Key Takeaways from the May 14 JLARC Meeting

The Joint Legislative Audit and Review Committee met on May 14, 2025. Here's what you should know:

JLARC staff presented the preliminary report on Washington’s cannabis market

The Liquor and Cannabis Board (LCB) regulates Washington’s cannabis industry. LCB’s responsibilities include regulating cannabis production, issuing licenses to cannabis businesses, and collecting tax on retail sales of cannabis.

Members asked JLARC staff about the timeline for LCB to improve its cannabis tracking system and data. They also asked about how LCB might better measure cannabis production and the effects of the Social Equity in Cannabis Program.

Full report | One-page overview | Two-minute video

Why it matters:

• LCB does not have an accurate measure of the amount of cannabis produced. Inaccurate and incomplete data limits LCB’s capacity for data-driven regulation.
• JLARC’s consultant, RAND, estimated that Washington businesses produced two to three times more cannabis than retailers sold in 2023.
• Cannabis producers that will be licensed through the Social Equity in Cannabis Program will likely face challenging market conditions.
• The Legislative Auditor recommends that LCB create a plan to collect accurate data from cannabis licensees by December 31, 2026.
• The Legislative Auditor also recommends that the Legislature consider other ways to increase social equity in the cannabis industry.

Next steps:

• LCB will give its official response to the report recommendations.
• JLARC staff will include the response in a proposed final report, to be issued in July 2025.

LEARN MORE

• Study lead: Suzanna Pratt
• Watch the presentation on TVW

Report makes six recommendations to improve the Department of Health’s hospital oversight

State law requires the Department of Health (DOH) to inspect hospitals, investigate patient complaints, review hospital reports of adverse health events, and collect and publish hospital data.

The audit found that 72% of hospital inspections were late. Also, DOH does not ensure third-party inspections meet state standards or review medical error reports as required by law. Hospital data could be more readily available.

JLARC members directed DOH to create a strategic management plan to address the five Legislative Auditor recommendations. DOH agreed. It will present the plan and its progress at JLARC’s July 2026 meeting.

Full report | One-page overview | 90-second video

Why it matters:

• DOH’s performance limits its ability to ensure patient safety.
• The Legislative Auditor made five recommendations to DOH to improve its oversight of hospitals.
• The Legislative Auditor also recommends that the Legislature specify the maximum time allowed between acute care hospital inspections.

Next steps:

• DOH will give its official response to the report recommendations.
• JLARC staff will include the response in a proposed final report, to be issued in July 2025.
• DOH will present its strategic management plan and progress to JLARC in July 2026.

LEARN MORE

• Study lead: Zane Potter
• Watch the presentation on TVW

JLARC members heard a report on the public records exemption for survivors of domestic violence, sexual abuse, stalking, or harassment

The survivor’s exemption makes some information about at-risk public employees exempt from disclosure. The Legislature passed it in 2023. The audit found that employees request and agencies use the exemption infrequently.

Members asked JLARC staff about the types of non-state agencies involved in the study. They also inquired how the Office of the Attorney General might standardize the types of information that would be exempted.

Full report | One-page overview | Two-minute video

Why it matters:

• Some at-risk employees may be unaware this exemption is available.
• Some protected employee data may be at greater risk of disclosure because agencies differ in how they implement the exemption and interpret statutory terms.
• The Legislative Auditor recommends that the Legislature keep the survivor’s exemption.
• The Legislative Auditor also recommends that the Office of the Attorney General provide more training and guidance to public agencies on how to implement the exemption.

Next steps:

• The Office of the Attorney General will give its official response to the report recommendations.
• JLARC staff will include the response in a proposed final report, to be issued in July 2025.

LEARN MORE

• Study lead: Jill Satran
• Watch the presentation on TVW

Report on the Developmental Disabilities Administration approved for distribution

JLARC staff presented the final report on the Developmental Disabilities Administration’s (DDA) processes and staffing.

• Staff presented the preliminary report in January 2025.
• The Legislative Auditor recommends that DDA develop performance metrics to evaluate how well its process works, implement quality controls to ensure the reliability and accuracy of its data, and use a workforce planning approach to determine the number of case managers it needs.
• DDA agreed with the recommendations.

In response to member questions, DDA confirmed that it would evaluate case managers’ job duties and look for efficiencies as it examines staffing levels.

Full report | One-page overview | 90-second video

LEARN MORE

• Study lead: Amanda Eadrick
• Watch the presentation on TVW

Study questions available for a report on the Department of Children, Youth, and Families’ juvenile rehabilitation programs

JLARC staff presented study questions for an upcoming report on the Department of Children, Youth, and Families’ (DCYF) juvenile rehabilitation programs.

Members asked JLARC staff if the study would address whether overcrowding in juvenile rehabilitation facilities affects the provision of education services and whether the facilities are secure.

Why it matters:

• DCYF administers juvenile rehabilitation for young people who are convicted of certain crimes such as sex offenses, violent crimes, burglary, or theft. The goals are to hold people accountable, help them rehabilitate, and prepare them for the future.
• The 2024 Legislature directed JLARC to do this study (ESSB 5950, Section 103(8)).

Next steps:

• Staff will conduct research, including site visits, interviews, data analysis, and more.
• Study is due July 2026.

LEARN MORE

• Study lead: Casey Radostitz
• Read the study questions or watch the presentation on TVW

Committee adopted updates to the biennial workplan

The workplan includes new studies assigned to JLARC during the 2025 legislative session.

• Drug take-back program fee-setting and expenditures (due December 2025).
• State energy performance standard compliance (due June 2027).

Why it matters:

• The Legislature assigns studies in policy bills and budgets. By law, the committee approves the workplan by July 1 of each odd-numbered year.
• Nonpartisan staff do research, complete audits, and present findings to the committee. The Legislative Auditor oversees the work.

LEARN MORE

• Read the adopted workplan

JLARC’s next meeting will be on July 16 and will include the preliminary reports on the administration of recreational boating and the 2025 tax preference reviews.

Find upcoming meetings and more information about JLARC here.

Sincerely,