Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 744

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


     Your Committees on Economic Development and Education and
Technology, to which was referred S.B. No. 744 entitled: 


beg leave to report as follows:
     The purpose of this measure is to exempt certain activities
of call centers from taxation.

     Your Committees received testimony in support of this
measure from the High Technology Development Corporation,
Hawaiian Electric Company, and The Estate of James Campbell.  The
Department of Business, Economic Development, and Tourism and the
Department of Taxation testified in support of the intent of the

     Your Committees find that call centers offer Hawaii an
opportunity to develop in the rapidly expanding area of technical
support and customer service.  Currently, Hawaii's fledgling call
center industry is composed of a small number of companies
employing primarily engineers, programmers, and computer support
positions.  Future opportunities may include centers with medical
personnel to support medical equipment in other countries and
disaster relief personnel to assist in disaster recovery efforts.

     Your Committees have heard that in this highly competitive
field, Hawaii's location is a distinct advantage, but that
Australia is already developing a strong Asia-Pacific market.
Your Committees are supportive of efforts to attract new and

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diversified businesses to Hawaii, and believe this measure will
aid in the State's marketing and expansion of a call center

     As affirmed by the records of votes of the members of your
Committees on Economic Development and Education and Technology
that are attached to this report, your Committees are in accord
with the intent and purpose of S.B. No. 744 and recommend that it
pass Second Reading and be referred to the Committee on Ways and

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Economic
                                   Development and Education and

____________________________       ______________________________
DAVID Y. IGE, Chair                LORRAINE R. INOUYE, Chair

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