The House was called to order at 10:00 a.m. by the Speaker (Representative Moeller presiding). The Clerk called the roll and a quorum was present.

The flags were escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Emily Darms and Steven Wallis. The Speaker (Representative Moeller presiding) led the Chamber in the Pledge of Allegiance. The prayer was offered by Reverend Dave Wright, University Chaplain and Director of Spirituality & Social Justice at the University of Puget Sound in Tacoma, Washington.

Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.

MESSAGE FROM THE SECRETARY OF STATE

SECRETARY of STATE

Sam Reed

Legislative Building

PO Box 40220

Olympia, WA 98504-0220

Tel 360.902.4151

Fax 360.586.5629 www.secstate.wa.gov

CERTIFICATION OF INITIATIVE TO THE LEGISLATURE 502

Pursuant to Article II, Section 1 ofthe Washington State Constitution, RCW 29A.72.230, and WAC 434-379-010, the Office of the Secretary of State has caused the signatures submitted in support of Initiative to the Legislature 502 to be examined in the following manner:

1. It was determined that 354,608 signatures were submitted by the sponsors of the initiative. A random sample of 10,845 signatures was taken from those submitted;

2. Each sampled signature was examined to determine if the signer was a registered voter of the state, if the signature was reasonably similar to the one appearing on the record of that voter, and if the sa me signature appeared more than once in the sample. We found 8,774 valid signatures, 2,062 signatures that were invalid and 9 pairs of duplicated signatures in the sample;

3. We calculated an allowance for the chance error of sampling (68) by multiplying the square root of the number of invalid signatures by 1.5;

4. We estimated the upper limit of the number of signatures on the initiative petition which were invalid (69,650) by dividing the sum of the number of invalid signatures in the sa mple and allowance for the chance of error of sampling by the sa mpling ratio;

5. We determined the maximum allowable number of pairs of signatures on the petition (43,805 ) by subtracting the sum of the number of signatures required by Article II, Section 1 of the Washington State Constitution (241,153 ) and the estimate of the upper limit of the number of invalid signatures on the petition from the number of signatures submitted;

6. We determined the expected number of pairs of signatures in the sample (41 ) by multiplying the square of the sampling ratio by the maximum allowable number of pairs of signatures on the initiative petition;

7. We determined the acceptable number of pairs of signatures in the sa mple (30 ) by subtracting 1.65 times the square root of the expected number of pairs of signatu res in the sample from the expected number of pairs of signatures in the sa mple; and

8. The number of pairs of signatures in the sample is less than the acceptable number of pairs of signatures in the sa mple.

Therefore, I hereby declare Initiative to the Legislature 502 to contain sufficient signatures.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the State of Washington this 27t" day of January, 2012.

Assistant Secretary of State

Steven C. Excell

INTRODUCTIONS AND FIRST READING

HB 2737 by Representative Liias

AN ACT Relating to nursing homes medicaid reimbursement and settlement process; amending RCW 74.46.022; amending 2011 1st sp.s. c 7 s 11 (uncodified); and providing an effective date.

Referred to Committee on Health & Human Services Appropriations & Oversight.

HB 2738 by Representatives Bailey and Ormsby

AN ACT Relating to modifying the membership of the select committee on pension policy; and amending RCW 41.04.276.

Referred to Committee on Ways & Means.

HB 2739 by Representative Appleton

AN ACT Relating to applying for health insurance coverage when an insurance carrier discontinues all individual health benefit plan coverage; amending RCW 48.43.018; and declaring an emergency.

Referred to Committee on Health Care & Wellness.

HB 2740 by Representatives Liias, Van De Wege, Eddy, Fitzgibbon and Hudgins

AN ACT Relating to minimum renewable fuel content requirements; amending RCW 19.112.020, 19.112.110, 19.112.060, 19.112.160, 19.112.900, and 42.56.270; adding a new section to chapter 19.112 RCW; creating a new section; and repealing RCW 19.112.120, 19.112.130, 19.112.140, 19.112.150, 19.112.170, 19.112.180, and 43.19.643.

Referred to Committee on Technology, Energy & Communications.

HB 2741 by Representatives Rodne and Eddy

AN ACT Relating to health care claims against state and governmental health care providers arising out of tortious conduct; and amending RCW 4.92.100 and 4.96.020.

Referred to Committee on Judiciary.

HB 2742 by Representatives Klippert, Haler, Taylor, Ross, Nealey, Rodne, Shea, Kristiansen, Chandler, Hinkle, Walsh and Johnson

AN ACT Relating to urban growth area boundary modifications for industrial land; reenacting and amending RCW 36.70A.130; and adding a new section to chapter 36.70A RCW.

Referred to Committee on Local Government.

HB 2743 by Representatives Tharinger, Short, Upthegrove, Blake, Dunshee and Takko

AN ACT Relating to WRIA planning units; and amending RCW 90.82.040.

Referred to Committee on Agriculture & Natural Resources.

HB 2744 by Representative Anderson

AN ACT Relating to replacing the business and occupation tax with a flat rate corporate net income tax; amending RCW 82.03.130 and 82.03.140; adding a new section to chapter 35.102 RCW; adding a new title to the Revised Code of Washington to be codified as Title 82A RCW; repealing RCW 82.04.220, 82.04.230, 82.04.240, 82.04.2403, 82.04.2404, 82.04.250, 82.04.255, 82.04.257, 82.04.260, 82.04.261, 82.04.263, 82.04.270, 82.04.272, 82.04.280, 82.04.285, 82.04.286, 82.04.290, 82.04.29001, 82.04.29002, 82.04.2905, 82.04.2906, 82.04.2907, 82.04.2908, 82.04.2909, 82.04.293, 82.04.298, 82.04.315, 82.04.317, 82.04.330, 82.04.331, 82.04.332, 82.04.333, 82.04.334, 82.04.337, 82.04.392, 82.04.405, 82.04.416, 82.04.421, 82.04.422, 82.04.425, 82.04.426, 82.04.4261, 82.04.4262, 82.04.4267, 82.04.4281, 82.04.4287, 82.04.4292, 82.04.4294, 82.04.4295, 82.04.4296, 82.04.433, 82.04.4333, 82.04.4339, 82.04.4451, 82.04.44525, 82.04.447, 82.04.4482, 82.04.4486, 82.04.601, 82.62.030, 82.04.340, 82.04.424, 82.04.4272, 82.04.4285, 82.04.43391, 82.04.540, 82.04.645, 82.04.650, 82.04.410, 82.04.339, 82.04.3395, 82.04.363, 82.04.3651, 82.04.367, 82.04.368, 82.04.370, 82.04.380, 82.04.385, 82.04.395, 82.04.397, 82.04.399, 82.04.408, 82.04.415, 82.04.418, 82.04.419, 82.04.4201, 82.04.4251, 82.04.4282, 82.04.4291, 82.04.4293, 82.04.432, 82.04.4322, 82.04.4324, 82.04.4326, 82.04.4327, 82.04.4332, 82.04.434, 82.04.600, 82.04.610, 82.04.615, 82.04.335, 82.04.338, 82.04.4271, 82.04.640, 82.04.4298, 82.04.324, 82.04.326, 82.04.327, 82.04.355, 82.04.4263, 82.04.4264, 82.04.4265, 82.04.4289, 82.04.4297, 82.04.4311, 82.04.4337, 82.04.620, and 82.04.635; prescribing penalties; and providing effective dates.

Referred to Committee on Ways & Means.

HB 2745 by Representative Haler

AN ACT Relating to veterans' classification as resident students; amending RCW 28B.15.012; and providing an effective date.

Referred to Committee on Higher Education.

HB 2746 by Representatives Springer, Haler and Anderson

AN ACT Relating to community redevelopment financing in apportionment districts; adding new sections to chapter 82.14 RCW; adding a new section to chapter 82.32 RCW; adding a new chapter to Title 39 RCW; and repealing RCW 39.88.010, 39.88.020, 39.88.030, 39.88.040, 39.88.050, 39.88.060, 39.88.070, 39.88.080, 39.88.090, 39.88.100, 39.88.110, 39.88.120, 39.88.130, 39.88.900, 39.88.905, 39.88.910, and 39.88.915.

Referred to Committee on Community & Economic Development & Housing.

HB 2747 by Representative Hansen

AN ACT Relating to modifying the use of funds in the fire service training account; and amending RCW 43.43.944.

Referred to Committee on Capital Budget.

HB 2748 by Representatives Fitzgibbon, Anderson and Hasegawa

AN ACT Relating to transferring ferry and flood control zone district functions and taxing authorities to county legislative authorities in counties with a population of one million five hundred thousand or more; adding new chapters to Title 36 RCW; and providing an effective date.

Referred to Committee on Local Government.

SSB 5069 by Senate Committee on Labor, Commerce & Consumer Protection (originally sponsored by Senators Prentice, Kohl-Welles, Conway, Kline and Chase)

AN ACT Relating to the creation of the farm labor contractor account; and amending RCW 19.30.030.

Referred to Committee on Labor & Workforce Development.

SB 5259 by Senators Kline, Honeyford, Kohl-Welles, Carrell and Schoesler

AN ACT Relating to the tax payment and reporting requirements of small wineries; and amending RCW 66.24.230 and 66.24.210.

Referred to Committee on Ways & Means.

SSB 5627 by Senate Committee on Judiciary (originally sponsored by Senators Hobbs, Murray, Kilmer and Shin)

AN ACT Relating to service members' civil relief; and amending RCW 38.42.010 and 38.42.050.

Referred to Committee on Judiciary.

SSB 5977 by Senate Committee on Energy, Natural Resources & Marine Waters (originally sponsored by Senators Ranker, Litzow, Eide, Shin, Haugen, Rolfes, Swecker, Fain, Frockt, Hobbs, Schoesler, Fraser, Kilmer, Kohl-Welles, Chase, Hatfield, Nelson, Harper, Regala, Hargrove, Tom, Pridemore, Keiser, Conway, Kline, McAuliffe, Sheldon, Parlette, Hewitt, Honeyford, Roach, Carrell and Pflug)

AN ACT Relating to making the discover pass transferable between two vehicles; amending RCW 79A.80.020 and 79A.80.040; creating a new section; and declaring an emergency.

Referred to Committee on General Government Appropriations & Oversight.

SSB 6044 by Senate Committee on Energy, Natural Resources & Marine Waters (originally sponsored by Senator Honeyford)

AN ACT Relating to the supply of water by public utility districts bordered by the Columbia river to be used in pumped storage projects; and adding a new section to chapter 54.16 RCW.

Referred to Committee on Agriculture & Natural Resources.

SB 6059 by Senators Conway, Kastama, Shin, Kohl-Welles and Roach

AN ACT Relating to veterans' raffle; and amending RCW 67.70.500.

Referred to Committee on State Government & Tribal Affairs.

SB 6095 by Senator Kohl-Welles

AN ACT Relating to making technical corrections to gender-based terms; amending RCW 2.12.037, 6.15.010, 9.95.270, 9.96.020, 41.04.120, 41.04.233, 41.04.510, 41.06.073, 41.06.075, 41.06.120, 41.14.030, 41.14.060, 41.14.090, 41.14.110, 41.14.120, 41.14.180, 41.14.250, 41.14.260, 41.14.270, 41.20.010, 41.20.020, 41.20.050, 41.20.060, 41.20.065, 41.20.070, 41.20.080, 41.20.085, 41.20.090, 41.20.100, 41.20.110, 41.20.120, 41.20.150, 41.20.155, 41.20.160, 41.20.170, 41.20.175, 41.24.100, 41.24.260, 41.26.040, 41.26.045, 41.26.046, 41.26.047, 41.28.010, 41.28.030, 41.28.040, 41.28.050, 41.28.080, 41.28.110, 41.28.120, 41.28.130, 41.28.140, 41.28.150, 41.28.160, 41.28.170, 41.28.180, 41.32.044, 41.32.497, 41.33.020, 41.40.210, 41.41.020, 41.44.030, 41.44.070, 41.44.080, 41.44.110, 41.44.120, 41.44.130, 41.44.140, 41.44.150, 41.44.160, 41.44.170, 41.44.180, 41.44.190, 41.44.200, 41.44.210, 41.44.220, 41.44.250, 41.48.020, 41.48.040, 41.48.050, 41.48.090, 41.48.100, 41.50.020, 41.56.080, 41.56.120, 41.56.220, 41.56.450, 41.56.470, 41.58.010, 41.58.801, 41.59.090, 41.59.120, 41.59.140, 42.04.020, 42.08.020, 42.08.030, 42.08.050, 42.08.090, 42.08.100, 42.08.110, 42.08.120, 42.08.130, 42.08.140, 42.08.160, 42.12.030, 42.14.010, 42.14.030, 42.14.060, 42.16.013, 42.16.014, 42.16.020, 42.16.040, 42.20.020, 42.20.030, 42.20.050, 42.20.080, 42.20.110, 42.24.110, 42.24.140, 42.24.150, 42.24.160, 42.26.050, 42.26.070, 42.30.040, 42.30.090, 42.30.120, 42.56.040, 46.21.030, 46.23.020, 49.32.072, 60.08.020, 60.08.060, 60.10.070, 60.16.010, 60.24.020, 60.24.030, 60.24.035, 60.24.075, 60.24.100, 60.24.130, 60.24.140, 60.24.150, 60.24.170, 60.24.190, 60.24.200, 60.28.030, 60.28.060, 60.32.010, 60.32.020, 60.34.010, 60.34.020, 60.40.020, 60.44.060, 60.52.010, 60.56.005, 60.60.040, 60.66.020, 60.76.010, 60.76.020, 61.12.040, 61.12.090, 61.12.093, 61.12.094, 61.12.120, 63.10.030, 63.14.030, 63.14.040, 63.14.060, 63.14.080, 63.14.110, 63.14.140, 63.14.150, 63.14.152, 63.14.158, 63.14.200, 63.29.010, 63.29.070, 63.29.120, 63.29.200, 63.29.350, 63.32.040, 63.40.020, 63.40.040, 63.48.020, 64.04.030, 64.04.040, 64.04.050, 64.04.070, 64.08.020, 64.08.070, 64.08.090, 64.12.040, 64.12.050, 64.16.005, 64.20.030, 64.32.040, 64.32.060, 64.32.070, 64.32.180, 64.32.200, 64.32.210, 64.32.220, 64.32.240, 65.04.070, 65.04.130, 65.04.140, 65.08.070, 65.08.120, 65.08.150, 65.12.005, 65.12.015, 65.12.020, 65.12.055, 65.12.060, 65.12.065, 65.12.070, 65.12.090, 65.12.110, 65.12.140, 65.12.150, 65.12.160, 65.12.170, 65.12.175, 65.12.180, 65.12.200, 65.12.235, 65.12.250, 65.12.255, 65.12.260, 65.12.265, 65.12.290, 65.12.300, 65.12.310, 65.12.320, 65.12.360, 65.12.370, 65.12.380, 65.12.430, 65.12.445, 65.12.450, 65.12.470, 65.12.480, 65.12.490, 65.12.500, 65.12.530, 65.12.550, 65.12.560, 65.12.570, 65.12.590, 65.12.600, 65.12.610, 65.12.620, 65.12.635, 65.12.640, 65.12.650, 65.12.690, 65.12.710, 65.12.720, 65.12.770, 65.12.790, 65.12.800, 65.16.070, 66.08.012, 66.08.014, 66.08.022, 66.08.080, 66.08.100, 66.12.030, 66.12.070, 66.12.110, 66.20.020, 66.20.040, 66.20.080, 66.20.090, 66.20.100, 66.20.110, 66.20.150, 66.20.190, 66.24.480, 66.28.130, 66.32.060, 66.36.010, 66.40.040, 66.40.100, 66.40.110, 66.40.140, 66.44.090, 66.44.140, 66.44.170, 66.44.292, 66.98.020, 67.04.010, 67.04.020, 67.04.030, 67.04.040, 67.04.050, 67.04.070, 67.04.090, 67.04.120, 67.14.040, 67.14.070, 67.16.015, 67.16.017, 67.70.030, 67.70.050, 67.70.070, 67.70.200, 67.70.290, 68.40.085, 68.40.090, 68.44.030, 68.50.040, 68.50.060, 68.50.080, 68.50.102, 68.50.300, 68.52.120, 68.52.260, 68.52.270, 68.54.040, 68.54.050, 68.54.070, 68.54.110, 68.56.020, 68.56.060, 69.04.006, 69.04.080, 69.04.090, 69.04.160, 69.04.170, 69.04.190, 69.04.206, 69.04.350, 69.04.390, 69.04.392, 69.04.570, 69.04.600, 69.04.620, 69.04.750, 69.04.790, 69.04.840, 69.04.915, 69.07.060, 69.25.080, 69.25.100, 69.25.110, 69.25.120, 69.25.140, 69.25.170, 69.25.180, 69.25.200, 69.25.260, 69.25.320, 69.28.020, 69.28.030, 69.28.040, 69.28.190, 69.28.410, 69.28.420, 69.36.010, 69.36.020, 69.36.040, 69.41.130, 69.50.102, 69.50.309, 69.50.412, 69.50.502, 69.50.506, 69.50.507, 70.08.060, 70.37.030, 70.40.040, 70.40.090, 70.40.130, 70.44.020, 70.44.171, 70.44.185, 70.50.020, 70.54.050, 70.58.010, 70.58.020, 70.58.040, 70.58.050, 70.58.095, 70.58.145, 70.58.270, 70.74.010, 70.74.020, 70.74.110, 70.74.120, 70.74.310, 70.77.450, 70.77.495, 70.77.545, 70.79.100, 70.79.170, 70.79.180, 70.79.330, 70.82.024, 70.82.030, 70.93.040, 70.94.095, 70.94.120, 70.94.142, 70.94.390, 70.94.715, 70.94.720, 70.95.210, 70.95B.020, 70.96A.180, 70.98.050, 70.98.100, 70.98.190, 70.105.095, 70.106.040, 70.106.100, 70.106.110, 70.108.020, 70.108.060, 70.108.070, 70.108.150, 70.110.080, 70.112.020, 70.121.030, 70.121.040, 70.121.090, 71.06.010, 71.06.020, 71.06.050, 71.06.060, 71.06.080, 71.06.091, 71.06.100, 71.06.120, 71.06.130, 71.06.260, 71.12.570, 71.12.640, 71.24.100, 72.01.060, 72.01.120, 72.01.140, 72.01.150, 72.01.180, 72.01.240, 72.01.280, 72.01.282, 72.01.300, 72.01.310, 72.01.380, 72.01.460, 72.02.100, 72.02.110, 72.04A.090, 72.04A.120, 72.05.152, 72.05.154, 72.19.040, 72.20.040, 72.23.040, 72.23.050, 72.23.060, 72.23.130, 72.23.160, 72.23.200, 72.23.230, 72.23.240, 72.25.020, 72.27.050, 72.41.020, 72.41.030, 72.42.031, 72.60.100, 72.60.160, 72.64.010, 72.64.040, 72.64.065, 72.64.070, 72.64.110, 72.65.020, 72.65.030, 72.65.040, 72.66.010, 72.66.014, 72.66.018, 72.66.022, 72.66.024, 72.66.024, 72.66.026, 72.66.028, 72.66.032, 72.66.034, 72.66.050, 72.66.080, 72.66.090, 72.68.031, 72.68.040, 72.68.050, 72.68.060, 72.68.070, 73.04.050, 73.04.060, 73.04.120, 73.20.060, 73.36.010, 73.36.040, 73.36.060, 73.36.090, 73.36.100, 73.36.110, 73.36.130, 73.36.150, 73.36.155, 73.36.160, and 73.36.165; and reenacting and amending RCW 41.56.070, 63.14.154, 66.04.010, and 70.37.050.

Referred to Committee on Judiciary.

SSB 6105 by Senate Committee on Health & Long-Term Care (originally sponsored by Senators Parlette, Hatfield, Conway, Becker, Keiser and Shin)

AN ACT Relating to the prescription monitoring program; and amending RCW 70.225.020.

Referred to Committee on Health Care & Wellness.

There being no objection, the bills listed on the day’s introduction sheet under the fourth order of business were referred to the committees so designated.

REPORTS OF STANDING COMMITTEES

January 26, 20120)

HB 2171 Prime Sponsor, Representative Green: Regarding agency planning processes. Reported by Committee on State Government & Tribal Affairs

MAJORITY recommendation: Do pass. Signed by Representatives Hunt, Chair; Appleton, Vice Chair; Darneille; Dunshee; Hurst; McCoy and Miloscia.

MINORITY recommendation: Do not pass. Signed by Representatives Taylor, Ranking Minority Member; Overstreet, Assistant Ranking Minority Member; Alexander and Condotta.

Passed to Committee on Rules for second reading.

January 25, 20120)

HB 2201 Prime Sponsor, Representative Fitzgibbon: Addressing the use and governance of hearing examiners. Reported by Committee on Local Government

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Takko, Chair; Fitzgibbon, Vice Chair; Springer; Tharinger and Upthegrove.

MINORITY recommendation: Do not pass. Signed by Representatives Angel, Ranking Minority Member; Asay, Assistant Ranking Minority Member; Rodne and Smith.

Passed to Committee on Rules for second reading.

January 25, 20120)

HB 2296 Prime Sponsor, Representative Morris: Concerning the siting of biofuel processing facilities. Reported by Committee on Technology, Energy & Communications

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives McCoy, Chair; Eddy, Vice Chair; Crouse, Ranking Minority Member; Anderson; Billig; Carlyle; Hasegawa; Hudgins; Kelley; Liias; Morris and Wylie.

MINORITY recommendation: Do not pass. Signed by Representatives Short, Assistant Ranking Minority Member; Dahlquist; Haler; Harris; McCune and Nealey.

Passed to Committee on Rules for second reading.

January 26, 20120)

HB 2326 Prime Sponsor, Representative Jinkins: Protecting air quality that is impacted by high emitting solid fuel burning devices. Reported by Committee on Environment

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Upthegrove, Chair; Tharinger, Vice Chair; Fitzgibbon; Hansen; Jinkins; Morris; Moscoso; Pollet; Takko and Wylie.

MINORITY recommendation: Do not pass. Signed by Representatives Short, Ranking Minority Member; Harris, Assistant Ranking Minority Member; Crouse; Nealey; Pearson; Shea and Taylor.

Passed to Committee on Rules for second reading.

January 26, 20120)

HB 2328 Prime Sponsor, Representative Dammeier: Addressing job order contracting. Reported by Committee on State Government & Tribal Affairs

MAJORITY recommendation: Do pass. Signed by Representatives Hunt, Chair; Appleton, Vice Chair; Taylor, Ranking Minority Member; Overstreet, Assistant Ranking Minority Member; Alexander; Condotta; Darneille; Dunshee; Hurst; McCoy and Miloscia.

Passed to Committee on Rules for second reading.

January 26, 20120)

HB 2352 Prime Sponsor, Representative Reykdal: Concerning institutions of higher education services and activities fees. Reported by Committee on Higher Education

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Seaquist, Chair; Carlyle, Vice Chair; Haler, Ranking Minority Member; Parker, Assistant Ranking Minority Member; Asay; Buys; Crouse; Fagan; Hasegawa; Pollet; Probst; Reykdal; Sells; Springer; Warnick; Wylie and Zeiger.

Passed to Committee on Rules for second reading.

January 26, 20120)

HB 2375 Prime Sponsor, Representative Appleton: Making conforming amendments made necessary by reorganizing and streamlining central service functions, powers, and duties of state government. Reported by Committee on State Government & Tribal Affairs

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Hunt, Chair; Appleton, Vice Chair; Taylor, Ranking Minority Member; Overstreet, Assistant Ranking Minority Member; Alexander; Condotta; Darneille; Dunshee; Hurst and Miloscia.

Passed to Committee on Rules for second reading.

January 26, 20120)

HB 2384 Prime Sponsor, Representative Hudgins: Regulating personal vehicle sharing programs. Reported by Committee on Business & Financial Services

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Kirby, Chair; Kelley, Vice Chair; Buys, Assistant Ranking Minority Member; Blake; Condotta; Hudgins; Hurst; Pedersen; Rivers; Ryu and Stanford.

Passed to Committee on Rules for second reading.

January 26, 20120)

HB 2396 Prime Sponsor, Representative Hudgins: Clarifying the number of employees within certain classifications within the consolidated technology services agency. Reported by Committee on State Government & Tribal Affairs

MAJORITY recommendation: Do pass. Signed by Representatives Hunt, Chair; Appleton, Vice Chair; Darneille; Dunshee; Hurst; McCoy and Miloscia.

MINORITY recommendation: Do not pass. Signed by Representatives Taylor, Ranking Minority Member; Overstreet, Assistant Ranking Minority Member; Alexander and Condotta.

Passed to Committee on Rules for second reading.

January 26, 20120)

HB 2590 Prime Sponsor, Representative Bailey: Extending the expiration of the pollution liability insurance agency's authority and its funding source. Reported by Committee on Business & Financial Services

Referred to Committee on Ways & Means.

There being no objection, the bills listed on the day’s committee reports under the fifth order of business were referred to the committees so designated.

There being no objection, the House advanced to the seventh order of business.

THIRD READING

MESSAGE FROM THE SENATE

January 27, 2012

MR. SPEAKER:

The Senate has passed HOUSE CONCURRENT RESOLUTION NO. 4408, with the following amendment(s):

On page 1, line 7, after "implement budgets," insert "matters that affect state revenue,"

On page 2, line 13, after "implement budgets," insert "matters that affect state revenue,"

and the same are herewith transmitted.

Brad Hendrickson, Deputy, Secretary

SENATE AMENDMENT TO HOUSE BILL

There being no objection, the House concurred in the Senate amendment to HOUSE CONCURRENT RESOLUTION NO. 4408 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

Representatives Sullivan, Parker and Smith spoke in favor of the passage of the resolution.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Concurrent Resolution No. 4408, as amended by the Senate.

MOTIONS

On motion of Representative Van De Wege, Representative Stanford was excused. On motion of Representative Hinkle, Representative Short was excused.

HOUSE CONCURRENT RESOLUTION NO. 4408 was adopted.

There being no objection, the House reverted to the sixth order of business.

SECOND READING

HOUSE BILL NO. 1073, by Representatives Kelley, McCoy, Green and Van De Wege

Authorizing persons designated by the decedent to direct disposition, if the decedent died while serving on active duty in any branch of the United States armed forces, United States reserve forces, or national guard.

The bill was read the second time.

There being no objection, Substitute House Bill No. 1073 was substituted for House Bill No. 1073 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 1073 was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Kelley and Rodne spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1073.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1073, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Goodman, Green, Haigh, Haler, Hansen, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Pollet, Probst, Reykdal, Rivers, Roberts, Rodne, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Smith, Springer, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Wylie, Zeiger and Mr. Speaker.

Excused: Representatives Short and Stanford.

SUBSTITUTE HOUSE BILL NO. 1073, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 1259, by Representatives Seaquist and Kelley

Concerning notice requirements for homeowners' associations meetings.

The bill was read the second time.

There being no objection, Substitute House Bill No. 1259 was substituted for House Bill No. 1259 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 1259 was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Seaquist and Rodne spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1259.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1259, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Excused: Representatives Short and Stanford.

SUBSTITUTE HOUSE BILL NO. 1259, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2213, by Representatives Chandler, Van De Wege and Johnson

Modifying certain definitions for the purpose of firefighting services for unprotected lands.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Chandler and Van De Wege spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 2213.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 2213, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Excused: Representatives Short and Stanford.

HOUSE BILL NO. 2213, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2247, by Representatives Green, Cody, Billig, Fitzgibbon, Reykdal, Maxwell, Jinkins, Finn, Moeller and Ryu

Expanding the types of medications that a public or private school employee may administer to include topical medication, eye drops, and ear drops.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Green and Schmick spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 2247.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 2247, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Excused: Representatives Short and Stanford.

HOUSE BILL NO. 2247, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2283, by Representatives Hunt and Reykdal

Modifying the display requirement for certain parking placards.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Hunt and Hargrove spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 2283.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 2283, and the bill passed the House by the following vote: Yeas, 95; Nays, 1; Absent, 0; Excused, 2.

Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Goodman, Green, Haler, Hansen, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Pollet, Probst, Reykdal, Rivers, Roberts, Rodne, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Smith, Springer, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Wylie, Zeiger and Mr. Speaker.

Voting nay: Representative Haigh.

Excused: Representatives Short and Stanford.

HOUSE BILL NO. 2283, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2293, by Representatives Pedersen, Rodne and Orwall

Expanding consumer cooperative provisions under the nonprofit miscellaneous and mutual corporations act.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Pedersen and Rodne spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 2293.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 2293, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Excused: Representatives Short and Stanford.

HOUSE BILL NO. 2293, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2308, by Representatives Rodne and Pedersen

Regulating awarding of costs, including attorneys' fees, in actions challenging actions taken by professional peer review bodies.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Rodne and Pedersen spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 2308.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 2308, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Excused: Representatives Short and Stanford.

HOUSE BILL NO. 2308, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2417, by Representatives Shea and Reykdal

Increasing the dollar amount for construction of a dock that does not qualify as a substantial development under the shoreline management act.

The bill was read the second time.

Representative Shea moved the adoption of amendment (876).

0) On page 5, beginning on line 12, after "RCW" strike everything through "(d)" on line 13 and insert "90.58.020."

On page 5, at the beginning of line 17, strike "(((d))) (e)" and insert "(d)"

On page 5, at the beginning of line 19, strike "(((e))) (f)" and insert "(e)"

On page 6, line 34, after "dollars" strike everything through "construction," at the beginning of line 37 and insert "((, but if subsequent construction having a fair market value exceeding two thousand five hundred dollars occurs within five years of completion of the prior construction,)) . However, if subsequent construction occurs within five years of completion of the prior construction, and the combined fair market value of the subsequent and prior construction exceeds the amount specified in either (A) or (B) of this subsection (3)(e)(vii),"

Representatives Shea and Takko spoke in favor of the adoption of the amendment.

Amendment (876) was adopted.

The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Shea and Takko spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Engrossed House Bill No. 2417.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed House Bill No. 2417, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Excused: Representatives Short and Stanford.

ENGROSSED HOUSE BILL NO. 2417, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2440, by Representatives Wilcox, Blake, Chandler, Van De Wege, Warnick, McCune, Johnson, Stanford, Hurst, Hinkle and Moscoso

Authorizing the department of natural resources to provide wildfire protection services for public lands managed by state agencies.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Wilcox and Blake spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 2440.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 2440, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Excused: Representatives Short and Stanford.

HOUSE BILL NO. 2440, having received the necessary constitutional majority, was declared passed.

THIRD READING

SUBSTITUTE HOUSE BILL NO. 1057, by House Committee on Labor & Workforce Development (originally sponsored by Representatives Hudgins, Green and Reykdal).

Creating the farm labor account. Revised for 1st Substitute: Creating the farm labor contractor account.

The bill was read the third time.

Representatives Hudgins and Condotta spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1057.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1057, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Excused: Representatives Short and Stanford.

SUBSTITUTE HOUSE BILL NO. 1057, having received the necessary constitutional majority, was declared passed.

There being no objection, the rules were suspended, and ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1144 was returned to second reading for the purpose of amendment.

There being no objection, the House reverted to the sixth order of business.

SECOND READING

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1144, by House Committee on Ways & Means (originally sponsored by Representatives McCoy, Crouse, Eddy, Morris, Haler, Kelley, Liias, Jacks, Frockt and Hudgins)

Concerning renewable energy investment cost recovery program.

The bill was read the second time.

Representative McCoy moved the adoption of amendment (879).

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 82.16.110 and 2011 c 179 s 2 are each amended to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Administrator" means an owner and assignee of a community solar project as defined in subsection (2)(a)(i) of this section that is responsible for applying for the investment cost recovery incentive on behalf of the other owners and performing such administrative tasks on behalf of the other owners as may be necessary, such as receiving investment cost recovery incentive payments, and allocating and paying appropriate amounts of such payments to the other owners.

(2)(a) "Community solar project" means:

(i) A solar energy system that is capable of generating up to seventy-five kilowatts of electricity and is owned by local individuals, households, nonprofit organizations, nonprofit housing organization, or nonutility businesses that is placed on the property owned by a cooperating local governmental entity ((that)), a nonprofit organization, or a nonprofit housing organization if the cooperating entity, nonprofit organization, or nonprofit housing organization is not in the light and power business or in the gas distribution business;

(ii) A utility-owned solar energy system that is capable of generating up to seventy-five kilowatts of electricity and that is voluntarily funded by the utility's ratepayers where, in exchange for their financial support, the utility gives contributors a payment or credit on their utility bill for the value of the electricity produced by the project; or

(iii) A solar energy system, placed on the property owned by a cooperating local governmental entity ((that)), a nonprofit organization, or a nonprofit housing organization if the cooperating entity, nonprofit organization, or nonprofit housing organization is not in the light and power business or in the gas distribution business, ((that)) and the solar energy system is capable of generating up to seventy-five kilowatts of electricity((,)) and ((that)) is owned by a company whose members are each eligible for an investment cost recovery incentive for the same customer-generated electricity as provided in RCW 82.16.120.

(b) For the purposes of "community solar project" as defined in (a) of this subsection:

(i) "Company" means an entity that is:

(A)(I) A limited liability company;

(II) A cooperative formed under chapter 23.86 RCW; or

(III) A mutual corporation or association formed under chapter 24.06 RCW; and

(B) Not a "utility" as defined in this subsection (2)(b); and

(ii) "Nonprofit organization" means an organization exempt from taxation under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code of 1986, as amended, as of January 1, 2009; ((and))

(iii) "Nonprofit housing organization" means an entity eligible for assistance under RCW 43.185A.040 and engaged in activities eligible for assistance under RCW 43.185A.030, including an entity materially participating as a managing member of a limited liability company, general partner of a partnership, or as an equivalent organization for the purposes of accessing assistance from the Washington state housing finance commission under chapter 43.180 RCW; and
(iv) "Utility" means a light and power business, an electric cooperative, or a mutual corporation that provides electricity service.

(3) "Customer-generated electricity" means a community solar project or the alternating current electricity that is generated from a renewable energy system located in Washington and installed on an individual's, businesses', or local government's real property that is also provided electricity generated by a light and power business. Except for community solar projects, a system located on a leasehold interest does not qualify under this definition. Except for utility- owned community solar projects, "customer-generated electricity" does not include electricity generated by a light and power business with greater than one thousand megawatt hours of annual sales or a gas distribution business.

(4) "Economic development kilowatt-hour" means the actual kilowatt- hour measurement of customer-generated electricity multiplied by the appropriate economic development factor.

(5) "Local governmental entity" means any unit of local government of this state including, but not limited to, counties, cities, towns, municipal corporations, quasi-municipal corporations, special purpose districts, and school districts.

(6) "Photovoltaic cell" means a device that converts light directly into electricity without moving parts.

(7) "Renewable energy system" means a solar energy system, a hydrokinetic energy system, an anaerobic digester as defined in RCW 82.08.900, or a wind generator used for producing electricity.

(8) "Solar energy system" means any device or combination of devices or elements that rely upon direct sunlight as an energy source for use in the generation of electricity.

(9) "Solar inverter" means the device used to convert direct current to alternating current in a solar energy system.

(10) "Solar module" means the smallest nondivisible self-contained physical structure housing interconnected photovoltaic cells and providing a single direct current electrical output.

(11) "Stirling converter" means a device that produces electricity by converting heat from a solar source utilizing a stirling engine.

(12) "Hydrokinetic energy system" means a device that generates electricity from waves or directly from the flow of water in ocean currents, tides, inland waterways, nonfish-bearing canals, or irrigation districts, that does not require the impoundment or diversion of water.

Sec. 2. RCW 82.16.120 and 2011 c 179 s 3 are each amended to read as follows:

(1)(a) Any individual, business, local governmental entity, not in the light and power business or in the gas distribution business, or a participant in a community solar project may apply to the light and power business serving the situs of the system, each fiscal year beginning on July 1, 2005, for an investment cost recovery incentive for each kilowatt-hour from a customer-generated electricity renewable energy system.

(b) In the case of a community solar project as defined in RCW 82.16.110(2)(a)(i), the administrator must apply for the investment cost recovery incentive on behalf of each of the other owners.

(c) In the case of a community solar project as defined in RCW 82.16.110(2)(a)(iii), the company owning the community solar project must apply for the investment cost recovery incentive on behalf of each member of the company.

(2)(a) Before submitting for the first time the application for the incentive allowed under subsection (4) of this section, the applicant must submit to the department of revenue and to the climate and rural energy development center at the Washington State University, established under RCW 28B.30.642, a certification in a form and manner prescribed by the department that includes, but is not limited to, the following information:

(i) The name and address of the applicant and location of the renewable energy system.

(A) If the applicant is an administrator of a community solar project as defined in RCW 82.16.110(2)(a)(i), the certification must also include the name and address of each of the owners of the community solar project.

(B) If the applicant is a company that owns a community solar project as defined in RCW 82.16.110(2)(a)(iii), the certification must also include the name and address of each member of the company;

(ii) The applicant's tax registration number;

(iii) That the electricity produced by the applicant meets the definition of "customer-generated electricity" and that the renewable energy system produces electricity with:

(A) Any solar inverters and solar modules manufactured in Washington state;

(B) A wind generator powered by blades manufactured in Washington state;

(D) A solar module manufactured in Washington state;

(E) A stirling converter manufactured in Washington state; ((or))

(F) A hydrokinetic energy system manufactured in Washington state; or
(G) Solar or wind equipment manufactured outside of Washington state;

(iv) That the electricity can be transformed or transmitted for entry into or operation in parallel with electricity transmission and distribution systems; and

(v) The date that the renewable energy system received its final electrical permit from the applicable local jurisdiction.

(b) The Washington State University may charge for services to cover the cost of processing applications and related technical assistance to effectively administer the cost recovery program. If the Washington State University charges for these activities, an applicant must submit a payment along with the initial application. Application charges may not exceed fair and reasonable costs associated with the necessary and effective oversight of the cost recovery program.
(c) Within thirty days of receipt of the certification the department of revenue must notify the applicant by mail, or electronically as provided in RCW 82.32.135, whether the renewable energy system qualifies for an incentive under this section. The department may consult with the climate and rural energy development center to determine eligibility for the incentive. System certifications and the information contained therein are subject to disclosure under RCW 82.32.330(3)(l).

(3)(a) ((By August 1st of each year application for the incentive must be made to)) If required by the light and power business serving the situs of the system, persons receiving incentive payments must apply to the light and power by August 1st of each year by certification in a form and manner prescribed by the department that includes, but is not limited to, the following information:

(i) The name and address of the applicant and location of the renewable energy system.

(A) If the applicant is an administrator of a community solar project as defined in RCW 82.16.110(2)(a)(i), the application must also include the name and address of each of the owners of the community solar project.

(B) If the applicant is a company that owns a community solar project as defined in RCW 82.16.110(2)(a)(iii), the application must also include the name and address of each member of the company;

(ii) The applicant's tax registration number;

(iii) The date of the notification from the department of revenue stating that the renewable energy system is eligible for the incentives under this section; and

(iv) A statement of the amount of kilowatt-hours generated by the renewable energy system in the prior fiscal year.

(b) Within sixty days of receipt of the incentive certification the light and power business serving the situs of the system must notify the applicant in writing whether the incentive payment will be authorized or denied. The business may consult with the climate and rural energy development center to determine eligibility for the incentive payment. Incentive certifications and the information contained therein are subject to disclosure under RCW 82.32.330(3)(l).

(c)(i) Persons, administrators of community solar projects, and companies receiving incentive payments must keep and preserve, for a period of five years, suitable records as may be necessary to determine the amount of incentive applied for and received. Such records must be open for examination at any time upon notice by the light and power business that made the payment or by the department. If upon examination of any records or from other information obtained by the business or department it appears that an incentive has been paid in an amount that exceeds the correct amount of incentive payable, the business may assess against the person for the amount found to have been paid in excess of the correct amount of incentive payable and must add thereto interest on the amount. Interest is assessed in the manner that the department assesses interest upon delinquent tax under RCW 82.32.050.

(ii) If it appears that the amount of incentive paid is less than the correct amount of incentive payable the business may authorize additional payment.

(4) Except for community solar projects, the investment cost recovery incentive may be paid fifteen cents per economic development kilowatt-hour unless requests exceed the amount authorized for credit to the participating light and power business. For community solar projects, the investment cost recovery incentive may be paid thirty cents per economic development kilowatt-hour unless requests exceed the amount authorized for credit to the participating light and power business. For the purposes of this section, the rate paid for the investment cost recovery incentive may be multiplied by the following factors:

(a) For customer-generated electricity produced using solar modules manufactured in Washington state, a hydrokinetic energy system manufactured in Washington state, or a solar stirling converter manufactured in Washington state, two and four-tenths;

(b) For customer-generated electricity produced using a solar or a wind generator equipped with an inverter manufactured in Washington state, one and two-tenths;

(c) For customer-generated electricity produced using an anaerobic digester, or by other solar equipment or using a wind generator equipped with blades manufactured in Washington state, one; and

(d) For all other customer-generated electricity produced by wind, eight-tenths.

(5)(a) No individual, household, business, or local governmental entity is eligible for incentives provided under subsection (4) of this section for more than five thousand dollars per year.

(b) Except as provided in (c) through (e) of this subsection (5), each applicant in a community solar project is eligible for up to five thousand dollars per year.

(c) Where the applicant is an administrator of a community solar project as defined in RCW 82.16.110(2)(a)(i), each owner is eligible for an incentive but only in proportion to the ownership share of the project, up to five thousand dollars per year.

(d) Where the applicant is a company owning a community solar project that has applied for an investment cost recovery incentive on behalf of its members, each member of the company is eligible for an incentive that would otherwise belong to the company but only in proportion to each ownership share of the company, up to five thousand dollars per year. The company itself is not eligible for incentives under this section.

(e) In the case of a utility-owned community solar project, each ratepayer that contributes to the project is eligible for an incentive in proportion to the contribution, up to five thousand dollars per year.

(6)(a) If requests for the investment cost recovery incentive exceed the amount of funds available for credit to the participating light and power business, ((the incentive payments must be reduced proportionately)) no new applications may be approved for the light and power business, except as provided in (b) of this subsection.
(b) A new application may be approved for a light and power business when requests for the investment cost recovery incentive exceed the amount of funds available for credit to the participating light and power business, if the light and power business meets the requirements in RCW 82.16.130(1)(c) and the incentive payments are reduced proportionately.

(7) The climate and rural energy development center at Washington State University energy program may establish guidelines and standards for technologies that are identified as Washington manufactured and therefore most beneficial to the state's environment.

(8) The environmental attributes of the renewable energy system belong to the applicant, and do not transfer to the state or the light and power business upon receipt of the investment cost recovery incentive.

(9) No incentive may be paid under this section for kilowatt-hours generated before July 1, 2005, or after June 30, 2020.

(10) A local government entity that qualifies for the community solar incentive program has an option to purchase a solar energy system located on its property from the owner at fair market value after the expiration of the cost recovery incentive program. The fair market value must take into consideration the following:
                (a) The energy production from the solar energy system over its remaining useful life;
                (b) The cost of the lease for the property that the solar energy system is located; and
                (c) Maintenance, insurance, and cost of removal of the solar energy system if the host facility decides not to renew the lease.

Sec. 3. RCW 82.16.130 and 2010 c 202 s 3 are each amended to read as follows:

(1)(a) A light and power business ((shall be)) is allowed a credit against taxes due under this chapter in an amount equal to investment cost recovery incentive payments made in any fiscal year under RCW 82.16.120. The credit ((shall)) must be taken in a form and manner as required by the department. The credit under this section for the fiscal year may not exceed one-half percent of the businesses' taxable power sales due under RCW 82.16.020(1)(b) or one hundred thousand dollars, whichever is greater.

(b) Except as provided in (c) of this subsection:
(i) Incentive payments to participants in a utility-owned community solar project as defined in RCW 82.16.110(2)(a)(ii) may only account for up to ((twenty-five)) fifteen percent of the total allowable credit((.)); and
(ii) Incentive payments to participants in a company-owned community solar project as defined in RCW 82.16.110(2)(a)(iii), except for a limited liability company with a nonprofit housing organization participating as a managing member for the purposes of accessing assistance from the Washington state housing finance commission under chapter 43.180 RCW, may only account for up to ((five)) fifteen percent of the total allowable credit.

(c) For light and power businesses providing electrical service solely within a county with a population between thirty-nine thousand and forty-three thousand five hundred, incentive payments to participants in a utility-owned community solar project as defined in RCW 82.16.110(2)(a)(ii) and incentive payments to participants in a company-owned community solar project as defined in RCW 82.16.110(2)(a)(iii), other than a company-owned community solar project that has as its owner a limited liability company with a nonprofit housing organization participating as a managing member for the purposes of accessing assistance from the Washington state housing finance commission under chapter 43.180 RCW, may only account for up to thirty percent of the total allowable credit.
(2) The credit may not exceed the tax that would otherwise be due under this chapter. Refunds ((shall)) may not be granted in the place of credits. Expenditures not used to earn a credit in one fiscal year may not be used to earn a credit in subsequent years.

(((2))) (3) For any business that has claimed credit for amounts that exceed the correct amount of the incentive payable under RCW 82.16.120, the amount of tax against which credit was claimed for the excess payments ((shall be)) is immediately due and payable. The department ((shall)) must assess interest but not penalties on the taxes against which the credit was claimed. Interest ((shall be)) is assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW, retroactively to the date the credit was claimed, and ((shall)) accrues until the taxes against which the credit was claimed are repaid.

(((3))) (4) The right to earn tax credits under this section expires June 30, 2020. Credits may not be claimed after June 30, 2021."

Representatives McCoy and Crouse spoke in favor of the adoption of the amendment.

Amendment (879) was adopted.

The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representative McCoy spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Second Engrossed Second Substitute House Bill No. 1144.

ROLL CALL

The Clerk called the roll on the final passage of Second Engrossed Second Substitute House Bill No. 1144, and the bill passed the House by the following vote: Yeas, 81; Nays, 15; Absent, 0; Excused, 2.

Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Asay, Billig, Blake, Carlyle, Clibborn, Cody, Crouse, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Goodman, Green, Haigh, Haler, Hansen, Hargrove, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Parker, Pearson, Pedersen, Pettigrew, Pollet, Probst, Reykdal, Roberts, Rodne, Ryu, Santos, Schmick, Seaquist, Sells, Springer, Sullivan, Takko, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Wylie, Zeiger and Mr. Speaker.

Voting nay: Representatives Armstrong, Bailey, Buys, Chandler, Condotta, Dahlquist, Harris, Johnson, McCune, Overstreet, Rivers, Ross, Shea, Smith and Taylor.

Excused: Representatives Short and Stanford.

SECOND ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1144, having received the necessary constitutional majority, was declared passed.

THIRD READING

SUBSTITUTE HOUSE BILL NO. 1194, by House Committee on Public Safety & Emergency Preparedness (originally sponsored by Representatives Kelley and Ladenburg).

Continuing to determine bail for the release of a person arrested and detained for a felony offense on an individualized basis by a judicial officer. Revised for 1st Substitute: Concerning bail for the release of a person arrested and detained for a class A or B felony offense.

The bill was read the third time.

Representatives Kelley and Pearson spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1194.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1194, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Excused: Representatives Short and Stanford.

SUBSTITUTE HOUSE BILL NO. 1194, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE HOUSE BILL NO. 1217, by House Committee on Transportation (originally sponsored by Representatives Ryu, Pedersen, Johnson, Klippert, Maxwell, Finn, Kenney, Santos, Springer, Ladenburg, Appleton, Liias, McCoy, Miloscia, Fitzgibbon, Kagi, Roberts and Billig).

Authorizing local authorities to establish maximum speed limits on certain nonarterial highways. Revised for 1st Substitute: Authorizing certain local authorities to establish maximum speed limits on certain nonarterial highways.

The bill was read the third time.

Representatives Ryu and Armstrong spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1217.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1217, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Excused: Representatives Short and Stanford.

SUBSTITUTE HOUSE BILL NO. 1217, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 1327, by Representatives Kirby, Warnick, Miloscia, Fitzgibbon and Roberts.

Increasing the permissible deposit of public funds with credit unions.

The bill was read the third time.

Representatives Kirby and Bailey spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 1327.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 1327, and the bill passed the House by the following vote: Yeas, 86; Nays, 10; Absent, 0; Excused, 2.

Voting yea: Representatives Alexander, Anderson, Angel, Appleton, Armstrong, Bailey, Billig, Blake, Buys, Carlyle, Clibborn, Cody, Condotta, Crouse, Dahlquist, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Goodman, Green, Haigh, Haler, Hansen, Hargrove, Harris, Hasegawa, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Parker, Pearson, Pedersen, Pettigrew, Pollet, Probst, Reykdal, Rivers, Roberts, Ross, Ryu, Santos, Seaquist, Sells, Shea, Smith, Springer, Sullivan, Takko, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Wylie, Zeiger and Mr. Speaker.

Voting nay: Representatives Ahern, Asay, Chandler, Dammeier, Hinkle, McCune, Overstreet, Rodne, Schmick and Taylor.

Excused: Representatives Short and Stanford.

HOUSE BILL NO. 1327, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 1833, by Representatives Finn and Rolfes.

Modifying the frequency of meetings of the motorcycle safety education advisory board.

The bill was read the third time.

Representatives Finn and Armstrong spoke in favor of the passage of the bill.

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 1833.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 1833, and the bill passed the House by the following vote: Yeas, 96; Nays, 0; Absent, 0; Excused, 2.

Excused: Representatives Short and Stanford.

HOUSE BILL NO. 1833, having received the necessary constitutional majority, was declared passed.

There being no objection, the Committee on Rules was relieved of the following bills and the bills were placed on the second reading suspension calendar:

HOUSE BILL NO. 1865

HOUSE BILL NO. 2223

HOUSE BILL NO. 2235

HOUSE BILL NO. 2255

HOUSE BILL NO. 2285

HOUSE BILL NO. 2305

HOUSE BILL NO. 2306

HOUSE BILL NO. 2360

HOUSE BILL NO. 2362

HOUSE BILL NO. 2367

HOUSE BILL NO. 2469

There being no objection, the House advanced to the eleventh order of business.

There being no objection, the House adjourned until 9:55 a.m., January 31, 2012, the 23rd Day of the Regular Session.

FRANK CHOPP, Speaker

BARBARA BAKER, Chief Clerk