Bill > SB5421

This bill seeks to enable small businesses to operate in residential zones across Washington state cities and towns, with the goal of strengthening community connections and supporting local economies. The legislation allows cities and towns to permit "neighborhood businesses" in residential areas, with specific size and operational restrictions. These permitted businesses include small cafés (500-2,000 square feet with limited outdoor seating), small retail stores selling groceries or local products (up to 10,000 square feet), licensed child care facilities serving up to 45 children, and professional service businesses with no more than three full-time employees. Local governments can establish regulations around these businesses to ensure neighborhood compatibility, such as controlling hours of operation, noise levels, signage, delivery timing, and traffic flow. Notably, the businesses cannot have drive-through facilities, and alcohol sales must comply with existing liquor board regulations. The bill recognizes the significant role of small businesses in Washington, where they comprise 99.5 percent of all businesses and employ nearly half the state's workforce, and aims to create more vibrant, walkable neighborhoods that support local entrepreneurship and community connections.

Government Affairs

https://app.leg.wa.gov/billsummary?BillNumber=5421&Year=2025&Initiative=false