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Wednesday, July 25, 2012
July 25, 2012 News Read
By Andrew Walden @ 4:45 PM :: 6278 Views

Audit: State Gave Away $1B Act 221 Tax Credits Without Verification of Eligibility

Judge reviews Hawaii's gay-marriage ban
SA: The two teams also disagreed on their interpretations of major court decisions.
William Wynhoff, a deputy attorney general representing Fuddy, argued that a 1972 refusal by the U.S. Supreme Court to hear a Minnesota case involving a denial of same-sex marriages requires a dismissal of the Hawaii lawsuit.
But Girard Lau, Abercrombie's deputy attorney general, argued that the 1972 case doesn't apply because it dealt with discrimination based on gender and not sexual orientation. Also, Minnesota did not have a civil unions law, Lau said.
John D'Amato, lawyer for the couple, Nata­sha Jackson and Janin Klein, and for Gary Bradley, argued that the state has no rational basis in allowing same-sex couples here to have the same rights as married couples under the civil unions law yet deny them the right to be married.
Dale Schowengerdt, attorney for Hawaii Family Forum, a Christian organization, argued that the passage of the civil union legislation does not mean that Hawaii marriage laws are unconstitutional.
Attorney Clyde Wadsworth, who represents Equality Hawaii and the Hawaii LGBT Legal Association, urged the judge to reject the arguments by Fuddy and Hawaii Family Forum.
After Giving $1B to Act221 Scammers, Abercrombie Tries to Seize $500M from Real Tech Companies
HNN: The state said Expedia, Travelocity and other online travel companies owe more than $500 million for failing to pay their share of the hotel room tax.
In recent filings in state Tax Court, the state Attorney General's office said the online firms collected tens of millions of dollars in state hotel room and general excise taxes for more than a decade.
But none of that money ever went into Hawaii's tax coffers, the state said.
"I think it's fair to say that this is the biggest tax appeal case we've had in many years," said Supervising Deputy Attorney General Hugh Jones.
$1B Tax Credit Scandal: Star-Adv Refuses to name names
SA: Fukunaga, who was co-chairwoman of the Senate Ways and Means Committee at the time the tax credit was passed in 1999, said it was originally a much different tax credit with only 10 percent and a cap of $500,000.
"(The original law) was a very modest attempt to say we think encouraging technology business to locate in Hawaii is going to be important," she said, adding that the plan was to generate businesses to create more tax revenue.
The law was based on the same model as a successful low-income housing tax credit, and there initially were no problems with it. In 2001, when Fuku­naga was no longer heading the Ways and Means committee, (AND WHO WAS???) the credit was expanded to the $2 million cap and covering 100 percent of the investment.
In 2007, legislators tightened up the reporting and accountability requirements to address concerns about reporting requirements for the tax by the Linda Lingle administration, Fuku­naga said.
"At that time, the data that they did have was so incomplete, and that was why we wanted the reporting requirements," said Fuku­naga, who was chairwoman of the Economic Development and Technology Committee at the time. "Everything that people told us would enhance the quality of the reporting was what we included."
In a response to the audit, Fred­er­ick Pablo, director of the Department of Taxation, said three tax directors led the department at the time of the credit (NAMES???). He was appointed in December 2010. He said the volume of credits increased each year, but office resources did not and the office was dealing with frozen positions and two years of furloughs.
read … Cover-up
State government is flush; private sector, not so much
Shapiro: Gov. Neil Abercrombie's chest-thumping on the improving economy is more political theater than fiscal miracle — and perhaps premature, as Hawaii's general prosperity has yet to match the uptick in state revenues….
Abercrombie said it's time to start restoring state services cut during the Great Recession….
But with much economic pain still out there, it's way too early for victory laps, and gloating words will come back to haunt him if the tenuous recovery fizzles.
read … Flush
Sierra Club Criticises Hannemann for Blocking Wind Scammers’ Kahe Project
Sierra Club: “Hannemann’s woeful environmental record as mayor includes: Stopping the Kahe wind proposal….”
Slom: Project Labor Agreements: Costly for Hawaii
HR: Five specific and costly ($519.9 million total) state projects were identified for PLAs by the Governor:
(1) University of Hawai'i – Hilo College of Pharmacy; a $38 million project
(2) Princess Victoria Kamamalu Building: Total project estimated cost is $32.9 million
(3) Maui Regional Public Safety Complex: Total project estimated cost is $225 million.
(4) Ewa Elementary School: This $11 million project
(5) Honolulu International Airport Mauka Concourse Project: Estimated project cost is $213 million.
read … Pay to PLA
Case vs Hirono: Unions Burn Money in Dem Primary
PR: Most of the top labor unions subsequently endorsed Hirono, with one notable exception: The University of Hawaii Professional Assembly supported Case.
The faculty union has backed up its endorsement with a six-figure radio, television and direct mail ad campaign on Case’s behalf.
Primary voters opening their mailboxes over the past several days have found UHPA mailers for Case just as the Hawaii Government Employees Association released mailers on behalf of Hirono.
Meanwhile, Working Families for Hawaii, a labor group that supports Hirono, has bought radio ads critical of Case.
Ben Cayetano: Former governor finds many agree with his position on rail
SA: To state Sen. Sam Slom, the only GOP member of the state Senate, Caye­tano is the only one of the three who "gets it."
"He's the only one that understands the full fiscal implications of what's happening with the city," said Slom (R, Diamond Head-Hawaii Kai). "I've watched all of the so-called debates, and while the other candidates have tried to paint Caye­tano as a single-issue candidate — the rail — he said from the very beginning and he said in every appearance in the media that it's about maintaining the infrastructure of the city."
Slom isn't the only Republican supporting Caye­tano. A Star-Advertiser/Hawaii News Now poll in January showed the two-term Demo­cratic governor with 47 percent support from those who usually vote Republican.
read … Many Agree
Carlisle: Being Mayor is Cool, I got to Meet Dalai Lama
SA: Being mayor has its perks. Just ask Peter Carlisle. In November, he rolled out the red carpet for 21 world leaders from the Asia-Pacific region — including President Barack Obama and first lady Michelle Obama — arriving in Honolulu for the Asia-Pacific Economic Cooperation biannual summit.
The global impact of those high-level talks was still being analyzed when a scant three months later Carlisle found himself welcoming a friend of the world.
"I got to meet the Dalai Lama," Carlisle recalled in a recent interview.
read … Dalai Lama
Beware of accurate information disguised as 'push polls'
Borreca: There are many ways to attack your opponent, ranging from calling the person a cad, to making it appear that the entire state is on the verge of being pillaged by your enemy's family. (For instance, Clayton Hee.)
The days of Mario Cuomo's dictum that you "campaign in poetry" are over. Today the campaign is built with carefully researched, field-tested mud.
Concert promoter had gone bankrupt in 2009
KFVE:  Bob Peyton filed for bankruptcy three years ago and his Windward Oahu house is facing foreclosure.  
In July 2009, Peyton was the promoter for Beauty and the Beast on Ice that featured Russian ice skaters at the Blaisdell arena.  
Records show that the crew and stagehands for the show went to court, claiming Peyton owed them more than $20,000 in unpaid wages for running the show, as well as setting it up and breaking it down.  
The show's crew members were never paid, because just two months later, in Sept. 2009, Peyton filed for Chapter 7 liquidation bankruptcy.  
He told federal bankruptcy court he was belly up. In January 2010, his bankruptcy trustee reported Peyton was allowed to have $941,456 in debt forgiven.  
Records also show Peyton abandoned assets worth $612,602 and had $195,404 in assets protected from creditors, as part of his bankruptcy case that closed Jan. 7, 2010.  
Peyton also may lose his home at 1214 Mokapu Boulevard in Kailua.
Stop Elitist Harassment of Kayak Rental Businesses
CB: I guess if Bob Twogood of Twogood Kayaks can be publicly vilified then absolutely anyone can be.
This man has nothing but my total respect. He's worked very hard over the past 30 years to promote water sports on Oahu. I have kayaked for years and miles with him and his leadership style is a testament to his character. He is diligently responsible and safeguards the reputation of Hawaii’s outdoor experiences by ensuring the pleasure and safety of everyone. I have always felt very secure in any of the ‘Bob-led’ outings and enjoyed his generous ‘aloha spirit’. His type of focused involvement combined with a personal style of undeniable kindness, consideration and a warm sense of humor make him a man that any community should be proud of.
Therefore it is shocking for me to read that he has to a pay a hefty fine but even worse — he is being picketed for trying to save his life’s work from the death knell threats of Bill 11 which intend to outlaw his commercial services at Kailua Beach Park.
The picketers harassing and insulting Mr. Twogood with jeers of "Mr. Too Greedy” appear to have ample time to stand around in front of a workingman's business to complain that he is profiteering. Isn’t it curious that they somehow have the freedom that money provides them to fritter away the afternoon? Did they “profiteer” from working, from the taxpayer’s purse, or was it simply the luck of a silver spoon?
Arguments Against Geothermal Are ‘Absurdly Elitist,’ Says Scientist
CB: Opponents of geothermal were supporting the construction of coal fired power plants on Oahu and did it in the full knowledge that it was coming from the rainforest in Indonesia. It’s absurdly elitist to think that we have a right to destroy other environments to prevent any impact on our local environment. I think it’s just a horrible philosophy to pursue. It basically just perpetuates this idea that we can forever export and defer the impacts on our society. And the whole business of global warming is just one aspect of it. But people who take this attitude that we can’t tolerate any impacts whatever is irresponsible, frankly….
read … The Truth
Hanlon a ‘Strong Supporter of Kihei Mega mall’
MN: Hanlon suggested advocating for a pedestrian bridge over the highway.
Traffic mitigation needs to be among the project conditions developers must comply with "to make sure our road systems are taken care of," he said.
Ing said he was an early opponent of the mega-mall projects.
"I had a bumper sticker that said, 'Respect Kihei, oppose outlet malls,' " Ing said….
Ing said he found it curious that Hanlon mentioned the mall because "from meeting with a lot of unions I was told that he is a strong supporter of the construction of this mall."
Wrecked by Steve Case, Hukilau Fish farm Liquidates
SA: Commercial fisherman Randy Cates founded Huki­lau as Cates International 11 years ago and initially achieved success growing and selling a species of fish once raised in fishponds and reserved for Hawaiian royalty.
But the business stumbled several years ago while trying to aggressively expand.
A $13 million expansion plan included building a hatchery and deploying bigger fish cages to boost moi production to 5 million pounds a year — a roughly fourfold increase and enough to generate an estimated $20 million in annual sales.
Case stepped in to help finance the expansion in a 2006 deal in which he acquired a controlling 51 percent stake in the company and re-branded it as Huki­lau.
Visionary paid $500,000 for control, and up until bankruptcy had invested $8.9 million in the aquaculture venture.
But hatchery delays plagued the expansion, and there also were fish production and survival problems. Huki­lau hadn't harvested fish since early last year. In May 2011 one of its divers, Jeffrey Bar­bi­eto, died in an accident while working on an empty cage in the ocean. Huki­lau violated 19 safety and health requirements pertaining to the "preventable" tragedy, according to the state Department of Labor and Industrial Relations' Hawaii Occupational Safety and Health Division.
Cates blamed Visionary for ruining the business. He sued Visionary in June 2010 and was removed as company president shortly thereafter.
Cates remained a minority shareholder in Huki­lau, and has agreed to a proposed settlement of his lawsuit in which he would receive undisclosed company assets.
Fare Hikes, Bus Cuts and Rail Go Hand in Hand
Boston, MA Hundreds protest MBTA cuts, fare hikes (Hey! Isn’t that where Grabauskas is from?)
Big Island food stamp use doubles
WHT: Pick five Hawaii County residents out of any supermarket checkout line and chances are good that at least one is buying groceries with food stamps.
Use of food stamps in Hawaii County has more than doubled since 2007, according to numbers provided by the state Department of Human Services. Five years ago, 21,378 residents used food stamps to supplement their grocery costs on the Big Island. Today the number is 43,135, with a county population of 186,738.
Will HPD Release Personnel Records on Indicted Officers?
CB: Maj. Carlton Nishimura had been indicted in February 2011 by a federal grand jury for corruption, tampering with a witness, and taking bribes for giving illegal game room operators tips before raids. He later was re-arrested for allegedly dealing methamphetamine out of his home.
At the same time, a second veteran officer, Boyd Kamikawa, had pleaded no contest to charges of drunken driving and twice driving with a revoked license.
We asked for basic employment information about both officers, including their job descriptions, education and training backgrounds, and previous work experience.
But the department rejected our request, citing the "undercover" officer exemption in the law.
read … Open Records?
Global Horizons CEO Speaks Out About Human Trafficking Allegations - and the Justice Department's Decision to Drop the Charges
HR: “I got a phone call from my lawyer and he said they agreed to dismiss the charges and it’s over. Honestly I just stopped the car and my hands were shaking and I just had tears coming from my eyes. It was the first time (I cried) even when bad things happened. I was just – you know – uncontrollable,” Orian said in an exclusive interview with Hawaii Reporter on July 24, 2012….
When French disappeared in the middle of the Sous’ trial after what many observers thought was a disastrous and disorganized presentation of the case against the Sous, Orian maintained she left the Sou trial “under a cloud of ethical suspicion.” He also maintained she had a personal vendetta against him.
“But you know, who ever made the decision to destroy my life, succeeded. Because they shot me down, they humiliated me and it’s going to take me a long time to get back on my feet.”
New Hotel Proposed for Waikiki
SA: Waikiki may soon see its first new high-rise hotel in more than three years.
A California developer plans to start construction on a 34-story tower with 459 condominium-hotel units at the corner of Kuhio Avenue and Kalai­moku Street as early as March.
The $275 million project is teed up to be the first new hotel built in Waikiki since Trump International Hotel Waikiki Beach Walk opened in late 2009, and would expand Hawaii's premier visitor destination, which is bursting with record numbers of tourists.
Developer Pacrep LLC published a draft environmental assessment with the state Monday, saying the project tentatively referred to as 2121 Kuhio Tower would create jobs and help house a growing number of tourists.
read … New Hotel
Star-Advertiser attorneys ask court to expedite governor's appeal on fees
SA: Attorneys for the Honolulu Star-Advertiser this afternoon filed a motion with the Hawaii Intermediate Court of Appeals asking for an expedited ruling on Gov. Neil Abercrombie’s appeal of attorney fees awarded to the newspaper in the judicial nominees case.
Homeless Complains about being Kicked out of Shelter that is Killing Him
CB: I am a wheelchair-bound, handicapped man with diabetic complications, including recurrent staph infections from the bedbug bites I got from the shelter. It is oppressive for you to kick a vulnerable poor person like me out of the shelter for minor violations of absurd, petty, inconsistent rules. You have never suffered modest circumstances in your whole life, and thus it is hard for you to comprehend how devastating it is to banish me to the streets, where I have no place to even charge my electric wheelchair. However meager the protection of the shelter is, it is still protection from the streets. What you have done is counter to all values of fairness, decency and justice. You treat people with disabilities as if you are superior to them, but you exhibit more mental illness than the sickest person in the shelter, because you are actually attacking defenseless people.
read … Demanding
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