) Building codes required by chapter 19.27 RCW;

(b) Energy codes required by chapter 19.27A RCW; and

(c) Electrical codes required by chapter 19.28 RCW;

(5) Adoption or amendment of ordinances, development regulations, zoning regulations, and other official controls necessary to comply with RCW 35A.21.440 and 35.21.990;

(6) Amendments to development regulations to remove requirements for parking from development proposed to fill in an urban growth area designated according to RCW 36.70A.110;

(7) Adoption or amendment of ordinances, development regulations, zoning regulations, and other official controls necessary to comply with sections 1 and 2 of this act.

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