HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Chapter 237, Hawaii Revised Statues, is amended
 2 by adding a new section to be appropriately designated and to
 3 read as follows:
 4      "237-    Aviation training facility.  (a)  This chapter
 5 shall not apply to amounts received by an aviation training
 6 facility for a certified training program or from the
 7 construction of an aviation training facility in the State.
 8      (b)  As used in this section:  "Aviation training facility"
 9 means:
10      (1)  A facility that is not less than thirty thousand square
11           feet in area, which may include ancillary space that is
12           integral to the facility, such as classrooms,
13           laboratories, systems rooms, simulator rooms, learning
14           centers, libraries, distance learning centers, flight
15           operations and dispatch, offices, conference rooms, and
16           aircraft hangers, and related administrative and
17           employee space; and
18      (2)  A facility that provides certified training programs.
19           "Certified training programs" means professional

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 1           training programs that meet Federal Aviation Agency
 2           requirements, including the following programs:
 3      (1)  Flight, aircraft maintenance, and air traffic control;
 4      (2)  Aircraft engineering systems;
 5      (3)  Cabin crew training;
 6      (4)  Ramp services;
 7      (5)  Aviation management;
 8      (6)  Customer service and quality management;
 9      (7)  Airport management;
10      (8)  Airport security;
11      (9)  Crash fire and rescue;
12      (10) Information systems programming; and
13      (11) Simulation design and operations.
14      "Construction of an aviation training facility" means all
15      design, engineering, labor, and material costs associated
16      with the construction of any aviation training facility, the
17      principal purpose of which is the provision of facilities
18      for aviation training.
19      SECTION 2.  Section 238-1, Hawaii Revised Statutes, is
20 amended by amending the definition of "use" to read as follows:
21 ""Use"(and any nounal, verbal, adjective, adverbial, and other
22 equivalent form of the term) herein used interchangeably means

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 1 any use, whether the use is of such nature as to cause the
 2 property to be appreciably consumed or not, or the keeping of the
 3 property for such use or for sale, and shall include the exercise
 4 of any right or power over tangible personal property incident to
 5 the ownership of that property, but the term "use" shall not
 6 include:
 7      (1)  Temporary use of property, not of a perishable or
 8           quickly consumable nature, where the property is
 9           imported into the State for temporary use (not sale)
10           therein by the person importing the same and is not
11           intended to be, and is not, kept permanently in the
12           State (as for example without limiting the generality
13           of the foregoing language:  (A) in the case of a
14           contractor importing permanent equipment for the
15           performance of a construction contract, with intent to
16           remove, and who does remove, the equipment out of the
17           State upon completing the contract; (B) in the case of
18           moving picture films imported for use in theaters in
19           the State with intent or under contract to transport
20           the same out of the State after completion of such use;
21           (C) in the case of a transient visitor importing an
22           automobile or other belongings into the State to be

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 1           used by the transient visitor while therein but which
 2           are to be used and are removed upon the transient
 3           visitor's departure from the State);
 4      (2)  Use by the taxpayer or property acquired by the
 5           taxpayer solely by way of gift;
 6      (3)  Use which is limited to the receipt of articles and the
 7           return thereof, to the person from whom acquired,
 8           immediately or within a reasonable time either after
 9           temporary trial or without trial;
10      (4)  Use of goods imported into the State by the owner of a
11           vessel or vessels engaged in interstate or foreign
12           commerce and held for and used only as ship stores for
13           the vessels;
14      (5)  The use or keeping for use of household goods, personal
15           effects, and private automobiles imported into the
16           State for nonbusiness use by a person who (A) acquired
17           them in another state, territory, district, or country,
18           (B) at the time of the acquisition was a bona fide
19           resident of another state, territory, district, or
20           country, (C) acquired the property for use outside the
21           State, and (D) made actual and substantial use thereof
22           outside this State; provided that as to an article

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 1           acquired less than three months prior to the time of
 2           its importation into the State it shall be presumed,
 3           until and unless clearly proved to the contrary, that
 4           it was acquired for use in the State and that its use
 5           outside the State was not actual and substantial;
 6      (6)  The leasing or renting of any aircraft or the keeping
 7           of any aircraft solely for leasing or renting to
 8           lessees or renters using the aircraft for commercial
 9           transportation of passengers and goods;
10      (7)  The use of oceangoing vehicles for passenger or
11           passenger and goods transportation from one point to
12           another within the State as a public utility as defined
13           in chapter 269; [and]
14      (8)  The use of material, parts, or tools imported or
15           purchased by a person licensed under chapter 237 which
16           are used for aircraft service and maintenance, or the
17           construction of an aircraft service and maintenance
18           facility as those terms are defined in section
19           237-24.9[.]; and
20      (9)  The use of material, parts, or tools imported or
21           purchased by a person licensed under chapter 237 that
22           are used by an aviation training facility for a

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 1           certified training program, or the construction of an
 2           aviation training facility as those terms are defined
 3           in section 237-     .
 4      With regard to purchases made and distributed under the
 5 authority of chapter 421, a cooperative association shall be
 6 deemed the user thereof."
 7      SECTION 3.  Statutory material to be repealed is
 8 bracketed.  New statutory material is underscored.
 9      SECTION 4.  This Act shall take effect upon its approval;
10 provided that section one shall apply to gross receipts received
11 after December 31, 1999; and section 2 shall apply to use taxes
12 accruing under chapter 238, Hawaii Revised Statutes, after
13 December 31, 1999.
15                           INTRODUCED BY: ________________________

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