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

July 22, 2020 Joint Legislative Audit & Review Committee Regular Committee Meeting Minutes

COMMITTEE BUSINESS TVW Recording • Senator Mullet, JLARC Chair, called the meeting to order at 10:00 a.m. • Chair Mullet made a motion to approve the minutes from the June 3, 2020 JLARC meeting. Motion was seconded and approved. (See TVW recording at 01:58)

REPORTS, PRESENTATIONS, DISCUSSIONS TVW Recording 2020 How Washington Compares – Briefing Report Ashley Elliott from the JLARC staff presented the briefing report. JLARC staff compiled the report as a reference guide for Washington legislators to illustrate how Washington compares to other states in five broad categories: population/economy/health/environment; government spending; education; taxes; and public assistance/transportation/public safety). The goal of this briefing report is to make these public data sources more accessible and interactive. (See TVW recording at 04:49) Washington State Patrol Pursuit Vehicle Replacement – Preliminary Report Legislative Auditor’s Conclusion: Washington State Patrol continues to use a vehicle life cycle cost model, but it is not following best practices. Vehicle replacement decisions should be based on a revised analysis and also consider other important factors. Zack Freeman and Joshua Karas from the JLARC staff presented the preliminary report. The 2019 Legislature directed JLARC to update its 1999 study of the Washington State Patrol’s vehicle life cycle cost model. The model is intended to determine the most cost-effective replacement cycle based on total capital and operating costs for the lifetime of the vehicle. (See TVW recording at 08:34) 2020 Tax Preference Performance Reviews – Preliminary 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, Microbrewers and Tribal Lands Used for Economic Development. 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. (See TVW recording at 41:53)

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Local Infrastructure Financing Tool (LIFT) – Proposed Final Report Legislative Auditor’s Conclusion: While economic activity has increased in designated areas, it is unknown how much can be attributed to LIFT. Ryan McCord from the JLARC staff presented the Preliminary Report. The Local Infrastructure Financing Tool (LIFT) was enacted in 2006 and expires in 2044. Under LIFT, the state provides financial support for local infrastructure projects in designated areas called Revenue Development Areas (RDAs). LIFT is based on a premise that investments in public infrastructure will attract private development and increase economic activity. The economic activity is expected to generate tax revenue that meets or exceeds the state’s contribution. The following agency staff responded to the report: • Janea Delk, Executive Director & Tribal Liaison, CERB • Candice Bock, Director of Government Relations, Association of WA Cities • Kathy Oline, Assistant Director Research & Fiscal Analysis, DOR The JLARC Executive Committee (Senator Mullet, Senator Wilson, Representative Pollet and Representative Orcutt) proposed a Committee Addendum to the LIFT Final Report to suspend future LIFT evaluations unless further legislative direction is provided. Chair Mullet called for a motion to approve adding the addendum to the final report. A motion was made, seconded, and carried. Chair Mullet called for a motion to approve for distribution the Local Infrastructure Financing Tool (LIFT) proposed final report. A motion was made, seconded, and carried. (See TVW recording at 01:40:20) Chair Mullet noted the I-900 subcommittee is taking place at 2 p.m. and the agenda item regarding the I- 900 Recommendation Status Update will be moved to the beginning of that meeting.

ATTENDANCE JLARC Members Present: Senators Bob Hasegawa, Mark Mullet, Rebecca Saldaña, Dean Takko, Keith Wagoner, and Lynda Wilson; Representatives Jake Fey, Nicole Frame, Larry Hoff, Christine Kilduff, Vicki Kraft, Ed Orcutt, and Gerry Pollet. JLARC Staff Present: Keenan Konopaski, Legislative Auditor; Ashley Elliott, Eric Thomas, Geneva Johnston, Liz Thomas, Marilyn Richter, Melanie Stidham, Rachel Murata, Ryan McCord, Valerie Whitener, Emily Martin, Scott Hancock, Zack Freeman, Joshua Karas, Eric Whitaker, and Dana Lynn.

ADJOURNMENT • The meeting was adjourned at 12:02 p.m.

CHAIR VICE CHAIR

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