Transcript Highlights:

• ALSO REPORTED SEPARATELY TO THE AGENCY FOR CONTRACT REQUIREMENTS.
• LASTLY AM GOING TO TALK ABOUT EXAMPLES ON THIS IS FROM THE CONTRACT CYCLE.
• THE CONTRACT OF COURSE INCLUDES LANGUAGE.
• IT WAS IMPLEMENTED FEBRUARY 1 OR WHEN THE CONTRACTS WENT LIVE IN THE CONTRACTS ARE EXECUTED LAST OCTOBER
• IN THE PAST CONTRACT.

Transcript Highlights:

• contract I have, or I don't recall signing a contract like that, show me the contract.
• This is not for contract dispute. This is for transparency. Show me the contract that I signed.
• They say, we don't recall at all signing a contract like that. Can you show us the contract?
• It does take COA... signing a contract like that, show me the contract.
• not the contract applies.

Summary: The Assembly Committee on Insurance met as a subcommittee and heard several bills related to workers’ compensation, insurance access, climate resilience, and farmworker protections. AB 815 would prevent social service workers who use personal vehicles to transport clients from being misclassified as commercial or for-hire drivers under personal auto policies; supporters said the current practice leads to unaffordable premiums and denied claims, while no opposition testified. AB 1329 would revise the Subsequent Injury Benefit Trust Fund to reduce litigation and medical-legal costs and lower employer assessments; insurers and business groups opposed unless amended, citing concerns about eligibility standards and the QME process, but the bill advanced after amendments were discussed. AB 1048 would allow disputed unauthorized payment reductions for medical providers to be reviewed through independent bill review; supporters framed it as a transparency measure, while opposition argued IBR is the wrong forum and existing contract dispute processes should control, though the bill also passed. AB 1236 would create a Department of Insurance grant program for climate and sustainability risk-reduction projects, with broad support from the department, environmental groups, and insurers, and it passed unanimously. The committee also heard AB 1336, the Farmworker Heat Illness Prevention Act, which would create a rebuttable presumption that a heat-related injury arose out of employment when an agricultural employer fails to comply with heat illness prevention standards. Supporters, including United Farm Workers, argued the bill would help protect farmworkers amid extreme heat and enforcement gaps; opponents from the workers’ compensation and agricultural sectors said the measure improperly uses the compensation system to enforce OSHA rules and could create unclear adjudication and delay issues. Members discussed Cal/OSHA enforcement limits, undocumented workers’ reluctance to report violations, and the relationship between the bill and existing workers’ compensation procedures. Despite opposition, AB 1336 passed on a divided vote. The committee also took up a consent calendar including AB 1125, AB 1293, and AB 1398, which were approved together. Roll calls were held open and later completed, and the bills that advanced were sent to the Committee on Appropriations. The meeting concluded with the committee adjourning after final votes were recorded.

Transcript Highlights:

• , government construction contracts.
• We're talking about a contract term, and the term that you're agreeing to is that to get this contract
• cannot change the contract.
• Currently, if you have a contract with the state, must source a specific contract provision in order
• It's not a freedom of contract because there is no freedom of contract in this arena, particularly in

Bills: SB75 , SB715 , SB776 , SB1299 , SB1405 , SB1968 , SB2021 , SB2077 , SB2148 , SB2321 , SB2330 , SB2411

Committee: Senate Business & Commerce

Transcript Highlights:

• of contract pharmacies.
• pharmacy; they can contract that out to a third-party retail pharmacy, and these are called contract
• Is that because they're using more of the contract pharmacies or because they're using more of the contract
• But today I'm speaking in AHF's capacity as a contract pharmacy to try to put a human face on contract
• It's complicated contracting with the system.

Summary: The committee first heard House Bill 2437, which would put the Department of Health’s authority to accredit opioid treatment programs into statute and allow the department to set a fee to cover the cost of those services. The prime sponsor and DOH said the bill would preserve a service that is especially important to tribal and rural providers and would be self-sustaining rather than supported by the general fund. Members asked about the relationship between DOH and HCA and whether the bill would duplicate existing authority; staff and the department said DOH already performs the accrediting role and the bill mainly formalizes that authority and fee-setting power. Public testimony on the bill was then closed. The committee then held an extensive work session on the federal 340B drug pricing program and later opened public testimony on House Bill 2145, which would prohibit manufacturers, distributors, and third-party logistics providers from restricting 340B drug acquisition or delivery and from requiring claims or utilization data as a condition of access. Committee staff and NCSL gave background on how 340B works, recent growth in the program, contract pharmacy issues, and state efforts in other jurisdictions. Testimony on HB 2145 was sharply divided: hospitals, community health centers, tribal representatives, contract pharmacies, and labor groups said the bill would protect safety-net providers, rural access, HIV and behavioral health services, and tribal programs from manufacturer restrictions; business groups, pharmaceutical companies, and employer coalitions argued the program has expanded beyond its original intent, lacks transparency, shifts costs to employers and taxpayers, and should be addressed through federal reform instead. No vote was taken in the excerpt. Finally, the committee heard House Bill 2155, which would bar non-human entities from using nursing titles such as RN, APRN, or LPN or otherwise implying they are licensed nurses. The prime sponsor said the bill is intended to protect patients from being misled by AI systems and to preserve transparency and public safety as health care technology expands. The Washington State Nurses Association testified in support, saying AI can be useful but should not replace nurses or be presented as a licensed professional. A member asked about enforcement and liability, and staff said they would follow up on those details.

Transcript Highlights:

• Under the current cap, so they were able to get those contracts.
• and you need to issue out these contracts, especially in those areas as Lori Ms.
• It's called splitting contracts, right?
• This total nearly $170 million in awarded contracts to small businesses under the existing contract caps
• Forty-six of those contracts, totaling $13 million, were awarded to DVBEs.

Summary: The committee heard several measures focused on economic development, procurement, workforce equity, federal infrastructure funding, and food security. SB 1044 by Senator Reyes would raise and then index to inflation the cap for streamlined state contracts awarded to certified small businesses, microbusinesses, and disabled veteran business enterprises for services and IT work; supporters said the current cap is outdated and limits access, while opponents representing goods suppliers and some small business groups argued the bill could disadvantage goods contractors and should preserve lower thresholds for those contracts. After discussion about the ceiling versus floor effect of the cap and the impact on different types of businesses, the bill was approved as amended and sent to Appropriations. SB 247 by Senator Smallwood-Cuevas would create a bid preference for projects that hire workers from disadvantaged communities; supporters framed it as a way to connect public infrastructure spending to family-sustaining jobs, while union construction employers opposed it because they said they cannot control worker dispatch through hiring halls and the bill would be difficult to implement. The committee advanced the measure to Appropriations despite those concerns. The committee also approved SJR 6 by Senator Cortese, which urges the federal government to honor commitments under the bipartisan infrastructure law, CHIPS and Science Act, and Inflation Reduction Act, with supporters emphasizing the importance of certainty for California infrastructure, clean energy, and semiconductor investments. SB 1025 by Senator Hurtado would establish an Office of Food Security and Affordability to coordinate food assistance efforts and develop a statewide food security strategy; supporters from a Kern County food bank and the University of California said the state’s response to hunger is fragmented and needs better coordination, while committee members asked about deliverables and timelines. The bill was sent to Appropriations. The committee also took up consent items SB 700 and SB 1340, which were moved on consent to Appropriations, and the hearing ended with the remaining votes recorded and the bills advanced. Throughout the hearing, members repeatedly discussed the need for clearer implementation details, data on program impacts, and how to balance equity goals with operational realities for state agencies, contractors, and small businesses.

Transcript Highlights:

• the terms of the contract, to approve an extension for one year as well as an increase in the contract
• And so we had to determine what amount to put in the contract.
• And the contract is an up-to amount.
• The total amount of the contract.
• And this contract ends in June.

Summary: The committee first adopted the fiscal status statement and five-year baseline summary after a brief discussion about how the baseline percentages are calculated and why projected expenditures exceed revenues in later years, with staff explaining that inflation assumptions drive much of the increase. The Office of Facility Planning and Control then received approval for several items: adding eight higher education deferred maintenance projects, approving a $412,993 change order for LSU’s Jesse Coates Building project, reporting four smaller change orders for information, and combining two Hornbeck water projects into one expanded water plant/well and distribution plan. The committee also approved a two-year extension for UL Lafayette’s Banner ERP consulting contract and approved additional Water Sector Commission funding of $5.5 million for the Tensas Water District Association, with a $100,000 local commitment noted. The most extensive discussion centered on a proposed tax increment financing package for a new 1,000-room Omni headquarters hotel adjacent to the New Orleans Convention Center. Project representatives said the hotel would require about $550 million in private investment, with the authority contributing land and $80 million, and that the package would dedicate state and local tax increments for 45 years after opening. Senators and representatives questioned the structure, the length of the incentive, the expected return to the state, possible cannibalization of existing hotel tax revenue, and why the convention center would receive a 1% stream for so long. Several members said they wanted more information on projected annual revenues and the overall return before voting, and the committee deferred the item to the next month. Later, Louisiana Economic Development requested one-year extensions for two marketing-related contracts with Zender Communications and Graham Group, and the Department of Education sought an amendment to the Odyssey contract for the Louisiana Gator program. The education discussion focused on the per-student cost of $143.50, the use of current enrollment and appropriation levels to set the contract ceiling, the fact that startup costs were no longer included, and the need for continuity before the current contract expires June 30. Members asked for an RFP to be considered for future years and for more information on student outcomes and actual spending. The committee took no vote on the education item during the discussion, and the meeting adjourned after the final exchanges.

Transcript Highlights:

• is awarded if the contract is not awarded within six months of the bid due date.
• wage that's set in the contract.
• Right now, when a contract is bid, depending...
• When a contract is bid, depending on the type of contract, the prevailing wage rates are frozen either
• But for these contracts, this bill proposes to adjust that wage rate on the anniversary of the contract

Summary: The committee first heard Substitute Senate Bill 5901, which would change the School Construction Assistance Program formula for school facilities on military bases. Staff explained that the bill would exclude instructional space on military bases from a district’s available inventory and add an extra 15% to the state funding assistance percentage for projects located on a military base. Senator Leonard Christian said the bill was intended to help districts such as Clover Park and Medical Lake, where base facilities reduce eligibility for off-base school construction funding. Testimony was strongly supportive from OSPI, Clover Park, and Medical Lake, while one citizen raised broader concerns about school funding and common school trust lands. The hearing on the bill was then closed. The committee then heard Engrossed Second Substitute Senate Bill 5061, which would require annual adjustments to prevailing wage rates in most public works contracts, with exemptions for small works, residential construction, and certain other projects. Staff described the bill’s delayed effective date of July 1, 2028 and reviewed fiscal impacts, including significant L&I operating costs and an indeterminate but potentially substantial capital cost impact. Senator Steve Conway said the bill was a technical fix to align contract wages with regularly updated prevailing wage rates and noted that the bill had been amended to exempt small works and low-income housing projects. Proponents from labor and mechanical contractors said annual updates would better reflect negotiated wage schedules and help retain skilled workers, while opponents from contractor groups warned of unpredictability, higher project costs, and the need for a change-order safeguard if wage increases exceed 5%. L&I testified that the fiscal note reflected the need to rework its IT system to track annual adjustments. The hearing was then closed. The committee also received a briefing on a proposed substitute to House Bill 2295, which would add funding for several new projects and make technical and language changes. Staff said the substitute would increase spending by $611,000 in bonds and $3 million from the Waste Tire Removal Account. The committee then moved into executive session and, by a vote of 18-0 with one excused, reported proposed substitute House Bill 2295 out of committee with a do-pass recommendation. The chair also announced plans for future executive sessions, including one on Substitute Senate Bill 5901, and adjourned the meeting.

Transcript Highlights:

• We are re-procuring our actuary services contract because it's been a really long time since that was
• Hope to award those managed care contracts in May.
• and how they, you know, do prior authorizations, for example, or contract requirements.
• They've written contracts to help meet many of these needs, and they've learned from poor contracts previously
• So So we wanted to look at those contracts and learn from them.

Committee: Senate Health and Welfare

Transcript Highlights:

• County in ’21 and Santa Clara in ’23, to use a higher level delegation for those contracts for contracts
• She's asking, is it per contract? For contract. So annually, it's just unlimited?
• Yes, for each of the contracts.
• Job order contracts are a streamlining tool for cities to use for projects that already have to be contracted
• Job order contracts are a streamlining tool for cities to use for projects that already have to be contracted

Summary: The committee heard eight bills, mostly on local government, housing, and public agency contracting. AB 1658 would make permanent higher change-order authority for Santa Clara and Los Angeles counties on large construction projects; supporters said it would reduce delays and save money on major projects, and the bill passed 6-0. AB 2263 would authorize the Santa Clara Valley Transportation Authority to develop employee-preference affordable housing; supporters said it would help with workforce retention and long commutes, and it also passed 6-0. AB 2134 would require city councils to allow parental leave without forcing members to seek public approval or risk losing their seats; supporters described the bill as necessary to protect new parents in local office, and it passed 6-0. AB 2188 would raise Midpeninsula Regional Open Space District’s contracting authority to $250,000, with supporters citing administrative savings and faster project delivery; after committee amendments, it passed 6-0. AB 2033 would let general law cities use job order contracting for repair and maintenance work, with safeguards against employee displacement; supporters called it an efficiency tool, while AFSCME opposed it over workforce impacts, and it passed 8-0 after amendments. AB 1768 would authorize Los Angeles County and Contra Costa County to ask voters to approve a temporary transactions and use tax to help offset major federal health care cuts and preserve clinics and public health services. Supporters from community clinics, Planned Parenthood, labor groups, counties, and health organizations said the measure would let voters decide how to respond to funding losses; opponents, including CalTax and some cities, raised affordability and tax-burden concerns. Members also discussed equity concerns within Los Angeles County and the importance of local control. The bill was moved out on a 5-2 vote and left on call. AB 2415 would allow the city of Folsom to shift housing obligations away from its historic district and toward other transit-oriented sites; supporters said it would preserve the historic district while still meeting housing goals, and it passed 10-0. AB 2741, heard at the end of the meeting, would give cities a grace period to fix housing elements that were certified by HCD but later found noncompliant by a court, especially where cities relied on overlay zones. Supporters from the League of California Cities, Redondo Beach, and real estate groups said cities acted in good faith and should not be immediately subjected to builder’s remedy; opponents from California YIMBY and legal aid groups argued the bill would weaken housing accountability and reward noncompliance. The transcript ends during testimony on AB 2741, before a final vote is recorded.

Transcript Highlights:

• It's just allowing them to enter into those contracts, and it's allowing the contracts also potentially
• It's just allowing them to enter into those contracts, and it's allowing the contracts also potentially
• the contract to figure that out?
• by the contract for capacity.
• resources can be contracted.

Summary: The committee heard testimony on several local government bills. HB 2006 would extend the deadline for certain rural counties that collect a sales and use tax for economic development to designate industrial land banks under the Growth Management Act. Supporters, including the sponsor and Kittitas County representatives, said the bill would help counties identify industrial land for job growth and economic development; Futurewise opposed it, citing concerns about large industrial land banks and impacts to agricultural lands. HB 2244 would let a city that forms a fire protection district after July 1, 2026, keep its levy rate without reducing it by the district’s levy, and would also allow online notice and interlocal contracting for fire services. City and fire officials supported it as a practical tool to fund fire service, while one witness opposed the broader trend of appointed taxing authorities. The committee also heard extensive testimony on HB 2316, which would limit shrub-step vegetation inside urban growth areas from being treated as wildlife habitat, critical area, or conservation area, and would bar related mitigation or replacement requirements. Tri-Cities officials, builders, housing advocates, and the sponsor argued the bill would reduce delays and costs for housing and development on already designated urban land, while conservation groups, tribal representatives, and some individuals opposed it as a broad rollback of habitat protections and a harmful precedent for ecosystems and wildlife. No vote was taken on the bills during the hearing. HB 2103 would expand public utility contracting authority so cities, utilities, and joint operating agencies could enter “capability” contracts for renewable or non-emitting generation projects, including nuclear, renewable hydrogen, and fusion, and repeal certain price-limit restrictions. Supporters said it would align older contracting law with the Clean Energy Transformation Act and help utilities plan for future power needs; opponents warned it would shift risk to ratepayers and revive concerns tied to the WPPSS nuclear debacle. The committee also heard HB 2388, which would classify pivot-corner solar and agrovoltaic facilities on agricultural land as distributed energy resources and accessory uses; the sponsor and supporters said it would help meet energy needs without harming productive farmland, while Futurewise asked for clarification to avoid unintended loss of agricultural land. The hearing then returned to HB 2103 for additional testimony, with the same basic split between utility and clean-energy supporters and ratepayer or anti-nuclear opponents.

Transcript Highlights:

• will be assumed to be in the contract for purposes of collection.
• So realistically, this bill is to tighten up the contract, correct?
• So prevailing wage could be in these contracts or negotiated, I guess, into the contracts.
• And we do general contract work and subcontract work.
• And just to be clear, these are not public contracts.

Committee: House Joint Committee on Rural Economic Development

Summary: The committee first met in executive session and voted several bills do pass. House Bill 2409 was approved 14-0, House Bill 2654 was approved 15-0, and House Bill 2747 was approved after adoption of a House committee amendment and substitute, also by a 14-0 vote. The committee then moved into public hearing on House Bill 1915, which would regulate payment practices in private construction contracts. Representative David Castile, the sponsor, said the bill was intended to ensure timely payment to contractors, subcontractors, and suppliers, limit abusive contract clauses, and require written notice before withholding payment. He emphasized that it was aimed at larger private projects and not owner-occupied residential work. Testimony on HB 1915 was mixed. Supporters, including electrical, mechanical, and subcontractor associations, said delayed payment is common, especially for smaller firms, and argued the bill would improve cash flow and reduce the need for liens. Opponents, including general contractors and home builders, said the bill as filed was too restrictive, especially the seven-day downstream payment deadline and the limits on withholding and termination rights, and warned it could increase costs and burden small builders. Several witnesses said they were working with the sponsor on a committee substitute to more closely mirror Missouri’s public prompt pay law and to clarify the residential exemption. The committee then heard House Bill 2151, which would raise income eligibility limits for the Fast Track Workforce Incentive Grant from $40,000 to $50,000 for single filers and from $80,000 to $100,000 for joint filers. Representative Travis Wilson said the change was meant to reflect inflation and expand access for adults changing careers, apprentices, and other eligible students. Supporters from community colleges, chambers of commerce, and workforce groups said the program is working well, is budgeted, and helps fill workforce needs; one witness cited strong completion and retention rates among recipients. No opposition was presented, and the hearing concluded with adjournment of the committee.

Transcript Highlights:

• the contract or changed in the contract?
• of the contract or changed in the contract?
• in the contract or out of the contract or changed in the contract.
• That was the first time that we've had the legislature turn down a contract.
• So as you look at these contracts, how do you look at PFML and the contracts that you're negotiating

Committee: Joint Joint Committee on Employment Relations

Transcript Highlights:

• </c> contract to do it for x amount of cost. contract to do it for x amount of cost.
• </c> breach of contract over a year ago. breach of contract over a year ago.
• </c> under the contract. We can dispute it. under the contract. We can dispute it.
• They contract out their email. They contract out their networks.
• </c> essentially private contract, right? essentially private contract, right?

Summary: The Information Technology Oversight Committee met to hear a presentation from Kentucky Department of Education officials David Couch and Mike Lingham on the history and current status of Kentucky’s K-12 internet network, including its relationship to KentuckyWired. They described the original KETS design from 1995, when KDE established district internet hubs and left local districts to connect to them, and said that model helped Kentucky become a national leader in school connectivity and cloud-based services. They also emphasized the importance of E-rate eligibility, saying it has saved the state substantial money and remains central to KDE’s network contracting. Couch and Lingham said the current “next generation Kentucky K-12 internet” contract with Education Networks of America is more reliable, offers more functionality, and costs less than the prior system, including lower bandwidth and firewall costs. They explained that the transition was complicated by build-out and provisioning issues, especially the need for more “type two” connections through local providers, which pushed some implementation past the June 30, 2024 E-rate deadline. As a result, 39 sites remain on type two connections, and KDE absorbed the loss of federal discount dollars for the portion of the transition that extended into July. The witnesses also discussed home internet access for students. They said KDE has tracked home access for about 20 years and estimates about 4.5% of students still lack adequate internet at home, with roughly 3% able to reach access nearby and 1.5% having no access. They said the biggest barrier is usually cost rather than lack of available lines, and noted that temporary hotspot support during COVID helped students continue schoolwork. Senator Williams asked about the costs of the transition, the current type two sites, and the potential cost of any future transition, but the transcript cuts off before a full answer was given.

Transcript Highlights:

• picked up that contract.
• But those are localized contracts, Senator.
• But that does not include any sort of review of their contracts, their mini contracts that they may have
• I mean, why doesn't PED have that contract?
• PED does not have that authority to oversee and approve specific locally contracted contracts.

Committees: Senate Senate Finance , Senate House Appropriations & Finance

Transcript Highlights:

• will be assumed to be in the contract for purposes of collection.
• So realistically, this bill is to tighten up the contract, correct?
• So it, prevailing wage could be in these contracts or negotiated, I guess, into the contract.
• Contracts or negotiated, I guess, into the contracts. The bill does not mention prevailing wage.
• And just to be clear, these are not public contracts.

Committees: House Economic Development , House Joint Committee on Rural Economic Development

Transcript Highlights:

• So I'm thinking maybe Curry County has one of these 287(g) contracts with ICE. ...of these 287(g) contracts
• ICE contract, which has been in place since 2008.
• or do direct contracts with other entities.
• So in theory, ...contract portion.
• Madam Chair, Representative, because the ICE contract for Cibola is only for civil detention—the contracted

Bills: SB100

Committee: House House Judiciary

Keywords: burglary, aggravated burglary, dwelling, criminal law, property rights

Transcript Highlights:

• And that contract has expired.
• on these contracts.
• But we go out to a contract. It sounds like we did a contract for three years and another contract.
• I know we have had multiple vendors on the contracts, and the one-time contracts that we just issued
• That's not tied to this contract component.

Committee: House Emergency Management

Transcript Highlights:

• to each building-level administrator whose contract has been renewed.
• And so the contract year starts...
• And so the contract year starts July 1, right?
• contract they've been offered, correct?
• They extend the contracts without their permission.

Committee: House Elementary and Secondary Education

Summary: The Committee on Elementary and Secondary Education met in executive session and first took up House Concurrent Resolution 31. A committee substitute was adopted after the sponsor explained revisions to the proposed civics and patriotism work group, including clearer qualifications, DESE’s role in producing seals, recognition levels for gold/silver/bronze, and a special recognition letter for students entering military service. Ranking member Steinhoff supported the substitute, saying the changes improved implementation and likely reduced fiscal impact. The substitute was then passed do pass, and the committee later corrected the recorded vote on HCR 31 from 15-0 to 16-0. The committee then considered a combined substitute for House Bills 21, 26, and 2197, focused on building-level administrator evaluations and nonrenewal procedures. The substitute required administrators to be evaluated at least once per contract year, required written notice of renewal or nonrenewal by March 1, and gave nonrenewed administrators the right to request written reasons and a closed-door hearing before the school board. Members discussed the removal of earlier language that would have created automatic renewal if deadlines were missed and the decision not to create tenure for principals. Concerns were raised about whether the hearing right gave administrators more protection than other employees, but sponsors said the intent was to ensure annual evaluations and transparency without granting tenure. The committee adopted an amendment, rolled it into a new substitute, and passed the substitute do pass by a 17-0 vote. After leaving executive session, the committee heard House Bill 3489 from Representative Hurlbert. The bill, patterned after Arkansas legislation, would expand access to workforce development assessments such as WorkKeys and allow up to nine hours of college credit for demonstrated workplace skills as recommended by the American Council on Education. Testimony from ACT, the Missouri Chamber, and DESE supported the goal of elevating career readiness, noting employer demand for skilled workers, existing use of WorkKeys in Missouri, and its role in career and technical education and accountability systems. Members asked about the bill’s relationship to the governor’s workforce executive order, whether the language should be mandatory or permissive, and how the credits would transfer. The hearing on HB 3489 concluded without a vote, and the committee adjourned.

Transcript Highlights:

• That's how we issue contracts.
• contract.
• contract.
• contract.
• contract.

Committee: Joint Joint Oregon-Washington Legislative Action Committee

Summary: The Joint Committee on Interstate 5 Bridge met remotely with Washington legislative members to receive updates on the Interstate Bridge Replacement Program, including environmental review, cost and funding, tolling, and procurement for construction. Program staff said the final supplemental environmental impact statement was published in April 2026, with a federal record of decision expected in early summer. They described the recommended design as a single-level fixed-span bridge, centered I-5 alignment, C Street ramps, one auxiliary lane in each direction, and dispersed park-and-ride parking. Members raised concerns about transparency, the closed chat function, and the decision not to include two auxiliary lanes; staff said the one-lane option was recommended through consultation with partner agencies and analysis, but the final decision would come with the record of decision. Staff also said the diversion analysis projected less than 3% traffic diversion to I-205 in 2045, though members from Oregon and Washington expressed concern about impacts to their communities and asked for more detail on mitigation and decision-making. The committee also reviewed a major cost update. Staff said the full five-mile program is now estimated at $13.5 billion to $15.2 billion, with a likely cost of $14.4 billion, up from a 2022 estimate of $5 billion to $7.5 billion, citing inflation, schedule delays, scope changes, and more detailed risk modeling. They said the first funded phase has been reduced to a $5.68 billion package focused on the Columbia River bridge replacement, connections to I-5, Hayden Island and SR-14, bridge demolition, tolling infrastructure, and advancing light rail design. Funding for that phase was described as $5.69 billion, including $2.1 billion federal funds, $1 billion from each state, and $1.5 billion in projected toll revenue. Members asked what would happen if costs rise further; staff said the estimate includes substantial contingency, the project will use progressive design-build to manage risk, and the team will continue updating the finance plan annually. A separate tolling and traffic-revenue presentation explained that four toll scenarios were analyzed using regional travel demand modeling, a toll diversion model, and a post-processing review. All scenarios assume pre-completion tolling beginning July 1, 2028, a 50% low-income discount for eligible users, and exemptions for tribal preemptions, emergency vehicles, maintenance vehicles, and organized militia. Staff said the low-income discount would affect about 4% to 6% of annual transactions and reduce annual revenues by roughly 2% to 3%. They said Scenario 2 was used for the financial analysis and is sufficient to support the $1.5 billion toll contribution in the funded phase. Members asked about toll collection costs, revenue impacts of the discount, and how the scenarios differed; staff said collection costs are expected to be in line with other WSDOT toll facilities, but exact costs are not yet set because toll rates are not final. Finally, WSDOT staff outlined procurement and delivery steps for construction. They said WSDOT will be the lead contracting agency, using progressive design-build, with a request for qualifications targeted for early July 2026, a request for proposals in October, contractor selection in April 2027, construction starting in 2028, and tolling beginning in 2028. Staff said the approach is intended to consolidate scope, reduce interface risk, and allow transparent negotiation with an independent cost estimator, while preserving an off-ramp if a fair price cannot be reached. Members asked for more detail on timing, cost allocation, and the share of the first phase funded by tolls; staff estimated tolls account for about 26% of the first phase cost.

Transcript Highlights:

• So they're not in contract. But they can't get the contract yet until they're ready, right? Yes.
• On the public contract code exemption, how many contracts will be exempt?
• Yeah, it would apply to existing contracts as well as any future contracts.
• So when we go out to contract for those types, we go out to contract as a services vendor.
• So when we go out to contract for those types, we go out to contract as a services vendor.