A bill significantly increasing the financial support available to small businesses and nonprofits displaced by public works projects has been delivered to the Governor for final action after receiving overwhelming support in the state legislature. House Bill 1733, which amends RCW 8.26.035, relates to increasing the reimbursement cap for moving and relocation expenses incurred by persons affected by agency displacements.

This will affect those displaced by the West Seattle Light Rail Link Extension and future businesses facing removal through eminent domain by public works projects.

The legislation saw smooth passage through both chambers of the Washington Legislature. It passed the House of Representatives with a unanimous 96-0 vote on March 11, 20251. It then advanced to the Senate, where it also passed unanimously with a 49-0 vote on April 16, 20251. The House subsequently concurred with the Senate's amendments, giving final approval with a 94-0 vote on April 24, 20251. As of April 26, 2025, the bill has been delivered to the Governor for final action and was signed into law May 17.

The core of HB1733 is the substantial increase in the maximum amount a displacing agency must provide for the actual reasonable expenses necessary to reestablish a displaced farm, nonprofit organization, or small business at its new site. Previously capped at fifty thousand dollars, the new cap is set at $200,000 [(i)]. There is a temporary cap of $100,000 until August 1, 2030, specifically if the displacing agency is a state agency [8(i), 11]. Alternatively, the cap can be the dollar amount allowed under 42 U.S.C. Sec. 4622 as it existed on July 23, 2017, or a subsequent date set by rule, whichever is greater [(ii), (ii), ]. Beyond the initial increase, beginning August 1, 2025, and annually thereafter, the lead agency is required to adjust the $200,000 and $100,000 dollar amounts for inflation by increasing the previous year's amount by two percent. This means the cap will continue increasing every year.

The bill ensures that displaced persons are provided for, including payment of actual reasonable expenses for moving, direct losses of tangible personal property (up to relocation cost), and actual reasonable expenses in searching for a replacement. For qualified businesses or farm operations, there is also an option to elect a fixed payment instead of actual expenses, determined by criteria established by the lead agency, but not less than the amount allowed under 42 U.S.C. Sec. 4622 as it existed on July 23, 2017, or a subsequent date by rule.

Jordan Crawley, Assistant Director at the Alki Beach Academy and Chair of the 34th District Democrats, issued a statement celebrating the bill's legislative success. His full statement is below:

"Today, small businesses and nonprofits displaced by public works projects can count on FOUR TIMES the financial support for reestablishing their operations. Not only that, but no business will ever have to fight this fight again because the cap will continue increasing every year. This is because of the hard work we and our legislators devoted to securing just outcomes for our small business community.

Fighting for small businesses does not mean opposing equitable access to public transit5. Supporting our community requires championing better infrastructure AND ensuring those impacted have the resources they need to thrive5.

We got this done for West Seattle, but it will have lasting benefits for all of Washington.

Special thanks to those who helped support us all the way through,"