FINAL BILL REPORT

                   SB 5631

                          C 324 L 98

                      Synopsis as Enacted

Brief Description:  Exempting education loan guarantee services from business and occupation tax.

Sponsors:  Senators Wood, Jacobsen and Oke.

Senate Committee on Higher Education

Senate Committee on Ways & Means

House Committee on Finance

Background:  Current law provides for an exemption from the payment of business and occupation tax for nonprofit organizations exempt from federal income tax and only if they are also guarantee agencies under the federal guaranteed student loan program or issue debt to provide or acquire student loans.

Summary:  Nonprofit organizations exempt from federal income tax that provide guarantees for student loans made through programs other than the federal guaranteed student loan program are exempt from payment of the business and occupation tax.

Votes on Final Passage:

Senate 46 0

House     94 0

Effective:  June 11, 1998