CERTIFICATION OF ENROLLMENT

                   SUBSTITUTE HOUSE BILL 2424

                   Chapter 228, Laws of 1994

                         (partial veto)

                        53rd Legislature

                      1994 Regular Session

   MASSAGE PRACTITIONERS‑-STANDARD INDUSTRIAL CLASSIFICATION

                    EFFECTIVE DATE:  7/1/94

Passed by the House February 15, 1994   Yeas 94   Nays 0 BRIAN EBERSOLE Speaker of the       House of Representatives Passed by the Senate March 1, 1994   Yeas 43   Nays 4

CERTIFICATE I, Marilyn Showalter, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2424 as passed by the House of Representatives and the Senate on the dates hereon set forth.

R. LORRAINE WOJAHN President of the Senate

MARILYN SHOWALTER                           Chief Clerk

Approved April 1, 1994, with the exception of section 2, which is vetoed. Place Style On Codes above, and Style Off Codes below.

FILED                      April 1, 1994 - 10:23 a.m.

MIKE LOWRY Governor of the State of Washington

Secretary of State                   State of Washington

          _______________________________________________

                    SUBSTITUTE HOUSE BILL 2424

          _______________________________________________

             Passed Legislature - 1994 Regular Session

State of Washington      53rd Legislature     1994 Regular Session

By House Committee on Revenue (originally sponsored by Representatives Anderson, J. Kohl, Ballard, Dellwo, King, Dyer, Grant, Brough, Dorn, Lemmon, Quall, B. Thomas, Campbell, Sehlin, Wolfe, Morris, Roland, Wood, Carlson, Silver, Orr, Sheahan, Dunshee, Cothern, Veloria, Mastin, Heavey, Long, Edmondson, Cooke, Schoesler, Kessler, Romero, Thibaudeau, Conway, Jones, Tate, Mielke, Springer and McMorris)

Read first time 02/08/94.

Removing "massage services" from the definition of retail sale.

    AN ACT Relating to taxation of massage services; adding a new section to chapter 18.108 RCW; creating a new section; and providing an effective date.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 18.108 RCW to read as follows:

    For the purposes of this chapter, licensed massage practitioners shall be classified as "offices and clinics of health practitioners, not elsewhere classified" under section 8049 of the standard industrial classification manual published by the executive office of the president, office of management and budget.The text of the following section has been vetoed by the Governor.  It is noted in bold italic.

    *NEW SECTION.  Sec. 2. The department of revenue shall review the impact of section 1 of this act on massage practitioners and on revenue collection and report to the legislature by December 1, 1994, as to the effect of recategorizing massage practitioners as health practitioners and adjusting tax categories accordingly.

*Sec. 2 was vetoed, see message at end of chapter.

NEW SECTION. Sec. 3.  This act shall take effect July 1, 1994.

    Passed the House February 15, 1994.

    Passed the Senate March 1, 1994.

Approved by the Governor April 1, 1994, with the exception of certain items which were vetoed.

    Filed in Office of Secretary of State April 1, 1994.

    Note: Governor's explanation of partial veto is as follows:

    "I am returning herewith, without my approval as to section 2, Substitute House Bill No. 2424 entitled:

"AN ACT Relating to taxation of massage services;"

    This bill relates to re-categorizing massage practitioners as health practitioners and adjusting their tax categories.

    Section 2 of this bill directs the Department of Revenue to report to the Legislature by December 1, 1994, on the effect of re-categorizing massage practitioners as health practitioners and adjusting tax categories accordingly.

    However, a change in standard industrial classification does not affect the tax status or tax liability of massage practitioners, nor will it affect their licensing and certification requirements administered by the Department of Licensing.  Such coding in the Department of Revenue and other agencies is for statistical purposes only.  Tax liability and licensing requirements are determined by the kind of activity that the business actually performs.  Substitute House Bill No. 2424 does not change the activity of massage practitioners and, therefore, will not change their tax liability.

    Because section 1 does not change the tax liability or licensing/certification requirements of massage practitioners, the purpose of the review called for in section 2 becomes meaningless.  For these reasons, I am vetoing section 2.

    To address the concerns raised by the supporters of this bill, I am directing the Department of Revenue to meet with the prime sponsor and proponents of this legislation and discuss exactly what would be needed to accomplish their objectives.

    With the exception of section 2, Substitute House Bill No. 2424 is approved."