HomeMy WebLinkAbout2026, 01-27 Special MeetingMINUTES
City of Spokane Valley
City Council Special Meeting
Executive Session
Tuesday, January 27, 2026
The meeting was called to order at 6:00 p.m. The meeting was held in person by Council and staff at the
Spokane Valley City Hall.
Attendance:
Councilmembers
Laura Padden, Mayor
Tim Hattenburg, Deputy Mayor
Michael Kelly, Councilmember
Pam Haley, Councilmember
Ben Wick, Councilmember
Al Merkel, Councilmember
Absent.
Jessica Yaeger, Councilmember
Staff
John Hohman, City Manager
Erik Lamb, Deputy City Manager
Kelly Konkright, City Attorney
Tony Beattie, Senior Deputy City Attorney
Dave Ellis, Police Chief
Glenn Ritter, Senior Engineer
Chad Knodel, IT Manager
Marci Patterson, City Clerk
ROLL CALL City Clerk Patterson called roll; all Councilmembers were present except Councilmember
Yaeger. It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to excuse
Councilmember Yaeger.
1. Executive Session Potential Acquisition of Real Estate RCW 42.3 0.11 0(l)(b)].
It was moved by Deputy Mayor Hattenburg, seconded to adjourn into executive session for approximately
one hour to discuss the potential acquisition of real estate, and that no action will be taken upon return to
open session. To make sure there is no misunderstanding, the purpose of this executive session is solely for
the identified purpose, the potential acquisition of real estate. The City may not expand upon the purpose
of executive session without declaring an additional purpose in open session. There was not any discussion.
Vote by acclamation: in favor: Unanimous. Opposed.• None. Motion carried.
Council adjourned into executive session at 6:01 p.m.
At 7:00 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an
additional 20 minutes.
At 7:20 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an
additional 10 minutes.
At 7:30 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an
additional 10 minutes.
At 7:40 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an
additional 10 minutes.
At 7:50 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an
additional 5 minutes.
At 7:55 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an
additional 2 minutes.
Mayor Padden adjourned from Executive Session and Council reconvened at 7:57 p.m.
It was moved by Deputy Mayor Hattenburg, seconded and unanimously d to adjo, t 7: 58p. in.
ATTEST:
Laura Padden, Mayor
1W If A PM.A.V"
arci atterson, City Clerk
Council Meeting Minutes, 01-27-2026, Special Meeting Page 1 of 1
Approved by Council: 02-10-2026
Mard Patterson
From: Spectre Mcquistan <specsop6980@gmail.com>
Sent: Monday, January 26, 2026 1:30 AM
To: Council Meeting Public Comment
Subject: Jessica Yaegar
[EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or
clicking links.
Hello . I am citizen reaching out in concern over something councilwoman Jessica Yeager stated on her personal yet
public Facebook page. Im sure it is not a good look for a council to not represent all of its citizens with dignity and
respect. 5000 Muslims make up the Spokane and Spokane valley region. There is an Islamic mosque in Spokane valley.
Your council woman stating publicly that she is a proud islamophobe whilst representing Islamic and Muslim people is an
issue. She should not hold a position. We have no room for hate in this century. Please act accordingly Sent from my
iPhone
Spokane
,,;o0Valley-
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 27, 2026
Re: Gordon Thomas Honeywell — Government Relations
Legislative Report — Jan. 25, 2026
Please find attached Gordon Thomas Honeywell's legislative report covering the second
week of the 2026 session. This report recaps press conferences held by the Democrats
and Republicans with the D's focusing on shielding people from "harmful federal policies"
while advancing state -level solutions on housing, public safety, healthcare and
affordability. The Republican focus was concern about the state's deepening affordability
crisis includes tax proposal that worsen cost -of -living pressures.
Budget proposals from each chamber are not expected to be released until after the
February 16 revenue forecast. The "millionaire's tax" proposal has not been introduced
yet and last week, the city signed in opposed on HB 2100, the payroll tax.
This week's report notes the city's upcoming trip to Olympia with some of the key topics
that will be discussed including the Balfour Park lighting and audio equipment funding
request, Kratom Consumer Protection Act (HB 2291), and STEP Housing Development
Regulations (HB 2266/SB 6069).
The report also recaps some of the key hearings held this past week under our legislative
agenda priorities of public safety/behavioral health, fiscal management, housing
affordability, local decision -making authority and more.
Last week our city signed in on 18 bills, including verbal testimony on HB 2266 and written
testimony on the Automatic License Plate Readers (ALPR) bills, SB 6002 & HB 2332.
Councilmember Wick had planned to testify in person on HB 2489 that establishes
statewide standards for when local governments may enforce laws regulating the use of
public space for life -sustaining activities aka "Homeless Bill of Rights". However, the
public hearing was cut short so our talking points were submitted as written testimony.
This morning, Kelly Konkright testified in favor of SB 6239 which would reduce cities'
liability costs and tomorrow, while we are in Olympia, Gloria Mantz will testify in opposition
of SB 6069, the companion bill to HB 2266 (STEP Housing).
GORDON THOMAS HONEYWELL
GOVERNMENT RELATIONS
City of Spokane Valley
Legislative Report
January 25, 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 Legislature spent the second week of the legislative session continuing to meet in
committees to hold public hearings and vote on bills.
On Tuesday, both Democrats and Republicans held press conferences. Democrat legislative
leaders emphasized their focus on shielding Washingtonians from what they characterized as
harmful federal policies while advancing state -level solutions on housing, public safety,
healthcare, and affordability.
Republican legislative leaders, meanwhile, expressed concern about Washington's deepening
affordability crisis. They criticized Democratic tax proposals —including a draft income tax —
saying such measures worsen cost -of -living pressures.
While legislators are discussing budget development and tax proposals, budget proposals from
each chamber are not expected to be released until after the February 16, 2026 revenue
forecast. Several much -discussed tax proposals, including a "millionaire's income tax" have not
yet been introduced. With that being said, the lesser favored payroll tax proposal — House Bill
2100 — had a public hearing this week.
Throughout the session, the Association of Washington Cities 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.
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Legislative Agenda Items
Spokane Valley Hill Day— On January 28th and 291h 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, has been
shared with City staff.
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-30th
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 House Consumer Protection & Business Committee will take public testimony
on January 30.
Housing Development Regulations: Spokane Valley City Councilmember Ben Wick testified
on House Bill 2266 with concerns, conveying that cities must retain authority to require
operating agreements (onsite supervision, security plans, codes of conduct), reasonable spacing
between shelters to avoid over -concentration, and some zoning discretion so shelters are
located near services rather than in every non -industrial zone without adequate public -safety
resources or state funding as this is currently an unfunded mandate. Click here to watch his
testimony in the House Housing Committee.
House Bill 2266, sponsored by Rep. Strom Peterson (D-Edmonds), and its companion Senate Bill
6069, sponsored by Sen. Emily Alvarado (D-West Seattle), mandate that STEP housing be
allowed in all non -industrial urban growth area zones. The bill also restricts cities' ability to
require operational or good neighbor agreements. The House Housing Committee held a public
hearing on House Bill 2266 on January 20. Rep. Peterson explained he reintroduced this revised
version of last year's STEP housing siting bill without the financial penalty mechanism, aiming to
create clear, uniform, and predictable permitting standards so supportive and emergency
housing can be sited and operated like other housing, consistent with the principle that
"housing is housing." King County's Executive Office, Plymouth Housing, and Disability Rights
Washington testified in support, while the Association of Washington Cities and several
communities testified in opposition or as "other". AWC stressed that requiring emergency
shelters and related uses in all non -industrial zones would override local judgment about
appropriate locations near transit and services, and that cities need to retain
operating -agreement tools to ensure safety while still expanding PSH and shelter. Cities shared
concerns around the lack of review authority and the inability to condition their own funding or
land contributions on basic operational standards and community engagement.
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Other Policy Issues
Fiscal Management
Local Government Revenue Tools: Senate Bill 6294, sponsored by Sen. Noel Frame (D-Seattle),
and House Bill 2442, sponsored by Rep. April Berg (D-Mill Creek), broadly expand and
restructure local real estate excise tax, sales and use tax, utility excise tax, and property tax levy
authority. Click here to see AWC's chart of the different elements in the bill. House Bill 2442
was heard in the House Finance Committee in a public hearing on January 20. The sponsor
shared that this bill is an eight -part toolkit that modernizes local revenue options ---mostly voter
approved or locally elected decisions so cities and counties can better respond to housing,
behavioral health, infrastructure, and service demands without creating any new statewide
taxes or mandates, emphasizing local flexibility, voter involvement, and the clear nexus
between each revenue source and its targeted use. AWC, Washington State Association of
Counties, Low Income Housing Alliance, and others testified in support of the proposal, while
Northwest Natural, the Wireless Association, Washington Association of Sewer and Water
Districts, Washington Realtors, and others testified in opposition.
Housing Affordability
Condominium Warranty Changes: House Bill 2304, sponsored by Rep. Jamila Taylor (D-Federal
Way), expands when developers of smaller condominium buildings can substitute express
warranties and warranty insurance for implied warranties, by newly allowing this option for
buildings with up to twelve units and four stories. The bill requires specified minimum coverage
periods and defect recovery rights for both unit owners and associations when express
warranties are used. The House Civil Rights & Judiciary Committee held a public hearing on the
bill on January 23. The Housing Development Consortium, Office of the Insurance
Commissioner, City of Seattle, Sightline Institute, Futurewise, Building Industry Association of
Washington, and many others testified in support because this bill is a complement to middle -
housing reforms that ensure stacked -flat condos can be built to help address severe
homeownership inaccessibility and the condo production shortfall. There was no testimony in
opposition.
Permit -Ready Housing Plans: Senate Bill 6015, sponsored by Sen. Jessica Bateman (D-Olympia),
creates a statewide program for preapproved permit -ready residential building plans and
requires Growth Management Act jurisdictions, beginning January 1, 2027, to approve
qualifying applications using these plans with limited additional local review. The bill directs the
Department of Labor and Industries (L&I) to publish compliant factory -built housing plans on a
public -facing website, develop model ordinances that local governments must adopt or match,
and cap permit -ready review fees at cost and below standard plan review levels while limiting
local code compliance reviews to elements not covered by the state -approved plans. The
Senate Housing Committee held a public hearing on Senate Bill 6015 on January 21. The
sponsor shared that the bill builds on existing L&I master -plan approvals for modular housing
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seen on a recent committee tour, aiming to create widely usable pre -approved residential plans
that save time and money for families and help a nascent factory -built sector scale while aiding
local permit streamlining. The American Institute of Architects Washington Council, L&I, Habitat
for Humanity, and Sightline Institute testified in support of the bill. Notably, the Washington
State Association of Counties & State Association of County Regional Planning Directors shared
during their testimony that although they find pre -approved plans as a promising way to speed
modular permitting, especially where local pre -approval systems already exist, they are
opposed to the bill's blanket mandate that all jurisdictions adopt a Commerce model ordinance.
Instead, they recommended starting with a pilot cohort to refine the approach without
disrupting existing local programs.
Utility Connection Charge Deferral: Senate Bill 6096, sponsored by Sen. Keith Goehner (R-
Dryden), requires all cities and towns by 2030 to offer a system allowing applicants for
residential building permits for new single-family detached, single-family attached, and
multifamily housing to defer one-time water and sewer connection charges until late in the
construction process. The bill requires jurisdictions to either defer payment until final
inspection or until a certificate of occupancy or equivalent approval is issued, while prohibiting
issuance of those approvals until the deferred charges are fully paid. The Senate Housing
Committee held a public hearing on January 23. Sen. Goehner spoke to the bill, highlighting that
the intent is to address housing affordability and provide a more affordable pathway for
builders on their projects. The Building Industry Association of Washington and the Association
of Washington Business testified in support because this legislation frees up capital for smaller
builders and ultimately will lower housing prices. The Association of Washington Cities testified
"Other" stating that positive progress can be made on this bill with language adjustments and
consideration of system capacity moving into the future. City of Pasco and the Washington
Association of Sewer and Water Districts testified against the bill because it shifts financial risk
onto Sewer and Water as well as residents and undermines the current bond structure.
Local Decision -Making Authority
Homelessness Public Space Rights: House Bill 2489, sponsored by Rep. Mia Gregerson (D-
SeaTac), prohibits cities, code cities, and counties from enforcing ordinances that criminalize or
penalize life -sustaining activities in public spaces by people experiencing homelessness unless
adequate alternative shelter space is available. The House Housing Committee held a public
hearing on House Bill 2489 on January 20. Councilmember Ben Wick was signed in to provide
testimony in opposition; however, the committee ran out of time to hear from all testifiers.
The sponsor shared that the bill is about dignity and setting a statewide floor so people with no
place to go are not punished simply for surviving in public when no adequate shelter exists,
clarifying it does not bar enforcement of other criminal laws and that the detailed definition of
adequate shelter was added in response to concerns raised last session. ACLU of Washington
and Interfaith Works testified in support of the bill, while several individual cities testified in
opposition. Those testifying in opposition shared their concerns about the prescriptive
definition of adequate shelter, the broad definition of "life -sustaining activity", and that the
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legislature should instead focus on funding treatments and shelter.
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. Last week, the House Local Government Committee held a public
hearing on January 16. The sponsor shared that this bill is a follow on to earlier permitting
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. On January 23 an amended version of
the bill was voted out of committee unanimously. The changes remove vesting, clarify that
completeness determinations are procedural and cannot be conditioned on the substantive
sufficiency of information, codify the ability to waive deadlines and fee refunds, and clarify that
reviewers who charge no fee need not issue refunds.
Local Culvert Permitting Flexibility: Senate Bill 6154, sponsored by Sen. Jesse Salomon (D-32nd
LD), extends and tailors hydraulic project approval timelines for local governments replacing
fish -passage culverts and allows them, with Department of Fish and Wildlife approval, to
redirect equivalent mitigation investments to higher -priority fish habitat barriers when
emergency sites offer limited habitat benefit. The bill also makes minor technical and
formatting changes to the hydraulic project approval statute. The Senate Local Government
Committee held a public hearing on January 22. Thurston County Board of County
Commissioners, Washington State Association of Counties, Thurston County Public Works
Director, City of Shoreline, and Snohomish County Public Works testified in support of the bill
because redirecting funds to higher -priority barriers will yield far better habitat gains per dollar
and provide a regulatory framework for prioritization.
Public Safety & Behavioral Health
Accident Risk / Crash Prevention Zones: House Bill 2174, sponsored by Rep. Mark Klicker (R-
Walla Walla), and Senate Bill 6066, sponsored by Sen. Nikki Torres (R-Pasco), authorize
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counties, cities, towns, and the Washington State Department of Transportation to designate
high -collision segments of public roads as special safety zones. Within these zones, traffic
infractions double to generate funding for engineering studies, signage, safety improvements,
and additional enforcement. The House Local Government Committee held a public hearing on
House Bill 2174. The sponsor argued that long-term fixes like overpasses and four-laning are
slow and expensive and that these zones can serve as a short-term tool to slow drivers, raise
awareness, and fund interim safety measures until permanent improvements are built. City of
Pasco, Washington State Association of Counties, and others testified in support, seeing this as
a valuable local option to slow speeds and fund improvements, but highlighting implementation
and liability concerns that need refinement, and there was no testimony in opposition.
Both bills passed out of their respective policy committees this week with the same
amendments. The changes replace the term "accident risk" with "crash prevention" and
authorize counties, cities, towns, and WSDOT to establish crash prevention zones on roads with
histories of serious -injury or fatal collisions. Local governments may designate zones that
include WSDOT-managed roadways with WSDOT's approval, while WSDOT may independently
designate zones on state highways. Within these zones, an additional $73 penalty may be
imposed for speed -related or collision -related infractions when posted, and that $73 must be
deposited into a dedicated crash prevention zone account managed by the jurisdiction where
the infraction occurred. Liability issues were not addressed by the amended version of the bill.
The bills will be discussed in their respective transportation committee before advancing.
Property Theft Sentencing Enhancements: House Bill 2209, sponsored by Rep. Mari Leavitt (D-
University Place), adds new sentencing enhancements for theft, robbery, possession of stolen
property, and trafficking offenses when the value involved exceeds specified high -dollar
thresholds. The bill increases incarceration time by 12 months when the value is $20,000 to
$50,000, and by 24 months when the value exceeds $50,000, while leaving existing
enhancement structures and youth sentencing discretion unchanged. The House Community
Safety Committee held a public hearing on House Bill 2209 on January 20. Rep. Leavitt spoke to
the bill, arguing that Washington leads the nation in organized retail theft and that targeted
sentence enhancements for high -dollar organized theft are needed to hold offenders
accountable and improve public safety. The Washington Association of Prosecuting Attorneys,
Pierce County Prosecuting Attorney's Office, Northwest Grocery Retail Association, Washington
Retail Association, and others testified in support of the bill, noting it as an important first step
to address underreported organized retail theft without over -incarcerating people committing
crimes of need. The Washington Association of Criminal Defense Lawyers & Washington
Defense Association and Columbia Legal Services testified against bill, citing data that shows
theft has declined for three consecutive years and emphasizing that longer sentences do not
reduce crime and will likely worsen racial disproportionality without meaningfully improving
public safety.
Automated License Plate Privacy Regulations: House Bill 2332, sponsored by Rep. Osman
Salahuddin (D-Redmond), and Senate Bill 6002, sponsored by Sen. Yasmin Trudeau (D-Tacoma),
establish comprehensive limits on when agencies may use automated license plate reader
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(ALPR) systems. The House Civil Rights & Judiciary Committee and the Senate Law & Justice
Committee each held a public hearing on the proposal. During the hearings, the sponsors
shared that over 80 cities and multiple counties and tribes already use ALPRs. Washington
needs a statewide framework that preserves legitimate public -safety uses (stolen vehicles,
missing persons, etc.) while putting strong guardrails around data retention, sharing, and
privacy, especially for immigrants and other vulnerable communities. AWC, Washington State
Auditors Office, OneAmerica, Lavender Rights Project, ACLU, and various communities shared
support for a statewide regulation. Among those supporting, there were requests for
amendments such as lengthening the 72-hour retention, adding a safe -harbor from excessive
civil liability, treating an ALPR hit as sufficient reasonable suspicion for a vehicle stop because
the plate is tied to a known investigation, and controlled inter -agency sharing. The Washington
Association of Sheriffs and Police Chiefs indicated their ongoing work with the sponsor to adjust
issues like retention, allowable uses, sharing, and oversight so ALPRs remain useful to agencies.
On January 22, Senate Bill 6002 was voted out of committee unanimously with amendments.
The changes clarify that toll cameras are not considered ALPR systems, expand lawful ALPR use
for parking enforcement to include the Department of Enterprise Services and higher education
institutions, and establish state and local agencies as the legal owners of ALPR data. The bill
extends general data retention from 72 hours to 21 days (and longer by court order), requires
ALPR logs to be kept for five years, and limits evidentiary exclusion to knowing violations. It also
streamlines oversight by reducing the roles of the Washington State Attorney General's Office
and the Washington State Auditor, instead requiring agencies to publish their ALPR policies
online.
Electric Motorcycle Definition: House Bill 2374, sponsored by Rep. Janice Zahn (D-Mercer
Island), narrows the definition of electric -assisted bicycles by limiting motor power to 750 watts
and excluding vehicles capable of exceeding 20 miles per hour on motor power alone or easily
reconfigured to fall outside statutory requirements. It defines electric motorcycles and amends
the definition of motorcycles to include them while maintaining existing exclusions and clarifies
that electric motorcycles are treated as motorcycles for regulatory purposes. It also directs the
Department of Licensing (DOL) to convene a stakeholder work group to evaluate enforcement,
consumer protection, vehicle modification practices, and potential penalties related to
misclassified electric vehicles, with recommendations due to the Governor and legislative
transportation committees by December 15, 2026. The House Transportation Committee held a
public hearing on House Bill 2374 on January 21. The sponsor shared that the bill is intended to
get ahead of emerging high-speed electric motorcycles that resemble e-bikes, by clearly
distinguishing true a -bikes that support micromobility from higher -powered e-motorcycles.
AWC, recreation and park advocates alike, testified in support of the proposal.
Reducing Cost Through Reform
JLARC Lodging Tax Reporting Reduction: Senate Bill 5879, sponsored by Sen. Keith Wagoner (R-
39th LD), and its companion legislation, House Bill 2120, sponsored by Rep. Gerry Pollet (D-46th
LD), eliminate the Joint Legislative Audit and Review Committee's (JLARC) biennial reporting to
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the Legislature on lodging tax revenues. 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 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 House version of the bill was unanimously approved by the House
State Government Committee and is in the House Rules Committee, where it will remain until it
is selected to be voted on the House floor. The Senate Ways & Means Committee held a public
hearing on Senate Bill 5879 on January 19. The Association of Washington Cities testified in
support, arguing that accountability is already ensured through State Auditor reviews, public
data, and local lodging tax advisory committees, and that dropping this outdated report saves
city and JLARC resources. The Washington Hospitality Association shared concerns with the
proposal, noting that eliminating JLARC review could weaken transparency unless another
mechanism provides equivalent oversight.
Litigation Financing Regulations: House Bill 2255, sponsored by Rep. Amy Walen (D-Kirkland),
creates a new regulatory framework for third -party litigation financing agreements. The bill
should have the effect of reducing city liability. The House Civil Rights & Judiciary Committee
held a public hearing on the bill on January 21. Rep. Walen described this bill as a transparency
and consumer -protection bill that does not ban litigation funding but requires disclosure of
outside investors and is intended to address cost and insurance affordability impacts from
undisclosed hedge fund and foreign -backed financing, aligning Washington with similar laws in
many other states. Washington Liability Reform Coalition, Independent Insurance Agents &
Brokers of Washington, and the National Association of Mutual Insurance Companies (NAMIC)
testified in support of the bill, highlighting the much -needed transparency and guardrails it
provides. The Washington State Association for Justice and the International Legal Finance
Association testified against the bill, calling it overbroad, misdirected, and arguing that it
undermines access to justice for victims who need contingent financing while leaving corporate
and insurer financing undisclosed.
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