AN ACT Relating to tax preferences; amending RCW 84.36.805; adding a new section to chapter 82.32 RCW; adding a new section to chapter 82.04 RCW; adding a new section to chapter 35.21 RCW; adding a new section to chapter 48.14 RCW; adding a new section to chapter 48.36A RCW; adding a new section to chapter 48.44 RCW; adding a new section to chapter 48.46 RCW; adding a new section to chapter 84.56 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. A new section is added to chapter 82.32 RCW to read as follows:

No tax exemption, deduction, credit, or deferral may be granted under this title to any organization, corporation, or association which denies or in any manner restricts, directly or indirectly, on the basis of sex or race the access of any person to full membership or other equal participation in the accommodations, advantages, facilities, or privileges offered by the organization, corporation, or association. This restriction also applies to individuals otherwise eligible for an exemption, deduction, credit, or deferral under this title who claim such exemption, deduction, credit, or deferral on the basis of activities of an organization, corporation, or association which would itself be ineligible under this section or any other provision of this title.

NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:

No exemption or deduction allowed under RCW 82.04.365, 82.04.367, 82.04.370, 82.04.380, 82.04.4282, 82.04.4288, 82.04.4289, 82.04.4297, 82.04.4298, 82.04.431, 82.04.4322, 82.04.4324, 82.04.4326, or 82.04.4327 may be granted to any organization, corporation, or association which denies or in any manner restricts, directly or indirectly, on the basis of sex or race the access of any person to full membership or other equal participation in the accommodations, advantages, facilities, or privileges offered by the organization, corporation, or association. This restriction also applies to individuals otherwise eligible for an exemption or deduction under any of these sections who claim such exemption or deduction on the basis of activities of an organization, corporation, or association which would itself be ineligible under this section or any other provision of this title.

NEW SECTION. Sec. 3. A new section is added to chapter 35.21 RCW to read as follows:

No exemption allowed under RCW 35.21.755 may be granted to any organization, corporation, or association which denies or in any manner restricts, directly or indirectly, on the basis of sex or race the access of any person to full membership or other equal participation in the accommodations, advantages, facilities, or privileges offered by the organization, corporation, or association.

NEW SECTION. Sec. 4. A new section is added to chapter 48.14 RCW to read as follows:

No exemption or deduction allowed under RCW 48.14.022 may be granted to any insurer which denies or in any manner restricts, directly or indirectly, on the basis of sex or race the access of any person to full membership or other equal participation in the accommodations, advantages, facilities, or privileges offered by the insurer.

NEW SECTION. Sec. 5. A new section is added to chapter 48.36A RCW to read as follows:

No exemption allowed under RCW 48.36A.240 may be granted to any society which denies or in any manner restricts, directly or indirectly, on the basis of sex or race the access of any person to full membership or other equal participation in the accommodations, advantages, facilities, or privileges offered by the society.

NEW SECTION. Sec. 6. A new section is added to chapter 48.44 RCW to read as follows:

No exemption or deduction allowed under this chapter may be granted to any health care service contractor which denies or in any manner restricts, directly or indirectly, on the basis of sex or race the access of any person to full membership or other equal participation in the accommodations, advantages, facilities, or privileges offered by the health care service contractor.

NEW SECTION. Sec. 7. A new section is added to chapter 48.46 RCW to read as follows:

No exemption or deduction allowed under this chapter may be granted to any health maintenance organization which denies or in any manner restricts, directly or indirectly, on the basis of sex or race the access of any person to full membership or other equal participation in the accommodations, advantages, facilities, or privileges offered by the health maintenance organization.

Sec. 8. Section 7, chapter 40, Laws of 1973 2nd ex. sess. as last amended by section 1, chapter 468, Laws of 1987 and RCW 84.36.805 are each amended to read as follows:

In order to be exempt pursuant to RCW 84.36.030, 84.36.035, 84.36.037, 84.36.040, 84.36.045, 84.36.047, 84.36.050, 84.36.060, 84.36.350, and 84.36.480, the nonprofit organizations, associations or corporations shall satisfy the following conditions:

(1) The property is used exclusively for the actual operation of the activity for which exemption is granted, unless otherwise provided, and does not exceed an amount reasonably necessary for that purpose, except:

(a) The loan or rental of the property does not subject the property to tax if:

(i) The rents and donations received for the use of the portion of the property are reasonable and do not exceed the maintenance and operation expenses attributable to the portion of the property loaned or rented; and

(ii) Except for the exemption under RCW 84.36.037, the property would be exempt from tax if owned by the organization to which it is loaned or rented;

(b) The use of the property for fund-raising activities does not subject the property to tax if the fund-raising activities are consistent with the purposes for which the exemption is granted;

(2) The property is irrevocably dedicated to the purpose for which exemption has been granted, and on the liquidation, dissolution, or abandonment by said organization, association, or corporation, said property will not inure directly or indirectly to the benefit of any shareholder or individual, except a nonprofit organization, association, or corporation which too would be entitled to property tax exemption: PROVIDED, That the property need not be irrevocably dedicated if it is leased or rented to those qualified for exemption pursuant to RCW 84.36.040 or those qualified for exemption as an association engaged in the production or performance of musical, dance, artistic, dramatic, or literary works pursuant to RCW 84.36.060, but only if under the terms of the lease or rental agreement the nonprofit organization, association, or corporation receives the benefit of the exemption;

(3) ((~~The facilities and services are available to all regardless of race, color, national origin or ancestry~~)) The organization, corporation, or association shall not deny or in any manner restrict, directly or indirectly, on the basis of sex, race, color, national origin, or ancestry the access of any person to full membership or other equal participation in the accommodations, advantages, facilities, or privileges offered by the organization, corporation, or association. This restriction also applies to individuals otherwise eligible for an exemption, deduction, credit or deferral under this title who claim such exemption, deduction, credit or deferral on the basis of activities of an organization, corporation, or association which would itself be ineligible under this subsection;

(4) The organization, association, or corporation is duly licensed or certified where such licensing or certification is required by law or regulation;

(5) Property sold to organizations, associations, or corporations with an option to be repurchased by the seller shall not qualify for exempt status;

(6) The director of the department of revenue shall have access to its books in order to determine whether such organization, association, or corporation is exempt from taxes within the intent of RCW 84.36.030, 84.36.035, 84.36.037, 84.36.040, 84.36.045, 84.36.047, 84.36.050, 84.36.060, 84.36.350, and 84.36.480.

NEW SECTION. Sec. 9. A new section is added to chapter 84.56 RCW to read as follows:

NEW SECTION. Sec. 10. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1989.