HOUSE OF REPRESENTATIVES TWENTY-FOURTH LEGISLATURE, 2007 STATE OF HAWAII
1108 H.B. NO.
A BILL FOR AN ACT
RELATING TO STATUTORY REVISION: AMENDING OR REPEALING VARIOUS PROVISIONS OF THE HAWAII REVISED STATUTES AND THE SESSION LAWS OF HAWAII FOR THE PURPOSE OF CORRECTING ERRORS AND REFERENCES, CLARIFYING LANGUAGE, AND DELETING OBSOLETE OR UNNECESSARY PROVISIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. Section 6E-11, Hawaii Revised Statutes, is
2 amended by amending subsection (a) to read as follows:
3 "(a) It shall be a civil and administrative violation for
4 any person to take, appropriate, excavate, injure, destroy, or
5 alter any historic property or aviation artifact located upon
6 the private lands of any owner thereof without the owner's
written permission being first obtained. It shall be a civil
and administrative violation for any person to take,
appropriate, excavate, injure, destroy, or alter any historic
property or aviation artifact located upon lands owned or
[+]controlled by the State or any of its political
subdivisions,[+] except as permitted by the department, or to
knowingly violate the conditions set forth in an approved
mitigation plan that includes monitoring and preservation
plans. "
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SECTION 2. Section 36-27, Hawaii Revised Statutes, is
amended to read as follows:
"536-27 Transfers from special funds for central service
expenses. Except as provided in this section, and
notwithstanding any other law to the contrary, from time to
time, the director of finance, for the purpose of defraying the
prorated estimate of centra1"service expenses of government in
relation to all special funds, except the:
(1) Special out-of-school time instructional program fund
under section 302A-1310;
(2) School cafeteria special funds of the department of
education;
(3) Special funds of the University of Hawaii;
(4) State educational facilities improvement special fund;
(5) Convention center enterprise special fund under
section 201B-8;
(6) Special funds established by section 206E-6;
(7) Housing loan program revenue bond special fund;
(8) Housing project bond special fund;
(9) Aloha Tower fund created by section 206J-17;
(10) Funds of the employees' retirement system created by
section 88-109;
HB1108 HD1 LRB 07-1928.d0~
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Page 3 1108
H.B. NO.
1 (11) Unemployment compensation fund established under
2 section 383-121;
3 (12) Hawaii hurricane relief fund established under chapter
4 431P;
5 (13) Hawaii health systems corporation special funds;
6 (14) Tourism special fund established under section
7 201B-11;
8 (15) Universal service fund established under chapter 269;
9 [ / 1 C \ ~ t srnst=s speeiz:
10 F 7 ~ n A r y n A n r - n m t ; - n 331 3 3 - I U I L U U l L u L L ubb I - L u l l L J I 4 . L I
11 - e l (16) Emergency and budget reserve fund under section
12 328L-3;
13 [ - & € + I (17) Public schools special fees and charges fund
14 under section 302A-1130(f);
15 [f.2-8f] (18) Sport fish special fund under section 18711-9.5;
16 [-+XJj] (19) Neurotrauma special fund under section 3218-4;
17 [+F&-j-] (20) Deposit beverage container deposit special fund
18 under section 342G-104;
19 [+&£j] (21) Glass advance disposal fee special fund
20 established by section 3426-82;
21 [f23f] (22) Center for nursing special fund under section
22 [+] 304A-2163 [+I ;
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Page 4
[+%-)-I (23) Passenger facility charge special fund
established by section 261-5.5;
[+%+I (24) Solicitation of funds for charitable purposes
special fund established by section 467B-15;
[-+2&+] (25) Land conservation fund established by section
173A-5;
[~w] (26) Court interpreting services revolving fund under
section 607-1.5;
[-&%j-] (27) Trauma system special fund under section 321-
22.5;
[f24f] (28) Hawaii cancer research special fund;
[f38t] (29) Community health centers special fund; and
[f32-f] (30) Emergency medical services special fund [f] ;
shall deduct five per cent of all receipts of all other special
funds, which deduction shall be transferred to the general fund
of the State and become general realizations of the State. All
officers of the State and other persons having power to allocate
or disburse any special funds shall cooperate with the director
in effecting these transfers. To determine the proper revenue
base upon which the central service assessment is to be
calculated, the director shall adopt rules pursuant to chapter
91 for the purpose of suspending or limiting the application of
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the central service assessment of any fund. No later than
twenty days prior to the convening of each regular session of
the legislature, the director shall report all central service
assessments made during the preceding fiscal year.[+]"
SECTION 3. Section 36-30, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:
"(a) Each special fund, except the:
(1) Transportation use special fund established by section
261D-1;
(2) Special out-of-school time instructional program fund
under section 302A-1310;
(3) School cafeteria special funds of the department of
education;
(4) Special funds of the University of Hawaii;
(5) State educational facilities improvement special fund;
(6) Special funds established by section 206E-6;
(7) Aloha Tower fund created by section 206J-17;
(8) Funds of the employees' retirement system created by
section 88-109;
(9) Unemployment compensation fund established under
section 383-121;
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H .B. NO. H.D.l
(10) Hawaii hurricane relief fund established under chapter
431P;
(11) Convention center enterprise special fund established
under section 201B-8;
(12) Hawaii health systems corporation special funds;
(13) Tourism special fund established under section
(14) Universal service fund established under chapter 269;
w.1 (15) Emergency and budget reserve fund under section 328L-3;
[,-(-&?+I (16) Public schools special fees and charges fund
under section 302A-1130(f);
[.-(&+I (17) Sport fish special fund under section 18711-9.5;
[fratfrat] (18) Neurotrauma special fund under section 321H-4;
[w] (19) Center for nursing special fund under section
[f] 304A-2163 [+] ;
[+%I+] (20) Passenger facility charge special fund
established by section 261-5.5;
[~+&2+] (21) Court interpreting services revolving fund under
section 607-1.5;
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Page 7 1108 H.B. NO. H.D.l
[t23f] (22) Trauma system special fund under section 321-
22.5;
[ w ] (23) Hawaii cancer research special fund;
[+E+] (24) Community health centers special fund; and
[ + & - ) - I (25) Emergency medical services special fund [f] ;
shall be responsible for its pro rata share of the
administrative expenses incurred by the department responsible
for the operations supported by the special fund concerned.[+]"
SECTION 4. Section 84-17, Hawaii Revised Statutes, is
amended by amending subsection (c) to read as follows:
"(c) The following persons shall file annually with the
state ethics commission a disclosure of financial interests:
The governor, the lieutenant governor, the members of
the legislature, and delegates to the constitutional
convention; provided that delegates to the
constitutional convention shall only be required to
file initial disclosures;
The directors and their deputies, the division chiefs,
the executive directors and the executive secretaries
and their deputies, the purchasing agents and the
fiscal officers, regardless of the titles by which the
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H.B. NO.
foregoing persons are designated, of every state
agency and department;
(3) The permanent employees of the legislature and its
service agencies, other than persons employed in
clerical, secretarial, or similar positions;
(4) The administrative director of the State, and the
assistants in the office of the governor and the
lieutenant governor, other than persons employed in
clerical, secretarial, or similar positions;
(5) The hearings officers of every state agency and
department;
(6) The president, the vice presidents, assistant vice
presidents, the chancellors, and the provosts of the
University of Hawaii and its community colleges;
(7) The superintendent, the deputy superintendent, the
assistant superintendents, the complex area
superintendents, the state librarian, and the deputy
state librarian of the department of education;
(8) The administrative director and the deputy director of
the courts;
(9) The members of every state board or commission whose
original terms of office are for periods exceeding one
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H.B. NO.
year and whose functions are not solely advisory;
[ ~ r c v ~ e d t h ~ t the 9=cr=r1s spccizl zdvisery ecuncil
Fn, t n m " n n 1 nm" A. lh - -n l h Y ? t 2s &"I L b L l l l l V L V y y U b V L L V
cct ts this su
th: r. n r , h o n n t is=; I
(10) Candidates for state elective offices, including
candidates for election to the constitutional
convention, provided that candidates shall only be
required to file initial disclosures; and
(11) The administrator and assistant administrator of the
office of Hawaiian affairs."
SECTION 5. Section 132D-16, Hawaii Revised Statutes, is
amended by amending subsection (c) to read as follows:
"(c) No permit shall be issued under this section unless
the applicant presents, at the applicant's option, either:
(1) A written certificate of an insurance carrier, which
has been issued to or for the benefit of the
applicant, or a policy providing for the payment of
damages in the amount of not less than $5,000 for
injury to, or death of, any one person, and subject to
the foregoing limitation for one person; in the amount
of not less than $10,000 for injury to, or death of,
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H.B. NO.
two or more persons; and in the amount of not less
than $5,000 for damage to property, caused by reason
of the authorized display and arising from any
tortious acts or negligence of the permittee, the
permittee's agents, employees, or subcontractors. The
certificate shall state that the policy is in full
force and effect and will continue to be in full force
and effect for not less than ten days after the date
of the display; or
(2) The bond of a surety company duly authorized to
transact business within the State, or a bond with not
less than two individual sureties who together have
assets in the State equal in value to not less than
twice the amount of the bond, or a deposit of cash, in
the amount of not less than $10,000 conditioned upon
the payment of all damages that may be caused to any
person or property by reason of the authorized display
and arising from any tortious acts or negligence of
the permittee, the permittee's agents, employees, or
subcontractors. The security shall continue to be in
full force and effect for not less than ten days after
the date of the display.
HB1108 HD1 LRB 07-1928.d0~ lo
Page 11
The county may require coverage in amounts greater than the
minimum amounts set forth in paragraph (1) or (2) if deemed
necessary or desirable in consideration of such factors as the
location and scale of the display, the type of aerial devices,
[+]display[+] fireworks, or articles pyrotechnic to be used, and
the number of spectators expected."
SECTION 6. Section 134-2, Hawaii Revised Statutes, is
amended as follows:
1. By amending subsection (a) to read:
"(a) No person shall acquire the ownership of a firearm,
whether usable or unusable, serviceable or unserviceable, modern
or antique, registered under prior law or by a prior owner or
unregistered, either by purchase, gift, inheritance, bequest, or
in any other manner, whether procured in the State or imported
by mail, express, freight, or otherwise, until the person has
first procured from the chief of police of the county of the
person's place of business or, if there is no place of business,
the person's residence or, if there is neither place of business
nor residence, the person's place of sojourn, a permit to
acquire the ownership of a firearm as prescribed in this
section. When title to any firearm is acquired by inheritance
or bequest, the foregoing permit shall be obtained before taking
HB1108 H D 1 LRB 07-1928.d0~
Page 12
possession of a firearm; provided that upon presentation of a
copy of the death certificate of the owner making the bequest,
any heir or legatee may transfer the inherited or bequested
firearm directly to a dealer licensed under section 134-31 or
licensed by the United States Department of [&-I
Justice without complying with the requirements of this
section. I'
2. By amending subsection (e) to read:
"(e) The permit application form shall be signed by the
applicant and by the issuing authority. One copy of the permit
shall be retained by the issuing authority as a permanent
official record. Except for sales to dealers licensed under
section 134-31, or dealers licensed by the United States
Department of Justice, or law enforcement officers, or where a
license is granted under section 134-9, or where any firearm is
registered pursuant to section 134-3(a), no permit shall be
issued to an applicant earlier than fourteen calendar days after
the date of the application; provided that a permit shall be
issued or the application denied before the twentieth day from
the date of application. Permits issued to acquire any pistol
or revolver shall be void unless used within ten days after the
date of issue. Permits to acquire a pistol or revolver shall
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require a separate application and permit for each transaction.
Permits issued to acquire any rifle or shotgun shall entitle the
permittee to make subsequent purchases of rifles or shotguns for
a period of one year from the date of issue without a separate
application and permit for each acquisition, subject to the
disqualifications under section.134-7 and subject to revocation
under section 134-13; provided that if a permittee is arrested
for committing a felony or any crime of violence or for the
illegal sale of any drug, the permit shall be impounded and
shall be surrendered to the issuing authority. The issuing
authority shall perform an inquiry on an applicant who is a
citizen of the United States by using the National Instant
Criminal Background Check System before any determination to
issue a permit or to deny an application is made. If the
applicant is not a citizen of the United States and may be
eligible to acquire a firearm under this chapter, the issuing
authority shall perform an inquiry on the applicant, by using
the National Instant Criminal Background Check System, to
include a check of the Immigration and Customs Enforcement
, a databases, [where the applicant is not a cltlzcn of the United
C t 7 t U,,,cs,] before any determination to issue a permit or to deny
an application is made."
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H.B. NO. H.D.l
SECTION 7. Section 134-3, Hawaii Revised Statutes, is
amended by amending subsections (c) and (d) to read as follows:
"(c) Dealers licensed under section 134-31 or dealers
licensed by the United States Department of [ t p ]
Justice shall register firearms pursuant to this section on
registration forms prescribed by the attorney general and shall
not be required to have the firearms physically inspected by the
chief of police at the time of registration.
(d) Registration shall not be required for:
(1) Any device that is designed to fire loose black powder
or that is a firearm manufactured before 1899;
(2) Any device not designed to fire or made incapable of
being readily restored to a firing condition; or
(3) All unserviceable firearms and destructive devices
registered with the Bureau of Alcohol, Tobacco, and
Firearms of the United States Department of [&he
-21 Justice pursuant to Title 27, Code of
Federal Regulations."
SECTION 8. Section 134-9, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:
"(a) In an exceptional case, when an applicant shows
reason to fear injury to the applicant's person or property, the
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H.B. NO. H.D.l
chief of police of the appropriate county may grant a license to
an applicant who is a citizen of the United States of the age of
twenty-one years or more or to a duly accredited official
representative of a foreign nation of the age of twenty-one
years or more to carry a pistol or revolver and ammunition
therefor concealed on the person within the county where the
license is granted. Where the urgency or the need has been
sufficiently indicated, the respective chief of police may grant
to an applicant of good moral character who is a citizen of the
United States of the age of twenty-one years or more, is engaged
in the protection of life and property, and is not prohibited
under section 134-7 from the ownership or possession of a
firearm, a license to carry a pistol or revolver and ammunition
therefor unconcealed on the person within the county where the
license is granted. The chief of police of the appropriate
county, or the chief's designated representative, shall perform
an inquiry on an applicant by using the National Instant
Criminal Background Check System, to include a check of the
Immigration and Customs Enforcement database^[^] where the
applicant is not a citizen of the United States, before any
determination to grant a license is made. Unless renewed, the
license shall expire one year from the date of issue."
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H .B. NO. H.D.l
1 SECTION 9. Section 195F-4, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:
"(a) There is established a special fund within the state
treasury known as the forest stewardship fund which shall be used
as follows:
(1) Payments shall be made by the board pursuant to
agreements entered into with qualified landowners to
further the purposes of this chapter;
(2) Moneys collected from:
(A) The harvest of non-native forest products from
forest reserves;
(B) The harvest of native forest products from
degraded forests as defined in section 186-5.5,
within forest reserves;
(C) The sale of forest products found dead and lying
on the ground;
(D) The sale of tree seedlings from state nurseries;
(E) The sale of any other products or services, or
anything of value derived from forest reserves
not described above; or
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H.B. NO.
(F) The imposition of fines or penalties for
violations of this chapter and chapters 183 and
185 [+wKk%-F] or any rule adopted thereunder;
shall be used for: (i) [R:pl;nting,] replanting,
managing, and maintaining designated timber management
areas; (ii) [Enhc;ncing] enhancing the management of
public forest reserves with an emphasis on restoring
degraded koa forests; and (iii) [43cv,lo-,ir;g] developing
environmental education and training programs
pertaining to sustainable forestry; provided that the
activities described in clauses (ii) and (iii) may not
be funded unless the activities described in approved
management plans pertaining to clause (i) are
adequately funded; and
(3) Moneys deposited into the fund as authorized by section
247-7 may also be used by the department to administer
the program and manage the forest reserve system."
SECTION 10. Section 211G-13, Hawaii Revised Statutes, is
amended by amending subsection (e) to read as follows:
"(e) In carrying out the mission of the corporation, as
authorized in this chapter, neither the corporation nor its
officers, board members, or employees shall be considered to be
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broker-dealers, agents, investment advisors, or investment
adviser representatives under chapter [*I 485A. The tax
credits issued or transferred pursuant to this chapter shall not
be considered securities under chapter [*I 485A."
SECTION 11. Section 235-51, Hawaii Revised Statutes, is
amended by amending subsection (b) to read as follows:
"(b) There is hereby imposed on the taxable income of
every head of a household a tax determined in accordance with
the following table:
In the case of any taxable year beginning after
December 31, 2001:
If the taxable income is: The tax shall be:
Not over $3,000 1.40% of taxable income
Over $3,000 but $42.00 plus 3.20% of
not over $6,000 excess over $3,000
Over $6,000 but $138.00 plus 5.50% of
not over $12,000 excess over $6,000
Over $12,000 but $468.00 plus 6.40% of
not over $18,000 excess over $12,000
Over [/21,588] $18,000 $852.00 plus 6.80% of
but not over $24,000 excess over $18,000
Over $24,000 but $1,260.00 plus 7.20% of
HB1108 HD1 LRB 07-1928.d0~
I1111 llllllIlIllIl lUNllIlllIlIlIl Illlllllllllllllllllllll11lll0llllllllllllllllll1llll1lUllllllllll1ll1lllllllll
Page 19 1108
H.B. NO.
not over $ 3 0 , 0 0 0
Over $ 3 0 , 0 0 0 but
not over $ 4 5 , 0 0 0
Over $ 4 5 , 0 0 0 but
not over $ 6 0 , 0 0 0
Over $ 6 0 , 0 0 0
excess over $ 2 4 , 0 0 0
$ 1 , 6 9 2 . 0 0 plus 7 . 6 0 % of
excess over $ 3 0 , 0 0 0
$ 2 , 8 3 2 . 0 0 plus 7 . 9 0 % of
excess over $ 4 5 , 0 0 0
$ 4 , 0 1 7 . 0 0 plus 8 . 2 5 % of
excess over $ 6 0 , 0 0 0 .
In the case of any taxable year beginning after
December 31, 2 0 0 6 :
If the taxable income is: The tax shall be:
Not over $ 3 , 6 0 0 1 . 4 0 % of taxable income
Over $ 3 , 6 0 0 but $ 5 0 . 0 0 plus 3 . 2 0 % of
not over $ 7 , 2 0 0 excess over $ 3 , 6 0 0
Over $ 7 , 2 0 0 but $ 1 6 6 . 0 0 plus 5 . 5 0 % of
not over $ 1 4 , 4 0 0 excess over $ 7 , 2 0 0
Over $ 1 4 , 4 0 0 but $ 5 6 2 . 0 0 plus 6 . 4 0 % of
not over $ 2 1 , 6 0 0 excess over $ 1 4 , 4 0 0
Over $ 2 1 , 6 0 0 but $ 1 , 0 2 2 . 0 0 plus 6 . 8 0 % of
not over $ 2 8 , 8 0 0 excess over $ 2 1 , 6 0 0
Over $ 2 8 , 8 0 0 but $ 1 , 5 1 2 . 0 0 plus 7 . 2 0 % of
not over $ 3 6 , 0 0 0 excess over [ $ 2 g r 0001
$ 2 8 , 8 0 0
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H.B. NO.
Over $36,000 but $2,030.00 plus 7.60% of
not over $54,000 excess over $36,000
Over $54,000 but $3,398.00 plus 7.90% of
not over $72,000 excess over $54,000
Over $72,000 $4,820.00 plus 8.25% of
excess over $72,000."
SECTION 12. Section 235-110.7, Hawaii Revised Statutes, is
amended as follows:
1. By amending subsections (a) and (b) to read:
"(a) There shall be allowed to each taxpayer subject to
the tax imposed by this chapter a capital goods excise tax
credit which shall be deductible from the taxpayer's net income
tax liability, if any, imposed by this chapter for the taxable
year in which the credit is properly claimed.
The amount of the tax credit shall be determined by the
application of the following rates against the cost of the
eligible depreciable tangible personal property used by the
taxpayer in a trade or business and placed in service within
Hawaii after December 31, 1987. For calendar years beginning
after: December 31, 1987, the applicable rate shall be three
per cent; December 31, 1988, and thereafter, the applicable rate
shall be four per cent[, except that for the period Jxwsry 1,
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Page 21 1108
H.B. NO.
t - n g i b l e p c r s o n z l p r o p e r t y u s e d 12 2 t r s d e C r bu-ss t h z t 1s
!?urehf=ed 12 - = = t y In Khlch t h e c o u n t y g e n e r z l exclsc zad
t&~
t h e ; p p l i c z b l c r-te s h z l l b e f c u r 2nd one h z l f p e r c e ~ & ] . For
taxpayers with fiscal taxable years, the applicable rate shall
be the rate for the calendar year in which the eligible
depreciable tangible personal property used in the trade or
business is placed in service within Hawaii.
In the case of a partnership, S corporation, estate, or
trust, the tax credit allowable is for eligible depreciable
tangible personal property which is placed in service by the
entity. The cost upon which the tax credit is computed shall be
determined at the entity level. Distribution and share of
credit shall be determined by rules.
In the case of eligible depreciable tangible personal
property for which a credit for sales or use taxes paid to
another state is allowable under section 238-3(i), the amount of
the tax credit allowed under this section shall not exceed the
amount of use tax[, z n A f o r t h e p c r i s d J z n u z r y 1, 1993, thrcwg-h
r-. v 3nn3 t h n -. b L J I f LVVL.1 u ~ I ~ ~ VL
n t --F t h n n b ; 3 . t * A 1 ~ ~ YbLLLLUL LILbLL-lL
7-t-11 m n n n v - 1 n - 7 - 7 n n -
HB1108 HD1 LRB 07-1928.d0~
Page 22 1108
H.B. NO.
use tzx surchzrgc,] actually paid under chapter 238 relating to
such tangible personal property.
If a deduction is taken under section 179 (with respect to
election to expense certain depreciable business assets) of the
Internal Revenue Code of 1954, as amended, no tax credit shall
be allowed for that portion of the cost of property for which
the deduction was taken.
(b) [If the tax credit is zlzimcd by 2. tzxwyer ;t thz
r - t n n F F n r r r 7 - 4 n n n h - 1 q n n V mnnt 7n,4 + L A t q c LULL "I LUUL UllU U l L L l lULL yLJ- b b L L b f LILL LU
f?==pcrty 2s purchzsed county In ; ~ ~ l c ~ the wnzral
cxclse ar,d '~sc t ~ x surchzrge 1s cffcct, t!~bre shall bc
q r l r l n r l t h 717 UUULU L W U l l ~ U L L U L L L ~ L LULL LLUIJLLLC-Y
t ~ r n F t h n t 7 Y 1 Y . 7 uL LLLL LUArU
fl-f The zfG=r',t cf the tzx credit claifftcd under this.
scctlcn multiplied by three;
f2t Ten Per cent of the ice- t;:: lizblllty for tho , .
whlchc%*er 2s grczter. ]
If the capital goods excise tax credit allowed under
subsection (a) exceeds the taxpayer's net income tax liability,
the excess of credit over liability shall be refunded to the
taxpayer; provided that no refunds or payment on account of the
HB1108 HD1 LRB 07-1928.d0~
Page 23
tax credit allowed by this section shall be made for amounts
less than $1.
All claims for tax credits under this section, including
any amended claims, must be filed on or before the end of the
twelfth month following the close of the taxable year for which
the credits may be claimed. Failure to comply with the
foregoing provision shall constitute a waiver of the right to
claim the credit.
2. By amending subsection (e) to read:
(e) As used in this section, the definition of section 38
property (with respect to investment in depreciable tangible
personal property) as defined by section 48 (a) (1) (A), (a) (1) (B),
(a) (3) , (a) (41, (a) (7), (a) (8), ( a ) (10) (A), (b), (c), (f), (11,
(m), and (s) of the Internal Revenue Code of 1954, as amended as
of December 31, 1984, is operative for the purposes of this
section only.
As used in this section:
"Cost" means (1) the actual invoice price of the tangible
personal property, or (2) the basis from which depreciation is
taken under section 167 (with respect to depreciation) or from
which a deduction may be taken under section 168 (with respect
HB1108 HD1 LRB 07-1928.d0~
Page 24 1108 H.B. NO.
to accelerated cost recovery system) of the Internal Revenue
Code of 1954, as amended, whichever is less.
"Eligible depreciable tangible personal property" is
section 38 property as defined by the operative provisions of
section 48 and having a depreciable life under section 167 or
for which a deduction may be taken under section 168 of the
federal Internal Revenue Code of 1954, as amended.
"Placed in service" means the earliest of the following
taxable years:
(1) The taxable year in which, under the:
(A) Taxpayer's depreciation practice, the period for
depreciation; or
(B) Accelerated cost recovery system, a claim for
recovery allowances; with respect to such
property begins; or
(2) The taxable year in which the property is placed in a
condition or state of readiness and availability for a
specifically assigned function.
"Purchase" means an acquisition of property.
"Tangible personal property" means tangible personal
property which is placed in service within Hawaii after December
31, 1987, and the purchase or importation of which resulted in a
HB1108 HD1 LRB 07-1928.d0~ 2 1
Page 25 1108
H .B. NO. H.D.l
transaction which was subject to the imposition and payment of
tax at the rate of four per cent[, except thzt for the pcrisd
dznuzry 1, 1993, through Dzbmdxr 2 1 , 2332, 2nd ~f the c o u W
'Fnerzl cxclsc 2nd use t z x surch;=ge Is In effect the tzx rzte
er ceL,,, n t ] under chapter 237 or 238.
"Tangible personal property" does not include tangible personal
property which is an integral part of a building or structure or
tangible personal property used in a foreign trade zone, as
defined under chapter 212."
SECTION 13. Section 367D-8, Hawaii Revised Statutes, is
amended to read as follows:
"[f l§367D-8[+] Annual report. The department of public
safety and the office of youth services shall submit an annual
report to the legislature no later than twenty days before the
convening of each regular session on the following areas:
program descriptions, type and costs of contracts made, name of
the private agency awarded each contract, and the success of
each contract in meeting program specifications. The report
shall detail the development of the comprehensive continuum of
care to address the gender-responsive needs of Hawaii's female
offenders and female adjudicated youth both in-state and abroad.
The report shall also highlight the existing gaps in the system
HB1108 HD1 LRB 07-1928.d0~ 2 5
Page 26 1108
H.B. NO.
and include recommendations for resources needed to reach a
seamless continuum of care and other relevant information
concerning the creation of a gender-responsive environment for
female offenders and female adjudicated youth. [ T h c first
t t n r l nn 1-4-n-r t h - n t r _ . r n n t ~ ~ ~ 3 1 . ~ ~ 1 LnFn-rn t h n Ll-lrbU I I V I U L L L I - L I U I I L V V L I I I - 2 UU U U b L V L b L11L
L h F ] "
SECTION 14. Section 412:3-201, Hawaii Revised Statutes, is
amended by amending subsection (b) to read as follows:
"(b) The application shall contain the following
information, unless waived by the commissioner:
(1) The proposed name of the financial institution;
(2) The specific location of its principal office,
branches, agencies, and support facilities, and any
lease agreements for such principal office, branches,
agencies, and support facilities;
(3) Financial statements, employment history, education,
management experience, and other biographical
information for all applicants, organizers, proposed
executive officers, and directors of the financial
institution;
(4) The name and address of each proposed subscriber of
capital stock in the financial institution;
HB1108 HD1 LRB 07-1928.d0~
Page 27 1108
H.B. NO.
(5) The proposed capital plan, if capital has not been
fully raised, that shall include:
(A) A description of any stock options, debentures,
and stock warrants offered or proposed to be
offered to any person; and
(B) Any stock option plan;
(6) The proposed capital stock solicitation plan, if
subscriptions for capital stock will be solicited,
that shall include:
(A) Information regarding the solicitation plan by
which the applicant and the proposed financial
institution propose to conduct the solicitation
of subscribers;
(B) Information regarding the classes of shares,
respective quantities of shares for each class,
and the subscription price of each class of
stock;
(C) A specimen subscription contract or purchase
agreement and other related documents to be
executed by subscribers;
HB1108 HD1 LRB 07-1928.d0~
Page 28 1108
H.B. NO.
(D) Any underwriting agreement or other agreement for
the purchase or distribution of the capital
stock;
(E) Any escrow agreements or other agreement for the
holding of the purchase proceeds of the capital
stock;
(F) Proposed advertising materials;
(G) If the offer and sale of the capital stock is
subject to the Securities Act of 1933 and
regulations thereunder, a copy of the
registration statement most recently filed with
the federal Securities and Exchange Commission or
any other notices or other filings in lieu of
registration required or permitted by that Act or
regulation and any subsequent amendments thereto;
(H) If the offer and sale of the capital stock is
subject to chapter [+I 485A, a copy of the
registration or qualification statement most
recently filed with the commissioner of
securities and any subsequent amendments thereto;
and
HB1108 HD1 LRB 07-1928.d0~
Page 29 1108 H .B. NO. H . D 1
(I) If the offer and sale of the capital stock is not
subject to the Securities Act of 1933 or chapter
[*I 485A, whether exempted by law or
regulation or otherwise, a copy of the most
recent version of any prospectus, offering
memorandum, offering circular, or other offering
document proposed to be delivered to prospective
subscribers to the capital stock, and any
subsequent amendments thereto;
(7) The financial institution's proposed policies
concerning loans and concentrations of credit, asset
and liability management, conflicts of interest,
investments, community reinvestment, bank secrecy,
anti-money laundering, and customer identification;
(8) The financial institution's business plan for the
first three years of operations;
(9) Financial projections regarding the financial
institution's profitability for the first three years
of operations;
(10) A market study or letters of support evidencing the
need and advisability of granting authority to
organize a financial institution;
HB1108 HD1 LRB 07-1928.d0~
llllllll llllllllllIlIlIlIlIllllIll1IlIlIllllllIIlIl lIIllllIllIIlllllllIIlllIl lllllMllIlIl W IlIlIlIlIlIllIIlllllI OIIIIIIIII
Page 30 1108
H .B. NO.
(11) Except for trust companies, evidence that the
financial institution has applied for federal deposit
insurance from the Federal Deposit Insurance
Corporation or other appropriate federal deposit
insurer;
(12) Evidence that the financial institution has applied
for fidelity bonds and other insurance appropriate to
its size and operations, including the types and the
amounts of coverage, and the respective deductible
amounts, from insurance companies licensed in the
United States;
(13) Evidence that the proposed directors and executive
officers of the financial institution have the
financial ability, responsibility, and experience to
engage in the business of a financial institution;
(14) The employment agreements for all proposed executive
officers of the financial institution;
(15) The proposed articles of incorporation and bylaws of
the financial institution;
(16) A description of any existing or proposed service
corporation, affiliate, or subsidiary; and
HB1108 HD1 LRB 07-1928.d0~
Page 31 1108
H.B. NO.
(17) Any other information that the commissioner may
require. "
SECTION 15. Section 412:3-202, Hawaii Revised Statutes, is
amended to read as follows:
"§412:3-202 Additional requirements for holding company.
An applicant for the organization of a Hawaii financial
institution that will be a subsidiary of a holding company shall
furnish the commissioner with the following additional
information regarding the holding company, unless waived by the
commissioner:
(1) If the holding company is a corporation, a certificate
from the incorporating jurisdiction indicating that
the corporation was properly organized under
applicable corporate law, and that it is otherwise in
good standing;
(2) Its existing and proposed affiliates and subsidiaries,
and the extent and nature of its control over the
operations of the proposed financial institution;
(3) Financial statements, employment history, education,
management experience, and other biographical
information for all of its executive officers and
directors;
HB1108 HD1 LRB 07-1928.d0~
llllilllllillllllY llllllllllillililllillliillllllllulllI1ll1IIllllllllilllulu llllllllllYl Uilillll
Page 32 1108
H.B. NO.
(4) The name and address of each shareholder or each
proposed subscriber of capital stock;
(5) The proposed capital plan, if capital has not been
fully raised, that shall include:
(A) A description of any stock options, debentures,
and stock warrants offered or proposed to be
offered to any person; and
(B) Any stock option plan;
(6) The proposed capital stock solicitation plan, if
subscriptions for capital stock will be solicited,
that shall include:
(A) Information regarding the solicitation plan by
which the applicant and the proposed holding
company propose to conduct the solicitation of
subscribers;
(B) Information regarding the classes of shares,
respective quantities of shares for each class,
and the subscription price of each class of
stock;
(C) A specimen subscription contract or purchase
agreement and other related documents to be
executed by subscribers;
HR1108 H D 1 LRB 07-1928.d0~
Page 33 1108
H.B. NO. H.D.l
(D) Any underwriting agreement or other agreement for
the purchase or distribution of the capital
stock;
(E) Any escrow agreements or other agreement for the
holding of the purchase proceeds of the capital
stock;
(F) Proposed advertising materials;
(G) If the offer and sale of the capital stock is
subject to the Securities Act of 1933 and
regulations thereunder, a copy of the
registration statement most recently filed with
the federal Securities and Exchange Commission or
any other notices or other filings in lieu of
registration required or permitted by that Act or
regulation and any subsequent amendments thereto;
(H) If the offer and sale of the capital stock is
subject to chapter [*I 485A, a copy of the
registration or qualification statement most
recently filed with the commissioner of
securities and any subsequent amendments thereto;
and
HB1108 HD1 LRB 07-1928.d0~
llllllllll AllllIIIlIIlIllllIlIlll IIIIIIIY Ill lllIlllllllllllllllllllllllllllllllllllllllllllllllOiIW IIIIIIIII AIIII All
Page 34 1108
H.B. NO. H.D.l
(I) If the offer and sale of the capital stock is not
subject to the Securities Act of 1933 or chapter
[*I 485A, whether exempted by law or
regulation or otherwise, a copy of the most
recent version of any prospectus, offering
memorandum, offering circular, or other offering
document proposed to be delivered to prospective
subscribers to the capital stock, and any
subsequent amendments thereto;
(7) The articles of incorporation and bylaws of the
holding company;
(8) Evidence that it has or will have the financial
ability, responsibility, and experience to engage in
the business of a financial institution holding
company;
(9) The employment agreements for all executive officers
of the holding company; and
(10) Any other information that the commissioner may
require. "
SECTION 16. Section 412:3-206, Hawaii Revised Statutes, is
amended by amending subsection (e) to read as follows:
HB1108 HD1 LRB 07-1928.d0~
IIIIIIIIIIIIIIIIII~IIIIIIIIIIIIIIIIIIIIIII III ~lnil~~lul~~~~ui~l~~l~~ill~~~l~l~l~~~l~uul~~l~~lul~~u~l~u~llill~
Page 35 1108 H.B. NO. H.D.l
"(e) The applicant and the proposed Hawaii financial
institution shall not solicit subscriptions for the capital
stock of the Hawaii financial institution until the written
decision and order granting the application for preliminary
approval to organize has been issued and the articles of
incorporation have been accepted for filing by the director of
commerce and consumer affairs. The approval shall not
constitute a determination that the applicant has complied with
chapter [4-€?-5] 485A or any other state or federal law."
SECTION 17. Section 417E-1, Hawaii Revised Statutes, is
amended by amending the definition of "broker-dealer" to read as
follows :
""Broker-dealer" means a [ " d e ~ l c r " ] "broker-dealer" as
defined in section [4$5 I.] 485A-102."
SECTION 18. Section 706-606.2, Hawaii Revised Statutes, is
amended to read as follows:
"[f-lS706-606.2[+] Special sentencing considerations for
arson; other actions not prohibited. - (1) In addition to any
other penalty imposed, a person convicted of arson involving
fire set to brush, grass, vegetation on the land resulting in
damage to [ 1 0 , 0 8 3 ] ten thousand square feet of property, may be
required to:
HB1108 HD1 LRB 07-1928.d0~
Page 36
(a) Pay any costs associated with extinguishing the fire;
and
(b) Perform community service work in the region in which
the property damage occurred.
With regard to any [+]fine[+] or monetary penalty that may be
imposed on a minor convicted or adjudicated for an offense of
arson, the parents or legal guardians of the minor shall be
liable for the percentage of costs associated with extinguishing
the fire based upon the apportionment of fire damage to real or
personal property caused by the minor as a result of committing
the offense of arson, regardless of whether the property is
publicly or privately owned.
(2) Nothing in this section shall prohibit a separate -
criminal action being brought by the State or a civil action
being brought by the State or a third party for conduct that
constitutes an offense of arson."
SECTION 19. Section 707-711, Hawaii Revised Statutes, is
amended by amending subsection (1) to read as follows:
"(1) A person commits the offense of assault in the second
degree if:
(a) The person intentionally or knowingly causes
substantial bodily injury to another;
HB1108 HD1 LRB 07-1928.d0~
Page 37 1108
H.B. NO. H.D.l
(b) The person recklessly causes serious or substantial
bodily injury to another person;
(c) The person intentionally or knowingly causes bodily
injury to a correctional worker, as defined in section
710-1031(2), who is engaged in the performance of duty
or who is within a correctional facility;
(d) The person intentionally or knowingly causes bodily
injury to another person with a dangerous instrument;
(e) The person intentionally or knowingly causes bodily
injury to an educational worker who is engaged in the
performance of duty or who is within an educational
facility. For the purposes of this paragraph,
"educational worker" means: any administrator,
specialist, counselor, teacher, or employee of the
department of education [+]or[+] an employee of a
charter school; a person who is a volunteer in a
school program, activity, or function that is
established, sanctioned, or approved by the department
of education; or a person hired by the department of
education on a contractual basis and engaged in
carrying out an educational function."
HB1108 HD1 LRB 07-1928.d0~
Page 38 1108
H.B. NO.
SECTION 20. S e c t i o n 27-42, H a w a i i R e v i s e d S t a t u t e s , i s
r e p e a l e d .
[ 1 1 f i 3 7 - n 3 = x c-=1 f==
\ Thnrn 4 " n n t 7 1: n h n A w: U I lLLL .LO LULCISLIUIILU ItkL
n r l n " A,--.- 7 1 7 Y . T , n n 1 7 n n 7 VL ,J UpbUIuI Ud ly LVuIILI-I
f o r t e c h n o l o g y d e T ; e l ~ n t , t h z t s h a l l revie;; 2nd ma?:>
cecmzacnd2t lons on = a t t c r s r c l ~ t ~ n g t o t h e ~ ~ z r ? : e t l n g 2nd
t F 1 7 - 7 1 n m - t : n n F A T 11:-h t n m h , a
I V L l l U V V U L L U U U I V b U L L V l l L V L I l - L Y I I \ - L U L L
nrl nF -\t 1 - 7 - t n l n ~ v n n h l- t n r \ m n r UU V L U L I L U d L L I b V U l l UUL 11V lllVLC
t h z n t;;enty f i v e m e r s sppoiz tec? r i o t s u b j e c t t o s e c t i o n 2 5 3 4 ,
a n d s h a l l ~ n c l u d c r ~ p r c ~ c ~ ~ ~ ~ t ~ ~ ~ ~ ,-, r. - t7 . uL L1lL hLgh tbbilllVIVY n n F thn 7
n t - 7 , h 7 7 - 7 n n - n 1 n 7 r l n r - - r l - . l l l n 7 t n r - n n ~ ~ n - r n t 1 n ~ A n r n -n U d L l y , U U U I l l L U d I -LUULLUf b U U L U L V l U f Y V V b L 11,- LLUULLU f U l l
1 n m ; " 1 7 t n r r . I L Y I - U I U L V L U .
/ h \ Thn - 1 1 hn 7 r \ n n , n t n A h v r t h n nn~rnrnnr F n r L L U I I UL U p y V I l L L L U Uy L11L y V V L L l I V L L V L
f o u r y c c r s , . c x c c p t t h ~ t t h e te rms of t h e -gointcd
1 . 7 ? " A n n : - I-y, U U U L U I Y
t h e g o v e r n o r 2 t t h e t i a e o f ~ p p c i n t w n t . The c o u n c i l s h z l l
nn -4-m n r n ALL, S L U L L U .
/ m \ T n 7 n - n ; n t : n m m n - 0 t h n n n T T n r n n r nh-1 1 n n l n n C L / I UpyVII ILLl ly I '-ILL Y U V b L " U L U1lULL . J b L b L C -
wrs==ls ;;h= hzv=: ?:nmlec?ge o f t h e high technology l z d u s t r ~ f th*
HB1108 HD1 LRB 0 7 - 1 9 2 8 . d 0 ~
Page 39 1108
H.B. NO. H.D- I
cducatlsnzl nzeds of the ~ndustry, or In the m c t l n g and
t : nn nf h: -h tnnhnnl nmTr : nAr,"t%-; nr,
councll shzll scrTge wlthout ccmpcnsztlon But shall be rezmbursed
fnv n v - ' y t m n r , : m n l m A ; n - t- 1 n w n n n n n " n n n n r , " ~ ~ Fn%- t h e L W L LArL U b U f I I I b I U U I l l Y LLU V b I L I \ L - / L I l U b U f I I L b L L I - L Y L W I L l l L
/ A \ V h n nn,,nn: 1 1 - , ~ 1 " : " 4 - t h n - 7 1 ~ A T T T P A - Fnv I U I U U Y I U W L L W I
tzchnology deTxlqmcnt iz dcyelqing and coordinating thc
mr?cetlr,g 2nd prmctlon of the hlgh technology ~n&str;. In
0 , - 7 7 U L I .
%ncludlng grznt mneys.
/ f \
cthlcs and confllct of lntcrcst guldcllnes for ~ t s m e r s .
3nn ,""5. "1
SECTION 21. Section 231-3.2, Hawaii Revised Statutes, is
repealed.
["§-231-3.2 X=twr=td t=x ==f-== -t =I?'==
t " 7 1 F 7 - n LILbIIIU UyLbIUI L U L L
n t n r r h ~ n h -11-1 1 Ir\n A n n n n - - 1 n - r n ~ -n t - - r v n ~ ~ n - 7 - n " 7 - I L L & " V Y I I I L I I L ) I I U I I W L Ub Ll lLLUL L I % L . L U L L U I k L L V L I I U L U UL)
FroT;l*d by sectlor, 237 31. The dlrecter of taxatlu;~ m y Fetal3
HB1108 HD1 LRB 07-1928.d0~ 3 3
Page 40 1108
H .B. NO.
n t ~ n n n n n n - r . ; r t n m n n t t h e nh ~ m - t - n n n n F t h U L I L U l l L L L b 2 _ ) U U L Y L V I L L L L L L l l b V U L Y U L L V I L U V I bIlC
n t n m r - t n A i - 7 - r Y n n t p . 7 " P nn %- n - ILL. u y u rLrfcLmbc 5,
eentract. The cimunts transferred by the dlrectcr of taxatlon
to the integrated tax inferriatien wriagmnt s y s t e ~ ~ special
F, ,nA F n r 7 F; ~ n - 1 TI--r ~ h - 1 1 hn 1 , m , t n A t n thn 7- 8 .
U I L U L V L U L I U L U A Y L U L U l l U l A UL A - L l L L J - I - L U L V L l l L U
appropriated by the Icglslature.
/ h \ n n n n n ~ ~ n 4 n t hn F - l n A oh- 1 1 hn n - - n n * A h 1 7 thn A n n - r t m n n t \'-'I
to pay fcr the integrated tax informtion lLLanzgmcnt syst-
~erfcrmnce based cGntracts autkrlzed by Act 273, Scsslcn Lzw++
8 . cf :!z:i.cill 1 3 9 6 .
n t m n n t 1 ~ - 7 h : t -n - n m ' 7 7 1 w n - n r t t n t h n
1 n m 4 " 1 - t , ~ r n nn 1 - t n r t h - n t r . r n n t . 7 A - T * ~ n - 4 h r t n thn n n n r ; ~ n n ; n m n F ILYAL)IULULL I IV LULLL LLLUIL LVVLIILJ u u y u ~ L I W L L V 1-LLL LVILVLIIAIIY VL
, *
cach regular sesslon, prcvldlng an acco'ant~n? sf the recelpts
cf, 2nd zxpendltures f r m , the fund.
/ A \ ~ h : P ~ ~ ~ i - 4 hn ~ h - 1 1 hn r n n n - 1 n A nn T l - l ~ r 1 3 ~ n ~ ; U I ILL) U b L L L V I I L I I I U A A Ub LbrLUILU U l l U U L Y I f L - W W J . ' I ]
SECTION 22. Section 231-8.6, Hawaii Revised Statutes, is
repealed.
[ "*23!. 51 -== x=ter=t T=ix I"=-t. . .
I - \ U,
discr~~lnatory tax shall be i-sed under chapter 235 (rclatin-g , .
t~ i n c m tax), chapter 237 (relatin? to the gencrcil excis3
x , or chcipter 238 (rclciting to the use tax) on elcctror,i-e
r c n n r T n t n r n n t -nchnn I L L V I A I I L b I l l L L U V L L U U .
HB1108 HD1 LRB 07-1928.d0~
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIII I IIIIIIIIIIIIIIIIIIIIIIIII ~~~~l Ia l~~~I I I~I~u~~~~~
Page 41 1108
H.B. NO.
/ h \ A n 1 7 - n A ; n t h ; - nnr.t;nn f ) A : n m r ~ m ~ n 7 4 - . . 7- - .
1.2 U U b U 111 L I L I U U L L L I V I I U I I - I L L - C I L L I I I U L U I IU .
* P.r'ly tzx iT?---r'"" t"--S=f7+-R..rc--r-
-r,n t h 7 t . Lbb LIIUL.
SAf Is not generally i v c d 2nd legzll;r
by the Stztc or county sn trznszctions inT:olviag
. , ~ a l l z r property, goods, services, or ~nforxitloa
1 ; n h n A th-rn~qrvh nthn-r m-r\n. A 1 U I I b U b I I L V U Y 1 1 ULIILL U l lU ,
tBf 2s not gcnerzlly i m e d 2nd legally collzetiblz
v 7 t n k.7 n 7 7 m C t 7 t n n r , n , , n t . r n L U L L U y U U b I I V L U L L "L b V U L I L Y V
trznszcticns inuslving slmzlzr prqerty, gocds, , ,
- - % - T I - -n- n r y n F n Y . 1 : nh-4 t k v n ~ , ULL v r bbu , "L L L L L V L 1 1 U I I L U L I I L V U
cther m n s ;
-K3- -es 22 obligation to collect or pz;. the tax
cn z different person or entity thzn In the ezsz
. . cf trznsectlons 1nT;31v~ng ~Iiirll~~ property,
A " n v T 7 : ,nn n, : -4=n,m,t; nn ,,,nm-1: ,hnd uu , ULL v I b b u , V L I I I L V L I L L U L I V l L U u L u l l L p l l U l I L
through other m e a - m - ~
4-w- Estzblishes 2 classlflczti=n of Internet acces=r . .
Purposes of cstzbllshlng 2 hlghcr tax rate to bc
n A ,-.n thnnn -%- A n v - t h 7 n t h n t 7 . 7 r7t LU V l l L l I V U b pL ULLU L l IU l l L l l b LUA LUC-2
. , gezerzlly ap~lled to proT;ldcrs sf 51111112r
HB1108 HD1 LRB 07-1928.d0~
Page 42
KK)ans; o r
* Any t z x ifftt3esed by t h e S t z t e =;= c=;=nty if:
SA-f The s o l e a b l l l t y t o c # 3
c c l l ~ e t l c n o b l l
fBf p r c T T i d e r o f I n t e r n e t access se rT< icc c= c n l i n c
" n V T 7 7 n n - 7 - A n rl t n h U L L V L b L U I U UL
. , d~t-=,~,lr,lr: t z x c = ; l l c e t l e n
The d i s p l z y o f u r \ m h t e t-el-erls inforrrtatio:,
c r c o n t e n t on t h c o u t o f s t a t e c 3 ~ 3 i f ; ~ t e r
* Th=: p r e c e s s i n g of o r d e r s t h r o u g h t h e s.;t o f
t n v n n v r ~ n v n-f - n r n ~ r ; r l n v n-f U L L L U L L Y L L V L U p L V V I U L L UL
I n \
l l v l - " t V n n 4 ,-, n~nn I I m n 7 n - 7 n 7 7 t v 7 n ~ 7 n t - hn n n n A l ~ n t n r l - 7 7 - v U I L b L L V I l I b L L I L L L U L I U U l lJ LLUIId ' f2bLLVl I L UULLLU U V L L
. . t h e I n t e r n e t o r t h r - g h I n t e r n e t zccess, c w r l s l n g t h e s ~ l c ,
&czsc, l i c e n s e , o f f e r , o r d e l i v e r y o f p r o p e r t y , goods, serTv*ices,
HB1108 HD1 LRB 07-1928.d0~ IZ
llllllllllllllllllllllllllllllllllll llllllllllllllll ll llllllllllllllllll lllllllQlllllllllUmllllllllllllllllllllllll
Page 43 1108
H.B. NO.
cr ~ n f s r ~ ~ a t l o n , ; ;hether o r n o t f o r c o n s l c k r a t l o n , and ~ n c l u d w
t h e p-rzT;lslon of I n t e r n e t z c c c s s . , ,
I I T ~ ~ ~ ~ ~ ~ ~ I I 177 t h n ~ 7 ~ 4 - A nF n L & L L L L L L L L I L U b V I I L L L I V b I J L I I L I I L J L I U U V L b
, , , 7 r * - t - nnn F-r.7 1 7 4-7 n n - n n l , q A - n m n - 7 ~ - n t 7 n A nnn-7t -n
L I b U L I U L L U L U b I I I L L b U f I l l L I U U I l l y L Y U I I L L U I L U VyLLULIII
v, n n thn ~ n t n r n n t n A ~ 7 n r l A A n n n t rrlr n F L I U b L11b I l l L L l b LLLU V V V L I U Hub i I b L b % L J V L
1 t n 4 n n n t n l T l r n t n n n l / T n t n r n n t I V Y L - l l b I L U l I U I l L - I U U L V l l bVI1LLU.L L L V L V b V I , L I I ~ L L I L L L
P r o t o c o l , o r zr,y prec?ccessor o r S G ~ ~ C ~ p r o t 3 e s l s ts t h a t
n ~ n - t n 7nFnv t nn nF 7 1 1 l r , n U I I I L U L L I l l L V L L I V I I V L U I I 1 L 1 1 1
P 7 A 7 r\ L U U I V .
1 I T n t n r n n t -nnnnnl l m n - n n - n n v ~ r ~ nn n v 1 4 nnnnn t h 7 t nn-hl n n LILLLLIIL L U ~ L L U U ILLLUIIU u u ~ L v ILL VL II~LIAUL LIIU L LIIUUI~ J
u s e r s t o a c c c s s c s ~ t e n t , ~ n f s r w t a t l c n , electronic M I L , sr s t h e r
n n l , 7 A n 7 n m n r . r . t n n-n-v, n t - r T r nnntnnt 7nFnrr I I IbLUUL U L L L U U L V yLVyLIL LUL y b V l l L - b l l L f I l l L U L
1 4 nnnnn- n F F n r n A t n X T - n v n Thn t n r A n n n nnt 4 n n l r 7 A n I I b L l I U L U V L L L L b U L V U U L L U .
n F - n n A T n n n n t - nn n I I L b U L I U I I U U L L V I b L UU ULL I l l bU I 1 1 U L b L - I V I l L-L '2 I.
/ A \ Th4 n n n n t : nn n h - 1 1 nnt ~ n n l - ~ r t n 4 - 7 ~ 7 - L \ 1 n VIA-vn
b e g i n n i n g a f t e r !2ec&er 31, 2GC5. " 1
SECTION 23. S e c t i o n 235-110.4, Hawaii Revised S t a t u t e s , i s
r e p e a l e d .
C l 1 f i 3 ? E - l ' l n nsx =r=2it.
HB1108 H D 1 LRB 0 7 - 1 9 2 8 . d 0 ~ I
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t a x e s i m o s e d by t h i s c h a p t e r and c h a p t e r 2372, a n i n c w t z w
c r e b l t , x h l c h s h a l l b e d&;c t lb le f rom t h e t a x p a y e r ' s n e t Incame
t h : " m h - n t n r F n r t h n t7T771.,l L11LL) b I I U , f L L L L U L L 1 1 b L U A U U I C
fFezr 2-n Khlch t h e c r ed ; t P r w r l ~ c l a l d
V h n - m n r - n t nF t h n r r r n A : t n h - 1 1 hn F n ~ l r nn r "nnt nF
c o n s t r u c t ~ o n o r renoTTat;on c o s t s ~ n c u r r z d d u r ~ n g t h e t a x a b l ~
, * , , 3 . n - r f n r -7-h -77-1 T 6 1 - A hn tn l F7-7 1 7 t ~ r 1 Y L U L L V L bUL1l Y U U L L L L b U L U b - ' - A L L Y J.-ULL r L u v v u L L f u1rC.i 7 n
7 t 7 - n - n - 4 - - F n r U I - L u l l b V U L U L U L
a zo th , r L r e u I t V ? U L J LLuI IL lbU n r, A r r - n - 1 - 7 m n A r ~ n
LI I - I I L U b l i a r \ -C~ L U L L n r t h - n "h -t - F n r t
T n t hn r r - n n nF 7 n--4-nnrnh:n @ t n n n t - t n t r - 7 - t r u ~ w A r u A U L ~ ~ L L r L U L U L L r L L U u ~ r
z s s o c l z t l o n of a p z r t w n t ~ w n e n
+Arne s h a r e m n e r s z s s o c i a t i o n , o r a n y developer of a t i a c sh-
~ r o 7 z c t r t h e t z x credit a l l w a b l e 1s f o r c o n s t r u c t l o ; o r
- t ,nn m e - t n . n m r , r - r \ A h . r t h n n n t 7 t . r F n r t n t 7 - 7 1 1 2 \ 1 n y I n - - V ~ U I - I W I L b V U L U I I l b U L L L U w y L l l L b_r l lLLI-y I V L L L L U d l U U I L Y L U L .
Thn n n n t ~,r\nn r r h ; nh t hn 4-7-r m r n A 4 t : n rr t n A - I - - 1 1 h W l l V V l l I b I L L11b L U A b4-bU-I-1- I L ) b I -bU L I I I U I L w C
d e t e r a i n e b a t t h e e n t i t y lbwl. n: I" L L I U U L I U I I - t , :h , , .~- ;~~
U l l U U I I U I L U I -hTrn n~
c r c d ~ t s h a l l b e determ-mcd p u r s u a n t t o s e c t l o n 235 1 1 8 . 7 ( a ) .
c l e c t l c x t o e - p l s c d e p r e c ~ z b l e b u s l n e s s a s s e t s ) o f t h e I n t e r n a l
8 , , enuc Code, no t a x c r e d i t s h a l l b e a l l w e d f o r t h z t p o r t i o n of
HB1108 HD1 LRB 07-1928.d0~
IIlllIllMlllllllllllllllllllllllllllllllllllllllllllllllllllllllllUlllllIIlIllIlllllllllllll lllllllllllUllllllllllllll W llll
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t h e c o n s t r u c t i o n o r r e n o v ~ t i o n c o s t f o r x h i c h t h e d e d u c t i o n is
t a k e n .
V h n h-r.: n nF n l 7 , v 7 h l n n v , ,
A r t , , Fnv ,Innvnn;-t: I L U U U I U V L L I I Y L U L L y l L L L Y L V L U L y L L L I U L I
A nnn %-nn s c c c l c r z t c u ,-,t L b L o ~ v c r > u y u t c ~ L p l ~ r p w u e s f o r s t z t c Income t z x e s r . " n n
" h - 1 1 hn v n A ~ 7 n - A h -h le 7 n A - 1 7 - U I L U L L U L L L U U L L U U U U I L U l l U L I U I
T n t h n - 1 t n r n ~ t ; z r n t hn t - 7 7 n r n h - 1 t vn-4- t h n nF t h r L L L L U I L L L I I U L L v b f L L ~ L L U L L \-I U ~ ~ U L L L L b U L L l l L L V L b11C
c r e d l t a l l -b l c and c l ~ ~ m c d a s a t z x 2 S l e l n e m ~ t c r , f o r t h ~
t z x a S l c y c z r i n which i t i s p r o p e r l y recognized u n d e r t h e mek-hed
c f zcco';ntlnq 'dsed t o c c
/ h \ T h n n,nA: t 7 1 1 - X - n A n - t h 4 - nnn t ; nn r . h - 1 1 hn n l L L L b U L L U I I U L b L I V I I U l l U I L U b b I U I
, , ~ q z l n s t t h e n L t ~ n ~ c - m c t u A ILubLLI ty f u r t h e t z x z b l e y e a r . n 7 - --., 1 - 7 7 1 7 ,.
I n \ T F t h n t - 7 7 n - n A 4 t 1 7 n A n v th;n n ~ \ m t : n n n . ~ r n n n A ~ t h L , L L L V I L L A L L L U U L A I C
t - - r 1 : 7 h 7 l ~ t ~ r t h n n-~nnnr. n F n v n A : t n . .
L U A I I U U I I I L ~ ~ L L L L L A L L U U W L L L L U L L v v
n h - 1 1 hn v n F l l n A n A t n t h n t - - - r \ 7 ~ r n v . * - \ * ~ T T ; A n A t h - t n3 U I l U l l U L L L L U I I U L U L V L I l L L U A y U y L L , pL V L U L U L L L U L L J
n t nn - n r . n ~ r n t nF t h n t - l r r * r n A , tr. - 1 l n r r n r l h r r r th , n l l L V I A U L b V U l I L V L L11L L U A b L L U I L U U L I V Y V L U U Y L L 1 I d
nnmtnn 1 h - A n FA- 7 -tr. lnnn h7 1 n l 1 1 - 4 c. F A - U L L L I V I l U 1 1 U I . L U L L L I U U L L V I U L L " I L U U t L A U Z I. 1 1 1 1 cIUIlllU L V L
A : A r. n m n 7 n - 1 1 n n 2 t z A C r C u r t LPLUCT tblIu u L b t r o z UhuLL b e f l l e b on o r b e f u r , t h ~
e n d o f t h e t ; : c l f t h month f o l l m l n g t h e c l o s e o f t h e t z x z b l e ycctr
Fnv ryh;nh thn nvn~4. l ; t - 7 7 , hn n l -:fftCrl C - 4 1 7 - v n t A n 1 t h t h V L V V l l I b l L L l l L L L L U I L ILLUY U L b I U I U . U I I U L L L V L I 2 V V I L L L L L L C
F n v - m m n ; n m n-nrr, n, nn n h - 1 1 m n n n t ; t - 7 t h 7 I . T - ; T T ~ V nF t h n v; m h t 4-3 . ,
L V I L y V I I l y J f L V V I U I V L L U l l U I I b V I I . J L L L U L L U Y V U I V L L V L L l l b L L Y l l L L
c l z l a t h e credit.
HB1108 H D 1 LRB 0 7 - 1 9 2 8 . d 0 ~
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/ A \ T h n A: V n n t h V AF t 7 l l 7 t : hn " h 7 1 1 nvn-qvh 7 - 7 7 Fnvmn t h 7 . b U I IL ULLLLI-"I W L I-UILUI-Lull U I I U I L ~ L L j y U L L U l l Y L V L L l l U LIIUI-
m y be n e c e s s ~ r y t o c l . 2 1 ~ ~ 2 c r c d l t under t h l s s e z t l o n . Th2
d i r e c t o r m y z l s s require t h e t s x p s y e r t o f u r n i s h i r , f o r i L L 2 t i o n t o
a s c e r t s l n t h e T; tY . I n F t h " Llle L# ULILl L V L LIL 7 7 - Fnv m - n t I L L U U L u ~ ~ u ~ ~ thLU 7 A n , - - A n m
n n n n n n m n 7 v . l t n nFFnnt-177tn t LL1 I I L L L U U U L Y I-V L L L L L L U U L L I-
cf t h l s s e c t l o n p u r s u s n t t o c h ; ~ t e r 31.
/ n \ T h n 4 - 7 - 7 n v n A 4 t 7 1 1-A - n A - v t h 4 n m n n t ; n n n h - 1 1 1 1? L I 111L LU'> LLLUII- U I I L1 U L L L L U I L U I L U I L )-I>
a s s l l a b l e f o r tunubIL yLuLU ueglrlnLl~g u f t e r DLC - - r - 1 n - 7 - m k 7 n 7 n n v 7 1 0 L L J L r 133ur
2 n d s h s l l nut ,-, b IL LUJ- I-U~UIJ 1 n Fnv t 7 . 7 7 k
L Y L U L U J J L Y J - ~ ~ ~ ~ L ~ L Y ULC-LL 0 ~ r n - v m h n m - n n - n m - F t n v
C 3 e r 31, 2 0 0 5 .
n m - 7 - 1 4 F 7 7 FA- t hn 4 nnw 4 - 7 - 7 n v n A ; t thn t - x r n - ~ ~ n v " Y U U L L L Y L V L L l l L 111L I I-lLL L u n r u Y b L
1 n 7 t h 1 7-nl; n7kl n F n A n - 7 1 n t 7 t n 7 L I U L I L L V V I L 1 1 U I I UypIILUAJLL LLULLUL, L1LUI-L, U
c o u n t y s t 2 t u t e s , r u l e s , 2nd r c g u l s t l o n s .
/ R \ n n ,,"-A : = t h : nn. U U U L U L l l I - I l LU U L L I - I U I I .
r r p n n n t v,,n t: nn ,, -nnnrr7t; nn n n n t ll L#V,lU LL U L L I V l l W I LL l l " V U L I W I I b V U I-
L L n v
J I f 1 Q Q Q F n v n l 7 - m A n n ; m n nnnntv,.nt:nn -nd I A J V f L V L JfLUl lUf ULL1-J-yllf L W L l U I - L U L L L V l l f U l L
e - t i ~ l F E t related t o 2:;; c e n s t r u c t l c n f 2 l t e r ; t l o n s f o r
, a , . , , m d l f ~ c 2 t l o n s t o s q u z l l f l e d h o t e l f z z l l l t y .
W e t i n c m ts;: l i s b l l l t y .,,czns ineew t;x l i z b l l l t y , , I1 , . .
A 7 1 n thnv n v n . 4 7 4 - r . 7 1 1 ~LuuLLU IJy U I I V I - l l L L LLLUI I -U U I L
n r t h ~ n nh-ntnv LL I - ~ ~ L U L l L u r L-LI .
HB1108 H D 1 LRB 0 7 - 1 9 2 8 . d 0 ~
Illlllllllllllllllllllllllllllllll lllllll lllll llllllllllllllllllllllllll1lUlllUlllll1llllllllll1llllllAllllllUlllllllllllll
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f f A , , - 1 . F. , , hn tn l F - m 7 , 1 , tTrff hn tn l /hn tn l mnnAn - r ,
'dUULLLLLU llVLLJ- J-UbLLLLY r ~ w LLL, u w LLJ- ~ w l r u w ud
defined in section 48% 1, acd includes a time share fzclllty or , ,
Fro; cct
n 7n0 7 4 - 7 - 7 n.r ~ , n A n v th, r, m h 7 - t n r 7n LL 1 1 1 ~ ~ 1 1 . J U LUA b.L U1IUL.L LI IJ-U L~luyLbL f U l I
+ncludes :
SZt nssociatio= of apartr~cnt m ~ e r s ; or
* Tlfftc shzrc: C+b-+ners zssoaiation- / h \
SECTION 24. Section 235-110.45, Hawaii Revised Statutes,
is repealed.
[ r r r t i z l =- =-=- t ax c red i t . V h n v n r , h - 1 1 kn - 1 l n w A t n n 7 m h
thz mcr, developer, or lessee of res~dcntlzl prqerty,
nrl l - 7 ~ t h - r, m h - n t - v 7 v n - 7 4 t-( - 1 I u ~ L u l u ~ c l u ~
csnstructlon and rmedellng tax credit thzt shall be dd7dctlbl-E)
+his chapter for the taxable year 22 *~ch the crcdlt 1s
r p h n ttfftC'7nt "F
t h : m n n m t : n n k 7 7 t hh
. , n r , h - 1 1 kn l - m - 4 - n 4 - n F - ~ y v nn-~. - A n t n - F t h n L. . J I l U I I Ub I J - i L L - L L L . L u L w U l rLL b L L A 1 - VJ- LLLL
res~dentl~l constructlcn or r-cllng costs lxcurred during the
HB1108 HD1 LRB 07-1928.d0~
Page 48 1108 H.B. NO. H-D-l
t z x z b l e yczr f o r :;hick t h c c r c d i t i s c l z i m d ; proyidcd t h z t t h z
c o s t s s h z l l no t cxceed $250,000 I n t h e zggregz tc f o r ezch
r n n , A n n t , - l r , n , t . - - A t h - t t - rnnn4-n 7-n ~ n n r - r r n A hnFnrn T,, L L U I U L I I L L U L U I L A L I U I IU C ~ L U L L L b U U C - U U L L I I L L U L L L U u L L U L L U U
2a4s-r
T n t h n - 7 - A nF - n-.-tnnrnh:n @ n - rnnr- t :nn n r r C - t n t r ~ ~ ~ t r L L L L L U U L V L u ~ U L L I I L L L _ ) ~ L I ~ ~ u ~ U L ~ U I U L I U L I ~ L U L U L L I L L U U L ,
cr ~ s s o c l z t l o n of ;pa r t rLent m ~ c r s , t h c t;x c r e d l t z l l w z b l e 13
FA, nnnot r , ,n t<nn n r r U 1 : n m n n - t m : n n , 7 r r n A h,, t h n n n t ; t ~ r FA- I L U L I U L L U L L A U I I V L L L
t h e t z x z b l c yez r . Thz c o s t u p m ~ h i c h t h e t z x c r e d i t i 3
t n A " h - 1 1 hn A n 4 - n ~ ; - - A -,t t h n A n t 4 tT7 lATrnl n: "t Y.: &I-t: A? U L b U U l l U I I U L U L L L L I L L I L I L U U L C l I L L I I C - I L Y I L Y L I . I U C L I U U L I V I
2nd sh;rb of , re n n hn A n t n r 4 A P 7 - t P n n 3 7 K U L uL LLLLILAzeu plurU1uuzt C-V UeLtAVrl L. .,.,
I i n 7 I - \
T F A n A - l r ~ n t : A n r. t ~ l r n m ~ . n A n r onnt;nn 1 7 Q / r . r : t h r nonnn t 4-0 \ L L i U11UL.L " L L L I U L L L , 2 \ " " I L L L L L U Y L L L L
c l c c t l o n t o e x p m s e d c p r c c l z b l e bus ines s z s s e t s ) of t h e I n t e r n 4
Revenue Codc, no t;x c r e d i t s h z l l be zllowed f o r t h z t p o r t i o n of
t h z c o n s t r u c t i o n o r rLcmcdcling c o s t f o r xhich t h e deduc t ion i 3
t e k e n .
Thc b z s i s of e l l g l b l c property f o r d c p r z c i z t l o n o r . .
A n o a c c e l c r z t e u c u U t r L L u T ~ e r y 7 U y r ~ L L I L 1 rT~LYpu~bU f y L UtutL rrlc- L U A ~ J ,.-n " 7 "trim n , nrrnrr h* " -, 7 7 t - 7 7 rr
~n t h ~ 7 l t ~ ~ n - ~ ~ T T A thh t 7 ~ 7 1 1 7 ~ 1 n ~ " h - 1 1 t r n 7 t t h n 7 1 7 n t -F t h n I L i L b C - u r l r a y L l u r r u ~ ~ L L + ~ ~ L1lb U R + C U ~ A C - C - L ~ L
hln 7 n A - 1 7 7 UIL U I J U LIUIKU u u u L U A U U I L ILLLCERC I L L L L L I U I ~ r 1 3
A ? n 7 t 7 7 7 7 h l n 4 nn C n m F n r t h
HB1108 H D 1 LRB 07-1928.doc
Page 49 1108 H.B. NO. H-D-l
k z x z b l e y e a r i r : .."&mcthod
c f a c c c u n t l n g used t o c w t e t a x a b l e lnc-
/ h \ W h n m v n A 4 t '1 1-A m n A n v t h : " "nnt; " h 7 1 1 hn "1 7 , lllL LLLUIC UII LIIIU ,,,,,on UIIUII UL LIUL
7 - 7 1 4 7 1 4 F 7n,, : , , 7 - 7 - n n t t h n nn t 7 - n n " n A h ~ r t h y " u y u ~ a ~ . ~ L L A L L L L L L IL~L LULL r ~ u u ~ r r ~ y I LL u a a y I L UULU U y L L L I G
c h a p t e r f o r t h c t a x a b l c y e a r I n z h l c h t h e t a x c r c d l t 1s p r q e r l y
c l a l &
I n \ T F thn 4-7 .7 m v n A : t 1 - n A ~ r C h : n n n m t 4 n n n v n n n A n t h L L I U l l L A L L L U U L A I C
t a : : p v w tb:: l i a b l l l t y , t h e e;:cess o f c r e d i t o v e r I n 4 , .
1 ; 7h-1 1 , t ~ r m 7 - r hn r - v n A q n 7 n - n A : t 7 - 7 4 n n t thn ~ T T T ~ ~ Y ~ A - , , I " 4,"
I I U U I L I L Y lllUr UL UULU UU U G L L U L L - U Y U I I I U L L I IL L U A r U Y L L U 111L
tz;: l i a b l l l t y I n s u b s e q u e n t y e a r s u n t i l c;:hazsted. PA11 c l a i m + . ,
n n l - - A ~ n- 7 A n 1 m Fnv 7 t - 7 7 m - n A : t I T ~ A ~ - P th : " nnnt: n? I I1L-L . U U I I I Y U ULU LLUII I IUI L V L U L U L L LLLULL UIIULL L I L L U ULLL-LUI
b e f i l e d or: ;;r b e f o r e t h e er;d o f t h e t w e l f t h FW&&
Fn l 1 3 W 4 m m t h n "1 n ~ n nF thn t- " "1 n FA' ""4 nh thn n - n A : t m
b e c l z i m d . C7 4 1 l q r n t n n 177 . 7 : t h t h n .fnvnmn: n m n v 7 " 7 ny , . U I I U L L L-u G I y V V L CIll LI IL LVLLyu I I I y P I " v I U L V I
/ A \ \u /
m y be n e c e s s a r y t o c l a l i L L a c z c d l t undc r t h l s s e c t l o r , . Thc
d i r e c t o r m y a l s o r e q z i r c t h e t a x p a y e r t o f u r z i s h i n f c r ~ t i o ~ t a
z s c e r t c l n t h e v a l t y of t h e G - L . a ~ m f o r , r e d l t lLLuUL luzu~r t l r ~ . ~ 1 .. " - A n - A n n
nnt '171 A " n Y UUVrL LULbu ~~~w~~~~ L-U L L L L b L U U ~ b o 7 v . r r tn n F F n n t , 7 7 t n t hn n17vnnpnrr rULruLILLI
c f t h l z s e c t l o n p u r s u a n t t o c h a p t c r 31.
HB1108 H D 1 LRB 0 7 - 1 9 2 8 . d 0 ~
Page 50 1108
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i n \ T h n t - . - 7 -,,A: t - 1 1- L, L U L h L L L U I L U I I
- L l n F n r t - ~ r - h l n ~ r n - r n L n m y n n y n - - 6 t h ~ nnn U U I L L V L L U d l U W I L Y L U J - U U b Y I I I I ~ J - I ~ Y ULLLL U L L
~ n d shall not bL ur~uIsuusL n 7 - 7 1 -L l n
UL C-UAUUIb 1L-L 0 U ~ Y I J ~ L ~ I ~ ~ Y h r t - \ ~ ) . - 1?1 n ' I * ~ - P - L n m - n n ~ n m - F t n v
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nv 21 ~ n n 2 L L JL, L.VV.3.
I F \ ~n -7-1 4 FTI Fnv t h n :nnw t - - 7 n r n A 4 t t h n t - - r - - r r n ~ I L, YUUIlly L W L LIIL 1 1 1 ~ I LIAL c -unruyLA
1 n . h - 1 1 7 r n - l : n-hl n F n d n r - 1 n t - t n - I I U l l L L V Y I L I I U I I UyyIILUuIL L L U L I U I , ULULL, U
county statlctes, rules, and regulatlcns.
I n \ n" 7 7 n n A < n t h 4 - - - - + 4 f i n - A U U U L U A I L L I L I U U L L L I W I I .
2 J L . V u V f J-VJ- Y-'-UilL-If U L U - ' - Y I l f ~ ~ ~ ~ U L L U ~ L - I w ~ I . f 7 9nnn qnr -1 7n- A-" : mn nnnC1tv17nt: 7nd
U A I
cc;uxpmcr,t thzt ~s pzriLLanently affixed to the bulldlng cr
cnstructlcn altcratlons
, . rrtcd~flcatlons to a res~dcntlal apartxnt uclt or house, 2nd
under thls chapter.
rrh.rnt : nr. . I - - - 7 1 4 -h- 1 7 t - r r l m n - n n 4 - n - , a i - 7 "
I Y L L Ll lb LUA I I U U I I I b y I L I L U l l U 111L
r-duccd by 211 other eredlts allawed under t h ~ s chapter."]
SECTION 25. Section 235-110.92, Hawaii Revised Statutes,
is repealed.
[ Ir!k== =k=-G= ===z=tx ; . . . .
Thnrn " h - 1 1 Ln 7 1 1-A t n n-nh n l - m , L l n , a
A L L L U l l U I I UL U I I
tzxpaycr subject tc the taxes ~ w o s e d by this zhaeer, an ~ n c m
HB1108 HD1 LRB 07-1928.d0~
Page 51
t a x c r e d i t , ;;hi& s h a l l be d e d u c t i b l e f r o a t h e c l l g l b l ~ 0 a
4 - 7 7 , 1 : 7h- 1 7 4 - 1 7 : F 7 n 7 7 : , , 7 T r h V I n nn t ,nn U Y L L u I L L L LIILCWC bun ~ ~ u u ~ r r ~ y 1 r~ u ~ i y , I h 7 7 th : n
u y L l l I J
c h a p t e r f z r t h e t a x a b l e y c a r IZ w k c h t h e c r c d l t 1s p r q c r l ; .
c l a 1 ~
rllhh 7-nt n F t h n n ~ h A ; t m h - 1 1 hn F h . 7 - T \ ~ V nnnt ,-ILL V L hF t h 6112
, . 7 F - 7 - n r ~ n n n t - m 7 n n > , v v n A I n - 7 7 A . ~ T T t h n - 1 - m q h 1 n t ~ ~ r n ~ L L Y L I L Y L V U I-u - I I I L U L ~ L L U U I I ~ U L U u y G I L L L L I Y L W I L ~ u n y u
d u r i n g t h e ta::ablc y c a r f o r e a c h q ~ a l l f z c d w a t e r s t o r a g z , ,
F 7 - 7 l ~ t . ~ 4 n t hn C 2 t - i - n 7 n A m h - 1 1 n ~ t : n n l > - A n n n n m t ~ . > = t : n n n- , ,
L u y I 1 u U I I U U I I U A I I I W L I l l L I U U b ' L V I I U L L I - L U L L V I
- . -nn77 P n n m t n h n ~ n ~ n A 4 t T.T-," 1 - 4 A - 7 n A n ~ t -+ L L Y U L L LW. ,L . J L L L L I L U L L " " U U C I U A U U l l U L L L h L
c h a p t e r f o r t h e t z x a b l e y e z r .
T n t h e n 7 m n nF 7 - 7 - i - n n r m h : - C nn - 7 t - hn h n t q t n h- i I - ~ L L L U ~ L W L u ~ U L I - L L L A U L ~ L ~ , u LU ~ u ~ ~ v r r , b u b u ~ ~ , V L
t r u s t , t h e t a x c r e d i t a l l m b l c i s f o r q u a l i f y i n 9 c o s t s i a e c r r c d
s n d p a l d by t h e e n t l t y f u r t h e t u n u b , ~ y b u r . The c o U t >U h 7 - 7 7 1 h 7 m
which t h e t a x c r c d l t 1s ccmpwted s h a l l be d e t c r ~ m + r + ~
c n t l t y l c T T e l . n: mtV:h77t:r \n 7 n ~ "hqrn n~ -,--~:t mh-1 1 h L U L L L U U L I W I I U l l U U I I U I L U L L L b U I L U L L U L L UP
d c t e r & d p u r s ~ a n t t o s e c t i z n 235 1 1 0 . 7 ( a ) .
c l c c t l o n t o expense d c p r c c l a b l e business a s s e t s ) s f t h e I n t e r n a l
Revenue Code, no t;x c r c d i t s h a l l b e a l l m d f o r t h a t p c r - t i o n of
t hh nnn"tVr,nt:nn h V ,-An-,: V r(h"t" FhV r l h : nh thh r a n r a 7 7 n t : e n 4 " L I I L L V l l U L I U b L I V I I V L I L y U L L L V U L V L V L Y V I l L L I l I - L l L U L U U L L I V I I I U
&ken.
HB1108 HD1 LRB 07-1928.d0~
Page 52 1108 H.B. NO. H.D.l
T h n h-0: n nF n l , ,,hl n , ,
nrnnnrt., Fnv m w n n , - t , nn n r r r r ~ uud1.2 UL LIIYIUI~ rLbbLUI-LwLL uL
n n n t V n n n T v n * y y n r r nnnn Fnv r t ~ t n ~ n n t 7 ~r L V U L L L L u V b L y ~ u R F u ' . ' ~ . ~ L W L .JI-ULL I l lL- L ~ f i ~ f
hn r n A , , n n A h x 7 t hn 7m I& UL LLUUbbU U
T n t h n 7 l t n r n - t : ~ ~ n thn t - ~ r ~ \ - \ ~ ~ n r n h - 1 1 t r n - t t hn 7mn l - l n t nF t h I & L l l b UILLLI IULI V b f L l l L LUAyUy L L U l l U I I L L L U L ~ l l b U l L L u U l l L UL LIlC
- n i - - - r 7 h l n .nn F n r t hn t7-,-* U.2 L U A U U I L 111, L V L I-IIb L U L b U
t h n A n F LIIUU W L
t n t 7 , 7 7 I - . l n :nn ~ccountlng cued r to , n U L L L U ' % U U I b I l lL*
T h n n r n A : t - 1 l m n A . 1 7 n A n r th : r rnnt:nn "1771 1 I-.- n l -:& Ib U L b U I L U I I LU U 1 A U L . L I - L A I U . 2 L L L A U A A U L L U I I UL L L U A
t 7 - 7 1 : 7h- 1 7 t . 7 Fnv thn t 7 . i T 7 h l n .,n7r . ,
LUA I I U U I I I L Y L V L L I IL L U A U U I L JLUL .
T F thn 4-7-r n r n A 4 t r , n A n r t h : n n n n t 4 n n n - r n n n A n t h L L L l L L U L h b L L U I L UllUbL I - L I L U U L L L I W I I . b A L L b U U L L l 2
. . cllglble tsxpa-ycr's inL- tax llablllty, the cxcess of thc , ,
. , crcdlts oTv-cr llablllty shall be r e f l ~ ~ ~ c r ;
groT;lded that nc refunds or ~24'Knt on accmnt sf the tax crcdlt
- 1 1 A h., t h : ---t: nn rh-,i i hn . qnr I.,ntr i nr.r. t~~~ a 1 U I I ~ U U y L I I I U U L b L L U l l . 2 I l U I I UL I L L U U L L V L U ~ U I I L L I I L U . 2 L l L U l I Y I .
PJ.1 claixs, including m y W e d elair,s, for 2 tax credit under
this section shzll be filed on or before the end of the t~elfth
w n t h follmlng the close of the taxable years for :;hlch th3
1.7 T . T : t h thn F n r n r r n 4 n credlt r~ay be c l ~ l w d . C7: 1 ,,rn t n n L U L I U L L L W L I y Y V I L I I L L I L L V L L L j W I l l
1 rtnnnt- t,~tr, 7 I T - - T I A ~ nF t h n v , ~ h t t n - 1 7 - m t h n U L I L V I I U L L L U L b U Y V U I V L L UL L l l L L A Y l l L L W U I U I l l 1 L I IL
A: t U I I-.
/ A \ Thn A: r n m t n - ~ . n F i - 7 ~ 1 - 4 - 4 n n r h - 1 1 nrnn-rn ~ n . 7 F n r m r t h - t U /
w y be necessary to el;llL1 a cred~t znder thls sectlor;. T h e
HR1108 H D 1 LRB 07-1928.d0~
Page 53 1108
H.B. NO. H-D.l
bircctcr x y 2153 rcq~ire the t~xpzycr tc furnish infcrwticn to
. , ~sccrtzln th, n vuLLdLLY - 1 . . t., VL t
L L I U L L L L n - 1 7-8- F-v
LLLULl- 1 1 1 u n v n A 7 t 1
7 7 7 nt -771 n m n n n n m m - 7 7 t - n F n n t r , - t n t h n n . 7 - - ~ r ~ u y rl- ~ ~ ~ ~ ~ ~ u ~ L Y L w ALLLUULb L L L L r u l rm
cf this scetlen pursucnt to chzpter 91.
I n \ V h n n % - n A : t '1 l m n A n n A - - ‘ - t h : " m n n t : nn ""'1 1 "n L, 111L L L L U I C - U I I LU UIIULL I - I l LU U L C I L L V L l U l l U l l UL
* H e r 3:, 2000,
~ n d s h ~ l l F ~ S ~ be UUIL L W L C-UAUUIL Y L U L U b b Y ~ ~ ~ i ~ ~ i ~ y UL ~ L L 9hln FAY. t - - r - , k ln . l n - \ - ~ ~ n m ? n n > n r ~ 7Ft-nv
E 3 e r 31, 2005.
I F \ n" ,,,,A th ; " "nnt;nv I/ L i U UULU L L I L I l L U U b b L I V I .
11p1 4 - 4 "1 n t'.,n-,T,*-ll -n-,n" -9 t-,., U I L Y L U L L C - U A r U Y L L I L L L U I I U U L U X 1
-H=+ Is 2 far=c= or rather; 2nd
-63- Is not clziwd or is not otherwise ellgiblc tc bc . ,
, , clalmd 2s a dcpende~t by another tzxpaycr for :!a-
qiet inccmc t~ lisblllty m a n s net incc---y , . 11 . ,
.. '1 1 "^thnv - - n A - t m 7 1 1 A , , n A n v th : ,-. nh'ntn' y ULL V l - J I L L CIILUILL) U-IL U UIIULL 1-111" L I IUyCLL.
'1 . # f=., y.7-,t,-.,- "tnv n o -9 ~ 7 - 4 - n ~ ~ l t - n v - m n
U L L L I L U V V U L L L U L V L ,I" U V Y U L L L U L V L U Y L
F - n - l ~ t ~ r t h - t 4 c. n - r t n F - n n n r r n - ~ r - , t : n n n l -n 7-m . 4
ULLILI-y C - L I U L L U ~ U L L VL u ~VIIULL VULIULI Y L U ~ ~ upy
4.oczl scil 2nd k:stzr ccnscrT;2tien district.
11A17-, 1 : Fir; nr* n n m t -11 ~ ' n " 7 - 7 7 n n m t : n n r y v r n A 7 -4 U U U ' I - L Y -'-"Y b U U C - " L I ILUL L LU UllU
taxp~yer cfter Dccb4er 31, 2008, fcr the new ccnstruction sf s
. , . , quzlifled iiztcr stcr222 fzclllty cr the rcFslr or rcconstruetlon
HB1108 H D 1 LRB 07-1928.d0~
1llllll1lnll11ll1lnll1llllllll llllllllllllllllllll lllllllllllllllllllllIllIII1Illl1lllll1llllllll1 lllll1lllll1lllll1llll
Page 54 1108 H.B. NO.
0 , , . c.f zn exlstlng q3z211f;cd ;:2ter storqe fzclllty, ~ncludlng thz
cests sf ne:: e=;';;pcnt rclzted tc the constructlw sr repzlr cf
the new sr existing quzllflcd wzter stsrsge fzclllty, but d m , # . .
cst ~ncludc zmcunts recclT:cd thrwgh grznt cr subsidy f r m m y
F n A n r - l n r n t - . ~ t n m n ~ ~ n r m n L L U L L U I V L .,LULL Y U V L L I L,t . If]
SECTION 26. Section 237-29.65, Hawaii Revised Statutes, is
repealed.
[ 'l-65: E x X t = =- 1 7 \ ~ h : P m h - . ~ - t n * ~ h - 1 1 nnt 7 n - 1 x 7 t n t h n m r n - P 4 n m m n* m - n - P U, I-LL ~ 1 1 ~ 1 1 LIVL U ~ ~ L Y L-v LILL YLVU., 1 1 1 ~
~rocecds rccelTJ€d 2 publ~e Inte=nct dzt2 center-
l h \ A m > , m n A :n th: n ~ n m t : n n . L A . , UULU 111 L I I L U U L L L I U I I .
n n o - t n A .lr,c-n h., t ~ 1 : - n ,,,,, ,,,, ,F ,-,,: L I I U U L L U UUL u y L 1 L L L L U I I U U U L UL L Y U L
ms;ntenznce of e q u ~ n t , 2nd rentzl sf spzcc In 2 public
T n t n r n n t A - . 1 t 7 m n n t n - I L L L I I L L- UU LU bL1lLL.L.
n n , > h i ;" ~ ~ t ~ ~ ~ ~ t & - t 7 nnntnpll c7", 1 -.t 7 T r - . ; 1 -h l r, , , L U ~ L A L . L L L L L L ~ ~ L L - UULU L L l L L b L 1 l L L u l l b . J U L u L 1 1 L L U V ULIUUI-L
n n p 7 t n A 7 7 - n 1 1 1 7 t hn n l ~ 7 m A n - 7 ~ - , - - L I IUULLU UUL u y b11L yu
4-w B-eGse dstz scrvcrs;
f2t werat: cn =, t-t;. four hurl seven d 2 ~ =. =ck bzsis;
$3t r=d=;d2nt 23'-s for clcctrl=tyf 2ir , a
. . csndltlsnlng, fire suppresslon, 2nd sczurlty; 2nd
HB1108 H D 1 LRB 07-1928.d0~
Page 55 1108 H.B. NO. H.D.l
fPf szr-;ic,-s s=ch 2s bandMth1 co loc2tio=r r'-to
&c!;up, ccmtp12~ 'v:& hsstin~, and 2ggrcgation for
appllcztlcn serclcc proT;ldzrs.
17.1 T h < " P A - + ; A,-, -h-1 1 ---IT, + A m r n - " 4 - n ~ r m r n - " L 1 IIU U L ~ I - I V I I U L L U L L U ~ ~ L Y LV YLVUU L I I ~
~r=b-ds rcczlvbd 2ftcr 2 ' 7
2 I 3 n n ~ J I , L . Y Y 4 . 1 1 ]
SECTION 27. Section 237-29.75, Hawaii Revised Statutes, is
repealed.
[rr-TLE'I=== =c= =-- 1-
. . ~' ' l -~ - TLE'I-=- EffcctlT;c 1, 20Clr
t i I ? h z d frsx tht: measure of tsxes imposed by
this ch~ptzr 211 of thc value or Gross i n c m dzriTTcd f r m th2
hsincss dzfincd in section 235 7.3 or by 2ny p~rtner, m z r ,
, , cr sharchdder of 2 qual~flzd high tt:ch-y business I= th2
ccrporztlons.
w h ; " nn7.t;-n " k - 1 1 LA r n n- inr ' -- nnn n r 7 1 3 n n ~ L L L L O U L ~ L I W L L U L L U L L ub LL LULL- W l A ULL LL J A l L V u J . I 1 ]
SECTION 28. Section 239-13, Hawaii Revised Statutes, is
repealed.
HB1108 H D 1 LRB 07-1928.d0~
Page 56 1108
H.B. NO. H.D-l
[ r r r f i ' ) ? d - l t = v - - t - =
/ 7 \ V h ; " mh-ntnr m h - 1 1 nn t - , n n l ~ r 4 - n t h n U / L L I U I l U L l l l V L U P L Y L-w L l L L
proceeds recclvcd by a ~ubllc Internet A t 2 center.
/ h \ n" ;n t h 4 " c n m t 4 n n - U / LLU U U b U LII L l I I U U L b L I W l l .
h l : -11 U U C - L U U U L U Y L l l L Y U U J - I L FFtCullU U U b WL L Y U L
1.7" 3 7 - n nF nil-77
m~ntenancz of equ~ptczt, azd rental sf space In a public
l -n tnvnnt A 7 t 7 P"n-4-nv * L b L l l b L U U L U LblLC-LI .
l l D , , k l ; m T n t n v n n t A 7 t - mnntn-ll 4 - 7 7 7 7 7 - 7 1 ~h L U U L I b L A I C - L L l l L L - UUC-U L L L L C - L L b y U V U I I U U
Fnr n m m l k l : rn 7 n A An" ;nnnA t n . L W L ,/ y b l l U U L L U U U L U y L l l L L _ I U U L L b UIAU U L Q J - Y I I L U L-V.
f2-f 4:cuse data zcrvers;
* QFerztc: a t;=zty four hcurt seven day =. wee!; basis;
4-3- J:aT;e rcduz=?r=zt s;.ste=s f clc~trlclt4.t air , .
8 , condltlonzng, flrc supprcssloz, azd security; 2nd
fpf Provide ser-;ices such as b=*i=?th, cc locatlonf =?a-
n m 1 n-, ,,,h hnnt;n/r - n A -nn-.-nrr-t; nn Fr\v I b A V V L U l l V U L L l l Y f U l l U U Y Y I b Y U C L U I I J-WJ-
7 7 n " 7 m - - A n - " I b U L I V l l U L I V I b L Y I 3 - L U L L U .
1 - 1 V h : n "nnt:nn n h - 1 1 7 b / I d U L b L L W I I U l L U L L U
2 3 n n i t nnt - f = t n v nnm--- 21 3nnc . r r ] ~ f t c r Zune ,Of L w w L f buC- llwc ULLLI YLbL J I t L w w J
SECTION 29. Act 184, Session Laws of Hawaii 2006, is
amended by amending the prefatory language in section 3 to read
as follows:
HB1108 HD1 LRB 07-1928.d0~
IIIIIIIIIIY IIIIIIIIIIIIIIIII IIIIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIY IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIY~~
Page 57 1108 H.B. NO.
"SECTION 3. Section 414-64, Hawaii Revised Statutes, is
amended by amending subsections (b) and [-(&)-I (c) to read as -
follows : 'I
SECTION 30. This Act shall be amended to conform to all
other acts passed by the legislature during this regular session
of 2007, whether enacted before or after the effective date of
this Act, unless the other acts specifically provide otherwise.
SECTION 31. Statutory material to be repealed is bracketed
and stricken. New statutory material is underscored.
SECTION 32. This Act shall take effect upon its approval;
provided that:
(1) Section 10 shall take effect July 1, 2008;
(2) Section 11 shall take effect retroactive to May 19,
2006;
(3) Sections 14, 15, 16, and 17 shall take effect July 1,
2008; and
(4) Section 29 shall take effect retroactive to July 1,
2006.
HB1108 H D 1 LRB 07-1928.doc
H.B. NO. 1108 H.D. 1
Report Title: Revision Bill
Description: Amends or repeals various provisions of the Hawaii Revised Statutes and the Session Laws of Hawaii for the purpose of correcting errors and references, clarifying language, and deleting obsolete or unnecessary provisions
HB1108 H D 1 LRB 07-1928.d0~
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