[PART V.
HAWAII TECHNOLOGY INVESTMENT PROGRAM]



 



[§211F-51]  Definitions.  As used in
this part:



"Biotechnology" means fundamental
knowledge regarding the function of biological systems from the macro level to
the molecular subatomic levels that has application to development including
the development of novel products, services, technologies, and subtechnologies
from insights gained from research advances that add to that body of
fundamental knowledge.



"Computer data" means any
representation of information, knowledge, facts, concepts, or instructions that
is being prepared or has been prepared and is intended to be processed, is
being processed, or has been processed in a computer or computer network.



"Computer program" means an ordered
set of computer data representing coded instructions or statements, that, when
executed by a computer, causes the computer to perform one or more computer
operations.



"Computer software" means computer
data, a computer program, or a set of computer programs, procedures, or
associated documentation concerned with the operation and function of a
computer system, and includes both systems and application programs and
subdivisions, such as assemblers, compilers, routines, generators, and utility
programs.



"Financial organization" means an
organization authorized to do business in Hawaii that is:



(1)  Certified as an insurer by the insurance
commissioner;



(2)  Licensed or chartered as a financial institution
by the commissioner of financial institutions;



(3)  Chartered by an agency of the federal government;



(4)  Subject to the jurisdiction and regulation of the
federal Securities and Exchange Commission; or



(5)  Any other entity otherwise authorized to do
business in the State that meets the requirements of this part.



"Program" means the Hawaii technology
investment program.



"Program manager means a financial
organization selected by the corporation to manage the program.



"Qualified high technology business":



(1)  Means a business, employing or owning capital or
property, or maintain­ing an office, in this State that:



(A)  Conducts more than fifty per cent of its
activities in performing qualified research in this State; or



(B)  Receives more than fifty per cent of its
gross income derived from qualified research; provided that the income is
received from:



(i)  Products sold from, manufactured in, or
produced in the State; or



(ii)  Services performed in this State.



(2)  Does not include:



(A)  Any trade or business involving the
performance of services in the field of law, architecture, accounting,
actuarial science, consulting, athletics, financial services, or brokerage
services;



(B)  Any banking, insurance, financing,
leasing, rental, investing, or similar business; any farming business,
including the business of raising or harvesting trees; any business involving
the production or extraction of products of a character with respect to which a
deduction is allowable under section 611 (with respect to allowance of
deduction for depletion), 613 (with respect to basis for percentage depletion),
or 613A (with respect to limitation on percentage deplet­ing in cases of oil
and gas wells) of the Internal Revenue Code;



(C)  Any business operating a hotel, motel,
restaurant, or similar business; and



(D)  Any trade or business involving a
hospital, a private office of a licensed health care professional, a group
practice of licensed health care professionals, or a nursing home.



"Qualified research" means:



(1)  The same as in section 41(d) of the Internal
Revenue Code; or



(2)  The development and design of computer software
using fourth generation or higher software development tools or native
programming languages to design and construct unique and specific code to
create applications and design databases for sale or license; or



(3)  Biotechnology;



provided that more than fifty per cent of the
business' activities are qualified research.



"Venture capital investment" means
any of the following investments in a qualified high technology business:



(1)  Common or preferred stock and equity securities
without a repurchase requirement for at least five years;



(2)  A right to purchase stock or equity securities;



(3)  Any debenture or loan, whether or not convertible
or having stock purchase rights, which:



(A)  Is subordinated, together with security
interests against the assets of the borrower, by their terms to all borrowings
of the borrower from other institutional lenders;



(B)  Is for a term of not less than three
years; and



(C)  Has no part amortized during the first
three years;



(4)  General or limited partnership interests; and



(5)  Membership interests in limited liability
companies. [L 2000, c 297, pt of §33]