May 17, 2026 News Read > Hawaii Free Press

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May 17, 2026 News Read
By Andrew Walden @ 8:16 AM :: 148 Views

Tax Bills: Follow the Yellow Brick Road

JSC Seeks Nominees for Supreme Court Justice

Kauai Suit Challenges Delays in Gun Permits

More housing reforms for Hawaii

Priced Out of Paradise: The housing crisis in Hawaii

Star-Adv: Hawaii Medicaid fraud enforcement ‘worst in the nation’—has been for years

SA: … over policing Medicaid fraud, data shows Hawaii’s recent record on the subject is in some respects worst in the nation.

In each of the last four years, Hawaii’s Medicaid Fraud Control Unit has produced no indictments and no convictions for fraud — something no other state has done….

According to a 2019 report by the Office of Inspector General at the federal Department of Health and Human Services, Hawaii’s MFCU had “low case outcomes” and operational issues from 2016 to 2018.

And the 2019 analysis followed a similar one in 2015 that examined operations from 2011 to 2013 and raised concerns about the ability of Hawaii’s MFCU to carry out its statutory functions and meet program requirements….

The Hawaii unit took corrective actions after the 2015 and 2019 reviews, but since 2022 the volume of Medicaid fraud indictments and convictions dropped from few to none….

From 2011 to 2013, Hawaii’s MFCU produced nine Medicaid fraud indictments or convictions, including zero indictments and one conviction in 2011.

As part of a periodic on-site study of Hawaii’s MFCU in 2015, federal officials found serious deficiencies …

“Furthermore, the Unit did not regularly communicate with federal law enforcement agencies, it worked cases outside of its grant authority, and it did not exercise adequate fiscal control of its resources,” the report said….

The 2019 report recognized that Hawaii’s MFCU produced 33 civil settlements and judgments and was obligated to receive $4.3 million from defendants in all cases from 2016 to 2018.

The report, however, noted that $4.1 million of the $4.3 million was from “global” settlements or judgments derived from work involving the U.S. Department of Justice and a group of state MFCUs coordinated by the National Association of Medicaid Fraud Control Units.

Additionally, the report said only 10 of 331 Hawaii MFCU cases for the same three years weren’t global civil fraud cases….

The report said DHS, as the expected predominant source of fraud referrals to the MFCU, was making relatively few, including only nine from 2013 to 2015.

According to a 2014 federal review of DHS Medicaid operations cited in the 2019 Hawaii MFCU report, a DHS Medicaid program integrity unit had three full-time staffers, didn’t adequately mine data and didn’t routinely conduct preliminary investigations or refer suspected fraud cases to the MFCU.

The federal reviewers also faulted the fraud unit for conducting insufficient outreach to generate and encourage referrals of suspected fraud from the public and other stakeholders, and for not meeting regularly with DHS or managed-care organizations.

“We found that the lack of regular meetings constituted a missed opportunity for the MFCU to educate (DHS) about its role and provide guidance on the information needed in fraud referrals,” the report said.

Another problem with referrals cited in the report was too many bad ones related to Medicaid beneficiary abuse and neglect.

As part of its role policing such treatment, the MFCU relies on DHS’ Adult Protective and Community Services Branch for referrals. But the report said branch staff didn’t screen public complaints for credibility or in many cases for complete information before forwarding them to the MFCU, unlike most states.

So the fraud unit received thousands of complaints unsuitable for investigation that diverted resources from work on cases with substantial potential for criminal prosecution, according to the report, which said less than 5% of 5,948 such complaints received from 2016 to 2018 led to an MFCU investigation….

Community resistance was another factor in the unit’s low fraud caseload, according to the report, which said MFCU staff cited a tendency for some stakeholders to protect others, including service providers, from law enforcement.

“In interviews, MFCU staff reported that there is a ‘cultural resistance’ to reporting providers in Hawaii,” the report said. “Staff explained that many communities on the Hawaiian Islands are small and isolated, with limited access to providers, which sometimes makes people less willing to report provider fraud.”…

Federal reviewers concluded that the DHS Adult Protective and Community Services Branch reformed its poor referral procedures and that the MFCU from 2020 to 2022 had implemented recommended corrective actions.

A bright spot was noted in 2019 when Hawaii’s MFCU reported obtaining four fraud convictions, including one resulting in a $3.8 million recovery.

But then fraud indictment and conviction volume fell to zero in 2020 before rebounding to four convictions and one indictment in 2021 before four straight years of none….

PDF: HHS OIG Letter to Attorney General of Hawaii Re MFCU Oversight | PDF | Government | Federal Government Of The United States

SA: Lopez did not dispute the assertion regarding indictments or convictions, but countered that has helped to secure judgments, settlements and recovery of funds in 25 cases.

Read … Hawaii’s fight against Medicaid fraud plagued for over a decade | Honolulu Star-Advertiser

Property tax hikes eyed: Hawaii County faces $15 million budget deficit

HTH: … The Hawaii County Council will hold a public hearing Tuesday to consider raising property tax rates for nonresidents and those with second homes in an effort to close the gap on an estimated $15 million budget shortfall.

Proposed rate hikes for the next fiscal year would predominantly affect non-owner-occupied homes, with the largest increase levied on properties worth $2 million and above — known as the “tier two” residential tax rate. This rate would rise from $13.60 to $15.00 per $1,000 of taxable value....

The “tier one” residential tax rate, which applies to properties worth less than $2 million, would increase from $11.10 to $12.10 per $1,000 of taxable value.

Additionally, the upcoming fiscal year will be the first to see a new “tier three” residential tax rate implemented, which applies to high-value second homes and investment properties worth more than $4 million.

This “luxury” rate was established with the council’s passage of Bill 128 on March 4 with a 5-1 vote in favor. It’s proposed to be set at $17.00 per $1,000 of taxable value. Revenue generated from this novel tier will be directed toward local affordable housing and homelessness programs.

At the same time, many residents will see a slight reduction in their property taxes. Under the new proposed rates, the vast majority of owner-occupied homes and affordable rental housing will receive a $0.20 (or just over 3%) reduction in tax rates, falling from $5.95 to $5.75 per $1,000 of taxable value….

Read … Property tax hikes eyed: County faces $15 million budget deficit - Hawaii Tribune-Herald

Corporate personhood bill just a distraction from latest Legislative Bribery Scandal

SA: … The concept has circulated nationally and legislation has been introduced in more than a dozen states, but Hawaii is the first to pass a law and take on the legal challenges with Green now on board despite his AG’s reservations.

A potential downside is that inviting a more conservative Supreme Court to revisit Citizens United could lead to even more onerous rules.

While betting on a legal longshot, the Legislature gave its usual short shrift to popular measures that would help curtail bribery scandals bedeviling local officialdom, reduce special-interest influence and level the playing field in local elections.

High-impact changes such as term limits for legislators, full public financing of elections and open primaries got scant attention except for a small funding increase for the state’s existing anemic public financing program.

Despite the 2022 bribery convictions of state Sen. J. Kalani English and state Rep. Ty Cullen, and the recent leave of absence by Lt. Gov. Sylvia Luke after she received a target letter in a bribery probe, only one of nine antibribery laws considered this session passed — an extension of the statute of limitations for bribery….

Read … Column: End run on Supreme Court likely to draw a penalty flag | Honolulu Star-Advertiser

HB1961: Abortion Clinic Protest bill raises free speech debate

SA: … House Bill 1961 passed the Legislature this session and has gone to Gov. Josh Green for his signature or veto. It makes it unlawful for someone to intentionally, knowingly or recklessly interfere with access to a healthcare facility or disrupt its operations through physical obstruction, repeated disruptive phone calls or threats against patients, workers, owners or property.

Supporters say the measure protects people seeking medical care, especially at places like Planned Parenthood, which is frequently targeted by opponents of abortion.

Critics cite First Amendment concerns because, they say, the bill classifies such behavior as a petty misdemeanor, criminalizing demonstrators’ right to free speech and assembly if someone believes they were harassed or intimidated by speech that falls short of typical criminal activity such as threatening to harm, injure or kill someone….

HB1961: Text, Status

Read … Patient access bill raises free speech debate | Honolulu Star-Advertiser

Retaliation: Soft on Crime Rep Tarnas Gets Payback

CB: … DeCoite’s bill, Senate Bill 2575, would under the House draft have boosted the penalty for possessing, controlling or transferring ownership of any firearm or ammunition by someone who is restrained by court order from “contacting, threatening, or physically abusing any person.” The bill would have upped the crime from a misdemeanor to a class C felony. It was supported by, among others, the Maui Police Department and the county’s prosecuting attorney. DeCoite represents parts of Maui County.

But in conference the Senate wanted to change the bill so that people caught with a firearm would be subject to a harsher Class A felony. Tarnas, the chair of the House Judiciary and Hawaiian Affairs Committee, would not budge on amending the bill further.

“I know the police chiefs were really pushing it,” he told The Blog last week. “They even framed it as a bill in honor of a fallen police officer who was killed on duty.”

Tarnas, however, told them that the bill would have no impact at all on that offense. He also said the Senate was pushing for a mandatory minimum penalty of 10 years — even though Tarnas has consistently opposed mandatory minimums.

“I don’t believe that they are effective,” he said. “I think I want to maintain the ability of judges to decide what is the best sentence in the case.”

DeCoite, who didn’t return The Blog’s call last week to share her side of the story (shocker), then killed a bill championed by Tarnas.

That one, House Bill 1628, would have made it easier for compassionate release for some ill or seriously debilitated incarcerated persons. DeCoite, the Ways and Means Committee conference designee on compassionate release, killed it by simply and repeatedly not showing up to discuss the bill — even though she and the entire Senate had voted to approve the Senate’s version of the bill just weeks earlier.

Capitol insiders are also blaming DeCoite for killing another Tarnas bill, House Bill 1516, which would have required certain factors to be considered when determining a defendant’s financial ability to afford bail.

House and Senate conferees actually were able to agree on a conference draft of HB 1516 and pass it early during the conference period. But then, in an unusual development, the Senate voted to recommit the bill — that is, kill it as time ran out — during a floor vote May 1. The 13 senators voting no included DeCoite….

Read … The Sunshine Blog: Did A State Senator Kill A Rep's Bill Out Of Spite? - Honolulu Civil Beat

Only 3% of our housing has been built since 2010

CB: … All of our conversations around housing in Hawaiʻi are almost exclusively around how we build new housing. We have like a hundred different rules on giving permission for developers to build housing. We have a lot of concern about what types of housing they’re building, where they’re building it. We spend years giving out permits and having public meetings on these debates. But one point is that only 3% of our housing has been built since 2010. So we’re maybe missing like 97% of the problem. And I think the issue is even more pronounced because brand new housing does tend to be more expensive….

Read … The Sunshine Interview: UHERO Economists Drill Down On Housing Policy - Honolulu Civil Beat

Hawaiʻi Republicans: We Need The 'Trump People' To Turn Out The Vote

CB: … Should the GOP grow its numbers beyond the 11 in the 51-member state House and three in the 25-member Senate, it could have a serious impact on policy.

Rep. Diamond Garcia, who served as the convention chair, told over 100 delegates that it’s doable.

“There is momentum growing,” he said. “People want change.”

But to change minds, delegates also heard at the convention, candidates need to focus on key issues rather than be distracted by lesser priorities.

The top issues, said Daniel Silver, CEO of a political technology, marketing and data company called Right Insight, are “protecting ʻohana” — that is, crime and safety — and “keeping Hawaiʻi affordable” — that is, cost of living, which includes keeping young people from leaving for the mainland.

“That hits home every time,” he said, saying it was a sentiment that crosses party lines. “That hits the moms hard.” …

Read … Hawaiʻi Republicans: We Need The 'Trump People' To Turn Out The Vote - Honolulu Civil Beat

Mainland Honolulu Police Chief ‘Candidate’ Investigated In Georgia Over Conduct

CB: … Former Glynn County, Georgia Police Chief Scott Ebner, now a finalist for the Honolulu chief job, has been under investigation for months over allegations of inappropriate behavior with a subordinate but apparently failed to mention that to a hiring consultant who recommended him as a top candidate for the Honolulu job.

When asked directly about the ongoing investigation last week by Civil Beat, Ebner professed not to know anything about it and denied he was under investigation.

“That’s not the case,” he said.

Civil Beat confirmed a complaint was filed in early August against Ebner alleging inappropriate conduct between him and Stephanie Oliver, an assistant chief, who he had promoted. Civil Beat also confirmed an independent investigator was hired by Glynn County a month later and that both Ebner and Oliver were notified of the complaint and investigation, which is still open….

(CLUE: Lambert is already picked as Chief. The two mainlanders are just window dressing.)

CB: Will Caron: Pay No Attention - Honolulu Civil Beat

KITV: HPD Chief Candidate Mike Lambert highlights local experience in roundtable Q&A | News | kitv.com

Read … Honolulu Police Chief Candidate Investigated In Georgia Over Conduct - Honolulu Civil Beat

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