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

January 6, 2021 Joint Legislative Audit & Review Committee Regular Committee Meeting Minutes

COMMITTEE BUSINESS TVW Recording • MEMBER, JLARC Chair, called the meeting to order at 10:00 a.m. • The Chair acknowledged and thanked JLARC’s leaving members Senator Hasegawa and Representative Kilduff. • MEMBER made a motion to approve the minutes from the December 7, 2020 JLARC meeting. Motion was seconded and approved. (See TVW recording at 00:01:15)

REPORTS, PRESENTATIONS, DISCUSSIONS TVW Recording 2019 Public Records Reporting – Briefing Report (See TVW recording at 00:02:25)

Follow-Up on Workers’ Compensation Claim Management for State Funded Claims – Preliminary Report Legislative Auditor’s Conclusion: Although L&I took steps to improve processes for state funded workers’ compensation claims, the 2016 recommendations remain partially implemented. Some return to work measures have improved since 2014. Rebecca Connolly and Jennifer Sulcer from the JLARC staff presented the preliminary report. A 2016 JLARC report found that L&I was not following best practices for workers’ compensation claim management. JLARC directed its staff to follow up on three recommended actions from that report. The 2016 JLARC report concluded that: claim outcomes could be improved if L&I’s systems were more focused on prompt and safe return to work. The following agency staff answered member questions: • Victoria Kennedy, Assistant Director for Insurance Services, L&I (See TVW recording at 00:15:27) 2021 Tax Preference: Targeted Urban Area Exemption – Preliminary Report Legislative Auditor’s Conclusion: Cities may be ineligible to offer the preference. Legislative action is needed if the Legislature wants to ensure the preference is available. Dana Lynn from the JLARC staff presented the preliminary report. To date, local property tax exemption has not achieved its objective to encourage new industrial development and create jobs. The 2015

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Legislature authorized a 10-year local property tax exemption for new industrial development in targeted areas. The preferences close to new participants on December 31, 2022. (See TVW recording at 00:54:25)

Wildfire Prevention, Preparedness, and Expenditure Review – Proposed Final 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 and Suzanna Pratt from the JLARC staff presented the proposed final report. In 2019, 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. The following agency staff addressed the Committee: • Loren Torgerson, Wildfire Policy Advisor, DNR A motion was made to approve the proposed final report for distribution. The motion was seconded and carried unanimously. (See TVW recording at 01:06:18)

Regulation of Ambulatory Surgical Facilities – Proposed Final Report Legislative Auditor’s Conclusion: DOH has not met its goal for how frequently it performs state licensing surveys (inspections) of ambulatory surgical facilities. It is unclear how this affects patient safety. DOH should determine a frequency goal for these inspections based on patient safety risks and ensure license fees are aligned with that goal. Amanda Eadrick, Scott Hancock, and Pete van Moorsel from the JLARC staff presented the proposed final report. In 2019, the Legislature directed JLARC to review the Department of Health’s (DOH) oversight of the 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. The following agency staff addressed the Committee and answered member questions: • Kristin Peterson, Assistant Secretary, Health Systems Quality Assurance, DOH A motion was made to approve the proposed final report for distribution. The motion was seconded and carried unanimously. (See TVW recording at 01:20:45)

Impact Fee Deferral Programs – Proposed Study Questions Ashley Elliott and Jennifer Sulcer from the JLARC staff presented the proposed study questions. Statute directs JLARC and Commerce to collect data on the use and cost of deferral programs, and for Commerce to submit a report to the Legislature each December. The legislation also directed JLARC to conduct a review of the implementation of impact fee deferrals. (See TVW recording at 01:50:17)

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ATTENDANCE JLARC Members Present: Senators Hasegawa, Mullet, Saldaña, Short, Takko, Wilson; Representatives Fey, Frame, Hoff, Kilduff, Kraft, Orcutt, Pollet JLARC Staff Present: Keenan Konopaski, Legislative Auditor; Valerie Whitener, Deputy Legislative Auditor; Eric Thomas, Auditor Coordinator; Rebecca Connolly, Ashley Elliott, Scott Hancock, Geneva Johnston, Dana Lynn, Emily Martin, Suzanna Pratt, Casey Radostitz, Marilyn Richter, Jennifer, Sulcer, Liz Thomas, Pete van Moorsel

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

CHAIR VICE CHAIR

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