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HomeMy WebLinkAbout2026, 03-03 Formal B MeetingMINUTES City of Spokane Valley City Council Meeting Formal B Format Tuesday, March 3, 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 Ben Wick, Councilmember Gloria Mantz, City Services Administrator At Merkel, Councilmember Dave Ellis, Police Chief Virgina Clough, Legislative Policy Coordinator Jill Smith, Communications Manager John Bottelli, Parks & Rec Director John Whitehead, HR Director Glenn Ritter, Senior Engineer Adam Jackson, Engineering Manager Erica Amsden, CIP Engineering Manager Caitlin Prunty, Deputy City Attorney Justan Kinsel, IT Specialist Marci Patterson, City Clerk INVOCATION: Pastor Mike Drew with Valley Assembly Church provided the invocation. PLEDGE OF ALLEGIANCE: Council, staff and the audience stood for the Pledge of Allegiance. ROLL CALL: City Clerk Patterson called roll; all Councilmembers were present. APPROVAL OF AGENDA It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the agenda. SPECIAL GUESTS/PRESENTATIONS: Betsy Wilkerson, City of Spokane Council President spoke about the Ordinance banning the sale of Kratom in the Spokane Valley and noted that the City of Spokane was also authorizing the ban on the sale of Kratom as well. She also spoke about how important it was for the communities to come together with this ban. PROCLAMATIONS: GENERAL PUBLIC COMMENT OPPORTUNITY: After the Mayor explained the process, she invited public comments. Yvonne Johnson, Spokane Valley; Dr. Andrea Olson, Spokane Valley; Ben Lund, Spokane Valley; John Harding, Spokane Valley; William Hulings, Spokane; Justin Haller, Spokane; Sue Delucci, Spokane Valley provided comments. ACTION ITEMS: 1. Second Read: Ordinance 26-003 Banning the Sale of Kratom — Caitlin Prunty Clerk Patterson read the title of the Ordinance and then it was moved by Deputy Mayor Hattenburg, seconded to approve Ordinance 26-003 prohibiting the sale of Kratom products within Spokane Valley Council Meeting Minutes: 03-03-2026 Pagel of 3 Approved by Council: 04-28-2026 and establishing a penalty for a violation of such prohibition. Ms. Prunty provided a detailed PPT that included the history of the kratom ordinance and previous presentations, information on the current draft ordinance, and noting the violations that would be incurred if fined. Council discussed the advertising ban portion, the 30 day enforcement period, and when the violations would begin. Councilmember Merkel amended the motion to extend the notification period to May 5"'. Councilmember Kelly seconded the motion. Council discussed the potential for April 20"' being a big sale day on some of the products and Chief Ellis pointed out that if it was a big selling day, wouldn't it be better to have the ban in effect prior to that date. Mayor Padden invited public comments. Will Hulings, Spokane; Ben Lund, Spokane Valley; Darryl Williams, Spokane Valley provided comments. Vote by acclamation on the amended motion: in favor: Councihnember Merkel. Opposed: Mayor Padden, Deputy Mayor Hattenburg, Councilmembers Yaeger, Wick, Haley and Kelly. Motion failed. Vote by acclamation on the original motion: in favor: Mayor Padden, Deputy Mayor Hattenburg, Councilmembers Wick, Haley, Merkel and Kelly. Opposed.• Councihnember Yaeger. Motion carried. 2. Motion Consideration: South Sullivan Preservation (8th to 24th) Bid Award — Erica Amsden It was moved by Deputy Mayor Hattenburg, seconded to award the South Sullivan Rd Preservation to Selland Construction, Inc. in the amount of $3,937,220 and authorize the City Manager to finalize and execute the construction contract. Ms. Amsden provided details on project and the bids received. She went over the bid tab spreadsheet and the photo of the project. Mayor Padden invited public comments; no comments were provided. Vote by acclamation: in favor: Unanimous. Opposed- None. Motion carried 3. Motion Consideration: Amended 2026 Federal Legislative Agenda— Virginia Clough It was moved by Deputy Mayor Hattenburg, seconded to amend the 2026 Federal Legislative Agenda as presented. Ms. Clough provided details on the updated information that would be adjusted to the federal legislative agenda if approved. Councilmember Merkel moved to amend the motion to "include that under the public safety section". With no second to the amended motion, the motion died. City Manager Hohman noted that it is very late in the process to try and amend the agenda would be extremely difficult to change and set up the necessary meetings while in DC. Mayor Padden invited public comments; no comments were offered. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried NON -ACTION ITEMS: 4. Admin Report: Potential Grant Opportunity: Pedestrian/Bicycle Program & Safe Routes to Schools — Adam Jackson Mr. Jackson provided a PowerPoint presentation on the pedestrian/bicycle program (PBP) and Safe Routes to School (SRTS) Program. Mr. Jackson detailed the grant program description and criteria for the grant, the recommended project applications that included Barker/Appleway Roundabout, Appleway Crossings, Arterial Crossings, Ped/Bike Safety Improvements (Sprague, Sullivan) and multiple citywide school zone flashing beacon & rectangular rapid flashing beacon installations. Mr. Jackson was looking for consensus to return with a motion. Council discussed the beacons or posted radar signs, potentially changing projects if awarded funding and Mr. Jackson noted that the projects listed are not fully designed and that they would be addressed at funding. Council provided consensus to return at a later date with a motion consideration for the grant opportunity. INFORMATION ONLY: (hill not be reported or discussed) 5. 2025 Annual Hearing Examiner Report GENERAL PUBLIC COMMENT OPPORTUNITY: Mayor Padden stated that the general public comment rules still apply and called for public comments. No comments were provided. COUNCIL COMMENTS Councilmember Kelly thanked staff for accommodating him for the additional questions throughout the evening. Councilmember Wick spoke about broadband projects and noted that we were awarded funding. He also spoke about being selected as the AWC chair for the large city advisory committee. Council Meeting Minutes: 03-03-2026 Page 2 of 3 Approved by Council: 04-28-2026 Councilmember Merkel made comments regarding it being an interesting day, noting the $300K Leonard Christian supported for the ice arena and spoke about his issues with local control. He also spoke about Veracrest road and the citizens noting that they are waiting on letter from the city. He closed with noted that he appreciated Betsy Wilkerson being here tonight and the collaboration with the city of Spokane. Councilmember Yaeger spoke about Kratom and not understanding where the correlation comes from with the April 201 "holiday" since that is a marijuana holiday. She also noted that we need to think of our service members right now and everyone involved in the conflict in the middle east. Councilmember Haley spoke about spoke about kratom and the need to ban the sale of it from our local stores. She spoke about a ribbon cutting she attended for a new mental health facility in our area. Deputy Mayor Hattenburg spoke about the SRTC board and noted that our Sullivan Trent project ranked the highest and that helps to keep the momentum going at the federal level for that project. MAYOR'S COMMENTS Mayor Padden spoke about the all -day workshop and reviewed our vision and goals for the city. She noted that we are one of the few entities that studies and understands the budget and allows for public comment and education of the budget prior to adopting it each year. She spoke about the honest and open discussions that we have around the budget and how it aligns with our goals and vision for the city. CITY MANAGER COMMENTS City Manager Hohman provided clarification on the update regarding 24th and Veracrest project and noted that the city is currently coordinating with the fire department regarding access. Mr. Hohman also provided an update on the ice rink and noted the discussion on a potential lease and that staff is still looking at all the pieces of it. Mr. Hohman also noted that the $300K being supported by Senator Christian was not a city request for funds, it was from Innovia and was the senate version of the budget. Mr. Hohman also congratulated our Public Works Department on the Wellesley preservation project for a quality and construction award. Mr. Hohman closed noting that next week's meeting starts at 5:00pm for the comprehensive plan discussion and will be more of a workshop/roundtable setting. EXECUTIVE SESSION Potential Acquisition of Real Estate [RCW 42.30.110(1)(b)] & Potential Litigation [RCW 42.3 0.11 0(l)(i)]. It was moved by Deputy Mayor Hattenburg, seconded to adjourn into executive session for approximately 45 minutes to discuss the potential acquisition of real estate and potential litigation, and that no action will be taken upon return to open session. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. Council adjourned into executive session at 7:53 p.m. At 8:38 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 4 minutes. At 8:42 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 3 minutes. At 8:45 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 3 minutes. At 8:48 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 4 minutes. At 8:52 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 3 minutes. Mayor Padden adjourned from Executive Session and Council reconvened at 8:55 p.m. It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to adjourn at 8: 55p. In. ATTEST: Laura Padden, Mayor Marct atterson, City Clerk Council Meeting Minutes: 03-03-2026 Page 3 of 3 Approved by Council: 04-28-2026 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: March, 3, 2026 Department Director Approval: Check all that apply: ❑ consent ❑ old business ® new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Motion Consideration: Bid award for the South Sullivan Rd Preservation, CIP #366. GOVERNING LEGISLATION: SVMC 3.35.10 —Contract Authority PREVIOUS COUNCIL ACTION TAKEN: • 9/5/2023 — Administrative report discussing the 2023 NHS Asset Management Program's call for projects. • 9/12/2023 — Motion consideration to authorize City manager to apply for NHS grant. • 7/9/2024 — Motion to apply for TIB grants, including this project. • 2/10/2026 — Administrative Report on the 2026 Capital Improvement Projects, which included this project. BACKGROUND: The South Sullivan Preservation Project will remove and replace the existing pavement on south Sullivan Road from 8th to 24th Avenue, construct sidewalk on the west side of Sullivan from 8th to 16th Avenue, install ITS infrastructure, add a pedestrian crossing south of Central Valley High School, implement stormwater revisions, and complete signal revisions within the project limits. The project is funded through combination of local funds and a National Highway System (NHS) grant. The NHS grant contributes $3,957,000 to the project and does not require local city match. The project was advertised on January 23rd, 2026, in The Spokesman Review, as well as on the city website. Twelve bids were received and opened February 13, 2026. The Engineer's Estimate for was $5,144,613. The lowest, responsive and responsible bidder is Selland Construction, Inc. with a bid of $ 3,937,220, approximately 23% less than the engineer's estimate. The project's bid tabulation is attached. Late last week, approximately $1,300,000 in additional federal grant funds were awarded to the project covering grant eligible city expenses including survey, design, inspection expenses, acquired right of way, and construction. OPTIONS: 1) Move to award the contract to the lowest responsive and responsible bidder, or 2) take other appropriate action. RECOMMENDED ACTION OR MOTION: Move to award the South Sullivan Rd Preservation to Selland Construction, Inc. in the amount of $3,937,220 and authorize the City Manager to finalize and execute the construction contract. BUDGET/FINANCIAL IMPACTS: The project is funded with a combination of NHS funds and city funds from 303, 311, and 402. There are sufficient funds to cover the construction costs for the construction contract. STAFF CONTACT: Erica Amsden, PE, CIP Engineering Manager ATTACHMENTS: Bid Tabulation for South Sullivan Rd Preservation Project Exhibit PUBLIC COMMENT SIGN -IN SHEET SPOKANE VALLEY CITY COUNCIL MEETING Tuesday, March 3, 2026 6:00 p.m. GENERAL PUBLIC COMMENT OPPORTUNITY #1 Please sign up to speak for up to THREE minutes and the Mayor will afford the public the opportunity to speak. The public comment opportunity is limited to a maximum of 45 minutes. You may only speak at one of the comment opportunities, not at both public comment opportunities. NAME PLEASE PRINT TOPIC YOU WILL SPEAK ABOUT YOUR CITY OF RESIDENCE oti ho V QI&Qn GiP�14242 3-2NIlff )":5 Please note that once information is entered on this form, it becomes a public record subject to public disclosure. Mard Patterson From: K M <kathmagl990@gmail.com> Sent: Friday, February 27, 2026 5:09 PM To: Council Meeting Public Comment Subject: Ordinance 26-003 Banning the Sale of Kratom Follow Up Flag: Follow up Flag Status: Flagged [EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or clicking links. To whom it concerns, My name is Kathryn Magliaro. I am 56 yrs old, i have been married for 36 yrs. I am the mother to two adult children. In 2007 i was diagnosed with Trigeminal Neuralgia. A quick Google search will show that Neurology medical literature labels it as the worst pain known in medicine. And they are not exaggerating. There is no cure, and finding treatment that is effective is not very common. I personally tried every medication known to have helped TN, over the course of 12/13 years. I also had 2 brain surgeries to try and manage the pain. Can you imagine how severe your pain is, that you are selectively allowing the Dr's to cut open your cranium? But they failed in helping relieve the pain. I progressively got worse, I began spending all days in bed, in a dark bedroom. I was no longer living life. And every single day I battled thoughts of suicide. Trigeminal Neuralgia has the moniker of the suicide disease, because pain is so severe when medicine cannot help, people opt to end their lives. In 2019 1 found out about this leaf Kratom. I started to consume it, and it helped me from the 1 st day. I still consume ir, because it is what manages my pain enough so I am living fully again. My husband has his wife back, and my kids have their mom back. Their are approximately 20 million people who consume Kratom in this country. Think about that number ... 20 million. Now think about the number of people who have been saved because they use this leaf and it helps them with their pain that medication was not helping. And it the majority of that number. Some also use it because it helped them stop harmful products they were using, and they were negatively impacting their lives. They also were saved, because this leaf has them living full productive lives again. About 20,000 chronic pain patients chose to commit suicide yearly. If you ban this leaf,and make it inaccessible to all those millions of people who use it because it is helping their pain, and they go back to their lives before it, like my life being in bed 24/7. That is going to strip away their hope that the pain will ever get better. Because they already tried medication and it wasn't effective, or it left them with horrific side effects. If you force them back to living, no just existing once again, that number of those who commit suicide is most definitely going to raise, because now the only thing that was managing their pain was ripped away. It's not an exaggeration that this leaf is saving millions of lives. I don't know of any product that is not consumed that has not been linked to health injury or deaths. Energy drinks, alcohol, tobacco/cigarettes, prescription pain meds, heck even water, drinking water has caused a few deaths, because they died from drinking to much water to fast. Yet none, not one of those is banned. And several are readily available at all convenience stores that kids frequent. However they are regulated. Age restrictions, some have to be sold behind the counter etc. That is how they're still accessible for those who benefit in some way, yet they remain difficult to obtain for those who should not have access. Please consider the numbers again, because you will definitely be ripping away people's hope for having their pain managed, already the number is 20,000 per year who commit suicide because they cannot manage their pain and live a full life. That number most definitely will increase if you strip this leaf, the most effective product that has helped their pain, away. Follow the science. Scientific research leaders around the globe, have testified that this leaf is not causing harm. People who have actually spent many many hours of research, for years researching, they all say it's not harmful. The World Health Organization also agreed that Natural kratom is not harmful, and so safe that they're not even putting it on their list to watch. Why are you ignoring the experts ? You will always find a few who don't agree with anything. But if those who have more education, many more years of experience, and that number is higher, not a handful of people, but many researchers some have even spoken on behalf of this leaf in Congress. But you are not listening. Please follow the science, please allow this leaf to be accessed, but regulated. Thank you for your time, Sincerely, Kathy Magliaro. Mard Patterson From: Jay Man <spokaneglassblower@yahoo.com> Sent: Tuesday, March 3, 2026 2:23 PM To: Council Meeting Public Comment Subject: Kratom ban [EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or clicking links. Hello, my name is Jerome. I am a small business owner in Spokane, and Spokane Valley. Im writing in regards to the topic of a kratom ban. My manager, Angel Payne, and myself would have hoped more education on kratom could happen to understand the difference between all natural kratom vs synthetic 7OH kratom extracts. It would be understandable to regulate or ban the highly potent extracts, but not an all out ban on all products. Kratom in its all natural form has given several health benefits, as stated by our customers. Our customers tend to be middle-aged to elderly who have been telling us their success stories for years. On how it saved their lives in many instances from the Grandma wanting off of prescription opioids, to a mom who just needed a little energy, to the homeless guy wanting to get off street drugs to start a new life, the truck driver who aches from long haul driving. When the synthetic 7OH kratom extracts first appeared on the market, our Kratom sales dropped. We invested in the hype and ordered inventory. It was clear what was happening, kratom tastes terrible like wheatgrass juice and capsules are large and minimal dose was 4-6 capsules at once. The synthetic 7OH kratom extracts came in flavored chewable tablets that are extremely potent. Our customers all said, its convenient and Less messy. We're hopeful with the right education on kratom vs. 7-oh synthetic kratom, that some stipulations or regulations could be put in place for 7OH kratom extracts, before an all out ban on all kratom products. But in my opinion, we would seek to ban all 7-oh products as they are synthetic and can be dangerous vs. Kratom that has actual benefits. Sorry for the Lengthy email, it has been concerning, that now with a ban then what will we do with all our inventory, if we can't sell by deadline? We're already down in kratom sales and now we'll suffer a loss from unsetlable inventory of kratom and 7oh extracts as well. Anyway, thank you again for your concern. We will comply accordingly as this is continues in our city council Legislature, of course, but hoping something could be done to help businesses not suffer such a loss. Thank you for your time. Jerome Yahoo Mail: Search, Organize, Conquer Yahoo Mail: Search, Organize, Conquer Marci Patterson From: Albert Merkel Sent: Tuesday, March 3, 2026 2:39 PM To: Jay Man Cc: Michael Kelly; Council Meeting Public Comment Subject: Re: Kratom ban Dear Jerome, Thank you for writing me, I very much appreciate your feedback. I understand your point on the synthetic vs natural, that being said our resources to make this distinction are severely limited as a city. If we're to try to regulate this as opposed to ban this, we would need dedicated drug lab services to analyze samples, and that just isn't in the cards when we haven't established good percentages and chemistry in an overarching law. Your business concerns are very important to me. I plan to ask for an extension of the notification period to at least beyond April 20, 1 also plan to ask for an allowance for business to business sales of inventory acquired before the ban. Please also be aware that a comment period will be extended tonight for residents, and it would be helpful to comment. I will copy this response to the public comment email, but it would definitely be good if someone could attend via zoom. Thanks, Councilman Al Merkel Get Outlook for iOS From: Jay Man <spokaneglassblower@yahoo.com> Sent: Tuesday, March 3, 2026 2:22 PM To: Albert Merkel <amerkel@spokanevalleywa.gov> Subject: Kratom ban [EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when opening attachments or clicking links. Hello, my name is Jerome. I am a small business owner in Spokane, and Spokane Valley. Im writing in regards to the topic of a I<ratom ban. My manager, Angel Payne, and myself would have hoped more education on kratom could happen to understand the difference between all natural kratom vs synthetic 7OH kratom extracts. It would be understandable to regulate or ban the highly potent extracts, but not an all out ban on all products. Kratom in its all natural form has given several health benefits, as stated by our customers. Our customers tend to be middle-aged to elderly who have been telling us their success stories for years. On how it saved their lives in many instances from the Grandma wanting off of prescription opioids, to a mom who just needed a little energy, to the homeless guy wanting to get off street drugs to start anew life, the truck driver who aches from long haul driving. When the synthetic 70H kratom extracts first appeared on the market, our Kratom sales dropped. We invested in the hype and ordered inventory. It was clear what was happening, kratom tastes terrible like wheatgrass juice and capsules are large and minimal dose was 4-6 capsules at once. The synthetic 70H kratom extracts came in flavored chewable tablets that are extremely potent. Our customers all said, its convenient and less messy. We're hopeful with the right education on kratom vs. 7-oh synthetic kratom, that some stipulations or regulations could be put in place for 70H kratom extracts, before an all out ban on all kratom products. But in my opinion, we would seek to ban all 7-oh products as they are synthetic and can be dangerous vs. Kratom that has actual benefits. Sorry for the lengthy email, it has been concerning, that now with a ban then what will we do with all our inventory, if we can't sell by deadline? We're already down in kratom sales and now we'll suffer a loss from unsellable inventory of kratom and 7oh extracts as well. Anyway, thank you again for your concern. We will comply accordingly as this is continues in our city council legislature, of course, but hoping something could be done to help businesses not suffer such a loss. Thankyou foryour time. Jerome Yahoo Mail: Search, Organize, Conquer 2 March 3, 2026 — City Council Remarks Good evening Mayor Padden, Deputy Mayor Hattenburg, Members of the City Council, and City Leadership. My name is Ben Lund. I have been a Spokane Valley resident for 36 years and have proudly served this community for 26 years through my carpet cleaning business. I wanted to offer some "boots on the ground" context following the Homelessness Presentation on February 17, 2026. Pastor Tim Olp, who leads the Free Enterprise Institute — where current events are discussed from a Biblical worldview — shared some observations with me. He lives in Post Falls and frequently travels through Spokane Valley. He told me he has noticed meaningful changes over the past year. Specifically, he is seeing significantly less panhandling, and the visible camping issue appears to have largely disappeared in the areas he regularly drives. He asked me to pass along his thanks for whatever policies and coordination have been implemented. That appreciation reflects what many in the community are noticing. At the February 17 meeting, Councilmember Merkel stated, "In general, I'm disappointed we are not making progress on this problem." That is a direct quote from the recorded meeting. Officer Dan Spiewak stated that he had "conversations with other officers and citizens thanking us for cleaning things up." City Manager John Hohman stated that Councilmember Merkel had "mischaracterized that we have not made any progress," and further emphasized that homelessness is "a very difficult subject matter beyond what any one city can control." Those are also direct quotes from the public record. Based on both the presentation data and what I am hearing in the community, I respectfully believe progress has been made in a relatively short period of time. Is the issue fully solved? Of course not. But measurable improvement is occurring. And I believe Spokane Valley should acknowledge that progress. Thank you. Spokane jValle � 10210 E Sprague Avenue [I Spokane Valley WA 99206 Y Phone: (509) 720-5000 ❑ www.SpokaneValleyWA.gov Memorandum To: Mayor and City Council From: Virginia Clough, Legislative Policy Coordinator Date: March 3, 2026 Re: Gordon Thomas Honeywell — Government Relations Legislative Report — March 1, 2026 Mayor and Council, Please find attached Gordon Thomas Honeywell's report providing a recap of the Legislature's action during the week of Feb. 23-28. The House and Senate released their 2025-27 Supplemental Operating, Capital, and Transportation budget proposals, each of which received public hearings and is moving through its respective chamber. Over the next two weeks, lawmakers will focus on reconciling differences between the proposals and finalize all budgets before adjournment. (GTH Gov's budget summaries are available here, and AWC's budget matrix is available here.) Alongside budget negotiations, legislators are moving policy bills quickly to meet remaining deadlines. The policy cutoff was Feb. 27 and the final fiscal committee cutoff was Monday, March 2. After that, most legislative activity will shift to floor votes, caucus meetings, and final budget negotiations. Revenue: • The Millionaires Tax proposal, Senate Bill 6346 has advanced through the legislative process. o Legislators and the Governor have been integrating sales tax reductions to improve affordability in the state - current proposals would exempt hygiene products and diapers from sales tax, and roll back the sales taxes on services (SIB 5814) that were enacted during the 2025 legislative session. o These sales tax policy changes negatively impact local sales and use tax collections - across all cities, the impact is greater than $110 million. o The Association of Washington Cities (AWC) is asking members of the House of Representatives to use a portion of the revenue generated by the income tax to mitigate these impacts. o As amended by the House Finance Committee, the previously proposed investments in public defense have been reduced. ■ Rather than allocating 7% of total revenues collected, it now proposes to allocate $150 million to public defense, of which 10% or $15 million is allocated to cities. The bill advanced from committee with several other amendments. A major change, led by Rep. Shaun Scott (D-Seattle) and supported by 13 representatives, eliminated a corporate tax break included in the original proposal. Capital Budget Requests: • The House proposed budget includes $258,000 for our Balfour Park request and $400,000 for Innovia's ice rink request. • The Senate's capital budget includes no funding for our Balfour Park request and $300,000 for Innovia's ice rink request. It is highly likely that the final capital budget will include the funding as proposed by the House. Testimony: • Transportation Benefit District Fees: Legislative Policy Coordinator Virginia Clough testified in support of Senate Bill 6262 as a more equitable way to fund pavement preservation, explaining that currently lighter, often lower -income drivers' vehicles pay TBD fees while heavier, more expensive SUVs, pickups, and EVs are exempt despite causing more wear. Click here to watch her testimony in the House Transportation Committee. Policy Issues: Updates on the following bills are also detailed in this week's report: • HB 2442 — Local Government Revenue Tools • SB 5862 — Retirement Benefits Adjustment • HB 2304 — Condominium Warranty Changes • SB 6027 — Affordable Housing Revenue Flexibility • SB 6026 - Residential Required to be Allowed in Commercial Zones • SB 5729 — Permit Streamlining • HB 2266 — Permitting of STEP (Shelter, Transitional Housing, Emergency Housing, Permanent Supportive Housing) • SB 5292 — PFML Premium Rate Methodology • HB 2165 - False Identification as Peace Officers • SB 6066 — Crash Prevention Zones • SB 5890 — Excessive Speed Recklessness • SB 5974 — Law Enforcement Qualifications • HB 2172 — Route Jurisdiction Transfers • SB 5061 - Prevailing Wage Adjustments • SB 6110 — Electric Bicycle and Electric Motorcycle Regulation Bills that died with the Opposite Chamber Policy Committee Cutoff: • HB 1195 — Neighborhood Commercial Zones • HB 2095 - Vulnerable Road User Protections • SB 5071 — Child drug endangerment • SB 5098 — Expanded weapon restrictions • SB 5879 — JLARC reporting reduction • SB 5965 — Carryout bag regulations SB 6239 - Government tort claims process o Although the bill died, the Senate Operating budget passed off the floor with an amendment requiring the Department of Enterprise Services Risk Management Division to produce a report recommending changes to statutes, rules, and agency policies to stop the growth in state tort liability. o It also requires legislative committee hearings on state tort settlements of $5 million within 12 months of the settlement during the 2025-2027 biennium. Today is the 51st day of the 60-day short session, scheduled to end on March 12. Virginia C GORDON THOMAS HONEYWELL GOVERNAIENT RELATIONS City of Spokane Valley Legislative Report March 1, 2026 SESSION CUTOFF CALENDAR itr February bruary 2026 Dnoi m limCommittee Deadli —11 Tehr�ruarry , 2026 F i o n a I ('ar o ii i t e-Dead!* February 17, 2027 Chamber_ of_QrigiR Dearllinc� February25 2026 Apposite Chamber DnliGy Gemmittee 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 is entering the final two weeks of the 2026 session. Both the House and Senate have now released their 2025-27 Supplemental Operating, Capital, and Transportation budget proposals, each of which has received public hearings and is moving through its respective chamber. Over the next two weeks, lawmakers will focus on reconciling differences between the proposals in order to finalize all budgets before adjournment. (GTH Gov's budget summaries are available here, and AWC's budget matrix is available here.) Significant budget themes impacting local governments include: • The Senate diverts $375 million from the Public Works Assistance Account (PWAA) to the General Fund and repays $340 million with bonds, while the House, aligned with the Governor, sweeps $75 million with no plans to replenish. • The House proposed Transportation Budget assumes an "underspend" on local program projects scheduled to receive funding this biennium. The House assumes that $200 million allocated to local projects in the 2025-27 biennium will not be spent. If every local agency tries to spend the full amount of money appropriated to them in 2025-27, WSDOT will be delaying projects even though the funds are "scheduled" in the LEAP list. Alongside budget negotiations, legislators are moving policy bills quickly to meet remaining deadlines. With the policy cutoff complete, the final fiscal committee cutoff arrives Monday, GTH-GOV March 2. After that, most legislative activity will shift to floor votes, caucus meetings, and final budget negotiations. Revenue: As budget discussions accelerate, revenue proposals remain at the forefront. In particular, the Millionaires Tax proposal, Senate Bill 6346. As the bill has advanced through the legislative process, legislators and the Governor have been integrating sales tax reductions to improve affordability in the state - the current proposals would exempt hygiene products and diapers from sales tax, and would roll back the sales taxes on services that were enacted during the 2025 legislative session. These sales tax policy changes negatively impact local sales and use tax collections - across all cities, the impact is greater than $110 million. The Association of Washington Cities (AWC) is asking members of the House of Representatives to use a portion of the revenue generated by the income tax to mitigate these impacts. As amended by the House Finance Committee, the previously proposed investments in public defense have been reduced. Rather than allocating 7% of total revenues collected, it now proposes to allocate $150 million to public defense, of which 10% or $15, million is allocated to cities. The bill advanced from committee with several other amendments. A major change, led by Rep. Shaun Scott (D-Seattle) and supported by 13 representatives, eliminated a corporate tax break included in the original proposal. Throughout the session, AWC continues to advocate actively on behalf of cities. We will continue sharing AWC resources alongside the city's tailored legislative updates. We encourage you to review the weekly AWC Legislative Bulletin for updates on key bills affecting cities and information on how AWC is engaging on those issues. Legislative Agenda Items 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 House capital budget proposal includes $258,000 for Balfour Park. Ice Skating Facility: Both the House and Senate capital budget proposals include funding for the Spokane Valley Ice Skating Facility, though the amounts vary: • House: $400,000 • Senate: $300,000 It is highly likely that the final capital budget will include the funding as proposed by the House. Transportation Benefit District Fees: City of Spokane Valley Legislative Policy Coordinator Virginia Clough testified in support of Senate Bill 6262 as a more equitable way to fund pavement preservation, explaining that currently lighter, often lower -income drivers' vehicles pay TBD fees while heavier, more expensive SUVs, pickups, and EVs are exempt despite causing more wear. Click here to watch her testimony in the House Transportation Committee. GTH-GOV 2 Senate Bill 6262, sponsored by Sen. Javier Valdez (D-Seattle), expands local transportation benefit district authority by increasing the maximum vehicle scale weight eligible for annual transportation benefit district fees from 6,000 pounds to 9,000 pounds starting July 1, 2026. The House Transportation Committee held a public hearing on the bill on February 26. Transportation officials from Spokane and Spokane Valley, and AWC argued the bill fairly updates the Transportation Benefit District (TBD) vehicle -fee authority by extending eligibility to vehicles up to 9,000 pounds, a negotiated compromise that reflects today's heavier SUVs, pickups, and EVs. They emphasized that the current 6,000-pound cap exempts many heavier, more road -damaging vehicles, leaving lighter, often lower -income drivers to shoulder TBD fees, and that closing this "truck loophole" would provide cities using TBDs with a more equitable and effective tool for funding pavement preservation and addressing increased wear from heavier vehicles. There was no testimony in opposition. The bill is scheduled to be voted on by the committee on March 2. Other Policy Issues Fiscal Management Local Government Revenue Tools: House Bill 2442, sponsored by Rep. April Berg (D-Mill Creek), authorizes new sales and use tax authority for services for children and families, authorizes a new county property tax levy for public health clinic expenses, expands uses of real estate excise tax uses to include nuisance abatement, expands uses of House Bill 1590/House Bill 1406 funds, extends the maximum length of levy lid lifts, and expands uses of revenue from a county imposed rental sales tax.. On February 17, the bill passed the House floor by a vote of 53-44. The Senate Ways & Means Committee held a public hearing on the bill on February 26. Counties, cities, public health agencies, and parks districts testified in support of the bill as a package of practical, much -needed local -revenue tools —especially expanded flexibility for using House Bill 1590 housing/behavioral-health sales tax dollars for operations and rental assistance, a new optional levy for public -health clinics, broader REET 2 uses, longer 10-year lid lifts, and clearer authority for flood -control district funding. They argued these updates will help communities respond to homelessness, behavioral -health needs, flooding, and structural budget gaps. Public -health leaders stressed that the new levy authority is essential to stabilize preventive care and reduce costly emergency -room reliance. Testimony against the legislation argued it adds yet another layer to an already heavy load of local tax options and would overburden homeowners and retirees. Overall, testimony framed House Bill 2442 as a high -priority, broadly supported the modernization of local fiscal authority. Retirement Benefits Adjustment: Senate Bill 5862, sponsored by Sen. Perry Dozier (R-16th LD), provides a one-time 3% cost -of -living increase, capped at $110 per month, to beneficiaries of Teachers' Retirement System Plan 1 and Public Employees' Retirement System Plan 1 who are receiving a monthly benefit on July 1, 2025, with the increase effective July 1, 2026. The House Appropriations Committee held a public hearing on the bill on February 26. Plan 1 retirees and retiree advocates testified strongly in favor of granting a one-time 3% COLA, emphasizing that decades without automatic adjustments have left PERS/TRS 1 retirees, many of them older, low -benefit, and predominantly women, struggling with sharply rising property taxes, medical GTH-GOV 3 premiums, and basic living costs, and experiencing a 40% or greater loss in purchasing power. They described the COLA as an overdue matter of equity and economic security, noting that all other retirement plans receive regular adjustments and that retirees continue contributing to their communities. The Association of Washington Cities expressed empathy for retirees' financial hardship but cautioned that any benefit increase must not shift unfunded pension costs onto local governments or PERS 2 employers, urging lawmakers to ensure funding responsibility does not fall on cities already facing fiscal pressures. The committee is scheduled to vote on the bill on March 2. 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 allowing this option for buildings with up to twelve units and four or fewer stories. The bill passed the Senate unanimously on February 26. Affordable Housing Revenue Flexibility: Senate Bill 6027, sponsored by Sen. Emily Alvarado (D- West Seattle), allows existing affordable housing revenues to support acquisition, rehabilitation, and long-term operation of affordable housing, with explicit caps on administrative and supplanting uses. The House Finance Committee held a public hearing on the bill on February 26. Counties, housing providers, and the Governor's Office strongly supported the bill as a crucial flexibility and efficiency measure that does not raise new taxes but allows local governments to better stabilize permanent supportive housing amid rising costs, federal funding volatility, and HUD rule changes threatening hundreds of units. Advocates for low-income and formerly homeless households described the bill as the result of multi -year collaboration with Commerce and providers to make the PSH system more sustainable. The Committee is scheduled to vote on the bill on March 2. Residential Required to Be Allowed in Commercial Zones: Senate Bill 6026, sponsored by Sen. Emily Alvarado (D-West Seattle), is Governor -request legislation that requires jurisdictions with a population of 30,000 or more, in a fully planning county, to allow residential uses in commercial and mixed -use zones and limits a city's ability to require ground floor commercial. The bill was approved by the House Local Government Committee on February 25 with amendments. Under the amended version, a jurisdiction cannot impose ground floor commercial or mixed -use requirements in more than 40% of the total acreage in areas zoned for commercial or mixed use, excluding transit -oriented development areas and areas that allow buildings of 85 feet. The amendment also prohibits such ground floor requirements on publicly subsidized affordable housing projects, extends the deadline for local governments to comply to 18 months, and bars noncompliant jurisdictions from imposing ground floor commercial or mixed -use requirements until they come into compliance. The House Appropriations Committee held a public hearing on the bill on February 27 where several cities testified as neutral and asked the committee to hold to the version that passed out of the GTH-GOV 4 House Local Government Committee and not make further amendments. The Appropriations Committee is scheduled to vote on the bill on March 2. Permit Streamlining: Senate Bill 5729, sponsored by Sen. Chris Gildon (R-25th LD), states that local jurisdictions may not charge applicants for third -party peer review of development submittal materials when those materials have already been reviewed by a licensed professional employed by the jurisdiction whose license is within the same scope as the submittal materials. Pass -through charges are allowed if there is a dispute between the jurisdiction's staff and the applicant or if the jurisdictions use a third -party licensed professional in lieu of staff review. The House Local Government Committee held a public hearing on February 24. Supporters of the bill, including BIAW, and the Master Builders Association, argued that the bill offers a simple, targeted permitting fix by preventing jurisdictions from charging applicants for both internal and third -party engineering or architectural reviews on the same permit, which can add thousands of dollars per housing unit. There was no testimony in opposition. The committee unanimously approved the bill on February 25, and it is now in the Rules Committee. Local Decision -Making Authority Permitting of STEP (Shelter, Transitional Housing, Emergency Housing, and Permanent Supportive Housing): House Bill 2266, sponsored by Rep. Strom Peterson (D-Edmonds), requires that STEP housing types must be permitted in certain zones requiring transitional and permanent supportive housing in residential zones and zones that allow hotels, and requiring indoor emergency shelters and emergency housing in hotel -allowed zones and any additional zones needed to meet projected demand. The bill was voted out of the Senate Housing Committee on February 25 with an amendment. The bill requires cities or counties that deny a permit after failing to reach an agreement through good -faith negotiations to help the shelter or housing sponsor identify alternative suitable properties. It extends the negotiation period before a jurisdiction may deny a permit from 90 days to 180 days. It also clarifies that proximity to a school triggers good -faith negotiations only if the school existed before the shelter or housing begins operating or submits a permit application. Additionally, it updates a statutory reference related to indoor emergency shelters and indoor emergency housing. The bill is now in the Rules Committee. Miscellaneous 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 solvency and establishing a four -month reserve by the end of 2030, without changing the existing statutory cap of 1.2% on the total premium rate. The sponsor of the bill shared that it is intended to stabilize PFML funding using the same forward -looking actuarial methodology used for state pensions. The House Labor & Workplace Standards Committee held a public hearing GTH-GOV 5 on February 24. Testimony in support of the bill noted it as a necessary modernization of Washington's PFML rate -setting system, replacing the rigid statutory formula with a forward -looking actuarial model that can account for demographic shifts, economic cycles, and program experience while maintaining the 1.2% premium cap to protect workers and employers. The Washington Policy Center testified as "other," agreeing the actuarial model is an improvement and supporting retention of the cap, but warning that new reserve and solvency requirements could eventually pressure rates upward and arguing the PFML program disproportionately benefits higher -income workers and should be reduced or phased out rather than expanded. There was no testimony in opposition. The committee unanimously approved the bill on February 25 and it is now in the Rules Committee. Public Safety & Behavioral Health False Identification as Peace Officers: House Bill 2165, sponsored by Rep. Edwin Obras (D- SeaTac), is Governor -request legislation that creates a new gross misdemeanor offense for manufacturing, possessing, or displaying items or vehicles that falsely identify a person or object as law enforcement. On February 23, the bill passed out of the Senate Law & Justice Committee and is now in the Rules Committee. Crash Prevention Zones: Senate Bill 6066, sponsored by Sen. Nikki Torres (R-Pasco), authorizes and defines "crash prevention zones," adjusts related enforcement, and links fine revenue to targeted safety improvements. The bill allows only one initial crash prevention zone on U.S. Highway 395 between Pasco and Mesa through January 1, 2029, and beginning in 2029 authorizes counties, cities, towns, and the Washington State Department of Transportation to designate additional zones on high -collision road segments, require public hearings and engineering and traffic investigations to identify safety improvements (including potential speed limit changes), and direct increased law enforcement presence within the zones. Monetary penalties for personal electronic device violations and automated camera -based speed violations committed within crash prevention zones may be doubled, with resulting revenues dedicated to zone -related engineering and traffic investigations, signage, and safety improvements, including deposits to local crash prevention zone accounts and, for certain state -established zones, the highway safety fund. The bill also authorizes the use of automated traffic safety cameras for speed enforcement in crash prevention zones and requires that any remaining camera revenue after program costs be spent only on safety purposes within the zone. The House Transportation Committee held a public hearing on the bill on February 26. Testimony in support of the bill argued that it provides an important short-term safety tool for high -fatality corridors like US-395 and US-12, allowing communities to designate crash -prevention zones, warn drivers, and implement interim safety measures while awaiting long-term fixes. They cited recent fatal crashes, emphasized the fairness and urgency of addressing statistically significant risk, and urged adding the hazardous US-12 segments to the bill's authority. Testimony also highlighted that counties value the framework even with its delayed statewide applicability in 2029. Committee staff clarified that until 2029, only the US-395 Pasco —Mesa segment may be designated, with broader local authority beginning GTH-GOV 6 thereafter. There was no testimony in opposition. The bill is scheduled to be voted on by the committee on March 2. Excessive Speed Recklessness: Senate Bill 5890, sponsored by Sen. Ron Muzzall (R-10, Oak Harbor), modifies the reckless driving statute to add driving over the posted speed limit as an alternative way to commit the offense, restates the existing gross misdemeanor penalties, and beginning in 2029 requires certain high-speed offenders to use intelligent speed assistance technology during a probationary period following license suspension. The House Community Safety Committee held a public hearing on February 23. All testimony came from groups supporting the bill, including law enforcement, prosecutors, traffic -safety officials, and construction labor and industry organizations. These supporters emphasized that driving 20-30 mph over the posted speed limit is inherently dangerous, dramatically increases the risk of fatal crashes, and poses a particular threat to pedestrians and road -construction workers who have little physical protection. They argued that clearly defining extreme speeding as reckless driving, especially in work zones, will provide a strong deterrent, improve enforcement, and ultimately save lives. On February 24, an amended version of the bill was voted on unanimously. The amendment expands the crime of reckless driving to include a person driving 20 mph or more (previously 30 mph or more) in a roadway construction zone where workers are present. The House Appropriations Committee held a public hearing on February 27, but there was no testimony. All those who signed in on the bill were in support. The bill is scheduled to be voted out of the committee on March 2. Law Enforcement Qualifications: Senate Bill 5974, sponsored by Sen. John Lovick (D-Mill Creek), modernizes eligibility, certification, background investigation, and accountability standards for sheriffs, police chiefs, town marshals, and sheriff candidates, and regulates the use of noncertified personnel by law enforcement agencies, including establishing new rules for volunteers, youth cadets, specially commissioned officers, and deputized process servers in cities, code cities, and counties. The House Community Safety Committee held a public hearing on the bill on February 23. Supporters of the bill, including Sen. Lovick, advocacy groups, prosecutors, and community organizations, argued that Washington's sheriffs and other law -enforcement leaders should meet the same professional, background -check, and certification standards imposed on rank -and -file officers. It was emphasized that the current law sets minimal qualifications, creates double standards, and allows leaders who are decertified for serious misconduct to remain in office. Opponents, led by multiple sheriffs and WASPC, countered that the bill is unnecessary, constitutionally problematic, and expensive for local governments, arguing that sheriffs are already accountable to voters, almost universally certified, and subject to recall, and warning that the bill would undermine voter sovereignty, create litigation risk, and impair small counties' reliance on specially commissioned volunteers. Prosecutors raised concerns about vacancy timing, mandatory polygraph/psych screening, and potential retroactive requirements, and urged clarifying amendments. On February 24 an amended version of the bill was voted out of committee. The changes clarify and expand eligibility and background check requirements for sheriffs, police chiefs, and marshals (including allowing service despite certain vacated gross misdemeanor convictions and grandfathering incumbents from the five-year experience requirement), require the Washington State Patrol to GTH-GOV 7 conduct background and fingerprint -based criminal history checks for sheriff candidates and appointees and treat them as applicants for peace officer certification eligibility, clarify when a vacancy is created in the office of an elected law enforcement official by tying it to final decertification or failure to meet statutory eligibility requirements, specify that specially commissioned peace officers are not considered volunteers for purposes of statutory limits, and create an exception allowing certain retired law enforcement officers serving as volunteers to carry firearms if they are qualified under the federal Law Enforcement Officers Safety Act Improvements Act of 2010. The bill is now in the Rules Committee. Transportation/Public Works Route Jurisdiction Transfers: House Bill 2172, sponsored by Rep. Adam Bernbaum (D-24th LID), establishes a new process for transferring or abandoning state highway routes to local jurisdictions, including requiring an agreement with a city or county before abandoning to that jurisdiction any state highway segment over two miles in length or that includes a bridge, and refining the role of the independent multijurisdictional review commission by requiring a conference and an annual report to the House and Senate transportation committees on proposed transfers, costs, and system impacts.. The Senate Transportation Committee held a public hearing on the bill on February 27. Supporters of the bill, including the City of Tacoma, the Washington State Transportation Commission, the Washington State Association of Counties, AWC, and the Washington State Transportation Improvement Board, shared that the bill provides much -needed reforms to the state's process for transferring highway segments to local jurisdictions, noting that current law allows unilateral turnbacks of aging, costly infrastructure with little notice, analysis, or public transparency. The bill needs to be voted on Monday in order to remain under consideration. Prevailing Wage Adjustments: Senate Bill 5061, sponsored by Sen. Steve Conway (D-29th LID), requires annual adjustments to prevailing wage rates for most public works contracts so that wages for laborers, workers, and mechanics reflect updated prevailing wage rates over the duration of a project rather than remaining fixed for the entire contract term based solely on the rates in effect when the contract is executed. The bill exempts small works roster projects and residential construction from the annual adjustment requirement and maintains existing provisions for reclassification of residential to commercial rates. The act takes effect July 1, 2027. The House Capital Budget Committee held a public hearing on February 26. Testimony was divided. Supporters, including Sen. Conway, union contractors, and building -trades representatives, argued the bill corrects an unintended wage freeze that leaves workers earning less than updated statewide rates and creates bidding disadvantages for signatory contractors whose multi -year CBA increases are public and predictable. They emphasized negotiated amendments such as small -works and residential exemptions and once -per -year adjustments. Opponents from non -union contractor associations warned that Washington's prevailing -wage system can produce large, unpredictable spikes tied to a single CBA, which small contractors cannot absorb mid -project, and urged a mandatory change -order mechanism when increases exceed 5%. The Association of Washington Cities is neutral on the bill, GTHI-GOV 8 recognizing the current version is a negotiated compromise. The bill is scheduled to be voted on by the committee on March 2. Electric Bicycle and Electric Motorcycle Regulation: Senate Bill 6110, sponsored by Sen. Sharon Shewmake (D-Bellingham), narrows the definition of electric -assisted bicycles to exclude vehicles capable of exceeding 20 miles per hour on motor power alone and those designed to be easily modified to exceed existing motor power or speed limits, and direct the Department of Licensing to convene a work group to recommend a regulatory framework for electric motorcycles and similar vehicles by December 15, 2027. Notably, the bill does not include a definition of electric motorcycle. The House Transportation Committee held a public hearing on Senate Bill 6110 on February 26. Supporters of the bill, including Sen. Shewmake, local governments, and statewide associations, argued that rapidly emerging high-speed micromobility devices require clearer state -level distinctions between a -bikes and electric motorcycles, with Sen. Shewmake emphasizing that the bill deliberately defines what is not an e-bike and launches an expert work group to design an appropriate e-moto regulatory framework. Testimony from motorcycle, biking, parks, and city organizations uniformly backed the bill while urging amendments, many aligning with the House version, to add representation from recreational e-moto users, adopt an explicit e-motorcycle definition, and enable non -criminal enforcement for youth. Cities and recreation officials stressed that a patchwork of local rules is already emerging, parents often misidentify e-motos as e-bikes, and staff need consistent statewide guidance and education tools to manage safety, enforcement, and access on streets, trails, and in parks. The committee is scheduled to vote on the bill on March 2. Below are some of the local government -related bills that died with the Opposite Chamber Policy Committee Deadline. House Bill 1175 — Neighborhood commercial uses House Bill 2095 —Vulnerable road users Senate Bill 5071— Child drug endangerment Senate Bill 5098 — Expanded weapon restrictions Senate Bill 5879—JLARC reporting reduction Senate Bill 5965 — Carryout bag regulations Senate Bill 6239 — Government tort claims process. Although the bill died, the Senate Operating budget passed off the floor with an amendment requiring the Department of Enterprise Services Risk Management Division to produce a report recommending changes to statutes, rules, and agency policies to stop the growth in state tort liability. It also requires legislative committee GTH-GOV 9 hearings on state tort settlements of $5 million within 12 months of the settlement during the 2025-2027 biennium. GTH-GOV 10 Virginia Clough From: Virginia Clough Sent: Tuesday, March 3, 2026 11:46 AM To: Albert Merkel; Ben Wick; Jessica Yaeger; Laura Padden; Michael Kelly; Pamela Haley; Tim Hattenburg Cc: Steve Roberge; Adam Jackson; Jenny Nickerson; Chelsie Walls; Dave Ellis; Erik Lamb; Gloria Mantz; Jill Smith; John Bottelli; John Hohman; John Whitehead; Kelly Konkright; Marci Patterson; Mike Basinger; Robert Blegen; Tony Beattie Subject: Cardinal Infrastructure Report - March 2 Attachments: 03.02.26.pdf Mayor and Council, Here is an overview of the March 2 Cardinal Infrastructure update: Appropriations/Grant Funds: • House Committee on Appropriations released guidance regarding Community Project (i.e., earmark) funding for FY 2027 funds. o The process is severely truncated this year and likely will be completed by the end of the month or sooner. o House Members are allowed to recommend up to 20 projects for funding, an increase of five projects per Member from previous years. • As detailed below, FTA recently announced $390 million in Bus & Bus Facilities grants, increasing the likelihood that DOT will work to award all remaining IIJA funds across modal administrations by September 30 of this year. o The grant program Includes competitive grant programs such as FRA's Railroad Crossing Elimination Program, FTA's Low- or No -Emission and Bus & Bus Facilities Programs, and DOT -wide programs like BUILD. o To speed up the process for making awards, be prepared for shorter grant application periods and possible combinations of FY 25 and FY 26 available funds. Congress: • Senator Shelly Moore Capito (R-WV), chair of the Environment and Public Works Committee, has said her Committee will mark up the highways portion of the upcoming surface transportation reauthorization bill by late April or May of this year. • Senators Josh Hawley (R-MO) and Jeff Merkley (D-OR) introduced two bills that would make it illegal for investment firms with over $150 million in assets to buy single-family homes, condos, or townhouses and prevent anyone owning 50 or more homes from getting tax deductions for appreciation or mortgage interest on those properties. This is a bipartisan effort to help benefit the country's housing affordability issue. • Following President Trump's call to restrict commercial driver's licenses (CDLs) issued to immigrants in his State of the Union address, Senator Banks (R-IN) has introduced legislation restricting CDLs to citizens, lawful permanent residents, and certain work visa holders. The legislation would immediately revoke all CDLs issued to unauthorized immigrants and immigrants with temporary status. Agencies: DOT • DOT is seeking nominations for its National Advisory Committee on Travel and Tourism Infrastructure. o The Committee will have 15 members, each serving a two-year term, pulled from the travel and tourism workforce, state tourism offices and DOTs, MPOS, local governments, and other entities with relevant experience. o Members will advise the Secretary on issues, projects, and funding needs related to America's intermodal transportation network and serve as a forum for travel and tourism stakeholders to discuss transportation issues affecting interstate and interregional passenger mobility. • The Senate voted 56-33 to confirm Ryan McCormack as Undersecretary for Policy at DOT. o McCormack has previously served as Sec. Duffy's Deputy Chief of Staff and as Duffy's Legislative Director during Duffy's time in the House. o McCormack's new role will focus on reducing highway deaths and improving the grantmaking process. • In more news impacting CDL. issuance, DOT has announced a Preliminary Determination of Noncompliance against the state of Illinois after a FMCSA investigation. o The investigation found that one in five sampled non-resident CDLs in Illinois were issued improperly, as the state did not verify the holder's lawful presence in the U.S. o DOT has given the state one month to revoke these CDLs and is threatening to withhold up to $64 million in FY 27 highway funds and potentially decertify the state's CDL program if action is not taken. o FMCSA has announced similar warnings to North Carolina, California, and Pennsylvania as part of a broader push to audit state licensing agencies. HUD ® On Feb. 19, HUD issued a proposed rule that would require proof of citizenship status for every HUD -funded housing resident, including those in "mixed status households" where some family members may have legal immigration status and others do not. o Current regulations allow mixed -status families to receive decreased assistance based on the number of household members with legal status, and the new rule would prohibit any subsidy for such a family. o Critics of the proposed rule point to the fact that 80,000 people, including 37,000 children (most'of whom are citizens), would lose their housing. • FHWA has finalized a NEPA Assignment Memorandum of Understanding with Nebraska's Department of Transportation, allowing the state to assume federal environmental review responsibilities. (Nebraska joins Texas and Maine) FTA • FTA announced $390 million in Bus & Bus Facilities grants. These grants were selected from unawarded FY 25 applications and funded through money included in the FY 26 Transportation, Housing and Urban Development bill, and the process follows the grantmaking trend for the coming year as indicated above. Am • FRA is reportedly planning to restructure Amtrak, splitting the company into three distinct entities jointly held by the same company. o One company would focus on operations, another would handle rolling stock management, and a third would manage infrastructure and construction. o This proposal would also allow state governments to include State-owned equipment in Amtrak's equipment pool on an opt -in basis. • FRA is accepting nominations for membership in its Railroad Safety Advisory Committee. o The Committee will have 25 members representing railroads, labor, suppliers, manufacturers, and other major FRA stakeholder groups. o Members will serve two-year terms and may be reappointed after their term ends. This opportunity is open to past members and new members alike. • FRA has opened registration for its 2026 National Highway -Rail Grade Crossing Safety Conference, which will take place in Atlanta, GA, from April 6-9. Register here. • EPA is seeking to remove four PFAS drinkinq water limits from federal regulations, and do so without going through public comment, on the grounds that the agency itself was out of procedure in its issuing of the 2024 PFAS rule. • Seeking to revamp the agency's $5 billion Clean School Bus Program, the EPA is expanding eligibility for alternative fuel options beyond the battery -electric buses that the Biden Administration had prioritized. STB Other: Union Pacific is expected to refile its merger agreement with Norfolk Southern by April 30. The railroad's first attempt was returned by the Surface Transportation Board (STB) due to incompleteness. This Smart Cities Dive makes recommendations for States seeking to assist in the insurability of U.S. homes, an issue that those in natural disaster areas say is desperately needed. NPR recently released this article weighing several experts' opinions on proposed changes to FEMA. As usual, I'll place hard copies of this report on the dais tonight. Virginia Virginia Clough I Legislative Policy Coordinator/Project Manager 10210 E. Sprague Avenue I Spokane Valley, WA 99206 (509) 720-5103 1 vclough(@Spokanevalleywa.gov Spokan�' ,;oo*valley This email and any attachments may be subject to disclosure pursuant to Washington State's Public Record Act, chapter 42.56 RCW.