SENATE BILL REPORT
HB 1372
As of March 11, 2025
Title: An act relating to modifying joint legislative audit and review committee studies by extending the sunset act, allowing the extension of timelines for conducting studies, and removing barriers to continuing the sustainable harvest study.
Brief Description: Modifying provisions on joint legislative audit and review committee studies.
Sponsors: Representatives Orcutt, Pollet, Klicker and Ley.
Brief History: Passed House: 2/20/25, 97-0.
Committee Activity: State Government, Tribal Affairs & Elections: 3/14/25.
Brief Summary of Bill
  • Extends the Sunset Act to 2045.
  • Requires the legislative auditor to develop and implement criteria to ensure resources and costs dedicated to program reviews are proportionate to the size and complexity of the program's budget.
  • Removes a provision limiting the Joint Legislative Audit and Review Committee's (JLARC) ability to review the Department of Natural Resource's sustainable harvest calculation if there is pending or ongoing litigation against the calculation.
  • Requires JLARC to consider, when developing its biennial work plan, whether certain planned reviews would provide the Legislature with new or additional information.
SENATE COMMITTEE ON STATE GOVERNMENT, TRIBAL AFFAIRS & ELECTIONS
Staff: Danielle Creech (786-7412)
Background:

The Joint Legislative Audit and Review Committee. The Joint Legislative Audit and Review Committee (JLARC) is a statutorily created body consisting of eight members from the Senate and eight members from the House of Representatives, with no more than four members from each house from the same political party. JLARC conducts a variety of analyses including performance audits, program evaluations, and sunset reviews.

 

At the end of each legislative session in odd-numbered years, JLARC must develop and approve a performance audit work plan for the ensuing biennium.  The work plan must include a description of each audit and its cost.  When considering the work plan, JLARC may consult with the chairs and staff of legislative committees, the state auditor, and the director of financial management. Factors to be considered in preparing the work plans include:

  • whether a newly created or significantly altered program warrants continued oversight because of a significant fiscal impact or a high risk of not succeeding;
  • whether implementation of the program has significantly failed to meet its goals and objectives;
  • whether a follow-up audit would ensure that previous recommendations for improvements were implemented; and
  • whether JLARC is required to do an audit by enacted legislation.

 

The Sunset Act. Enacted in 1977, the Sunset Act provides for the review of state entities scheduled for termination to determine whether they should be continued, modified, consolidated, or terminated. The Sunset Act allows for an assessment of the efficacy and performance of the state entity. The entity must establish performance measures against which they are evaluated. Any entity or program may be statutorily scheduled for sunset review and termination, after which JLARC is tasked with conducting a program and fiscal review of the entity. Reports are prepared by JLARC during the year prior to scheduled termination.  Affected entities are entitled to respond to the report.  The Sunset Act is set to expire on June 30, 2025, but it may be extended by the Legislature.

 

The Sustainable Harvest Program. The Washington Department of Natural Resources (DNR) is responsible for managing state-owned lands under its jurisdiction.  State law directs DNR to manage lands that are valuable for forest crops in such a manner that the forest can continue to be harvested on a continuing basis without major prolonged curtailment or cessation.  To do so, DNR is required to calculate a sustainable harvest level, for example, an amount of timber scheduled for sale in a decade that will allow for sustained logging.  The sustainable harvest level must be approved by the Board of Natural Resources. JLARC is required to oversee and conduct an independent review of DNR's methodologies and data prior to the determination of the sustainable harvest calculation for 2025-2034.  JLARC is not required to do so if there is pending or ongoing litigation against DNR's sustainable harvest calculation.
Summary of Bill:

The Joint Legislative Audit and Review Committee. For reviews conducted under the Sunset Act, the legislative auditor must develop and implement criteria to ensure JLARC staff resources and associated costs devoted to program reviews are proportionate to the size and complexity of the program budget. In addition to the current considerations required when developing its biennial work plan, JLARC must also consider whether a planned review that is part of a mandated, recurring study would provide the Legislature with new or additional information. The provision that establishes an exception for JLARC's review of the DNR sustainable harvest calculation for 2025-2034 in the event of pending or ongoing litigation is removed. 

 

The Sunset Act. The expiration date of the Sunset Act is extended from June 30, 2025 to June 30, 2045. 
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.