Transcript Highlights:

• Commission technical changes, Senate language regarding election of the Senate President, legislative auditor
• basically a technical change to the House language regarding the conditions in which the legislative auditor
• President, legislative auditor policy. President, legislative auditor policy.
• can conduct a follow-up special auditor can conduct a follow-up special review.<00:01:59.759> Next
• <00:09:53.200> to the office of the state auditor to the office of the state auditor to elevate

Keywords: 1183, house

Transcript Highlights:

• They didn't just fail, they actively misled auditors to hide their tracks.
• They didn't just fail, they actively misled auditors to hide their tracks.
• They didn't just fail, they actively misled auditors to hide their tracks.
• When we have a bookkeeper stealing from us, we don't let the bookkeeper hire the auditor.
• > and gave them internal auditors and gave them internal auditors and compliance<00:26:52.400>

Keywords: 1183, house

Transcript Highlights:

• , the legislative auditor.
• , the legislative auditor.
• , the legislative auditor.
• , the legislative auditor.
• Thought is, oh, let me call the auditor, the legislative auditor.

Keywords: 1187, senate, all

Transcript Highlights:

• Comm um Auditor<00:31:29.600> Rolo.
• grantee uh that the legislative auditor grantee uh that the legislative auditor was<00:37:44.160
• concerns and so uh the internal auditor concerns and so uh the internal auditor brought<00:38:13.839
• the OA report as legislative auditor the OA report as legislative auditor Randall<00:40:19.760><
• And this includes maintaining channels for staff... auditor Randall as reflected in finding auditor Randall

Keywords: 1187, senate, all

Transcript Highlights:

• years ago, it was changed to allow other entities to also do that because of the workload on the auditor
• The problem is when the auditor comes across stuff that's a violation, they have no enforcement, so they
• the auditor. the auditor.
• <00:09:33.480> So, uh on the auditor. So, uh on the auditor.
• <00:09:48.680> comes The problem is when the auditor comes The problem is when the auditor

Keywords: 919, house, all

Summary: The committee took up Senate File 856, relating to creation of an independent Office of Inspector General to fight fraud in Minnesota. Representative Norris presented a DE6 author’s amendment that he said fixed constitutional appointment language, expanded the office’s fraud-prevention role, and made other noncontroversial cleanup changes. He emphasized that the bill was still not finished and that more work remained before it would be ready for final House passage. Members raised several concerns. Representative Joy questioned language about who has primary investigative authority in Medicaid-related cases and whether the bill could create confusion over who may freeze funds; Norris responded that federal rules require administering agencies to be primary investigators and said the language was intended to comply with those rules while still ensuring investigations happen. Representative Bahner said the bill was improved, especially on constitutionality and prevention, but noted remaining concerns about agency expertise, duplication of effort, and funding. Representative Quam argued the state already has the Office of the Legislative Auditor and other processes in place, while Norris said an executive-branch office working directly with agencies could help ensure best practices are actually implemented. Several members, including Representative Cleborne and Representative Craft, said they remained concerned about duplication, cost, and language they believed still placed the new office above state law, though they acknowledged the bill was improved and constitutional issues had been addressed. The chair moved the DE6 amendment, which was adopted, and then the committee voted on Senate File 856 as amended. The bill passed on a roll call vote of 13 ayes and 1 nay and was referred to the Judiciary Committee.

Transcript Highlights:

• This implements the Legislative Auditor recommendation from last year's tax preference review.
• three that JLARC recently reviewed: the International Services B&O tax credit, which the Legislative Auditor
• Here, the legislature took a different policy choice, as the Legislative Auditor recommended the legislature
• The Legislative Auditor recommended the legislature determine whether to continue these preferences,
• Here, the legislature took a different policy choice, as the Legislative Auditor recommended the legislature

Summary: The Citizen Commission for Performance Measurement of Tax Preferences met on May 7, 2025, with quorum present. The commission approved the October 22, 2024 meeting minutes and then received its annual open government refresher from the Attorney General’s office, which reviewed key requirements under the Public Records Act and Open Public Meetings Act, including record retention, response deadlines, exemptions, and meeting notice rules. Staff then provided a 2025 legislative session update, noting that the legislature passed 23 tax-preference-related bills, with several signed by the governor and others pending. Highlights included bills that extended or repealed certain preferences, added reporting requirements for newspaper and digital content exemptions, authorized JLARC to adjust its work plan when data is unavailable, and created a new exemption for zero-emission buses. The commission approved updates to the 2026 tax preference review schedule, which includes eight preferences in seven reviews, and approved unchanged testimony questions for 2025. The commission also received the 2025 expedited preference review report covering 52 tax preferences, presented as an interactive table drawing on prior JLARC reviews and Department of Revenue studies. Staff then outlined the process for developing the next 10-year review schedule for 2027-2036, including surveying the legislature, incorporating new and repealed preferences, and considering a possible rolling 10-year schedule. No public comment was registered. The meeting ended with acknowledgments of Ron Buing’s long service on the commission and an announcement that the next meeting would be held August 6, 2025.

Transcript Highlights:

• We spent almost 500 hours of our controller's time working with an auditor, and we wrote a check for
• with a tax auditor to come to<00:10:36.200> what's<00:10:36.440> the<00:10:36.639>
• in this back-and-forth, kind of educating the auditor.
• > educating<00:14:09.959> um<00:14:10.360> auditor<00:14:11.360> um<00:14
• One would think that the direction from an auditor would be sufficient guidance, and if followed, the

Keywords: 1187, senate, all

Summary: The Senate Tax Committee first approved the minutes from the previous meeting and then took up Senate File 11 at the request of the Judiciary Committee. The bill was removed from the table, recommended to pass, and referred to Judiciary. Members explained that the request was tied to data practices language in the bill and Judiciary’s jurisdiction over that subject. The committee then heard Senate File 268, as amended by the A1 amendment. Senator Nelson said the bill would extend a sales tax exemption for certain physician-prescribed, non-durable medical goods to publicly and privately held health plans, aligning them with treatment already given to Medicare, Medicaid, and other government-paid plans. Testifiers from Corner Home Medical and the industry said current tax rules are confusing, audits are burdensome and expensive, and providers often end up paying tax themselves because insurers do not pay retroactively. They argued the bill would reduce administrative burden and create parity in the tax code. The committee adopted the A1 amendment and laid the bill over. Finally, the committee heard Senate File 88, also amended by an A1 technical change. Senator Klein said the bill is intended to prevent the Department of Revenue from issuing retroactive assessments when taxpayers relied in good faith on prior audit guidance, so long as there was no material change in law, court interpretation, federal adjustment, or written notice from the commissioner. Department of Revenue staff said they had no formal position but explained how the bill would affect sample audits and noted it would require more detailed written guidance; they said normal audits would not change much. Supporters from the CPA Society and several senators said the bill would provide certainty and protect taxpayers from unexpected back taxes, while one senator questioned whether the bill was needed and whether it would bypass settlement or litigation. The bill was laid over after discussion.

Transcript Highlights:

• AS YOU RECALL LAST SESSION WE WERE PRESENTED AN AUDITOR GENERAL REPORT THAT FOUND 200279 VEHICLES WERE
• AUDITOR GENERAL FLEET FINDINGS AUDITOR GENERAL FLEET FINDINGS DMS IS HAPPY TO TELL YOU OF THE TEN FINDINGS
• WE ARE WAITING NOW FOR THE AUDITOR GENERAL TO COME BACK AND DO THIS PROCESS OF GOING OVER THESE.
• WE PROVIDED ACCESS TO THE SYSTEM TO THE AUDITOR GENERAL AND THEY PULL THEIR OWN DATA AND THEY DON'T SHARE
• AND BEFORE THE AUDITOR EVER SHOWED UP TO DO THIS AUDIT WE MADE IMPROVEMENTS TO THE SYSTEM AND IT WAS

Transcript Highlights:

• And to my right is Legislative Auditor Eric Thomas. And Eric, you have an announcement to make.
• The State Auditor is elected.
• The State Auditor is elected directly by the people of the State of Washington, and the office operates
• And Auditor Thomas has it up on the screen next to me, and he will let me know.
• And Auditor Thomas has it up on the screen next to me, and he will let me know.

Keywords: 904, all

Summary: The Joint Legislative Audit and Review Committee heard a State Auditor’s Office performance audit on the Restoring Quality Home Care Initiative (I-1163), which created home care aide certification requirements, FBI background checks, and an abuse/neglect registry. Auditors said some requirements likely improve safety, especially background checks and training, but the state lacked pre-2011 data to measure outcomes directly. They also found Washington has a long-term care workforce shortage, though its workforce supply ranks better than many states, and that more stringent entry requirements do not appear to reduce workforce participation compared with other states. The audit’s main concern was that the certification process is slow and burdensome. Auditors reported that most applicants never finish certification, that only about one-third of fiscal year 2025 applicants were certified within the 200-day legal deadline, and that the average time to certification was 463 days. They identified delays between training and testing, limited testing access in some areas, and redundant Department of Health verification of FBI background checks as key causes. The audit recommended streamlining the process by accepting applications later in the process, expanding testing within training programs, and eliminating the redundant background-check verification. Department of Health and Department of Social and Health Services staff largely agreed with the audit’s findings and recommendations. They said they have already made improvements, including moving exams into more than 110 training programs, increasing credentialing staff, and reducing barriers through rule changes. DSHS noted testing is offered in 13 languages. Committee members asked about testing contract incentives, language access, and whether the agencies would seek statutory or budget changes to implement the recommendations. No public testimony was offered, and the meeting adjourned without any vote or formal action by the committee.

Transcript Highlights:

• Um, and so we brought in the Office of the Legislative Auditor and, uh, the Department of Human Services
• And that was one of the key takeaways that we heard from the legislative auditor is that there can be
• recommendations that the legislative auditor puts forward, but sometimes the agencies aren't actually
• <00:04:57.199> and<00:04:58.080> uh<00:04:58.160> the legislative auditor and
• uh the legislative auditor and uh the department<00:04:58.560> of<00:04:58.720> human<

Keywords: 1187, senate, all

Transcript Highlights:

• An area of improvement also related to the internal auditor: we do agree the internal auditor at the
• Just to talk about a couple points in the auditor comment that you made: the school districts still have
• What it does do for those districts, for those larger districts, is they don't have to employ an auditor
• Just to just talk about a couple points in the auditor comment that you made, the school districts are
• What it does do for those districts, for those larger districts, is they don't have to employ an auditor

Summary: The committee met with a quorum present and first took up SB 124, which updates Florida Virtual School statutes to remove outdated language, clarify governance and funding provisions, authorize a direct support organization, streamline reporting, and clarify district responsibilities for student assessments. Senator Berman asked about the removed enrollment prioritization and reporting changes, and the bill sponsor explained that the reporting was largely duplicative of existing audits and other reports. Florida Virtual School’s representative testified in support, saying the school is open to all students statewide with no enrollment caps or waiting lists. SB 124 was reported favorably by a unanimous roll call vote. The committee then considered confirmation appointments in tabs 3 and 4 and recommended confirmation of all appointees on a single favorable vote. After that, the committee heard SB 320 on administrative efficiency in public schools, which would reduce district mandates, expand teacher apprenticeship and multi-year contracts, create a 10-year renewable professional certificate, simplify testing and accountability rules, increase flexibility for district finances and facilities planning, and shift oversight of district-run VPK programs to school districts. Senators Gaetz and Berman questioned the impact on charter school funding, capital dollars, teacher contracts, and how the bill differed from last year’s version. The sponsor said charter schools would retain access to operational funds, the bill does not eliminate annual audits, and the main substantive change from last year was the multi-year teacher contract provision. Several organizations and district representatives waived in support of SB 320, while Florida Citizens Alliance testified in information, praising some testing and licensure changes but suggesting a cap on multi-year contracts and outside auditing safeguards. The sponsor closed by emphasizing that districts would still be subject to annual audits and that the bill is intended to give schools more flexibility and reduce bureaucracy. SB 320 was reported favorably on a roll call vote, and the committee then adjourned.

Transcript Highlights:

• Blaha, your state auditor. Uh and I'm Blaha, your state auditor.
• Um, we're going Thanks, Madam Auditor.
• Madam Auditor. Uh thank you, goals? Madam Auditor. Uh thank you, Senator<01:53:24.080> France.
• Thank you, Madam Auditor. for you. Thank you, Madam Auditor. Senator<01:53:51.440> Rasmmanson.
• Madam auditor is there uh I proposal?

Keywords: 1187, senate, all

Transcript Highlights:

• Uh, he joined the auditor's office as an internal auditor in 2005, and prior to that he graduated from
• Uh, he went through a number of roles and ultimately became chief auditor of that company.
• <00:29:49.200> by excellent job as state auditor by excellent job as state auditor by appointing
• <00:29:57.520> in<00:29:58.159> 2005 internal auditor in 2005 internal auditor in 2005
• became chief auditor of that company.<00:31:14.640> Uh<00:31:14.960> he<00:31:15.200><

Keywords: 927, senate, all

Transcript Highlights:

• As far as independent auditors, typically when you say independent auditors, we're talking about a firm
• /c><00:41:50.560> talking say independent auditors, we're talking say independent auditors, we're
• license to that, um independent auditors license to that, um independent auditors always<00:41:59.680
• find that independent auditor find that independent auditor um<00:45:17.680> locally<00:45
• auditor. auditor.

Keywords: 1189, house, all

Summary: The committee took up HB 1563, a special education aid formula bill, after a brief recess. Members reviewed a replace-all amendment that would keep the current reimbursement lag structure but make the bill effective July 1, 2028, with districts beginning to collect the new data in the next biennium. The amendment changes the reimbursement tiers from a dollar-based system to one tied to average per-pupil spending: districts would pay 100% below 2.5 times average per-pupil spending, 85% from 2.5 to 3.5 times, 20% from 3.5 to 10 times, and 10% above 10 times, with the state covering the remainder. Speakers emphasized that the bill is intended as an incremental step to gather better data before any larger expansion of state participation. A major new section would create a risk-based monitoring program for reimbursement claims. Instead of reviewing every claim individually, the department would review at least 20% of districts each year so every district is reviewed at least once every five years, with additional random or targeted reviews based on risk indicators, anomalies, prior findings, or other department criteria. Members discussed whether the audit sample should be district-based or student-based, and whether the bill should more specifically define the type of audit and the meaning of “other” criteria. Department witnesses said the current process already involves confidential information and that the new approach would not worsen privacy concerns; they also said the department would follow federal and state privacy laws and adopt rules to implement the process. Several members supported the bill as a practical first step to improve data collection and eventually expand aid, noting that districts currently do not track lower-cost special education students well. Others raised concerns about the lack of a fiscal note, possible local costs, and whether the new monitoring language gives the department too much discretion. The discussion ended with no vote taken in the excerpt, and members indicated they may need more time to review the final amendment before proceeding.

Transcript Highlights:

• This finding has been reported to the committee by the Auditor General for the past four years, and the
• Our second item is a presentation to the Auditor General's audit, the town of Greenville.
• Derek Noonan, an auditor manager with the Auditor General's Office, will present the results of the audit
• And I also want to thank the auditors who worked with us to see some of the things that we could fix
• I want to thank the auditor general's office for doing the hard work.

Summary: The Joint Legislative Auditing Committee first heard a long-running audit finding involving Daytona Beach’s unexpended building permit funds, which have exceeded the statutory limit for several years and were reported at $10.8 million in the most recent audit. Mayor Derek Henry and city staff said the city has analyzed the fund, adopted a corrective action plan, waived more than $5.5 million in permit and inspection fees over several periods, and used some excess funds for a training facility rehabilitation and a proposed City Hall expansion. Committee members repeatedly questioned whether the city was simply trying to spend down the money, raised concerns about the legality and necessity of proposed expenditures, and asked about interest earnings, truck purchases, and the lack of detailed tracking for training-facility use. The city said an Attorney General opinion allows construction of a new building for building-code functions but not purchase of an existing building, and that if the city cannot comply through permissible construction it would have to return the funds. No vote was taken, but members expressed strong frustration and urged the city to resolve the issue quickly and lawfully. The committee then received the Auditor General’s presentation on the Town of Greenville, which found 31 findings and described pervasive control failures, possible fraud, waste, and abuse. The findings covered elections and quorum issues, conflicts of interest, late or missing financial disclosure forms, related-party transactions, poor meeting notices and minutes, council involvement in day-to-day operations, missing ethics training, budget and accounting deficiencies, weak bank reconciliations, improper utility billing and rates, grant compliance problems tied to a grocery store project, personnel and compensation issues involving the town manager, late vendor payments, weak procurement and P-card controls, vehicle-use and property-control problems, public records issues, and IT/fraud-policy weaknesses. The auditor said the review focused mainly on October 2022 through February 2024 but went back further for some grant-related matters. Greenville’s mayor and staff said the audit reflected actions of a previous administration and that the current council and staff have already adopted seven new policies to improve procurement, financial controls, inventory management, grant oversight, and ethics. They said the town has a new manager and clerk, that the former manager was terminated, and that the town referred matters to FDLE, which is investigating. Committee members asked about the manager’s salary increase, severance, P-card use, and whether the town should consider consolidation or dissolution. The mayor said the town is on a better path, that most of the prior leadership has been voted out, and that the town is working with auditors and an outside accounting firm to correct the problems.

Transcript Highlights:

• And to my right is Legislative Auditor Eric Thomas. Eric, you have an announcement to make?
• The State Auditor is elected.
• The State Auditor is elected directly by the people of the State of Washington, and the office operates
• And Auditor Thomas has it up on...
• Zoom, and Auditor Thomas has it up on the screen next to me, and he will let me know.

Summary: The Joint Legislative Audit and Review Committee held a public hearing on the State Auditor’s Office performance audit of Washington’s Restoring Quality Home Care Initiative (I-1163). Auditors said the initiative’s background checks and 75-hour training requirement are widely viewed as safety measures, but the state lacks pre-2011 data to directly measure safety outcomes. They also found Washington’s long-term care workforce is still short, though the state ranks better than many others in workers per disabled person, and that some groups and regions have larger gaps between authorized and actually used Medicaid care hours, suggesting access problems for certain clients. The audit focused heavily on the certification process for home care aides. Auditors reported that many applicants never finish certification, that the process often exceeds the 200-day legal deadline, and that delays can cause lost income, job loss, and in some cases repeated employer changes that allow aides to keep working without becoming certified. They recommended that the Department of Health accept applications only after training and testing are completed, move testing into training programs more broadly, and eliminate redundant DOH verification of FBI background checks. Committee members asked about testing contract incentives, language access, and the role of immigration in workforce shortages; auditors said they found no financial performance standards in the Prometric contract, did not specifically study immigration status, and did not focus on language barriers in this audit. Department of Health and Department of Social and Health Services officials largely agreed with the audit’s findings and recommendations. They said they have already made improvements, including expanded in-program testing, more staffing, and rule changes, and that testing has been integrated into more than 110 training programs. DSHS noted testing is offered in 13 languages. Both agencies said they support further streamlining and expect continued collaboration, including possible budget or legislative requests. No public testimony was offered, and the committee adjourned without taking any vote or formal action on the audit.

Transcript Highlights:

• <00:07:34.879> as the office of the legislative auditor as the office of the legislative auditor
• State Auditor Blaha and Ms.
• Madam Auditor, thank you.
• Auditor Blaha, thank you, Mr. Chair.
• be a real help thank you madam auditor be a real help thank you madam auditor Senator<01:15:44.639

Keywords: 1187, senate, all

Transcript Highlights:

• I know that that principle has provided information to the Auditor General.
• These training programs must be approved by the Auditor General.
• And it has to be approved by the Auditor General.
• I'm sorry—the training has to be approved by the Auditor General.
• No, no, no, not the Auditor General. The Attorney General, thank you. Sorry.

Keywords: 1182, all

Summary: The committee heard and advanced several education-related bills. HB 2318 would impose term limits on school district governing board members in districts with at least 250 students, with a four-year break before a former member could run again; the sponsor said it was meant to bring in new ideas after problems in a district, while opponents argued voters should decide and raised concerns about the timing of the change. It passed on a 6-5 vote. HB 2312 would allow certain federally recognized patriotic youth groups to address students during school hours and require equal access for such groups; supporters framed it as a way to expand youth opportunities, while opponents objected to use of instructional time. It also received a due pass recommendation on a 6-5 vote. HB 2320 would require school districts to hire an independent municipal advisor before calling a bond election and, if successful, for each bond issue. The sponsor argued this would lower underwriting fees and save taxpayers money, citing data showing lower average fees when advisors were used; testimony from the Arizona Tax Research Association and a school accountability group supported the bill, while members raised questions about costs if a bond fails and about how public information is presented. The bill passed 7-3 with two present votes. HB 2376 would prohibit districts from buying or leasing school property when an operating charter or private school is on the site, aimed at preventing a district from using a purchase to manipulate enrollment counts and trigger state construction funding; members debated whether the underlying allegation was hearsay, but the bill passed 7-5. HB 2378 would tighten conflict-of-interest rules for the School Facilities Oversight Board by barring the architect and engineer members from having school-construction business. The sponsor said it was prompted by a reported conflict involving Tolleson Union and a board chair’s firm; some members supported the ethics rationale while others said the bill did not address broader issues, and it passed 8-4. HB 2379 would require school district governing board members to complete biennial training on duties and responsibilities, with county superintendents required to offer the training and ADE as a backstop; the committee adopted an amendment making county training mandatory and allowing intergovernmental agreements, and the bill passed 7-5 after debate over unfunded mandates, whether ASBA should be included, and whether charter boards should also be covered. Finally, HB 2380 would require board and subcommittee meetings to be held in-district, keep meeting materials online for five years, and require prior approval for out-of-state travel or later ratification with possible reimbursement; rural school representatives warned it could hinder regional collaboration and create administrative burdens, and discussion continued on how to preserve executive-session confidentiality and public access.

Transcript Highlights:

• the Joint Legislative Audit and Review Committee's Initiative 900 performance audits by the State Auditor
• anyone online has a question, If anyone online has a question, seated next to me is the legislative auditor
• I'm a performance auditor at the Office of the Washington State Auditor.
• Auditor.
• I'm here today with my colleague Nancy Patino, who is also a performance auditor.

Summary: The Joint Legislative Audit and Review Committee’s Initiative 900 subcommittee held a hybrid public hearing on two State Auditor performance audits. The first audit examined efforts to reduce non-emergency use of emergency systems through CARES programs. Auditors reported that Washington has 52 fire-agency-led CARES programs in 26 counties, but many communities without programs said they need one. Major barriers included unstable funding, difficulty hiring qualified staff, volunteer-based rural departments, and lack of statewide guidance. The audit also found that only about half of programs tracked both required performance measures, and it recommended that the legislature consider private insurance reimbursement options and convene a statewide work group to develop guidance, standards, and possible changes to the role of the Department of Health. Agency representatives and fire officials largely supported the findings and emphasized that short-term grants and one-year contracts make programs hard to sustain. Committee discussion focused heavily on financing, especially Medicaid reimbursement and accountable communities of health (ACHs). Auditors clarified that the 10% figure cited in the report referred to direct Medicaid reimbursement for treat-and-refer services, which some agencies do not pursue because the $115 rate is too low relative to the administrative effort. Several fire officials testified that their programs rely on grants and ACH support, but that funding is often year-to-year and uncertain. They also described the value of CARES programs in reducing emergency room use, jail detentions, and long ambulance wait times, while noting barriers to sharing patient records across systems. Members asked whether the new public safety sales tax authority could help, but fire district representatives said it is not a direct funding option for them. The second audit reviewed performance management in the Department of Commerce’s Office of Economic Development and Competitiveness. Auditors found that the division does not yet have a statewide economic development strategic plan and that performance management is inconsistent across its 16 programs. In a limited review, all six sampled programs had goals, but only half clearly identified performance measures and targets, and only three tracked outcomes and published results. The audit highlighted leading practices from other states, including strategic planning, regular progress reporting, aligning program goals with agency goals, and using performance-based contracts and grant monitoring. Recommendations urged Commerce to seek stakeholder input, assess internal and external conditions, set goals and measures, align programs with the strategy, and strengthen monitoring and evaluation. Commerce officials agreed with the audit and said the division is already working toward a strategic plan, with a new assistant director to be hired and a target of completing the work by mid-next year. Members pressed the department on how the plan would connect to workforce, higher education, housing, and other economic development systems, and asked Commerce to return to JLARC next year with progress updates. The meeting ended with instructions for submitting written public comments and notice of the next JLARC meeting schedule.

Transcript Highlights:

• Before I go to the next speaker, I just want to note, the State Auditor is in the audience.
• Auditor has said.
• I'll say a couple things, and then I'd like to ask our auditor question if he's still here, yes.
• So, but I would like to hear from our State Auditor.
• State Auditor: Thank you, Madam Chair, members of the committee. It's a pleasure to be here.