HB 1733, which increases the statutory cap on the required payments public agencies make to assist displaced small business owners and non-profits, passed the House by a unanimous vote.
The bill increases the cap on required assistance payments for reestablishment costs from $50,000 to $200,000, in an effort to modernize the law to match the actual costs small, private entities incur when displaced by a public project.
In addition to reestablishment expenses, cities are responsible for covering other costs related to agency displacements of small businesses and nonprofits, such as relocation and replacement expenses. The total amount cities may end up paying for a displacement is typically much higher than the cost for reestablishment.
AWC still seeks to understand the scope of the bill’s impact to cities. Please contact AWC staff with your feedback.
Date to remember
HB 1773 is scheduled for a public hearing in the Senate Law & Justice Committee on Monday, March 24 at 10:30 am. It is scheduled for Executive Session in the same Committee on Thursday, March 27 at 10:30 am.
City relocation assistance payments to small business owners may increase four-fold
February 21, 2025
Cities may be on the hook for relocation assistance payments of up to $200,000 for projects that displace farms or small businesses.
HB 1733, from Rep. Brianna Thomas (D–Seattle), increases the statutory cap on the payments public project owners must make to assist displaced farms or small business owners to reestablish themselves elsewhere. Currently the cap is $50,000. The bill also requires that the cap be adjusted for inflation annually beginning August 2025.
The cap was last increased in 2003. Proponents of the bill argue another increase is needed to reflect the current costs incurred by small business owners when a public agency acquires the land upon which they are located.
AWC seeks to understand the scope of the bill’s impact for cities. If your city or town has a project planned that would be affected by the legislation, please contact AWC staff.
Date to remember
HB 1733 is scheduled for public hearing in the House Transportation Committee on Monday, February 24, at 1:30 pm.