The bill aims to facilitate the establishment of neighborhood stores and cafes in residential zones by mandating that cities and towns permit these businesses in any area designated for residential use. It specifies that neighborhood cafes must offer food if they serve alcoholic beverages and allows local governments to regulate parking and hours of operation, ensuring that cafes can operate for at least 12 consecutive hours. Additionally, the bill prohibits signage or advertising for products illegal to sell to individuals under 21 years of age and restricts neighborhood stores in residential zones from selling nicotine products. Cities are granted the authority to implement further regulations, provided they align with the bill's provisions and do not impose stricter rules than those governing other residential uses.

Furthermore, the bill includes provisions for cities that are required to update their comprehensive plans under the growth management act, mandating them to incorporate these new requirements into their development regulations. It exempts cities with populations under 5,000 that are part of a contiguous urban growth area with a larger city from these requirements. The bill also reenacts and amends existing laws to ensure consistency with the new regulations, including the addition of new exemptions for ordinances and regulations necessary to comply with the bill's sections.