Fiscal Note — 2294 HB, Use Restrictions on Food and Medicine (Multiple Agency Summary, Final 1/20/2026)

Summary

This is a Multiple Agency Fiscal Note Summary for Bill Number 2294 HB, titled Use restrictions/food, med., marked Final 1/20/2026, followed by individual notes. The Individual State Agency Fiscal Note from agency 100, the Office of Attorney General, has the No Fiscal Impact box marked. Its narrative says the Attorney General's divisions reviewed HB 2294 and determined it will not significantly increase or decrease their workload, so no costs are included. A Local Government Fiscal Note section states there is no expected local government revenue associated with the bill.

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“Fiscal Note — 2294 HB, Use Restrictions on Food and Medicine (Multiple Agency Summary, Final 1/20/2026).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2026-02-19-a33947-d297328-2294-hb-fn-final-01-20-26-53dcc1f9d3/, SHA-256 52248d9fcc798cc6adc90502694e2d410f638ec5b2380528a9a40158c437575d.

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Multiple Agency Fiscal Note Summary
Bill Number: 2294 HB Title: Use restrictions/food, med.

Estimated Cash Receipts
NONE

Agency Name 2025-27 2027-29 2029-31
GF- State Total GF- State Total GF- State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other No fiscal impact

Local Gov. Total

Estimated Operating Expenditures
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outloo Total FTEs GF-State NGF-Outlook Total
Office of Attorney .0 0 0 0 .0 0 0 0 .0 0 0 0
General
Environmental and .0 0 0 0 .0 0 0 0 .0 0 0 0
Land Use Hearings
Office

Total $ 0.0 0 0 0 0.0 0 0 0 0.0 0 0 0

Agency Name 2025-27 2027-29 2029-31
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other No fiscal impact

Local Gov. Total

Estimated Capital Budget Expenditures
NONE

Agency Name 2025-27 2027-29 2029-31
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Office of Attorney .0 0 0 .0 0 0 .0 0 0
General
Office of Attorney
General
Environmental and Land .0 0 0 .0 0 0 .0 0 0
Use Hearings Office
Environmental and Land
Use Hearings Office

Total $ 0.0 0 0 0.0 0 0 0.0 0 0

FNPID: 75386

FNS029 Multi Agency rollup
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other No fiscal impact

Local Gov. Total

Estimated Capital Budget Breakout
NONE

Prepared by: Val Terre, OFM Phone: Date Published:
(360) 280-3073 Final 1/20/2026

FNPID: 75386

FNS029 Multi Agency rollup
Individual State Agency Fiscal Note

Bill Number: 2294 HB Title: Use restrictions/food, med. Agency: 100-Office of Attorney
General

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.

Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Peter Clodfelter Phone: 360-786-7127 Date: 01/12/2026
Agency Preparation: Kate Adams Phone: 3605864945 Date: 01/15/2026
Agency Approval: Joe Zawislak Phone: 360-586-3003 Date: 01/15/2026
OFM Review: Val Terre Phone: (360) 280-3073 Date: 01/16/2026

Form FN (Rev 1/00) 208,760.00 Request # 043-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 2294 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency
by section number.

1. The AGO Agriculture & Health Division (AHD) has reviewed HB 2294 and determined it will not significantly increase
or decrease the division’s workload in representing the Department of Commerce (Commerce). Commerce was assigned
this fiscal note request for its role in estimating the impact of bills on local governments. This work by Commerce is not
expected to generate requests for legal services from AHD. Therefore, no costs are included in this request.

2. The AGO Consumer Protection Division (CPR) has reviewed HB 2294 and determined it will not significantly increase
or decrease the division’s workload. The enactment of HB 2294 will not significantly impact CPR because it provides for
enforcement by cities, towns, and counties, which are better placed to enforce the provisions and have expertise in this
area. CPR anticipates any impact would be limited to monitoring for compliance. New legal services are nominal, and
costs are not included in this request.

3. The AGO Licensing & Administrative Law Division (LAL) has reviewed this bill and determined it will not
significantly increase or decrease the division’s workload in representing the Environmental and Land Use Hearings
Office (ELUHO). The HB 2294 language does not mention ELUHO or its boards, for example no express language
regarding right to appeal to the boards, LAL does not assume any impact to client or LAL. Therefore, no costs are
included in this request.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate,
the detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived.
Explanation of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.

II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result
in the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the
expenditure impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing
functions.

Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE

III. C - Operating FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I
and Part IIIA.
NONE

III. D - Expenditures By Program (optional)
NONE

Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE

Use restrictions/food, med. 100-Office of Attorney General
Form FN (Rev 1/00) 208,760.00 Request # 043-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 2294 HB
IV. B - Expenditures by Object Or Purpose
NONE

IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE

IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.

NONE

Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.

Use restrictions/food, med. 100-Office of Attorney General
Form FN (Rev 1/00) 208,760.00 Request # 043-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 2294 HB
Individual State Agency Fiscal Note

Bill Number: 2294 HB Title: Use restrictions/food, med. Agency: 468-Environmental and Land
Use Hearings Office

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Peter Clodfelter Phone: 360-786-7127 Date: 01/12/2026
Agency Preparation: Griffin Howe Phone: (360) 974-9514 Date: 01/13/2026
Agency Approval: Dominga Soliz Phone: 3606649173 Date: 01/13/2026
OFM Review: Lisa Borkowski Phone: (360) 742-2239 Date: 01/14/2026

Form FN (Rev 1/00) 208,015.00 Request # -1
FNS063 Individual State Agency Fiscal Note 1 Bill # 2294 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency
by section number.

Sec. 1 adds a new definitions to chapter 19 RCW, the miscellaneous business regulation section.

Sec. 2 prohibits private real estate agreements that restrict the use of real property to prohibit grocery stores or pharmacies
subject to certain limitations.

Sec. 3 provides for cities, towns, and counties to provide limited exceptions.

Sec. 4 provides for attorney general enforcement and enforcement by cities/towns and counties.

Sec. 5 is a legislative finding that the practice of restricting is not reasonable for the development and preservations of
business and is an unfair or a deceptive practice and is a restraint on trade.

Sec. 6 provides that if any act or application is held invalid, the remaining provisions are not affected.

This bill does not appear to impact the Environmental and Land Use Hearings Office or its Boards.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate,
the detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived.
Explanation of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.

None.

Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE

III. C - Operating FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I
and Part IIIA.
NONE

III. D - Expenditures By Program (optional)
NONE

Use restrictions/food, med. 468-Environmental and Land Use Hearings Office
Form FN (Rev 1/00) 208,015.00 Request # -1
FNS063 Individual State Agency Fiscal Note 2 Bill # 2294 HB
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE

IV. B - Expenditures by Object Or Purpose
NONE

IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE

IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.

NONE
None.

Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.

Use restrictions/food, med. 468-Environmental and Land Use Hearings Office
Form FN (Rev 1/00) 208,015.00 Request # -1
FNS063 Individual State Agency Fiscal Note 3 Bill # 2294 HB
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce

Bill Number: 2294 HB Title: Use restrictions/food, med.

Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
Cities:
Counties:
Special Districts:

Specific jurisdictions only:
Variance occurs due to:

Part II: Estimates
X No fiscal impacts.

Expenditures represent one-time costs:

X Legislation provides local option: Municipalities could adopt civil enforcement processes, or authorize other relief, for a violation
of a local ordinance that is similar to the prohibition in section 2 of this act.
Key variables cannot be estimated with certainty at this time:

Estimated revenue impacts to:
None

Estimated expenditure impacts to:
None

Part III: Preparation and Approval
Fiscal Note Analyst: Jordan Laramie Phone: 360-725-5044 Date: 01/14/2026
Leg. Committee Contact: Peter Clodfelter Phone: 360-786-7127 Date: 01/12/2026
Agency Approval: Allan Johnson Phone: 360-725-5033 Date: 01/14/2026
OFM Review: Val Terre Phone: (360) 280-3073 Date: 01/16/2026
Page 1 of 3 Bill Number: 2294 HB
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Description of the bill with an emphasis on how it impacts local government.
This fiscal note reflects language in HB 2294 from the 2026 legislative session.

This proposed legislation would create a new chapter under the Consumer Protection Act that would void certain private
agreements that prohibit or restrict using property for a grocery store or pharmacy when that use would otherwise be
allowed under local land use ordinances.

Sec. 1 is definitions of food and medicine stores that pertain to following sections of the act.

Sec. 2 is a new section that prohibits any private agreement that imposes a negative use restriction upon real property
that would restrict the use of that real property for a grocery store or pharmacy when the use would otherwise be
permitted under applicable land use ordinances, including as a conditional use. Exemptions are provided for agreements
made before the effective date of this act as well as if the grocery store or pharmacy is relocating (with certain
conditions).

Sec. 3 is a new section that establishes the notice for an extension that city, town, or county may use as evidence
established extenuating circumstances.

Sec. 4 is a new section that establishes enforcement mechanisms, enforcement jurisdiction, and authorizes cities, towns,
and counties to adopt their own ordinances imposing additional civil penalties.

Sec. 5 is a new section that establishes enforcement of section 2 of this act is the sole authority of the Attorney General.

This act would go into effect 90 days after then adjournment of the session in which it is passed.
B. SUMMARY OF EXPENDITURE IMPACTS
Expenditure impacts of the legislation on local governments with the expenditure provisions identified by section number and when
appropriate, the detail of expenditures. Delineated between city, county and special district impacts.

Under HB 2294, there would be no expenditure impact as it does not require a local government to take action.

Section 5 of this legislation establishes that the Attorney General would be enforcing the new statutory requirements
under the Consumer Protection Act, so there would be no law enforcement, prosecution or defense costs.

JURISDICTONS CHOOSING THE LOCAL OPTION:
For cities, towns, or counties that choose to implement the local option in Sec. 4, there may be costs associated with
ordinance adoption to establish civil penalties or other relief if the city, town, or county adopts a significantly similar
local regulation as the prohibition in Sec. 2 of this act.

Local ordinance adoption and implementation is expected to require approximately $9,850 for cities and towns and to
$9,800 for counties in staff time and direct expenses as well as legal review. These costs are associated with a
moderately complex ordinance with hearing of the same complexity. The number of local governments that would take
the local option is not currently known, but assumed to be non-zero.

As a current examples, the City of Bellingham has this codified in a substantially similar ordinance into local statute
under BMC 20.10.027 "Restrictive covenants related to grocery stores", the City of Seattle issued emergency ordinance
127329 in late 2025 adding SMC 23.42.140 and amending sections 23.90.004 and 23.90018 to prohibit negative use
restrictions (like restrictive covenants) that block real property from being used as a grocery store or pharmacy.

BACKGROUND:
Land use restrictions unlawfully barred competitors from occupying its former Albertsons location since 2018. The

Page 2 of 3 Bill Number: 2294 HB
FNS060 Local Government Fiscal Note
property has been sold twice since Albertsons closed its store, located in the Birchwood neighborhood in Bellingham,
but the restrictions imposed by Albertsons still barred a grocery store from moving into the development through 2038,
leaving thousands of residents without a full-service supermarket within reasonable walking distance. (Washington
Attorney General’s Office)
C. SUMMARY OF REVENUE IMPACTS
Revenue impacts of the legislation on local governments, with the revenue provisions identified by section number, and when appropriate,
the detail of revenue sources. Delineated between city, county and special district impacts.

There is no expected local government revenue associated with this bill.

SOURCES:
Association of Washington Cities, Salary Survey (2025)
Attorney General’s Office
City of Bellingham, BMC 20.10.027 “Restrictive covenants related to grocery stores”
City of Seattle, Council Bill 121094 (Oct. 2025)
Local Government Fiscal Note Program, Unit Cost Model (2026)
My Bellingham Now, Grocery giant to remove land restriction in Birchwood neighborhood (June 26, 2024)

Page 3 of 3 Bill Number: 2294 HB
FNS060 Local Government Fiscal Note

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