This bill amends the powers and duties of the Legislative Budget and Audit Committee and the legislative audit division, specifically introducing a structured sunset review process for executive branch agencies. Under the new provisions, agencies will undergo a sunset review at least once every six years, during which they must report on their performance and compliance with established criteria. The legislative audit division will conduct these reviews, hold public hearings, and prepare a report with findings and recommendations regarding the agency's future—whether it should be terminated, continued, or reorganized. The bill also establishes a timeline for the termination of agencies that do not receive legislative action to continue or reorganize them.

Additionally, the bill clarifies that upon termination, an agency will continue to exist for one year to conclude its affairs, with its powers and duties retained during this period. It also specifies that any existing claims against a terminated agency will be assumed by the relevant department, and it redefines the term "agency" to include various units of the executive branch while excluding certain entities. The effective date for this act is set for July 1, 2026.

Statutes affected:
HB0274A, AM HB 274, introduced 01/23/2026: 44.66.050, 37.07.014, 08.03.010, 44.66.010, 44.66.060