STAND. COM. REP. NO. 1142

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1027
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred H.B. No. 1027, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TAX EXEMPTIONS FOR AVIATION
     TRAINING FACILITIES,"

begs leave to report as follows:

     The purpose of this measure is to provide a general excise
tax exemption for aviation training facilities.

     Testimony in support of this measure was received from the
Office of the Lieutenant Governor, Department of Business,
Economic Development, and Tourism (DBEDT), Department of
Taxation, and Department of Transportation.  The Tax Foundation
of Hawaii submitted comments on this measure.

     Your Committee finds that Hawaii has the opportunity to
position itself as the premier site for aviation training in the
Pacific.  For over seven years, DBEDT has worked closely with
Honolulu Community College to establish a pilot training program.
The tax incentive provided in this measure will encourage further
development of Hawaii's airline industry which will diversify the
economy and create new business and employment opportunities.  

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1027, H.D. 1, and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

 
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                                   STAND. COM. REP. NO. 1142
                                   Page 2



                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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