This bill adds a new section to chapter 50A.05 RCW requiring the state auditor to conduct a performance audit of program integrity measures in the state paid family and medical leave program. The auditor may contract with an independent expert. The audit must evaluate whether the administering department has implemented fraud protections, misuse detection, coverage eligibility verification standards, and enforcement mechanisms to deny fraudulent claims; whether methods exist to recover overpayments and benefits obtained through fraud; and whether claim information provided to employers and employees (for example, leave duration and type, stated reason, and remaining leave) supports determination of claim validity. The auditor must also assess whether current integrity measures are the most effective and efficient available and make recommendations for improvements to integrity measures, recovery methods, communications and reports, and any legislative or administrative changes needed to implement those recommendations. The bill is a procedural oversight change creating a required performance audit (not a new crime or penalty). It requires progress reports to the appropriate legislative committees by December 1, 2026 and June 30, 2027, a final audit report by December 1, 2027, and the section expires December 31, 2027. The text does not name the department that administers the program, does not identify the specific legislative committees, does not state when the audit must begin beyond the report deadlines, and does not include funding, staffing, or formal definitions for key terms.

If enacted, the state auditor will be required to examine how well the state paid family and medical leave program prevents and recovers improper payments and supports employers and employees in checking claim validity. That will add a specific audit workload with required progress reports by December 1, 2026 and June 30, 2027 and a final report by December 1, 2027; the auditor can hire outside experts, which likely means extra contracting costs and use of auditor resources. The audit must evaluate fraud protections, eligibility verification, recovery of overpayments, and whether claim information given to employers and employees (for example leave type, reason, duration, and remaining leave) helps detect invalid claims, and it must recommend changes including possible legislative or administrative actions. The department that runs the paid leave program is most affected because the audit will scrutinize its existing integrity practices and communications and could lead to recommended changes in forms, verification standards, enforcement, and recovery methods; implementing those recommendations would likely raise administrative costs and change how claims are handled, potentially increasing denials or recovery efforts. Employers and employees may see more detailed claim information and different rules or enforcement practices if recommendations are adopted. Important details are missing, including which specific department is reviewed, who will pay for the audit and any resulting changes, and which legislative committees will receive the reports.