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SB 5414

Requiring social equity impact analysis in performance audits and legislative public hearings thereon.

2025-2026 Regular Session Introduced by Bob Hasegawa and 2 co-sponsors

SB 5414 requires the State Auditor's performance audits to include a social equity impact analysis and extends public hearings on findings to 90 days after publication.

Effective date 7/27/2025.
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Bill Summary · SB 5414

Summary of SB 5414: Social Equity Impact Analysis in Performance Audits and Public Hearings

What the bill does

  • Expands the scope of independent performance audits conducted by the State Auditor to require a social equity impact analysis of programs or services being audited.
  • Extends the deadline for legislative bodies to hold public hearings on SAO audit findings from 30 days to 90 days after the audit is made public.

Key provisions

  • Adds a new element to the 10 required components of a performance audit: "analysis of the social equity impact of programs or services."
  • Keeps existing audit elements (cost savings, service reductions, privatization options, gaps/overlaps, IT pooling, department roles/functions, statutory/regulatory changes, performance data, best practices) in place, but requires the added social equity analysis as part of the audit scope.
  • Audit reports must continue to be delivered to the appropriate legislative body and publicly available within 30 days after audit completion.
  • Legislative bodies must hold at least one public hearing within 90 days after the audit is made public to consider findings and receive public comment.
  • No new program funding is created by the bill (no appropriation).

Who is affected

  • The Office of the State Auditor (SAO), which conducts performance audits of state and local governments, agencies, programs, and accounts.
  • State and local legislative bodies that receive SAO audits and hold public hearings (including relevant committees such as the Legislature’s Joint Legislative Audit and Review Committee where applicable).
  • Local governments (counties and cities) that may be included in performance audits.

Timeline and procedural aspects

  • Effective date: 90 days after adjournment of the 2025 regular session; the enacted law states an effective date of July 27, 2025.
  • Public hearing timeline adjusted to 90 days after audit publication, aligning hearing schedules with audit release.
  • The bill codifies these changes into RCW 43.09.470, updating the statutory framework for performance audits.

Fiscal notes and funding

  • Appropriation: None.
  • Fiscal impact: Public testimony indicated the social equity requirement would have zero net fiscal impact; a fiscal note is available, but no new funding is authorized.

Legislative history (highlights)

  • Introduced: January 22, 2025.
  • Passed both chambers in 2025 with standard legislative process and signings.
  • Governor signed on April 22, 2025; Chapter 135, 2025 Laws.
  • Effective date corresponds to July 27, 2025.

Bottom line

SB 5414 formalizes the integration of social equity considerations into performance audits and provides a longer window for legislative hearings on audit findings, enhancing accountability and the ability to address equity-related impacts in government programs.

Compiled from official sources — confirm details with the bill’s official record.

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