Report - 2026 02 25 A34104 D299213 Bill Report 2294 E Sbr Bte Ta 26

Summary

A Senate Bill Report on EHB 2294, as of February 19, 2026, prepared by staff of the Senate Committee on Business, Trade & Economic Development, on an act prohibiting negative use restrictions on real property that limit consumer access to food and medicine. The report states the bill passed the House on 2/13/26, 69-25, with prime sponsor Representative Darya Farivar. It summarizes the bill's ban on private agreements restricting use of property for a grocery store or pharmacy, exceptions for existing restrictions, relocations within two miles and retail centers, local government modifications, a ten-day notice requirement to the attorney general, and enforcement by the attorney general and local governments. It closes with a staff summary of pro and other public testimony.

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                             SENATE BILL REPORT
                                  EHB 2294

                                     As of February 19, 2026

Title: An act relating to prohibiting negative use restrictions on real property that have the effect
     of limiting consumer access to food and medicine.

Brief Description: Prohibiting negative use restrictions on real property that have the effect of
     limiting consumer access to food and medicine.

Sponsors: Representatives Farivar, Zahn, Berry, Parshley, Ryu, Tharinger, Reeves, Reed,
    Ramel, Obras, Cortes, Nance, Street, Duerr, Kloba, Taylor, Doglio, Gregerson, Scott,
    Goodman, Macri, Fosse, Thai, Pollet, Bernbaum and Salahuddin.

Brief History: Passed House: 2/13/26, 69-25.
     Committee Activity: Business, Trade & Economic Development: 2/19/26.


                                     Brief Summary of Bill
           • Prohibits agreements that impose restrictions on real property that
             prevent or restrict the use of the property for a grocery store or
             pharmacy.
           • Includes exceptions for temporary restrictions for grocery stores or
             pharmacies relocating nearby or within a retail center, which may be
             modified by local governments.
           • Requires notice of an agreement and creates an enforcement mechanism
             for the attorney general and local governments through judicial action.


SENATE COMMITTEE ON BUSINESS, TRADE & ECONOMIC DEVELOPMENT

     Staff: William Bridges (786-7312)

     Background: By using negative use restrictions, private parties may agree to restrict the
     use of real property through contracts, deed restrictions, restrictive covenants, leases,




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

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     memoranda of leases, or other recorded or unrecorded instruments. Several local
     jurisdictions in Washington, such as Bellingham, Kent, and Seattle, have enacted
     ordinances prohibiting negative use restrictions on real property if the restrictions regard
     grocery stores, drug stores, or pharmacies.

     Summary of Bill: Prohibiting Specified Negative Use Restrictions on Real Property.
     Subject to exceptions, a private agreement that imposes a negative use restriction upon real
     property so as to prohibit or restrict the use of the property for a grocery store or pharmacy
     when the use would otherwise be permitted under applicable law, is declared to be against
     public policy, prohibited, void, and unenforceable on or after the effective date of the bill.

     The prohibition:
        • applies to any private agreement incorporated into a contract, deed restriction,
           restrictive covenant, lease, memorandum of lease, or any other recorded or
           unrecorded instrument;
        • includes a private agreement limiting the size of a grocery store or pharmacy; and
        • applies to negative use restrictions that prohibit or restrict the use of real property for
           a pharmacy alone and to negative use restrictions that prohibit or restrict the use of
           real property for a drug store that includes a pharmacy within the establishment.

     Creating Exceptions. Existing Restriction Exception. The prohibition does not apply to an
     agreement imposing a negative use restriction that became effective prior to the effective
     date of the bill.

     Relocation Exception. The prohibition does not apply to an agreement imposing a negative
     use restriction prohibiting or restricting the use of real property for a grocery store or
     pharmacy after an owner or operator of a grocery store or pharmacy discontinues operations
     of the grocery store or pharmacy on the property for the purpose of relocating the grocery
     store or pharmacy, if the following conditions are met:
         • when compared to the discontinued store, the relocated store or pharmacy is similar in
            size or larger and similar in the scope of products sold;
         • the relocated grocery store or pharmacy is located within two miles of the
            discontinued site, subject to local modification;
         • relocation and the commencement of operations at the new site occur within two
            years following the discontinued store or pharmacy's closure, subject to force majeure
            and local modification; and
         • the negative use restriction imposed on the prior site does not have a term in excess of
            five years from the date of the closure, subject to local modification.

     Retail Center Exception. The prohibition does not apply to an agreement imposing a
     negative use restriction prohibiting or restricting the use of real property for a grocery store
     or pharmacy in order to limit competition or conflicting uses within the confines of a retail
     center by allowing only a limited number of grocery stores or pharmacies within the retail
     center. However, it remains unlawful for any owner or operator who discontinues grocery


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     store or pharmacy use at a site within a retail center for a period exceeding one year, subject
     to local modification and the separate relocation exception, to enforce a negative use
     restriction prohibiting or restricting grocery store or pharmacy uses within the center.

     Allowing Modifications by Local Governments. Upon the written request of an owner or
     operator and the requestor's presentation of evidence establishing extenuating circumstances
     that demonstrate good cause for the extension, a city, town, or county may, by written
     determination, extend the following requirements as they apply to the requestor:
         • for the relocation exception, that the relocated grocery store or pharmacy is located
           within two miles of the discontinued site is changed to no more than five miles;
         • for the relocation exception, that relocation and commencement of operations at the
           new site occurs within two years following the discontinued store or pharmacy's
           closure;
         • for the relocation exception, that the negative use restriction imposed on the prior site
           not have a term in excess of five years from the date of the closure; and
         • for the retail center exception, the one-year limit for an owner or operator who
           discontinues grocery store or pharmacy use at a site within a retail center for
           enforcing a negative use restriction prohibiting or restricting grocery store or
           pharmacy uses within the retail center.

     Factors for considering good cause include but are not limited to the following:
        • maintaining or increasing food and medicine access in the surrounding area, including
           the area around the discontinued site;
        • needs related to financing and construction for the new location; and
        • promoting private investment in the surrounding area.

     Requiring Notifications. A party who enters a private agreement that imposes a negative use
     restriction upon real property so as to prohibit or restrict the use of the property for a
     grocery store or pharmacy when the use would otherwise be permitted by law, must within
     ten days of entering the private agreement, notify the attorney general and the appropriate
     local jurisdiction.

     Providing for Enforcement by the Attorney General and Local Governments. The attorney
     general or a city, town, or county may judicially enforce the prohibition of negative use
     restrictions, including declaratory relief, injunctive relief, or other legal or equitable
     remedies. A city or town may enforce the prohibition with respect to real property located in
     the city or town. A county may only enforce the prohibition with respect to real property
     located in an unincorporated area of the county.

     Nothing in the bill prevents a city, town, or county from enacting or enforcing an ordinance
     imposing a civil penalty, or authorizing other relief, for a violation of a local ordinance that
     is similar to the prohibition in the bill.

     Appropriation: None.


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     Fiscal Note: Available.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.

     Staff Summary of Public Testimony: PRO: The Lake City neighborhood lost its only
     major grocery store and pharmacy last fall, which was devastating for the community. Food
     access is a major issue with the closing of brick and motor grocery stores. This bill is one of
     three that is addressing this issue. This bill is a simple concept that prohibits a grocery store
     or pharmacy leaving a community from preventing another one from moving in. Zip code
     should not determine if you have access to fresh and healthy food. This bill represents the
     first line of defense in assuring this access.

     Some stores are concerned they have been prevented from offering services after a
     competitor has left a location. Preventing covenants is a positive step in helping
     neighborhood, family-owned grocery stores move into communities that may be better
     served by a smaller store. This bill helps to protect independent grocers and communities
     during a time of peak affordability challenges.

     OTHER: The work of the sponsor is recognized for addressing issues affecting brick and
     motor grocery stores. Some of these issues are increasing operational costs and on-going
     retail crime. Restrictive covenants are used as a tool to protect investments made in the store
     that is closing and for other stores in the area that are struggling to continue to operate.
     There are provisions in the bill that address some business concerns; for example,
     provisions regarding the relocation of stores. Additional language is requested to perfect the
     provision regarding retail centers.

     Persons Testifying: PRO: Representative Darya Farivar, Prime Sponsor; Molly
     Pfaffenroth, Washington Food Industry Association.

     OTHER: Brandon Houskeeper, NW Grocery Retail Association.

     Persons Signed In To Testify But Not Testifying: No one.




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