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HomeMy WebLinkAbout2026, 01-20 Formal B MeetingMINUTES City of Spokane Valley City Council Meeting Formal B Format Tuesday, January 20, 2026 Mayor Padden called the meeting to order at 6 p.m. The meeting was held in person by Council and staff in Council Chambers, and also remotely via Zoom meeting. Attendance: Councilmembers Staff Laura Padden, Mayor John Hohman, City Manager Tim Hattenburg, Deputy Mayor Erik Lamb, Deputy City Manager Pam Haley, Councilmember Robert Blegen, Public Works Director Michael Kelly, Councilmember Kelly Konkright, City Attorney Jessica Yaeger, Councilmember Tony Beattie, Senior Deputy City Attorney Al Merkel, Councilmember Chelsie Walls, Finance Director Dave Ellis, Police Chief Absent: Jill Smith, Communications Manager Ben Wick, Councilmember Virgina Clough, Legislative Policy Coordinator Mike Basinger, Community & Econ. Dev. Director John Whitehead, HR Director Adam Jackson, Engineering Manager Justan Kinsel, IT Specialist Patricia Rhoades, Deputy City Clerk INVOCATION: Ron Armstrong with Journey Church provided the invocation. PLEDGE OF ALLEGIANCE: Council, staff and the audience stood for the Pledge of Allegiance. ROLL CALL: Deputy City Clerk Rhoades called roll; all Councilmembers were present except Councilmember Wick. It was moved by Councilmember Yaeger seconded and unanimously agreed to excuse Councilmember Wick. APPROVAL OF AGENDA It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the agenda. SPECIAL GUESTS/PRESENTATIONS: PROCLAMATIONS: Community Risk Reduction Week Mayor Padden read the proclamation and Captain Joe Cushner and Deputy Chief Karl Cantrell with the Spokane Valley Fire Department accepted the proclamation. GENERAL PUBLIC COMMENT OPPORTUNITY: After the Mayor explained the process, she invited public comments. No comments were provided. ACTION ITEMS: 1. First Reading: Franchise Ordinance 26-001 Forged Fiber 37. LLC — Tonv Beattie Deputy City Clerk Rhoades read the title of the Ordinance and then it leas moved by Deputy Mayor Hattenburg, seconded to approve to advance Franchise Ordinance 26-001, granting a ten-year telecommunications franchise to Forged Fiber 37, LLC, to a Second Reading. Mr. Beattie provided details on the Franchise application and the process for the new franchise/ordinance, background on the franchise, and requirements on the current franchise being proposed. Council discussed the increased bond amount, the pavement cut policy that currently stands as well, and the timeframe on the warranty or the project work. Council Meeting Minutes: 01-20-2026 Page I of 5 Approved by Council: 02-10-2026 Mayor Padden invited public comments; no comments were offered. Vote by acclamation: in favor. - Unanimous. Opposed.- None. Motion carried. 2. Motion Consideration: AWC CQC Application Selection — Erik Lamb Councilmember Wick It was moved by Deputy Mayor Hattenburg, seconded to confirm the nomination of Ms. Chloe Nelsonfor the AWC Center for Quality Communities Scholarship. Mr. Lamb provided details on the AWC Center for Quality Communities Scholarship Nomination and noted that Ms. Chloe Nelson was the only timely candidate. He noted that she is going to school to become a Medical Examiner and that she volunteers for numerous organizations within the community. Mayor Padden invited public comments; no comments were offered. Vote by acclamation: in favor: Unanimous. Opposed- None. Motion carried. 3. Motion Consideration: Potential Grant Opportunity BUILD Program - Adam Jackson It was moved by Deputy Mayor Hattenburg, seconded to authorize the City Manager or designee, to apply for the BUILD Fiscal Year 2026 grant for the Sullivan & Trent Interchange Project in the amount of $24,959,696. Mr. Jackson provided a brief overview of the grant opportunity and noted that there had not been any changes from the previous presentation. Mayor Padden invited public comments. John Harding, Spokane Valley; Ben Lund, Spokane Valley provided comments. Council commented on the current roundabout design and City Manager Hohman noted that the surrounding businesses were looking forward to the project. Vote by acclaination: infavor: Mayor Padden, Deputy Mayor Hattenburg, Councihnembers Yaeger, Kelly and Haley. Opposed.- Councilineinber Merkel. Motion carried 4. Motion Consideration: Potential Grant Opportunity FMSIB - Adam Jackson It was inoved by Deputy Mayor Hattenburg, seconded to authorize the City Manager or designee to apply to the FMSIB call for projects as identified in the Table in the RCA. Mr. Jackson provided a brief overview of the grant opportunity and noted that there had not been any changes in the projects from the previous presentation and that the projects included the Sullivan/Trent Interchange, the Barker/1-90 Interchange and the Argonne/1-90 Interchange. Mayor Padden invited public comments; no comments were offered. Vote by acclaination: in favor.- Mayor Padden, Deputy Mayor Hattenburg, Councihnembers Yaeger, Kelly and Haley. Opposed.- Councilineinber Merkel. Motion carried 5. Motion Consideration: Potential Grant Opportunity NHFP - Adam Jackson It was inoved by Deputy Mayor Hattenburg, seconded to authorize the City Manager or designee to apply to the NHFP call for projects for the Sullivan/Trent Interchange project and the Barker/I-90 Interchange project. Mr. Jackson provided a brief overview of the grant opportunity and noted that there had not been any changes from the previous presentation. Mayor Padden invited public comments; no comments were offered. Vote by acclamation: in favor .- Mayor Padden, Deputy Mayor Hattenburg, Councihnembers Yaeger, Kelly and Haley. Opposed: Councihnember Merkel. Motion carried. 6. Motion Consideration: ILA w/ Spokane County RE: Commute Trip Reduction — Adam Jackson It was moved by Deputy Mayor Hattenburg, seconded to authorize the execution of the 2025-202 7 Interlocal Agreement for Spokane County Commute Trip Reduction Services. Mr. Jackson provided brief details on the ILA. Mayor Padden invited public comments. John Harding, Spokane Valley provided comments. Vote by acclaination: in favor: Unanimous. Opposed.- None. Motion carried. NON -ACTION ITEMS: 7. Admin Report: Crypto Currency Discussion — Caitlin Prun1y, Chief Ellis Sergeant Bloomer Police Chief Dave Ellis, Sergeant Bloomer, and City Attorney Konkright presented a PowerPoint presentation on Cryptocurrency that included details on the definition of cryptocurrency, the fraud trends, the victim impact of cryptocurrency ATMs in Spokane Valley and the regulation and potential penalties. Sergeant Bloomer noted that this is virtual currency and is more difficult to track. The police can usually go to a bank and track transactions, but it is not the same with cryptocurrency. Sergeant Bloomer also discussed victim impacts: 1. Spokane Valley had a victim that lost over $300,000.00 to a cryptocurrency scam and later committed suicide; 2. 83 year old victim called a number that appeared on their computer screen and withdrew $25,000 and deposited it in a Bitcoin kiosk; 3. job task scam, a victim sent $5,640.00 to the crypto Council Meeting Minutes: 01-20-2026 Page 2 of 5 Approved by Council: 02-10-2026 account; they presented more examples. They showed the warning and caution signs on the machines and stated that there are estimated to be 20 locations in Spokane Valley. City Attorney Konkright looked at the options the City has to regulate these kiosks. 1. A class 1 civil infraction - non -criminal, preponderance of the evidence, issued by law enforcement and prosecuted in District Court, max penalty $250.00, would recommend pairing with revocation of business license; 2. Misdemeanor - Criminal, maximum penalty if a gross misdemeanor carries a maximum of 90 days and $1,000, if a gross misdemeanor carries a maximum 364 days and $5,000, beyond a reasonable doubt, issued by law enforcement and prosecuted in District Court, would recommend pairing with revocation of business license and options set up for repeat offenders; 3. Spokane Code - unlawful for any person/entity to host/allow/operate/permit/locate/place a virtual currency kiosk within the city of Spokane, must remove existing kiosk within 60 days, violations may result in a class 1 civil infraction issued to the virtual currency kiosk operator, the city of Spokane may cancel or revoke the business license or registration. Council discussed the crimes that are committed, education of the community, the location of the kiosks, and the fees associated with the kiosks. Council provided consensus to allow staff return at a later meeting with an ordinance regarding regulations on the kiosks and the cryptocurrency. 8. Admin Report: Task Force Update - Erik Lamb Deputy City Manager Lamb provided an update on the Safe and Healthy Spokane Regional Task Force. Mr. Lamb explained that he has attended three meetings so far and this is an update from the January 8, 2026 meeting. Key themes: Crisis response systems; courts and justice partners committed to reform, reentry services are inconsistent and under resourced, housing is key, workforce shortages, data systems are incompatible and fragmented. Opportunities: Creating fully integrated crisis response continuum, develop post arrest diversion systems for all county, strengthen reentry and transition services, build a robust treatment continuum, create sustainable supportive housing network, implement data -sharing agreements, expand workforce pipelines. Subcommittees include A. Prevention and Crisis Response; B. Custody Strategies and Courts; C. Reentry, Discharge and Community Corrections; D. Facilities, Infrastructure and Systems Coordination. These subcommittees are set to begin work in February. Mr. Lamb is concerned about the timeline; he expressed this at the meeting and to City Manager Hohman. City Manager Hohman passed these concerns on as well. Mr. Lamb was asked to be a co-chair of Subcommittee C along with Maggie Yates. There are two new dashboards; the dashboards provide near real-time data and information about jail usage, pre-trial services, and prosecution. Council discussed the potential of a new jail, accountability on the subcommittees, and goals for the task force. City Manager Hohman noted that this task force got started after the measure failed. Anyone who has taken a tour of the jail knows the condition and the need for more space. He also noted what it looks like when you compare treatment facilities verses incarceration. They also spoke about the need to look at the legislation as well. 9. Admin Report: Legislative Update - Virginia Clough Ms. Clough, Chief Ellis, and Mr. Lamb gave an update on the 2026 Legislative Session and some of the select bills that are coming forward. Mr. Lamb spoke about FLOCK cameras and then Chief Ellis further elaborated on a bill that affects public safety. Ms. Clough noted that there was a hearing on the bill that they are continuing to gather information to submit comments. Mayor Padden suggested to sign in as other and provide comments. Mr. Lamb providing details on another bill listed as modernizing and strengthening laws concerning Sheriffs, Police Chiefs, Town Marshalls, and others and noted that they have weighed in as con on one of the bills already. Chief Ellis explained portions of those bills as well. Council provided feedback regarding the bills. Mr. Lamb continued with additional bills that related that e-bicycles and e-moto bikes and their regulations. Council asked if the information regarding the weekly updates on the legislation was on the website and Ms. Clough noted that currently it is not listed on the website, but if council desired, she would work with the communications department to get it added weekly. Council provided consensus to add the information to the website weekly. Mr. Lamb spoke about a bill that had to do with short term rentals and imposing a 6% tax on the rentals for the state for affordable housing. After much discussion, council consensus was to weigh in as Con on the bill. Mr. Lamb gave details on additional bills regarding transitional housing, emergency shelters, and emergency housing. He noted that these bills could impact on what neighborhoods look like. HB2266 and SB6069 are expanding the various types of housing and are critical to our community. Comments have been provided and will continue to gather comments and monitor the Council Meeting Minutes: 01-20-2026 Page 3 of 5 Approved by Council: 02-10-2026 bills. Mr. Lamb also gave an update on the homeless bill of rights bill and that it has come back and noted that is prohibits cities from enacting public camping laws/rules/ordinances — as previously noted as the Boise v Martin. The bill is HB2489 and the city will be weighing is as con on the bill. The last bill that Mr. Lamb and Ms. Clough spoke about was the Keeping Families Together Act, HB 1092 maintaining the safety of children. Council discussed the strong wording needed in the bill and the need for support on the bill. INFORMATION ONLY: (will not be reported or discussed) GENERAL PUBLIC COMMENT OPPORTUNITY: Mayor Padden stated that the general public comment rules still apply and called for public comments. Ben Lund, Spokane Valley; John Harding, Spokane Valley; Joseph Ghodsee, Spokane Valley provided comments. COUNCIL COMMENTS Councilmember Kelly spoke about being new to this process and appreciates the patience that everyone has had. He noted that there are some complex and complicated issues and appreciates the additional opportunities to gather information on the issues. Councilmember Merkel addressed multiple topics that included the STA bus crash and said it was a huge $2M waste of tax payer money and call for accountability for the organization, had the interesting experience to sit next to Matt Shea on a plane and gave him comments on the city, expressed a personal vision for the city and noted that public safety must come first and also means correct tracking and respect tax payers with performance based contracts. Councilmember Yaeger stated she will be in Olympia next week, so she won't be in attendance next week. She also noted that there is no secret that she is a conservative, and there is a group on FB called the "Conservative Ladies of Washington" and she would encourage people to speak up and be involved in the community. Councilmember Haley spoke about the STA bus incident and noted that there is an ongoing investigation and explained why there is a double-decker bus, the cost of the bus, the reasoning for the purchase of the bus. Deputy Mayor Hattenburg thanked councilmember Haley for providing the bus update and had nothing else to speak about. MAYOR'S COMMENTS Mayor Padden noted that we have done some state bashing tonight and may have a bit more. She noted that here in the state of Washington, we have the highest minimum wage in the nation, there are many layoffs, the price of gas is $0.70 or more, higher than our neighbor Idaho, and businesses are leaving the state. This all affects our community and our residents, all the increases hurt our residents, and the state unfunded mandates applied to us from the state impacts all of us. She closed with ending on a positive note and noted with all of that we are working hard in the City of Spokane Valley to make life better for our residents. We have created a business -friendly environment despite the changes, the staff provides top notch services, speedy and efficient permitting process, fees and licensing are generally lower than surrounding jurisdictions, the economic development team has worked hard to promote the Valley, and the tourism development projects are in full swing. We have many new businesses that have come to the Valley and a lot of expansion projects on existing businesses. CITY MANAGER COMMENTS City Manager Hohman let Council and the public know that next week's meeting will be taken up with an Executive Session to discuss potential real estate acquisition. EXECUTIVE SESSION It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to adjourn at 8: 50p. in. Council Meeting Minutes: 01-20-2026 Page 4 of 5 Approved by Council: 02-10-2026 A EST: v \ Laura Padden, Mayor Mar ' Patterson, CityClerk \J Council Meeting Minutes: 01-20-2026 Page 5 of 5 Approved by Council: 02-10-2026 vtocramation City of Spokane vaffey, Washington Community Risk Reduction Week Whereas, every 23 seconds, a fire department in the United States responds to a fire somewhere in the nation; and Whereas, fires nationally were responsible for 3,670 civilian deaths and 79% of these fatalities in 2023 occurred in the home; and Whereas, fires nationally were responsible for 13,350 civilian injuries and 77% of these injuries in 2023 were also related to fires in the home; and Whereas, an estimated $23.2 billion in property damage nationally occurred as a result of fire in 2023,-and Whereas, wildland/urban interface (WUl) related fires remain a concern nationwide with multibillion -dollar losses as a result in 2023.; and Whereas, the fire service responds to a growing number of medical calls for service, surpassing 80% of total call volume in some jurisdictions, and Whereas, Community Risk Reduction is a data -informed process to identify and prioritize local risks, followed by integrated and strategic investment of resources to reduce their occurrence and impact; and Whereas, the value of community support from local, state, and national partners to address community risks is recognized to meet the demands on paid, combination, and volunteer members of the fire service; and Whereas, the goal of Community Risk Reduction is to reduce the occurrence and impact of emergency events for both community members and emergency responders through deliberate action in the areas of the five E's of Education, Engineering, Enforcement, Emergency response, and Economic incentive; and Whereas, most fire -related and many medical calls for service are preventable, with the five E's performed as part of an integrated Community Risk Reduction program; and Whereas, Monday, January 19, 2026, is Martin Luther King Jr. Day and is nationally recognized as a National Day of Service and an opportunity for communities to reduce the risk in their community through a series of educational and other programs. THEREFORE BE IT RESOLVED That the week of January 19, 2026 — January 26, 2026, be designated as CRR Week a grassroots initiative of fire service professionals across the nation to raise awareness of the importance of CRR in the fire service community and an opportunity to make communities safer. Dated this 20th day of January 2026. �Zh_46 (; Laura Padden, Mayor Spokane jValley- Memorandum 10210 E Sprague Avenue ❑ Spokane Valley WA 99206 Phone: (509) 720-5000 ❑ www.SpokaneValleyWA.gov To: Mayor and City Council From: Virginia Clough, Legislative Policy Coordinator Date: January 20, 2026 Re: Gordon Thomas Honeywell — Government Relations Legislative Report — Jan. 18, 2026 Please find attached Gordon Thomas Honeywell's second weekly legislative report of the 2026 session. This report recaps the Governor's State of the State address with his priorities of investing in infrastructure, reforming the state's tax system to make it fairer and addressing the housing crisis. The Republican response was that this agenda leans too heavily on higher taxes at a time when affordability is of increasing concern and causing more strain on Washington families. Legislative leaders announced they do not plan to advance either of the two Let's Go Washington initiatives and those are instead likely headed to the voters in November. These initiatives include (IL26-001) seeking to repeal recent legislative changes to parental rights laws, and the other (I1-26-638) banning trans girls from female sports, both targeting issues related to student privacy, LGBTQ+ students, and transgender athletes. This week's report highlights a number of work sessions held by the Legislature on topics including Comprehensive Planning, Water Conservation, Washington Zoning Atlas and Local Highway Preservation Needs. Links to the videos are included in the report. The House and Senate each held hearings on various bills including the Governor's supplemental Operating, Capital and Transportation budget proposals. In the following weeks, the Legislature will develop its own approach to balancing the state budget and submit a final budget to the Governor to be signed into law at the end of the 2026 Legislative Session. Legislative Items: The report highlights the upcoming Olympia trip with two full days of meeting and I expect a detailed agenda this week. Additionally, the city's formal budget request for the Balfour Park lighting and audio equipment was submitted earlier this month. This week's report provides a summary of some key bills with hearings last week as well some happening this week. Last week, we signed in on 19 bills with a few hearings moved to a later date and we provided input on several more. As of today, we've signed in on 13 bills this week with more under review to determine possible impacts. While in Olympia, Councilmember Wick is testifying in person in opposition today on HB 2266 (STEP Housing in all zones except industrial areas) and HB 2489 (Establishing statewide standards for when local governments may enforce laws regulating the use of public space for life -sustaining activities aka "Homeless Bill of Rights".) E GORDON THOMAS HONEYWELL GOVERNMENT RELATIONS City of Spokane Valley Legislative Report January 18, 2026 SESSION CUTOFF CALENDAR February 4, 2026 Policy Committee Deadline February 9, 2026 Fiscal Committee Deadline February 17, 2026 Chamber -of -Origin Deadline February 25, 2026 Opposite Chamber Policy Committee Deadline March 2, 2026 Opposite Chamber Fiscal Committee Deadline March 6, 2026 Opposite Chamber Deadline March 12, 2026 Session adjourns - Sine Die Weekly Overview The Washington State Legislature convened on Monday, January 12 to begin the 2026 legislative session. This is a short 60-day session and is the second half of the two-year biennium. On Tuesday, Governor Ferguson gave his first State of the State address. He opened by acknowledging the courage shown during December's historic flooding, praising first responders and communities for stepping up in the face of adversity. Looking ahead to the 60- day legislative session, Ferguson called for action to invest in infrastructure, reform the state's tax system to make it fairer, and address the housing crisis. The Governor outlined proposals he supports, including a ban on masked law enforcement without visible identification and a new millionaires' tax. He highlighted past bipartisan successes, noting that half of last session's cross -party bills became law, including bills that improve public safety, support climate -smart agriculture, and protect vulnerable children. Ferguson also pointed to executive actions already underway, such as streamlining permit and license processing and helping students complete FAFSA forms to access higher education. He closed with a call to lawmakers to "create history" by laying a strong foundation for future generations, reinforcing his belief that Washingtonians are active participants in shaping the state's legacy. Republican leadership pushed back against this address, stating that the Governor's agenda leans too heavily on higher taxes at a time when affordability is of increasing concern and contributing mounting strain on Washingtonian families. Click here to listen to Republican leaders comments on Washington House Republican Radio. Legislative leaders announced that they do not plan to advance either of the two Let's Go Washington initiatives, meaning they will not be heard or acted on and are instead likely headed to the November ballot for voters to decide. The two "Let's Go Washington" initiatives aim to give parents more control in schools and restrict transgender girls from girls' sports, with one initiative (IL26-001) seeking to repeal recent legislative changes to parental rights laws, and the other (IL26-638) banning trans girls from female sports, both targeting issues related to student privacy, LGBTQ+ students, and transgender athletes. Throughout the week, the Legislature held work sessions on a variety of topics that impact local government: • Comprehensive Planning Work Session — On January 12, the Senate Local Government Committee heard presentations on climate resiliency guidance and comprehensive plan updates. The City of Redmond presented on comprehensive planning, highlighting the need for clearer, more consistent guidance in statutes and across agencies. Click here to watch the presentation on TVW. • Water Conservation Work Session — On January 13, the House Agriculture & Natural Resources Committee heard a presentation from the Ruckelshaus Center on water conservation within municipalities; tiered utility rates, mandated lawn irrigation standards, and desert landscaping were mentioned as conservation approaches. The report recommends that statewide water planning is needed; regional efforts could be replicated statewide. Click here to watch the presentation on TVW. • Washington Zoning Atlas Work Session — On January 14, the House Local Government Committee heard a presentation and brief demonstration from the Department of Commerce (Commerce) on the Washington State Zoning Atlas (WAZA), a statewide zoning map that allows you to compare zoning codes across jurisdictions. Click here to watch the presentation on TVW. • Local Highway Preservation Needs — On January 15, the Senate Transportation Committee heard a presentation from AWC, the Transportation Improvement Board, Snohomish County and the County Road Administration Board on local highway preservation needs. According to AWC, in a member -wide survey completed in 2025, maintenance and preservation were the top transportation needs. The Association highlighted that cities lack basic funding to preserve city roadways. Click here to watch the presentations on TVW. In addition to work sessions, the House of Representatives and Senate held public hearings on various bills, including Governor Ferguson's supplemental Operating, Capital, and Transportation budget proposals. In the following weeks, the Legislature will develop its own approach to balancing the state budget and submit a final budget to the Governor to be signed into law at the end of the 2026 Legislative Session. Operating Budget Proposal: Click here to view the Office of Financial Management's presentation on the proposal. House Bill 2289/Senate Bill 5998 seeks to address the roughly $2.3 billion shortfall over the next two years, driven by caseload/inflation, federal HR1 changes, reduced revenue forecast, and a low ending fund balance. To address this issue, the proposal includes $800 million in spending reductions, shifts (e.g., Working Families Tax Credit to Climate Commitment Account, Public Works Assistance Account sweeps, capital -gains flow change), the use of about $1 billion from the Budget Stabilization Account, the decision not to fully balance the 4-year outlook under the exception in the balanced budget law, and key policy choices including childcare caps, health and higher-ed reductions, wildfire, housing, child welfare, healthcare, and administrative reductions. Capital: Click here to view the Office of Financial Management's presentation on the proposal. As a reminder, the capital budget funds long-term assets (schools, parks, buildings) primarily through borrowed money (bonds) and dedicated funds. Senate Bill 6003 House Bill 2295 issues nearly $400 million in new bonds and proposes investing $225 million in the Housing Trust Fund while also sweeping the Public Works Assistance Account by $75 million. Transportation: Click here to view the Office of Financial Management's presentation on the proposal. Senate Bill 6005/House Bill 2306 generates $3.1 billion by bonding existing transportation revenues to invest in preservation and maintenance. Without additional investments in preservation, WSDOT does not plan to complete any pavement preservation projects this summer. Additional investments include purchasing 3 additional ferries, allocating $2.2 million for a Local Road Grant Program through the County Road Administration Board, restoring funding to the Regional Mobility Grant Program, and $5 million in increased funding for encampment removal. Approval of bonds to support these investments will require approval from 2/3 of each legislative chamber. The Association of Washington Cities (AWC) is hard at work advocating for its members. As such, we will continue to share their resources in addition to the city's tailored reporting. We encourage you to reference the AWC Legislative Bulletin which is posted online weekly and includes updates on hot -topic bills related to cities and how AWC plans to weigh in. Legislative Agenda Items Spokane Valley Hill Day — On January 28th and 29th the Mayor, City Council, and City staff will be in Olympia to engage directly with legislators and advocate for the City's legislative priorities for the 2026 session. The GTH-GOV team has proactively reached out to key committee members to schedule meetings on behalf of the city, ensuring opportunities to discuss and advance the City's key priorities. Additionally, the GTH-GOV team has organized a dinner later in the evening of the 28th with the City and the City's legislative delegation. Detailed information regarding the City's Hill Day activities, including the schedule and agenda, will be shared in advance. Balfour Park: The City asks the Legislature for $250,000 to provide lighting for basketball and pickleball courts and audio equipment within Balfour Park that will be under construction in 2026. The funding request form for this project has been submitted. Kratom Consumer Protection Act: House Bill 2291, sponsored by Rep. Kristine Reeves (D-30tn LD), creates a comprehensive licensing, testing, packaging, and taxation framework for kratom processors and retailers, including an excise tax dedicated to youth regulated substance prevention. The bill has not yet been scheduled for a public hearing. Other Policy Issues Housing Affordability Religious Property Housing Density Bonuses: Senate Bill 5885, sponsored by Sen. Marcus Riccelli (D-3rd LD), and companion legislation, House Bill 1859, sponsored by Rep. Osman Salahuddin (D-48th LD), modify an existing law that requires cities and counties to grant density bonuses for affordable housing on religious organization property. Current law requires 100 percent of units to serve low-income households; the Senate bill proposes reducing that to twenty percent of units while the most recent version of the House bill proposes reducing that to fifty percent of units, with the option for local jurisdictions to adopt a higher percentage. The Senate Housing Committee held a public hearing on Senate Bill 5885 on January 14, and the House Finance Committee held a public hearing on House Bill 1859 on January 15; the Senate Housing Committee is scheduled to hold an executive session on Senate Bill 5885 on January 21. Affordable Housing Revenue Flexibility: Senate Bill 6027, sponsored by Sen. Emily Alvarado (D- West Seattle), and House Bill 2359, sponsored by Rep. Strom Peterson (D-Edmonds), allows existing affordable housing revenues to support acquisition, rehabilitation, and long-term operation of affordable housing, with explicit caps on administrative and supplanting uses and a stronger prioritization of very low-income households. The Senate Housing Committee held a public hearing on January 16 on Senate Bill 6027 and has scheduled an executive session for January 21. The sponsor of the bill clarified that it does not create new taxing authority but updates existing local and state housing tools so jurisdictions can use them to preserve and operate existing affordable housing in the face of rising costs and federal funding volatility, particularly by allowing House Bill 1406 and House Bill 1590 revenues and state operating and maintenance funds to cover ongoing operations, maintenance, and rehab to avoid losing hard- won units. Local Decision -Making Authority Neighborhood Cafes: House Bill 1175, sponsored by Rep. Mark Klicker (R-16th LD), mandates that cities and towns allow "neighborhood stores" and "neighborhood cafes" in any zone permitting residential uses, subject to conditions such as parking regulations, hours of operation, and maximum square footage. Cafes serving alcohol must also offer food, and stores and cafes in residential zones may not display products or advertising visible from the street for items illegal to sell to individuals under 21, with neighborhood stores further prohibited from GTH-GOV 4 selling nicotine products. The bill establishes a phased implementation timeline for cities, exempts related regulatory actions from environmental review under the State Environmental Policy Act (SEPA), and, as amended, exempts cities with a population less than 5,000 that share a contiguous urban growth area with the county's largest city in counties over 275,000 in population from the siting requirement. The bill was considered last session, and because of the progress the bill made through the 2025 session, was able to be voted by the House of Representatives without a committee public hearing. House passed the bill on January 15 by a vote of 94-2 and it will next be referred to a Senate committee for consideration. Residential Required to Be Allowed in Commercial Zones: House Bill 2480, sponsored by Rep. Chipalo Street (D-Seattle), and Senate Bill 6026, sponsored by Sen. Emily Alvarado (D-West Seattle), is Governor -request legislation. It requires jurisdictions with a population of 30,000 or more that plan under the Growth Management Act to permit residential uses in commercial and mixed -use zones, and removes the authority for a local jurisdiction to require ground -floor retail or other mixed -use elements, or to condition residential projects in commercial zones on special or conditional use permits or design departures, subject to specified exceptions for industrial, refinery -adjacent, shoreline, critical areas, and similar locations. The Senate Housing Committee held a public hearing on SB 6026 on January 16, and the committee is scheduled to vote on the bill in executive session on Wednesday January 21. Miscellaneous Permit Review Streamlining: House Bill 2418, sponsored by Rep. Davina Duerr (D-Bothell), standardizes and accelerates project permit review for residential housing in urban growth areas by vesting applications to the rules in effect at completeness, imposing coordinated timelines, and requiring fee refunds when deadlines are missed. The bill also mandates integrated permit processes by June 30, 2027, a single permit responsible official who must also coordinate State Environmental Policy Act review when the local government is the lead agency, and parallel timing and refund obligations for utilities and special purpose districts involved in permitting. The House Local Government Committee held a public hearing on January 16. The sponsor shared that this bill is a follow-on to earlier permit -timelines legislation developed collaboratively with housing developers and city staff to improve permitting by extending timelines to all reviewing agencies and creating a single final permit decision -maker and point of contact. The Building Industry Association of Washington and the Commercial Real Estate Development Association testified in support of the bill, while the Washington State Association of Counties, Futurewise, and Soundbuilt Homes testified in opposition. After the hearing, Rep. Duerr commented that there is broad agreement amongst builders and local governments. The Futurewise testimony against the vesting language gave Rep. Duerr clear direction to change that part of the bill while moving forward with the widely supported permit -coordination and timeline provisions. The bill is scheduled to be voted on by the committee on January 23. PFML Premium Rate Methodology: Senate Bill 5292, sponsored by Sen. Steve Conway (D- Tacoma), replaces the current formula -based approach to calculating Paid Family and Medical Leave (PFML) premiums with actuarially determined rates aimed at ensuring long-term GTH-GOV 5 solvency and establishing a three-month reserve starting in 2030. The bill also revises reporting timelines and requirements for the Office of Actuarial Services, with an effective date of January 1, 2027. The Senate Labor & Commerce Committee held a public hearing on Friday January 16. The sponsor of the bill shared that the bill is intended to stabilize PFML funding using the same forward -looking actuarial methodology used for state pensions. The Building Industry Association of Washington and the Association of Washington Business testified in support, urging the committee to maintain the bill in its current, narrow form to avoid diving into other PFML policy. Public Safety & Behavioral Health Law Enforcement Facial Covering Restrictions: Senate Bill 5855, sponsored by Sen. Javier Valdez (D-46th LID), and House Bill 2173, sponsored by Rep. Julio Cortes (D-38th LID), prohibit law enforcement officers from wearing facial coverings during public interactions, while allowing limited exceptions for undercover work and SWAT protective gear, and authorizing civil actions for violations. On January 13, the Senate Law & Justice Committee held a public hearing on Senate Bill 5855, and the House Community Safety Committee held a public hearing on House Bill 2173. There was a mix of testimony for and against the bill at both hearings, and AWC shared concerns about the uncapped private cause of action against officers in their official capacity, which would translate into potentially unlimited civil liability and costs for cities under tight budgets unless some cap or different enforcement mechanism is added; on January 15, an amended version of the Senate Bill was voted out of committee on a party -line vote of 5-4 as a first substitute, and House Bill 2173 is scheduled for executive session in the House Community Safety Committee on January 22. Accident Risk Zones: House Bill 2174, sponsored by Rep. Mark Klicker (R-Walla Walla), and Senate Bill 6066, sponsored by Sen. Nikki Torres (R-Pasco), empowers local jurisdictions and WSDOT to create accident risk zones on high -incident roads. Within the zone, the jurisdiction may double certain traffic penalties with notice, and reinvest a share of revenues into enforcement, signage, and safety upgrades before ultimately dissolving the zones when conditions improve. The Senate Local Government Committee held a public hearing on Senate Bill 6066 on January 15. The sponsor shared that constituents brought the bill forward due to a high number of severe and fatal crashes on US-395 in Franklin County, especially where passenger vehicles cross the highway. The bill gives authorities a structured tool to designate high -risk areas, focus enforcement and safety measures, and fund improvements. AWC, the Association of Counties, City of Pasco and several other entities testified in support. The Association emphasized the importance of improved traffic safety and appreciates that it is a local option, but raised concerns about implementation details and potential liability for cities that designate zones. AWC has asked for clarifying amendments before the bill advances. The committee is scheduled to vote on the bill on January 19. The House Local Government Committee is scheduled to hold a public hearing on HB 2174 on January 21 and an executive session on January 23. Emergency Responders Protection from Obstruction: House Bill 2351, sponsored by Rep. Lisa GTH-GOV 6 Parshley (D-22nd LD), broadens the crime of obstructing a law enforcement officer to cover obstruction of any emergency responder. The bill also restricts state and local agencies from using resources to enforce federal actions that target emergency responders based solely on race, religion, immigration or citizenship status, or national or ethnic origin, and requires local policy updates by January 2027. The House Technology, Economic Development, & Veterans Committee held a public hearing on January 16. Rep. Parshley spoke to the bill and described it as a collaborative, no-nonsense public safety measure requested by counties and firefighters to ensure that during emergencies, incident command is not undermined and responders are not intimidated or delayed by unrelated enforcement. Thurston County Commissioner, Pierce County Council, Jefferson County, and others testified in support, noting it as legislation that will keep communities safe and protect emergency responders. The Washington Association of Sheriffs and Police Chiefs, Association of Washington Cities, Washington Defender Association & Washington Association of Criminal Defense Lawyers testified "other" with language concerns and emphasized that the incidents this bill is trying to address have only involved federal, not state or local, officers and warned that this could have unintended consequences. There was no testimony in opposition. The bill is scheduled to be voted on by the Committee on January 23. Indigent Defense Task Force: Senate Bill 5912, sponsored by Sen. Nikki Torres (R-15th LD), reinstates and updates a statewide indigent defense task force, originally created in 1988-89, to evaluate how Washington provides, funds, and staffs legal representation for people who cannot afford counsel, including in rural and underserved areas. The task force must report recommendations to the Governor, Supreme Court, and Legislature by January 1, 2028, will expire on June 30, 2029, and will be staffed by the Office of Public Defense. The Senate Law & Justice Committee held a public hearing on January 13 and on January 15 voted 9-0 to advance a first substitute bill out of committee, after which the sponsor shared that the task force will formalize ongoing informal work on statewide shortages of public defenders and prosecutors that are harming the courts and people awaiting counsel, and emphasized that OPD will staff the group so it should have minimal or no fiscal impact; WSAC, OPD, Washington Defender Association, Washington Association of Criminal Defense Lawyers, several tribes, and others all testified in support of the bill, and no one testified in opposition. Law Enforcement Qualifications: Senate Bill 5974, sponsored by Sen. John Lovick (D-Mill Creek), standardizes eligibility, certification, and background investigation requirements for sheriffs, police chiefs, town marshals, volunteers, cadets, and police matrons. The Senate Law & Justice Committee held a public hearing on January 15. As a former state trooper and county sheriff, the sponsor of the bill shared that this legislation intends to clarify what happens when a leader loses certification, and framed it as continuing to build trust between law enforcement and communities. There was a mix of those testifying in support, such as the Washington Council of Police and Sheriffs, the Northwest Immigrant Rights Project, and those in opposition, such as the Washington Association of Sheriffs & Police Chiefs, and several county sheriff departments. Those in support shared that chiefs and sheriffs should be held accountable at the same level as the officers they lead. Those in opposition emphasized that decertification provisions effectively let an unelected governor -appointed commission remove duly elected GTH-GOV 7 sheriffs, making them the only elected officials subject to such removal and eroding voters' voice and trust in government. AWC shared concerns, focusing on section 7 of the bill that creates restrictions on police volunteers. AWC argued there is no evidence of significant misuse of volunteers, that volunteers provide cost savings and valuable non -adversarial engagement, and that broad prohibitions on using 'surveillance technologies' or 'sharing information from databases' could bar benign tasks such as monitoring lobby cameras or helping with administrative data work, and also conflict with volunteer provisions passed in House Bill 2015 last session. The bill is scheduled to be voted out of committee on January 22. Reducing Cost Through Reform JLARC Lodging Tax Reporting Reduction: Senate Bill 5879, sponsored by Sen. Keith Wagoner (R- 39th LID), and its companion legislation, House Bill 2120, sponsored by Rep. Gerry Pollet (D-46th LID) eliminates the Joint Legislative Audit and Review Committee's (JLARC) biennial reporting on lodging tax revenues and removes JLARC's statutory review and evaluation duties for the state training benefits program, while leaving underlying program structures and other agency reporting requirements in place. The House State Government & Tribal Relations Committee held a public hearing on January 14. The sponsor of House Bill 2120 shared that, as the JLARC Chair, he and the 16-member committee reviewed legally required reports and concluded the lodging -tax and training -benefits reviews are redundant or unused, given State Auditor oversight and past repeated findings. Eliminating both will save money and free staff for more meaningful new performance audits. The Washington Hospitality Association shared concerns with the proposal, noting that eliminating JLARC review could weaken transparency unless another mechanism provides equivalent oversight. On January 16, the bill passed out of the House State Government & Tribal Relations Committee unanimously (7-0). The Senate Ways & Means Committee will hold a public hearing on Senate Bill 5879 on January 19. GTH-GOV 8