LEGISLATIVE AUDITOR SENATORS REPRESENTATIVES State of Keenan Konopaski Bob Hasegawa Jake Fey Joint Legislative 106 11th Ave SW, PO Box 40910 Mark Mullet, Chair Olympia, WA 98504-0910 Rebecca Saldaña Audit & Review Shelly Short Christine Kilduff Phone: 360-786-5171 Dean Takko Committee Fax: 360-786-5180 Keith Wagoner , Vice Chair E-mail: [email protected] Lynda Wilson, Secretary , Assistant Secretary JLARC Twitter: @WALegAuditor Website: www.jlarc.leg.wa.gov

December 7, 2020 Joint Legislative Audit & Review Committee Regular Committee Meeting Minutes

COMMITTEE BUSINESS TVW Recording • Senator Mullet, JLARC Chair, called the meeting to order at 11:00 a.m. • Chair Mullet made a motion to approve the minutes from the September 30, 2020 JLARC meeting. Motion was seconded and approved. (See TVW recording at 00:01) • Legislative Auditor Keenan Konopaski noted the JLARC staff recently passed a peer review conducted by the National Conference of State Legislatures.

REPORTS, PRESENTATIONS, DISCUSSIONS TVW Recording Wildfire Prevention, Preparedness, and Expenditure Review – Preliminary Report Legislative Auditor’s Conclusion: DNR's long-term approach to wildfire prevention and preparedness is supported by science and best practices. The approach requires coordination with other entities and can reduce fire severity, which may impact costs to suppress fires. Casey Radostitz, Rebecca Connolly and Suzanna Pratt from the JLARC staff presented the preliminary report. In 2019, the Joint Legislative Audit and Review Committee (JLARC) directed its staff to review the Department of Natural Resources' (DNR) wildfire prevention and preparedness activities and related expenditures. The study directive also required a review of research to identify whether there is evidence to show how effectively the activities reduce the negative impacts and costs of wildfire. Loren Togerson and Jennifer Watkins from DNR answered member questions. (See TVW recording at 07:38)

Regulation of Ambulatory Surgical Facilities – Preliminary Report Legislative Auditor’s Conclusion: DOH has not met its goal for how frequently it performs state licensing surveys of ambulatory surgical facilities. It is unclear how this affects patient safety. DOH should determine a survey frequency goal based on patient safety risks and ensure license fees are aligned with that goal. Pete van Moorsel, Amanda Eadrick, and Scott Hancock from the JLARC staff presented the preliminary report. In 2019, the Legislature directed JLARC to review the Department of Health's (DOH) oversight of ambulatory surgical facilities (ASFs). ASFs are medical facilities whose primary purpose is to provide outpatient surgical services, such as general surgery, orthopedics, plastic surgery, endoscopy, eye surgery, and others. (See TVW recording at 39:52)

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Alternative Public Works Contracting Procedures Sunset Review – Proposed Final Report Legislative Auditor’s Conclusion: DOH has not met its goal for how frequently it performs state licensing surveys of ambulatory surgical facilities. It is unclear how this affects patient safety. DOH should determine a survey frequency goal based on patient safety risks and ensure license fees are aligned with that goal. Aaron Cavin and Melanie Stidham from the JLARC staff presented the preliminary report. In 1991, the Legislature authorized the use of alternative public works contracting methods for the Department of Corrections. Since then, the Legislature has repeatedly expanded this authority to include more public bodies and project sizes. The 2013 Legislature reauthorized RCW 39.10 with a sunset provision. The authority to use alternative contracting methods is scheduled to terminate in June 2021 unless the Legislature reauthorizes it. Alternative contacting methods allow public bodies to select contractors based on qualifications and price factors. Stakeholders and experts report advantages to using alternative methods. Rebecca Keith, Chair of CPARB responded to the report and answered member questions. A motion was made to approve the final report for distribution. The motion was seconded and carried unanimously (See TVW recording at 01:06:30)

2020 Tax Preference Performance Reviews – Proposed Final Report Eric Thomas, Dana Lynn, Scott Hancock, Rachel Murata and Eric Whitaker from the JLARC staff presented the preliminary report. In 2020, JLARC staff reviewed nine tax preferences compiled into eight reports. The presentation included tax preferences for the following: Customized Training, Farmworker Housing, Hiring Unemployed Veterans and Microbrewers. JLARC staff found that two preferences were not meeting legislative objectives, two are for industries that have changed since the preferences were enacted, and one likely had limited impact in its initial form but was changed to a different legislative purpose and made permanent. The Citizen Commission for the Performance Measurement of Tax Preferences added comment to these reports. Chair Forsyth of the Citizen Commission spoke about the Commission’s comment on Customized Training where the Commission differed from the Legislative Auditor’s recommendation. Representative Pollet proposed a committee comment on the Farmworker Housing report. A motion was made to append the proposed committee comment to the 2020 Tax Preference Reviews Farmworker Housing report. The motion was seconded and failed with four ayes and seven nays. The comment was not appended to the report. A motion was made to approve the 2020 Tax Preference Performance Reviews final report for distribution. The motion was seconded and carried unanimously. (See TVW recording at 1:27:07)

ATTENDANCE JLARC Members Present: Senators Mark Mullet, Bob Hasegawa, Rebecca Saldaña, Shelly Short, Dean Takko, Keith Wagoner, and Lynda Wilson; Representatives Noel Frame, Christine Kilduff, Vicki Kraft, Ed Orcutt, and Gerry Pollet.

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JLARC Staff Present: Keenan Konopaski, Legislative Auditor; Aaron Cavin, Rebecca Connolly, Amanda Eadrick, Scott Hancock, Geneva Johnston, Dana Lynn, Emily Martin, Rachel Murata, Suzanna Pratt, Casey Radostitz, Marilyn Richter, Melanie Stidham, Eric Thomas, Pete van Moorsel, and Valerie Whitener.

ADJOURNMENT The meeting was adjourned at 1:10 p.m.

CHAIR VICE CHAIR

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