H-3619              _______________________________________________

                                                   HOUSE BILL NO. 1401

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Spanel, Holland, Belcher, Cole, Ferguson, Grant, Grimm, Winsley, Rayburn, Nutley, Leonard, Doty, Sanders, Lewis, Silver, Wang, Sayan, Appelwick, Bristow, Patrick, Taylor, Heavey, Kremen, Holm, May, Brough, Jesernig, Schoon, Moyer, Rasmussen, Unsoeld, Brekke and Day

Read first time 1/15/88 and referred to Committee on Ways & Means.

AN ACT Relating to the business and occupation tax exemption for sheltered workshops; and amending RCW 82.04.385.

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

        Sec. 1.  Section 3, chapter 81, Laws of 1970 ex. sess. as amended by section 1, chapter 134, Laws of 1972 ex. sess. andRCW 82.04.385 are each amended to read as follows:

          This chapter shall not apply to income received from the department of social and health services for the cost of care, maintenance, support, and training of mentally retarded persons at nonprofit group training homes as defined by RCW 72.33.800(2) or to the ((gross sales or gross income received by)) business activities of nonprofit organizations from the operation of (("))sheltered workshops((")).   For the purposes of this section, "the operation of sheltered workshops" means ((rehabilitation facilities, or that part of rehabilitation facilities, where any manufacture or handiwork is carried on and which is operated)) performance of business activities of any kind on or off the premises of such nonprofit organizations which are performed for the primary purpose of (1) providing gainful employment or rehabilitation services to the handicapped as an interim step in the rehabilitation process for those who cannot be readily absorbed in the competitive labor market or during such time as employment opportunities for them in the competitive labor market do not exist; or (2) providing evaluation and work adjustment services for handicapped individuals.