This bill mandates that cities and towns in Washington State allow neighborhood stores and neighborhood cafes to be established in any residential zone, provided that cafes serve food if they offer alcoholic beverages. The legislation outlines specific regulations regarding parking, hours of operation, and advertising. Notably, neighborhood stores in residential areas are prohibited from selling nicotine products, and any signage related to products illegal for individuals under 21 must not be visible from public sidewalks or streets. Additionally, cities have the authority to implement further regulations as long as they align with the bill's provisions and do not impose stricter rules than those governing other residential uses.

The bill also 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. Furthermore, it reenacts and amends existing law to exempt certain nonproject actions from environmental review, specifically those related to compliance with the new sections introduced in this act. This includes the adoption or amendment of ordinances and regulations necessary to align with the new requirements for neighborhood stores and cafes.