Key Takeaways from the July 16 JLARC Meeting

The Joint Legislative Audit and Review Committee met on July 16, 2025. Here's what you should know:

JLARC members elected new executive committee

JLARC members elected Rep. Gerry Pollet as chair, Sen. Keith Wagoner as vice chair, Rep. Ed Orcutt as secretary, and Sen. Jesse Salomon as assistant secretary for the 2025-27 biennium.

JLARC also welcomed new members Rep. Deb Manjarrez and Rep. Shaun Scott.

JLARC staff presented nine reports that evaluate 14 tax preferences

The preferences vary in type and size. Beneficiaries include nonprofit builders and senior centers, energy companies, travel agents, veterans, and others.

Members asked detailed questions about how the preferences work, criteria to qualify for the preferences, and how the preferences affect beneficiaries.

Summary | One-page overview | Video

2025 tax preference reviews:

• Natural Gas for Transportation
• Travel Agents and Tour Operators
• Nonprofit Low-Income Housing Development
• Multipurpose Senior Citizen Centers
• Disabled Veteran Adapted Housing
• Trade Convention Attendance
• Agricultural Fertilizer and Seed Wholesaling
• Agricultural Crop Protection Products
• Energy Sales to Silicon Smelters

Why it matters:

• The Legislative Auditor recommended legislative action for 11 preferences. Three others should be allowed to expire.
• Reviews evaluate if the preference meets the Legislature's goals, who benefits and how much they save, the impact to the state, and other factors.

Next steps:

• The Citizen Commission for Performance Measurement of Tax Preferences will consider the reviews, take public testimony, and add its comments. This happens from August through October.

LEARN MORE

• Tax review coordinator: Pete van Moorsel
• Learn about tax preferences: watch this video or read this fact sheet
• Watch the presentation on TVW

JLARC staff presented the preliminary report on Washington’s Recreational Boating Programs

Washington offers recreational boating opportunities on water bodies across the state. Six state agencies support boating opportunities by registering boats, providing water access and infrastructure, promoting boater safety, protecting the environment, and enforcing boating-related laws. The state pays for these activities with revenue from boating and from other sources.

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

Why it matters:

• Recreational boating generated $108 million in state revenue in the 2021-23 biennium. Taxes and registration fees contributed 75%.
• The state uses boating-related revenue for boating programs and general government. Likewise, it supports boating programs with revenue unrelated to boating.
• State agencies spent $86 million during the 2021-23 biennium on recreational boating activities. About 61% paid for infrastructure like boat ramps and docks.
• Washington is one of 15 states or territories that reported offering grants to local governments for recreational boating programs.

Next steps:

• JLARC staff will issue a proposed final report in September 2025.

LEARN MORE

• Study lead: Melanie Stidham
• Watch the presentation on TVW

Committee voted to distribute report on Washington’s cannabis market

JLARC staff presented the proposed final report on Washington’s cannabis market.

• The Legislative Auditor recommended that the Liquor and Cannabis Board (LCB) improve its data collection system. LCB agreed, noting it could likely complete the work in 2027.
• The Legislative Auditor recommended that the Legislature consider other ways to increase social equity in the cannabis industry beyond new producer licenses.

Members asked LCB to prepare a strategic management plan for improving its data collection system and present the plan to the committee before the 2026 legislative session. LCB agreed. Members asked LCB representatives about the technical requirements for the data collection system and how the agency will ensure the system provides sufficient information to inform policy decisions.

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

LEARN MORE

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

Committee voted to distribute report on the Department of Health’s oversight of hospital data reporting, inspections, and complaints

JLARC staff presented the proposed final report on the Department of Health’s (DOH) oversight of hospital data reporting, inspections, and complaints.

• The Legislative Auditor made five recommendations to DOH to improve its oversight of hospitals. DOH agreed.
• The Legislative Auditor recommended that the Legislature specify the maximum time allowed between acute care hospital inspections.
• At JLARC’s May meeting, members directed DOH to create a strategic management plan to address the five Legislative Auditor recommendations. DOH will present the plan and its progress at JLARC’s July 2026 meeting.

Members requested that DOH present a draft of its strategic management plan before the 2026 legislative session. DOH agreed.

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

LEARN MORE

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

Committee voted to distribute report on a public records exemption

JLARC staff presented the proposed final report on the public records exemption for survivors of domestic violence, sexual abuse, stalking, or harassment.

• The Legislative Auditor recommended that the Legislature keep the survivor’s exemption.
• The Legislative Auditor recommended that the Office of the Attorney General (AGO) provide more training and guidance to public agencies on how to implement the exemption.
• The AGO agreed with the recommendations.

In response to member questions, AGO representatives noted that the office had already made changes to the guidance and training it provides to agencies about the exemption based on the information in the audit.

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

LEARN MORE

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

Study questions available for an expedited report on the drug take-back program’s fee-setting and expenditures

JLARC staff presented study questions for an upcoming expedited report on Washington’s drug take-back program fees and expenditures. An expedited report is more narrowly focused than typical performance audits due to the short timeframe.

Members asked JLARC staff to analyze how DOH’s fees compare to its costs to administer the program. JLARC staff complete such analyses to the degree allowed by scope and resources.

Why it matters:

• The Legislature created the drug take-back program in 2018. It provides a safe statewide system for collecting and disposing of unused medicines. The Legislature intended for the program to prevent prescription drug abuse, poisonings, and overdoses.
• The 2025 Legislature directed JLARC to complete this expedited report (E2SHB 1422, Section 4).

Next steps:

• Staff will conduct research and analysis.
• Study is due December 2025.

LEARN MORE

• Study lead: Andrew Hatt
• Read the study questions or watch the presentation on TVW

JLARC’s next meeting will be on September 17. It will include the preliminary report on the Office of Privacy and Data Protection, an annual update on lodging tax expenditures, and planned study questions for the following:

• Department of Natural Resources’ long-term forest health planning and sustainable harvest approach in eastern Washington (performance audit).
• Labor and Industries’ workplace standards and safety programs for farmworkers (performance audit).
• The 2026 tax preference reviews.

Find upcoming meetings and more information about JLARC here.

Sincerely,