SB 6215 — Concerning fraud prevention.

S-4634.1S-4001.1 SUBSTITUTE SENATE BILL 6215 State of Washington 69th Legislature 2026 Regular Session By Senate State Government, Tribal Affairs & Elections (originally sponsored by Senators Hansen, Boehnke, and Valdez)Valdez READRead FIRSTfirst TIMEtime 02/04/26.01/19/26.

Referred to Committee on State Government, Tribal Affairs & Elections.

creatingadding a new sections;section to chapter 43.09 RCW;

and providingcreating annew expirationsections. date.

(1) The legislature finds that:

(1)(a) Washington state administers a wide range of programs that distribute public funds, deliver critical services, and rely on partnerships with local governments, nonprofits, and private entities.

(2)(b) Recent national attention on fraud in publicly funded programs underscores the importance of regularly assessing areas of risk before problems become systemic.

(3) While Washington has existing audit and accountability mechanisms, the legislature recognizes the value of ana coordinated, statewide, risk-based assessment ofto theseidentify mechanismscommon andvulnerabilities, theirhighlight effectivenesseffective inpractices, identifyingand gapsstrengthen prevention and opportunitiesearly fordetection improvement.efforts across agencies.

(4)(c) ItIn is1990, the intentUnited ofStates thegovernment legislatureaccountability office began reporting to promotecongress transparencywith a "high-risk" list, which identifies and efficienthelps useresolve ofserious oversightweaknesses resourcesin byareas directingthat theinvolve jointsubstantial legislativepublic auditfunds and reviewcritical committeeservices to evaluatethe currentpublic. practices, p.

1The SSBp. 6215 compare them to other states, and provide options to strengthen the oversight of state programs.

1 SB 6215 "high-risk" list provides congress with accessible and actionable information and recommendations that have been used to improve programs and yield financial and other benefits.

(2)(a) It is the intent of the legislature to promote transparency and efficient use of oversight resources by directing the Washington state auditor to develop a program like the United States government accountability office's "high-risk" list and to report to the legislature annually on risk across state agencies, focusing on identifying program characteristics associated with elevated risk, assessing the effectiveness of existing internal controls, and recommending improvements that support ongoing risk mitigation.

(b) The legislature further intends that the results of this work support practical, scalable strategies that enhance accountability while preserving timely access to services for eligible individuals and communities.

By taking a proactive approach, the state can strengthen stewardship of public funds, reduce the likelihood of future fraud, and reinforce public confidence in state government.

(1)A Thenew jointsection legislativeis auditadded andto reviewchapter committee43.09 shallRCW reviewto auditing,read accountability,as andfollows: risk management practices across Washington's state agencies.

The(1) reviewBy mayJuly consider:1, 2026, the Washington state auditor shall prepare and submit to the appropriate committees of the legislature a comprehensive inventory of state programs that have been subject to audit by the state auditor within the preceding 10 years.

(a)The Existinginventory internalmust controls,include oversightfor processes,each aidentified sampleprogram: of state programs that oversee and administer grants, loans and contracts, and the role of the state auditor, internal auditors within agencies, and the office of financial management in preventing fraud, waste, abuse, and mismanagement;

(b)(a) Gaps,A weaknesses,brief ordescription inefficienciesof inthe currentprogram's auditingpurpose, scope, and accountabilityadministering practices;agency;

(c)(b) AThe comparisonamount of Washington'sfunds auditingexpended andby accountabilitythe practicesprogram toduring thosethe most recently completed fiscal year, including the primary sources of otherthose states,funds, highlightingsuch models,as strategies,state orgeneral toolsfund thatappropriations, havefederal provenfunds, effectivelocal elsewhere;funds, or other revenue sources;

and(c) (d)A Optionssummary fordescription enhancingof statewidethe accountabilityprogram's thatkey areinternal producedcontrols in clear and accessiblesafeguards language,intended highlightingto actionableprevent, stepsdetect, thator couldmitigate improvefraud, accountabilitywaste, andabuse, stewardshipor ofmismanagement; public funds.

(2)(d) TheA committeesummary shallof reportrelevant onfindings, therecommendations, resultsor ofmanagement letters from prior audits conducted by the performancestate audit,auditor, including findingswhether andsignificant recommendations,findings tohave thebeen legislatureresolved byor Septemberremain 1,open; 2027.

(3)and Thisp. section expires October 1, 2027.

2 SB 6215 (e) Any other contextual information the state auditor determines would assist the legislature in understanding the program's risk profile and existing accountability structure.

(2) Beginning July 1, 2027, and annually thereafter, the state auditor shall prepare and submit to the legislature a statewide high- risk list that identifies state programs, functions, or activities determined by the auditor to present elevated risk to the state.

(3) In developing the high-risk list under subsection (2) of this section, the state auditor shall use a risk-based methodology and may consider factors including, but not limited to:

(a) The size, complexity, and growth of a program;

(b) The degree of reliance on third parties, including local governments, contractors, or nonprofit organizations;

(c) The adequacy and maturity of internal controls;

(d) The significance of prior audit findings, including repeat or unresolved issues;

(e) Susceptibility to fraud, improper payments, or misuse of funds;

and (f) The potential impact on public trust, service delivery, or state finances.

(4) For each program or area included on the high-risk list, the report must include:

(a) An explanation of the factors contributing to its high-risk designation;

(b) A summary of existing internal controls and oversight mechanisms;

(c) Identification of gaps or weaknesses contributing to elevated risk;

and (d) Recommendations for risk mitigation, improved controls, or enhanced oversight.

(5) The state auditor shall present the reports required under this section in a manner that promotes transparency and public understanding, including the use of plain language, clear organization, and explanatory context sufficient for readers without technical or auditing backgrounds.

(6) The state auditor may withhold or summarize information in the reports required under this section if the auditor determines that disclosure of such information would create a risk of fraud, misuse of funds, circumvention of internal controls, or other harm to a state program.

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3 SB 6215 NEW SECTION.