CERTIFICATION OF ENROLLMENT

ENGROSSED SUBSTITUTE HOUSE BILL 3116

Chapter 82, Laws of 2004

58th Legislature
2004 Regular Session



TAX EXEMPTIONS--BLOOD BANKS



EFFECTIVE DATE: 6/10/04

Passed by the House March 9, 2004
  Yeas 95   Nays 0

FRANK CHOPP
________________________________________    
Speaker of the House of Representatives


Passed by the Senate March 4, 2004
  Yeas 48   Nays 0


BRAD OWEN
________________________________________    
President of the Senate
 
CERTIFICATE

I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED SUBSTITUTE HOUSE BILL 3116 as passed by the House of Representatives and the Senate on the dates hereon set forth.


RICHARD NAFZIGER
________________________________________    
Chief Clerk
Approved March 22, 2004.








GARY LOCKE
________________________________________    
Governor of the State of Washington
 
FILED
March 22, 2004 - 5:28 p.m.







Secretary of State
State of Washington


_____________________________________________ 

ENGROSSED SUBSTITUTE HOUSE BILL 3116
_____________________________________________

AS AMENDED BY THE SENATE

Passed Legislature - 2004 Regular Session
State of Washington58th Legislature2004 Regular Session

By House Committee on Finance (originally sponsored by Representatives Murray, Cairnes, Sehlin, Sommers, McIntire, Lovick, Hatfield, Kenney, Morrell and Santos)

READ FIRST TIME 02/10/04.   



     AN ACT Relating to modifying tax exemptions for blood banks, bone or tissue banks, and comprehensive cancer centers; and amending RCW 82.04.324, 82.08.02805, 82.12.02747, and 84.36.035.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 82.04.324 and 1995 2nd sp.s. c 9 s 3 are each amended to read as follows:
     (1) ((As used in this section:
     (a) "Blood" includes human whole blood, plasma, blood derivatives, and related products.
     (b) "Bone" includes human bone, bone marrow, and related products.
     (c) "Tissue" includes human musculoskeletal tissue, musculoskeletal tissue derivatives, and related products.
     (d) "Blood, bone, or tissue bank" means an organization exempt from federal income tax under section 501(c)(3) of the federal internal revenue code, organized solely for the purpose of performing research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue.
     (e) "Medical supplies" means any item of tangible personal property, including any repair and replacement parts for such tangible personal property, used by a blood, tissue, or bone bank for the purpose of performing research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue. The term includes tangible personal property used to:
     (i) Provide preparatory treatment of blood, bone, or tissue;
     (ii) Control, guide, measure, tune, verify, align, regulate, test, or physically support blood, bone, or tissue; and
     (iii) Protect the health and safety of employees or others present during research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue.
     (f) "Chemical" means any catalyst, solvent, water, acid, oil, or other additive that physically or chemically interacts with blood, bone, or tissue.
     (g) "Materials" means any item of tangible personal property, including, but not limited to, bags, packs, collecting sets, filtering materials, testing reagents, antisera, and refrigerants used or consumed in performing research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue.
     (h) "Research" means basic and applied research that has as its objective the design, development, refinement, testing, marketing, or commercialization of a product, service, or process.
     (2)
)) This chapter does not apply to amounts received by a qualifying blood((, bone, or)) bank, a qualifying tissue ((banks)) bank, or a qualifying blood and tissue bank to the extent the amounts are exempt from federal income tax.
     (2) For the purposes of this section:
     (a) "Qualifying blood bank" means a blood bank that qualifies as an exempt organization under 26 U.S.C. 501(c)(3) as existing on the effective date of this section, is registered pursuant to 21 C.F.R., part 607 as existing on the effective date of this section, and whose primary business purpose is the collection, preparation, and processing of blood. "Qualifying blood bank" does not include a comprehensive cancer center that is recognized as such by the national cancer institute.
     (b) "Qualifying tissue bank" means a tissue bank that qualifies as an exempt organization under 26 U.S.C. 501(c)(3) as existing on the effective date of this section, is registered pursuant to 21 C.F.R., part 1271 as existing on the effective date of this section, and whose primary business purpose is the recovery, processing, storage, labeling, packaging, or distribution of human bone tissue, ligament tissue and similar musculoskeletal tissues, skin tissue, heart valve tissue, or human eye tissue. "Qualifying tissue bank" does not include a comprehensive cancer center that is recognized as such by the national cancer institute.
     (c) "Qualifying blood and tissue bank" is a bank that qualifies as an exempt organization under 26 U.S.C. 501(c)(3) as existing on the effective date of this section, is registered pursuant to 21 C.F.R., part 607 and part 1271 as existing on the effective date of this section, and whose primary business purpose is the collection, preparation, and processing of blood, and the recovery, processing, storage, labeling, packaging, or distribution of human bone tissue, ligament tissue and similar musculoskeletal tissues, skin tissue, and heart valve tissue. "Qualifying blood and tissue bank" does not include a comprehensive cancer center that is recognized as such by the national cancer institute.

Sec. 2   RCW 82.08.02805 and 1995 2nd sp.s. c 9 s 4 are each amended to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to the sale of medical supplies, chemicals, or materials to a qualifying blood((, bone, or)) bank, a qualifying tissue bank, or a qualifying blood and tissue bank. ((The definitions in RCW 82.04.324 apply to this section.)) The exemption in this section does not apply to the sale of construction materials, office equipment, building equipment, administrative supplies, or vehicles.
     (2) For the purposes of this section, the following definitions apply:
     (a) "Medical supplies" means any item of tangible personal property, including any repair and replacement parts for such tangible personal property, used by a qualifying blood bank, a qualifying tissue bank, or a qualifying blood and tissue bank for the purpose of performing research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue. The term includes tangible personal property used to:
     (i) Provide preparatory treatment of blood, bone, or tissue;
     (ii) Control, guide, measure, tune, verify, align, regulate, test, or physically support blood, bone, or tissue; and
     (iii) Protect the health and safety of employees or others present during research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue.
     (b) "Chemical" means any catalyst, solvent, water, acid, oil, or other additive that physically or chemically interacts with blood, bone, or tissue.
     (c) "Materials" means any item of tangible personal property, including, but not limited to, bags, packs, collecting sets, filtering materials, testing reagents, antisera, and refrigerants used or consumed in performing research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue.
     (d) "Research" means basic and applied research that has as its objective the design, development, refinement, testing, marketing, or commercialization of a product, service, or process.
     (e) The definitions in RCW 82.04.324 apply to this section.

Sec. 3   RCW 82.12.02747 and 1995 2nd sp.s. c 9 s 5 are each amended to read as follows:
     (1) The provisions of this chapter do not apply in respect to the use of medical supplies, chemicals, or materials by a qualifying blood((, bone, or)) bank, a qualifying tissue bank, or a qualifying blood and tissue bank. ((The definitions in RCW 82.04.324 apply to this section.)) The exemption in this section does not apply to the use of construction materials, office equipment, building equipment, administrative supplies, or vehicles.
     (2) The definitions in RCW 82.04.324 and 82.08.02805 apply to this section.

Sec. 4   RCW 84.36.035 and 1995 2nd sp.s. c 9 s 1 are each amended to read as follows:
     (1) The following property shall be exempt from taxation:
     All property, whether real or personal, belonging to or leased by any nonprofit corporation or association and used exclusively in the business of a qualifying blood((, bone, or)) bank, a qualifying tissue bank ((as defined in RCW 82.04.324)), or a qualifying blood and tissue bank, or in the administration of ((such business)) these businesses. If the real or personal property is leased, the benefit of the exemption shall inure to the nonprofit corporation or association.
     (2) The definitions in RCW 82.04.324 apply to this section.


         Passed by the House March 9, 2004.
         Passed by the Senate March 4, 2004.
         Approved by the Governor March 22, 2004.
         Filed in Office of Secretary of State March 22, 2004.