This bill mandates that cities and towns in Washington State allow neighborhood stores and neighborhood cafés to be established in any zone that permits residential uses. It specifies that if a café serves alcoholic drinks, it must also offer food. The legislation allows local governments to regulate parking and set hours of operation, ensuring that neighborhood cafés can operate for at least 12 consecutive hours. Additionally, cities can impose further regulations, including maximum square footage requirements for these establishments. Cities that are required to update their comprehensive plans under the growth management act must incorporate these new requirements in their next update, while other cities have a two-year timeframe to comply.

The bill defines "neighborhood café" as an establishment with a minimum of 500 square feet of gross floor area and "neighborhood store" as a convenience grocery store or mini-market that also has at least 500 square feet of gross floor area, providing a variety of convenience items. The provisions are included in new sections added to chapters 35.21 and 35A.21 of the Revised Code of Washington (RCW), ensuring that both general and code cities adhere to these regulations.