STAND. COM. REP. NO. 2551

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2409
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2409, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to exempt certain activities
of call centers from taxation.

     Testimony in support of this measure was received from the
Governor's Office, Chamber of Commerce of Hawaii, and the High
Technology Development Corporation.

     Your Committee finds that today's technically advanced
products and services require highly trained customer support
personnel.  Call centers, which use sophisticated call routing
and wideband high speed data lines, provide these support
services with computer-aided design and other engineering
technologies.  Call center operations offer an excellent
opportunity for Hawaii in the ever expanding customer service
market, while Hawaii provides a central location for companies
doing business in the United States and Pacific Rim countries.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of
S.B. No. 2409, S.D. 1, and recommends that it pass Third Reading.


 
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                                   STAND. COM. REP. NO. 2551
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                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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