Foreclosure Reform Bill Passes Final Floor Vote

House Bill 1875 HD2 SD2 CD1, amending the mortgage foreclosure law to provide additional protections for Hawaii’s homeowners, passed its final floor vote before the full House and Senate today with a combined vote of 73 Ayes and 3 Noes.

"Once again, we won one for the homeowners, and I couldn't be more pleased," said Rep. Robert Herkes (District 5 – Puna, Ka'u, South Kona, North Kona) who serves as the Chair of the House Committee on Consumer Protection and Commerce.  "The bill we passed last year had its critics, but our primary focus was always on helping and protecting the homeowner."

Last Session, Governor Abercrombie signed Senate Bill 651 into law as Act 48 to protect Hawaii owner-occupants from predatory tactics of financial lending institutions.

The mortgage foreclosure task force – a legislatively created group composed of stakeholders with diverse interests including consumer advocates and professionals representing and affected by the mortgage industry, did a thorough, comprehensive analysis of Act 48.  Their recommendations to refine Act 48 and to otherwise preserve the intent and spirit of the law were presented in HB1875.

The task force recommended that the legislature:  (1) temper the provision relating to the Unfair Deceptive Acts or Practices (UDAP) law so lenders need not fear UDAP liability for minor violations;  (2) make permanent the process allowing owner-occupants to convert their non-judicial foreclosure to a judicial foreclosure; (3) establish a separate non-judicial foreclosure and lien collection process for associations; (4) give similar rights and obligations to planned community associations; (5) provide specific language for informational notices to the public on the foreclosure process; and (6) provide technical clarifications and improvements of various provisions in Act 48.

The legislature adopted virtually all of the task force recommendations – with a few modifications and further amendments. 

The bill fully repeals the Part I non-judicial process which was the mechanism used to non-judicially foreclose on homeowners before its moratorium under Act 48.

Under HB1875, a comprehensive lien collection and foreclosure process for condominium, homeowner, and planned community associations is established, which is in harmony with Hawaii's mortgage foreclosure process.

The bill also calls for lenders' attorneys filing judicial foreclosures on residential property to sign an affirmation stating that she or he verified the bank's legal standing as well as the accuracy of the documents submitted to court.  This requirement is akin to a court rule that has been applied to all judicial foreclosures in New York State. 

The publication requirements for auction notices will also be revised to encourage competitive pricing while balancing the need for broad dissemination of auction information. 

State agencies will also be authorized to publish auction notices electronically for a significantly lower price than print notices; so long as one print notice (as opposed to three) is published at least two weeks prior to an auction sale.  The DCCA will spearhead this effort by creating a website for property subject to the dispute resolution program. 

House Bill 1875 also makes the dispute resolution program permanent.

HB1875 may be viewed at:

http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=1875

Mobile Medical Van Brings Healthcare to Big Island Rural Communities

On March 10, there was a ceremony held in Kona for the blessing of a new mobile medical van, Kaa Hoola (Hawaiian for vehicle of revitalization and well-being), that will benefit rural communities in Hawaii County that are currently without any medical services. The event was the culmination of 10 years of effort by Rep. Bob Herkes, the legislature, Kona Community Hospital and HMSA. 


The van will be owned and operated by the Kona Community Hospital and funded by HMSA for the first two years. The 32 1/2 foot van has an exam room, indoor and outdoor reception areas, a lab, and refrigerated storage areas. 


The initial use for the van will be to provide screening, testing, preventative education, physical examinations, and vaccinations for school children in Ka'u, beginning at Pahala Elementary. The project will eventually offer these services to all members of the communities. 

The launching of Kaa Hoola is a testament to what years of sustained efforts by a coalition of dedicated individuals can accomplish. The people of South Kona finally have access to medical services.

Mortgage Foreclosure Bills 2012

House Foreclosure Bills Press Release

What we learned from Act 48 - Rep. Herkes responds to criticism of Foreclosures Act

*Note: The following opinion piece was submitted to the Honolulu Star-Advertiser, which declined to publish it.  We've decided to post it here.

Last Thursday[1], this paper reprinted old news about Act 48.  We already knew the foreclosure rate dropped 50-60%.  We already knew the banks are foreclosing through the courts to avoid penalties for fouling up the new non-judicial process.

We can only speculate why the repeat messaging; and why this paper is so intent on spinning Act 48 as a failure.  Their editorial last Monday[2] provides some clues.  Its title, “Reform law to let lenders, borrowers settle homes fairly” presumes Act 48 isn't "fair" to lenders.  What they're really talking about is a loss of privilege.  In light of all the illegality, we were obligated to limit their license to self-police. 

Remember - almost half the other states disallow non-judicial foreclosures.  Banks only started foreclosing non-judicially in Hawaii after a law was passed in 1998.  But there's a twist to the legislative history - which this paper aptly explained[3] in 2010:  the 1998 law was so defective, it went unused - only to revive an arcane law from 1874.  The Star Bulletin reported[4] the 1874 law was created to drive Native Hawaiians off their land.  Title insurers resigned to work with that law and helped lenders develop a non-judicial "practice" that was palatable to them.

After the economy tanked, the mainland banks became desperate for capital and our so-called "law" made Hawaii a perfect target.  Act 48 stopped the hemorrhaging under the 1874 law and fixed the 1998 law the banks pushed so hard for just fourteen years ago.  That's all the time it took for lenders to consider the 1874 fast-track their right.  How rude of us.

Here's another strange statement from the editorial: "While delinquent homeowners might have been helped by the resulting sharp decline in foreclosures, the change in recent months could prolong the negative effects on the housing market."   Huh? 

Let me break down the cause and effect.  Act 48 guarantees third-party oversight in owner-occupant foreclosures - in court or dispute resolution.  No more free rides on the 1874 express.  The new express train requires banks to show their legal standing to foreclose - or they're thrown off.  That frightening prospect resulted in the sharp decline of foreclosure activity.  By slowing down the rate of wrongful, fraudulent, and avoidable foreclosures, we've stopped a flood of inventory from dragging down home prices and keeping folks from going further underwater.  I doubt Hawaii's homeowners view this as a "negative." In fact, that is a "negative" our Federal Reserve[5] is trying to achieve.  The prestigious Council of State Governments also recommended that states enact their own Act 48[6].

Simply asserting there are "negative effects on the housing market" without explaining what they are is an insult to readers.  Ironically, the editorial was printed the same day Paul Brewbaker lectured the legislature on Hawaii’s economy.  He spoke at length about Hawaii's housing market, emphasizing that Oahu's prices are slowly stabilizing and that neighbor island prices are tracking the market on the mainland.  He didn't mention any "negative effects" specifically created by Hawaii's Act 48.  There are more colossal market forces at play.

I have grown tired of arguments that rely on fabrications and baseless doomsday scenarios.  We cannot ignore the rule of law because someone affected (a realtor, banker, mortgage broker?) claims it's bad for business.

Resolution to this crisis cannot rest solely on the simpleton's question to troubled homeowners: "did you pay your mortgage?" We also need to be asking the banks:  "did you cheat?"

Pay attention this legislative session.  We're going to apply what we've learned from Act 48's shake-out - and do what is best for Hawaii's people.

---

[1]http://www.staradvertiser.com/businesspremium/20120112_2011_law_has_lenders_opting_to_foreclose_in_court.html

[2] http://www.staradvertiser.com/editorialspremium/20120109_Reform_law_to_let_lenders_borrowers_settle_homes_fairly.html?c=n

[3] http://www.staradvertiser.com/news/20100725_Foreclosures.html?id=99191739

[4]  http://archives.starbulletin.com/2003/11/16/news/perez.html

[5] http://www.federalreserve.gov/newsevents/speech/raskin20120107a.htm

[6] http://ssl.csg.org/dockets/2013%20cycle/33adocmins/minutes33Aoct2011.pdf

"Da Night Bafo' Christmas"

Speaker Calvin Say hosted the annual House Christmas lunch yesterday, where members and staff, Democrat and Republican, come together to share Hawaiian luau. At this event, the members serve lunch and perform for the employees.  Rep. Bob Herkes (below) brought down the "House" with a rendition of Twas the Night Before Christmas, local style:

"Da Night Bafo' Christmas"

Was da night bafo' Christmas, and all ova' da place,
Not even da geckos was showin' dere face.

Da stockings was hangin' on top da TV
(Cause no mo' fireplace in Hawai'i.)

Da kids stay all crashed, my old man too.
Dey leave all da work fo' you-know-who.

So me, I stay pickin' up all dea toys,
When - boom! - outside get only big noise!

I run to da window, I open 'em up.
I stick out my head and I yell, "Eh! Whassup?!"

And den, I no can ba-lieve what I seen!
Was so unreal, you know what I mean?

Dis fat haole guy get his reindeers in my yard!
And reindeer not housebroken, you know, as' why hard!

But, nemmind, dis Christmas.  So, I cut 'em some slack.
Plus, had uku pile presents pokin' outta his sack!

So, I wait till he pau tie up his reindeer.
Den I yell out da window, "Huui! Brah, ova hea!"

An' I tell 'em first ting, when I open da door,
"Eh, hemo your shoes!  You going dirty my floor!"

He take off his boots, he tell, "You know who I am?"
I go, "Ho! From da smell, must be Mr. Toe Jam!"

He make mempachi eyes and he go, "Ho, ho, ho!"
By now, I stay thinking dis guy kinda slow!"

He look like my Tutu, but little less weight.
And his beard stay so white, mo' white than shark bait!

He stay all in red, specially his nose,
And get reindeer spit on top his nice clothes!

But him he no care; he just smile at me,
And he start fo' put presents unda-neat da tree.

I tell 'em, "Eh, brah, no need make li' dat.
And watch were you step!  You going ma-ke da cat!

Den, out from his bag, he pull one brand new computah,
Choke video games, and one motorized scootah!

He try for fill up da Christmas socks too,
But had so much pukas, all da stuff went fall troo!

When he pau, I tell 'em, "Eh Santa, try wait!
I get plenny leftovahs, I go make you one plate!"

But, he nevah like hang, he had so much fo' do.
Gotta make all dem small kids' wishes come true.

So I wave 'em goodbye, and I flash 'em da shaka,
And I tell 'em, "Mele Kalikimaka!"

When he hear dat, he stop...and I tellin' you true.
He go, "Garans, ball-barans! Merry Christmas to you!"

"Foreclosure grousing validates new law"

Rep. Bob Herkes' op-ed appeared in the Sunday Honolulu Star-Advertiser on October 30, 2011.

I commend the Star-Advertiser's Andrew Gomes for his coverage of Act 48, Hawaii's foreclosure reform. However, his article last Sunday, especially its headline, misses the mark ("New law flounders," Star-Advertiser, Oct. 23).

Criticism from lenders' attorneys shows this law is hitting them right in the pocketbook. Clearly, the loudest complainers are those who once profited from Hawaii's weak foreclosure laws.

Economist Paul Brewbaker and others have stated that Act 48 is a "failure" because banks are avoiding the dispute resolution program by refusing to foreclose non-judicially.

I disagree with such a narrow definition of "failure." On Oct. 13, Gomes reported that the overall foreclosure rate dropped 74 percent from a year ago. On Oct. 4, this paper reported that bankruptcies also plummeted, citing Act 48 as the likely cause.

The purpose of Act 48 is to level the playing field between lenders and borrowers in foreclosure. Act 48 has achieved that purpose.

Before Act 48, a home could be sold at auction in less than a month without the borrower's knowledge. Lender abuse was so rampant, the bill exploded to 100 pages so that we could address all the abuses. One bank was even so bold as to threaten a Hawaii legislator.

Because of Act 48, the old no-integrity-fast-track, non-judicial process is no longer available. Banks now seem to be either pursuing their foreclosures in court, where third-party oversight is ensured; or, they're actually working with homeowners without resorting to foreclosure.

Critics say the new non-judicial process is too onerous with too many details and requirements. Given the abuses, it's clear these details are necessary to protect homeowners.

One deterrent to going non-judicial is Act 48's Unfair or Deceptive Act or Practice (UDAP) provision that could put banks and their lawyers on the hook for triple damages for violations of the law. They say they can't handle the liability for a missed deadline or wrong font size. If the lawyers can't read a calendar or use a word processor, maybe they shouldn't have the privilege of taking someone's home without court oversight.

But I don't think it's the font or deadlines they're really worried about. What they're afraid to mention -- but is unique to Act 48's non-judicial process -- is the requirement that the banks provide documentation showing they have the legal authority to foreclose. I suspect the lawyers know full well that in many, if not most cases, the off-shore banks can't do this.

In their haste to profit from the loose lending, multiple transfers and the creation and sale of mortgage-backed securities, the banks have lost their paperwork. The media has exposed this. Emerging case law across the country shows that judges are aware of this, too. It is the liability for the banks' greed, carelessness, incompetence and outright fraud that the lawyers really fear.

Brewbaker thinks Act 48 is hurting the housing market, but has no data to back this up. Someone needs to explain to me how holding banks accountable, keeping families in their homes, and not flooding the market with homes repossessed through fraud and deception is not in the best interest of the people in Hawaii.

---

Rep. Robert Herkes (Kau, South Kona) chairs the House Consumer Protection and Commerce Committee.

Rep. Herkes on Act 48

Rep. Bob Herkes is speaking today before the Kona-Kohala Chamber of Commerce on Act 48, a new law passed during the 2011 session to address the mortgage foreclosure issue.

On July 17th, the Honolulu Star-Advertiser published Rep. Herkes' opinion piece. We've copied it here:

'Flaws' in Act 48 are actually teeth to protect homeowners

On Wednesday, this paper reported on a meeting sponsored by collection lawyers to discuss Act 48 — Hawaii's mortgage foreclosure reform ("Attorneys say flaws mar new isle foreclosure law," Star-Advertiser).

It appears this meeting was a gripe session for those who previously enjoyed a free ride on a fast track through a giant loophole in Hawaii's foreclosure law.

Act 48 has taken the wind out of their sails because of its explicit moratorium on a law from the 1800s. That law allowed a bank to sell a home at a foreclosure auction in just four weeks — without requiring the homeowner's knowledge.

Until Act 48, these lawyers used that law to steamroll through the vast majority of Hawaii's foreclosures. That process had virtually no consumer protections, nor any third-party oversight.

With the fraud, deception, mismanagement and mistakes that have come to light during this national foreclosure fiasco, I feel no sympathy.

It's clear these lawyers are going judicial because they have little faith in their ability to follow the new non-judicial law and the integrity it requires.

One lawyer said he receives up to 100 referrals a month. If compensated at Fannie Mae's bargain rate of $1,100 per non-judicial foreclosure, that lawyer could still bring in $110,000 per month. However, Fannie Mae only pays $2,200 per judicial foreclosure — money they might not see for a couple years. Plus, these lawyers actually have to show up and plead their case to a judge. What a hassle! No wonder they're so upset.

They should look at the bright side. The Legislature could have taken the approach the New York courts have — require lawyers to affirm they actually verified the accuracy of the foreclosure papers submitted to the court.

Well, as we say here at the Capitol, "we can fix it next year."

I wonder if the collection lawyers gave any thought to why Act 48 was passed. Let me enlighten them.

This law wasn't passed for the banks who, with the help of Fannie Mae, seduced the unwary, concocted complex investment schemes to line their pockets, pass on the risk, and cheat the investors — the very banks that required the taxpayers to bail them out and keep our economy afloat.

Nor is Act 48 for the unscrupulous real estate agents and mortgage brokers who encouraged people to purchase homes they couldn't afford — whose greed contributed to the inflation of a market wherein the hard-working families of Hawaii can hardly afford a home. Their indulgences added to a housing bubble that was bound to burst.

Certainly, Act 48 was not passed for the collection lawyers, whose fast-track, fast-money non-judicial foreclosure binge is now over.

Let me be clear: Act 48 was passed to protect the consumer. It creates a level playing field for the beleaguered homeowner. It has helped many deserving homeowners, and will do so for many more.

Foreclosures breed foreclosures; and before Act 48, they were pouring right through that non-judicial loophole from the 1800s. To the lament of the collection lawyers, that loophole is now tightly sealed. As chairman of the House Committee on Consumer Protection and Commerce, I have no intention of reopening it.

It is plain to see that the biggest whiners in a post-Act 48 Hawaii are those who can no longer make big fast easy money.

What the collection lawyers are calling the "flaws" of Act 48 are actually "teeth." They are so sharp, the lawyers are running scared into the jaws of the courts.

The people of Hawaii have my pledge that I will do all in my power to support the other branches of government as we address this crisis together — for the consumer.

Act 48 - What's it all about?

The following is provided by the Office of Rep. Robert Herkes, Chair, House Committee on Consumer Protection & Commerce

Act 48 (SB 651) – Executive Summary

Act 48 (SB 651) provides comprehensive amendments to Hawaii's foreclosure processes that provide greater protection and fairness for owner-occupants of homes.

The following summarizes the major provisions concerning mortgage foreclosures.

Temporary Mortgage Foreclosure Dispute Resolution Program

· A 3-year Mortgage Foreclosure Dispute Resolution Program will be in operation no later than October 1, 2011, for nonjudicial foreclosures of residential real property occupied by mortgagors who have been owner-occupants for at least 200 days immediately before the initiation of a foreclosure proceeding.

· The purpose of the program is to reach an agreement that avoids foreclosure or mitigates damages in cases where foreclosure is unavoidable. The program is not intended to provide a bail-out for owner-occupants or prevent all foreclosures.

· If an owner-occupant elects to participate in the Program, the foreclosing mortgagee must participate.

· Under the program, the owner-occupant and mortgagee, or their representatives, must meet in at least one dispute resolution session with a neutral.

· Initial funding for the Program will be provided from the Compliance Resolution Special Fund which amounts will be reimbursed from various filing fees. The Program will then be sustained by continuous funding from these filing fees.

· The DCCA must report to the Legislature prior to the 2012 and 2013 Regular Sessions on the operations and outcomes of the Program.

· Owner-occupants who elect to participate in the Program cannot also convert their nonjudical foreclosure to a judicial foreclosure.

· The Program will sunset on September 30, 2014.

· More information is available on the DCCA website at: http://hawaii.gov/dcca/oah/mfdr/mortagage-foreclosure-dispute-resolution-mfdr-program.

Temporary Conversion Option from Nonjudicial to Judicial Foreclosure

· Until December 31, 2012, there is a stream-lined procedure for an owner-occupant of a residential property subject to nonjudicial foreclosure to convert to a judicial foreclosure except:

o In cases of foreclosures of association liens for condominiums; and

o If the mortgagor has elected to participate in the Mortgage Foreclosure Dispute Resolution Program.

· A phase-in period until August 15, 2011, will allow owner-occupants currently undergoing a nonjudicial foreclosure to convert to a judicial foreclosure provided that the nonjudicial foreclosure has not been completed.

Temporary Moratorium on Certain Nonjudicial Foreclosures

A moratorium on new nonjudicial foreclosures under the old nonjudicial process (Chapter 667 Part I) will be in effect until July 1, 2012.

Permanent Amendments to the Nonjudical Foreclosure Process

· Personal service of a nonjudicial mortgage foreclosure notice is required.

· The public sale of foreclosed properties may only take place at certain state facilities that are not under the administration of the Judiciary.

· Deficiency judgments are prohibited for most nonjudicial foreclosures.

· Egregious conduct by a foreclosing mortgagee is prohibited. Such conduct includes:

o Completing a nonjudicial foreclosure during the pendency of a bona fide short sale where the offer meets minimum price criteria and escrow is opened and closed during a specified time frame surrounding the noticed public sale;

o Holding a public sale on a date or time or in a place not properly noticed;

o Specifying a fictitious place for the public sale; and

o Completing nonjudicial foreclosure proceedings during loan modification negotiations with the mortgagor or while the mortgagor is being evaluated for entry into a federal loan modification program.

· Nonjudicial foreclosures by junior lienholders will be barred or suspended during the pendency of a nonjudicial foreclosure by a mortgagee in certain circumstances.

Tighter Regulation of Mortgage Servicers

· Mortgage foreclosure actions taken by an unlicensed nonexempt mortgage servicer will be void.

· Starting July 1, 2012, certain large mortgage servicers must maintain an office in Hawaii staffed by at least one agent to address consumer inquiries or complaints and to accept service of process. Mortgage servicers may comply with this requirement by contracting with local entities.

Tonight - Hilo Legislative Wrap Up

Hilo Town Hall Meeting & Legislative Highlights

Community Invited

WHAT: The community is invited to attend a town hall meeting and legislative update hosted by state Representatives Mark Nakashima (District 1 – North Kohala, South Kohala, Hamakua, North Hilo, South Hilo); Jerry Chang (District 2 – South Hilo, Waiakea Kai, Kaumana, Keaukaha); Clift Tsuji (District 3 – South Hilo, Panaewa, Puna, Keaau, Kurtistown); and Bob Herkes (District 5 – Puna, Ka'u, South Kona, North Kona.)

House Finance Chair, Rep. Marcus Oshiro, will also be in attendance to discuss the state budget bill, closing the budget deficit, and how this will impact the public.

WHEN: Tuesday, June 7, 2011

5:30 – 7:30 p.m.

WHERE: University of Hawaii at Hilo

UCB 127 (Ho'oulu Terrace)

WHY: District representatives will report and take questions on the key bills passed by the 2011 Legislature including the state budget, capital improvements, mortgage foreclosures and updates on Big Island issues.

Strongest mortgage foreclosure law in the country

Senator Rosalyn Baker and Representative Robert Herkes with their respective staffs witness the signing of SB651.

That's what people are calling Hawaii's law on mortgage foreclosures after the Governor signed SB651 today.

Here is the bill's brief description:

Implements recommendations of the mortgage foreclosure task force by establishing a temporary mortgage foreclosure dispute resolution program; authorizing conversion from nonjudicial to judicial foreclosure; amending sections relating to mortgage servicers; and amending the nonjudicial foreclosure process. Establishes mortgage foreclosure dispute resolution special fund. Makes an appropriation out of the compliance resolution fund. (CD1)

Rep Herkes proposes moratorium on mortgage foreclosures

Rep. Robert Herkes

The House Joint Committees on Consumer Protection & Commerce and Judiciary advanced a bill last week which places a moratorium on all non-judicial foreclosures in Hawaii. The moratorium would last 5 months from the effective date of the bill’s enactment.

HB894 was passed with amendments and will go straight to the House floor for voting.

“This bill is needed to stop mortgagees who want to rush into foreclosing on homes in Hawaii before appropriate legislation is enacted to deal with the mortgage foreclosure problem,” said Rep. Bob Herkes, chairman of the Committee on Consumer Protection & Commerce. “We don’t want to shut down the mortgage market, but I think we need a timeout.”

Hawaii has one of the worst foreclosure rates in the country. In January, mortgage fraud was cited as the reason why the state’s foreclosure rate is the 11th highest in the nation.

Rep. Herkes emphasized that the legislature will be working on a reasonable solution for the mortgage foreclosure problems in the state during the moratorium period.

HB894 was introduced by Representative Mele Carroll. If passed by the full House, it will cross over to the Senate for consideration.


Story in West Hawaii Today here.

Rep. Herkes requests AG opinion on HHSC loan to Alii Health Center

State Representative Robert Herkes has sent a letter to Governor Lingle requesting that the Attorney General review and issue a legal opinion on a case involving the Hawaii Health System Corporation (HHSC) and the Alii Health Center in Kailua-Kona.

At issue is a loan of $2.9 million from Kona Hospital, which is part of the HHSC system, to the Alii Health Center, which is a private, non-profit facility. The Alii Health Center is not part of the Kona Hospital, but is a subsidiary of HHSC and falls under the jurisdiction of the West Hawaii Regional Board (WHRB) of HHSC. Over the past few years, the board has taken action to forgive parts of the loan, now totaling about $1.4 million of the loan. HHSC recently told the Governor that the board will be reviewing the legality of its actions.

“It hardly seems appropriate for the WHRB to investigate its own actions, and then report back to you as to whether or not it has broken the law,” said Rep. Herkes in his letter to Governor Lingle. “It would seem more appropriate to place the task of issuing a legal opinion regarding this matter in the hands of the Attorney General.”

Herkes added that the former chief development officer for the Kona Hospital Foundation (KHF) has been indicted on theft and forgery counts related to her work for the KHF, and suggests that the Attorney General could broaden the scope of the review and examine this issue as well.

Pro-Business Legislators

The September issue of Hawaii Business Magazine is all about "Seeking the Business Vote". One of the stories focuses on the Hawaii State Legislature and a recent survey of business leaders on which legislators are the most business-friendly. Read the story, written by long-time political observer and former Honolulu Advertiser political reporter/editorial page editor Jerry Burris, here.

Three members of the House majority were included in the "frequently named" category: House Speaker Calvin Say, Rep. Bob Herkes, and Speaker Emeritus Joe Souki.

Photo: Hawaii Business Magazine. Speaker Say and Carol Pregill, President of the Retail Merchants of Hawaii

Another story of interest in the same issue is "SmallBiz Guide to Power" - all about using business and trade organizations to participate in the legislative process and to make sure your voice is heard. Most small businesses don't have the time or ability to come down to the legislature to testify and visit lawmakers. These organizations all have government affairs or some sort of government advocacy program through which business owners can work on issues important to them.

Investigation of Big Island Department of Water Supply to Begin

Speaker Calvin Say has appointed members to serve on an investigative committee; the purpose of the committee will be to investigate the County of Hawaii's Department of Water Supply on their handling of the Ocean View-Kahuku water system project. They are:

Chair: Rep. Robert Herkes (District 5 - Puna, Kau, South Kona, North Kona)

Vice Chair: Rep. Faye Hanohano (District 4 - Puna, Pahoa, Hawaiian Acres, Kalapana)

Members from the Big Island: Rep. Mark Nakashima (District 1: North Kohala, South Kohala, Hamakua, North Hilo, South Hilo), Rep. Jerry Chang (District 2: South Hilo, Waiakea Kai, Kaumana, Keaukaha), Rep. Clift Tsuji (District 3: South Hilo, Panaewa, Puna, Keaau, Kurtistown), Rep. Denny Coffman (District 6 - North Kona, Keauhou, Kailua-Kona, Honokohau), and Rep. Cindy Evans (District 7 - North Kona, South Kohala).

Members from the House Committee on Water, Land, Ocean Resources: Chair Ken Ito (District 48 - Heeia, Haiku Valley, Kapunahala, Kaneohe) and Vice Chair Sharon Har (District 40 - Royal Kunia, Makakilo, Kapolei, Kalaeloa).

The committee was formed pursuant to the passage of House Resolution 136, introduced by Rep. Herkes.

At Issue:

Inordinate delays by the Department of Water Supply to move forward on the water system project for the people of Ocean View.

Background:

In 2005, the legislature appropriated $6 million to Hawaii County for the development of a water well and adjoining system with the storage capacity for a fill station that could accommodate four water hauler trucks and other amenities. The money was released on April 19, 2006 to then Mayor Harry Kim for the project.

Only Phase I, the exploratory phase for the well construction, was designed by SSFM International and completed in Feb. 2009.

Since then, a new contractor, Bolton Inc., was brought on board, and is reportedly close to completing Phase II, the design to develop the well, reservoir and fill station.

Apparently, Bolton's design for the project differs from the SSFM design, which is the design that was provided to and generally accepted by the community. The change has resulted in several problems. Members of the community are not happy with the new design; in particular, one couple protested that the change allows water uses with a direct view into their bedroom. In addition, bids on the changed design are much higher than what was expected when the $6 million was appropriated, leading to further delays.

The Hawaii Tribune-Herald has been following the issue. Click here.

What's Next?

The first committee meeting is scheduled to be heard next week, date and time to be announced.

Big Island poised to receive new Mobile Medical Van

Plans for a new mobile medical van to service the Big Island of Hawaii are advancing, with the encumbrance of $350,000 in state funds and a partnership established between Kona Community Hospital and the Hawaii Medical Service Association (HMSA).

"Kona Community Hospital is excited to move forward with this project,” said Earl Greenia, Regional Chief Executive Officer, Kona Community Hospital. “Rep Herkes’ passion for healthcare outreach is commendable! We are grateful to HMSA for providing the money to fund operations for the next two years."

Championed at the State Legislature by Rep. Robert Herkes (District 5 – Puna, Kau, South Kona, North Kona), the funding to purchase a commercial grade, mobile medical unit was approved by the 2009 Legislature. The legislation stipulated that Kona Community Hospital must operate and staff the van, find a public or private partner to fund operations for two years, that the program cover the areas of South Kona, Ka‘u and upper Puna, and work with the Department of Education to service public schools in those areas. Kona Community Hospital will manage the program and HMSA will fund operations for two years.

“The mobile medical van will greatly improve access to medical care for the people in rural areas of the Big Island,” said Rep. Herkes. “Time and mobility are critical components when you are dealing with an emergency medical situation or in a natural disaster. When needed, the mobile medical van will be able to reach people in remote areas, provide care, and indeed, save lives.”

The objectives of the mobile medical van program will be to:

· Improve child health outcomes
· Improve access to primary care services
· Create a Big Island disaster relief resource

In addition, the initiative will provide three primary services:

· Education and vaccinations to children at designated schools
· Primary health care services to geographically challenged regions of the island
· A mobile disaster relief unit

"This mobile unit can bring another dimension of care to the residents of the Big Island,” said Kathryn Harter, Chief Nurse Executive at Kona Community Hospital. “From elementary school children wellness to medical access at community events, this initiative can support many people in positive ways. We are very optimistic about the value we can offer through these expanded services.”

HMSA’s On-line Care will be a critical component of the mobile medical van. It will allow face-to-face interaction with nurses and physicians, and patients will be able to establish on-going care with a primary care physician at the local community clinic or elsewhere.

“We know that access to care is a tremendous challenge on the big island, so HMSA is very excited to partner in this effort to bring quality medical care to the communities that need care the most,” said Jennifer Diesman, Vice President of Government Relations for HMSA. “We’re especially grateful to Representative Herkes for his tireless efforts to make the medical van a reality and to the Kona Community Hospital for serving as the primary care coordinator.”

For the long-term, Kona Community Hospital is looking at other potential partnerships and opportunities that will expand coverage and keep the mobile van viable and sustainable beyond the two-year commitment.

And then there were 3

According to this story on KHON last night, there were 48 protea farmers in Ocean View on the Big Island a year ago. Today, because of the severe vog conditions, there are 3. While the federal government has offered low-interest loans to the farmers, it makes no sense for the majority of farmers who have been forced to close their operations and/or move away. Requests for no-interest loans have been denied.

Rep. Robert Herkes, who has conducted hearings on the impact of vog, had these comments:

"Some of them have just walked away, they've left their land, they've left the state. It's tough. Really tough....Where we need the help is what to do, how to do it, when to do it, not just more loans. That makes no sense."

HIBT Celebrates 50 Years

Left to Right: Rep. Denny Coffman, Rep. Cindy Evans, Rep. Robert Herkes, Peter Fithian, Roberta Fithian, Fred Duerr and Rep. Corinne Ching

The Hawaii International Billfish Tournament is underway this week, July 20-24, 2009, marking its 50th anniversary. You can follow the week's events on their website here. Rep. Robert Herkes (District 5 - Puna, Kau, South Kona and North Kona) has been involved with the tournament since the start, and organized a floor presentation earlier this year to recognize founder Peter Fithian, his wife Roberta and other key leaders in the organization such as Fred Duerr, former general manager of the legendary Kona Village.

Helping to celebrate the Golden Anniversary, Big Island Mayor Billy Kenoi presents a proclamation to Peter Fithian, along with 2009 Miss Billfish Andria DeBina.

Here is Rep. Herkes' floor speech:

RECOGNIZING PETER FITHIAN, FOUNDER OF THE HAWAIIAN INTERNATIONAL BILLFISH TOURNAMENT

Mr. Speaker,

Today we are honoring the 50th Anniversary of the Hawaiian International Billfish Tournament.
I’m proud to say that I fished the first two years of the tournament, and I guess you could say I’ve been -- “hooked” -- ever since.

The HIBT was founded in July 1959, and it has long been considered one of the most prestigious billfish tournaments of its kind in the world. Because of this tournament, Kona is known to this day as one of the great fishing capitols, attracting anglers from all over the map. In fact, for this Golden Anniversary, the tournament organizers will expand its registration capacity to accommodate 50 teams, including those from Australia, Japan, Bermuda, Portugal, New Zealand, Papua New Guinea, South Africa, Tahiti, and, of course, the United States.

Yet, amazingly, it remains a tournament that is staffed by hard working and loyal volunteers, its popularity has always been driven by prestige, not money, and it runs on a lot of love and aloha spirit, starting at the top.

Mr. Speaker and members, we’re fortunate to have the people who are the heart and soul of the tournament here with us today, starting with the founder of the Hawaiian International Billfish Tournament – please welcome Mr. Peter Fithian.

I met Peter Fithian when he came to Hawaii to manage the Kona Inn. Not many know that before he came to Kona, he managed the Augusta National Golf Club. Now, if you’re a golfer, you know what a big deal that is. Peter knew that Kona needed to find an event that would attract more business to the town, and being the smart businessman that he is, he took the sports marketing concept of the Augusta Masters golf event and applied it to what Kona does best -- fishing.

Peter used to fish with some of the local fishermen in Kona, and he came to have a deep respect for their knowledge and experience on the best way to catch the giant blue marlins. He structured the tournament based on their expertise, including the best time of year, the best hours in the day, and the optimum number of days to hold the tournament.

As a result, the event became so successful that it attracted people from all over the world, not just to fish, but as spectators too. The HIBT became the model for other billfish tournaments, and it attracted royalty such as the Duke and Duchess of Manchester, and movie and TV stars such as Lee Marvin, Jonathan Winters, Arte Johnson, Toshiro Mifune, and the great Richard Boone.

Today, the Hawaiian International Billfish Tournament contributes millions of dollars to the local economy, and there is no question that it has “lured” many people from around the world to the Kona Coast over the past 50 years. Its contribution to Big Island business and tourism is immeasurable. And, through Peter’s guidance, the tournament has also encouraged more scientific research and the conservation of ocean resources in order to ensure that fishing along the Kona Coast remains healthy and abundant for all.

Mr. Speaker, I don’t know if you know that the Hawaiian International Billfish Tournament is the only fishing tournament in the world to have its own daily newspaper, “The Billfish Bowl – All the News that’s Fish, We Print.” I started working on this newspaper with the late Harry Lyons when it was called the “Ahi Daily News.” You can be sure that the 50th Anniversary of the Tournament will leap from The Billfish Bowl to become the big news throughout the state, even if it is a “fish story”.

Thank you, Peter, for all your hard work and your vision over the past 50 years.

Rep Herkes outlines Vog report recommendations

The Hawaii Tribune Herald published this story Sunday outlining the recommendations of the House Special Committee on Vog Effects. The headline zeroes in on the recommendation for Hawaii County to provide property tax relief for farmers whose crops have been damaged by vog.

Chair Herkes, however, believe the most urgent need is for a 24-7 central point of contact:

"There needs to be a clearinghouse, open 24-7, staffed by people who are here and can talk about health effects, air conditioning, water filtering and agricultural effects. That just isn't being provided," said Herkes (D-Puna, Ka'u, Kona). "Information is just being passed anecdotally from group to group."

The Department of Health should retrofit hospitals with vog filters, and health insurance companies should cover the cost of air filters for qualified individuals. The DOH should also develop a more efficient system for collecting health data so the effects of vog can be determined, the report says.

The full report is available on the capitol website: http://capitol.hawaii.gov.

Na hunehune mea hou - News bits

Rep. Bob Herkes fished the first two years of the Hawaii International Billfish Tournament and, nearly 50 years later, he is still an integral part of the event. In addition to being a state representative and fighting vog, he's the editor of the Bill Fish Bowl - "All the news that's fish, we print." The Bill Fish Bowl is the tournament's daily newspaper; Herkes started working on it with the late Harry Lyons when it was called the Ahi Daily News. Not only that, he's the booming voice announcing on the pier as the boats come in each day. Next year will be the 50th anniversary of the Hawaii International Billfish Tournament.

Many saw Rep. Joey Manahan's letter to editor on the recent Elections Office controversy but wondered about his connection to the issue. Rep. Manahan formerly worked at the Office of Elections as an administrator under the former director Dwayne Yoshina.

Rep. Jon Riki Karamatsu is teaming up with Senator Clarence Nishihara to produce a new television series on Olelo about Waipahu. They have started videotaping segments. Air dates to be announced.

2nd Vog Effects Briefing: The Impact of Vog on Ag

This briefing will be cablecast live on Olelo, Channel 49.

The House Special Committee on VOG Effects will meet Thursday in Room 325 at the Capitol for the second of a series of briefings. The meeting tomorrow will focus on the impact of VOG on Hawaii's agricultural operations. The discussion will include the effects of VOG on crops and ways to assist farmers.

Thursday, July 10, 2008
10:00 a.m. to 1:00 p.m.

The effects of the VOG have severely impacted the Big Island farming community, operationally and financially. The briefing will include information on how farmers can protect their crops and on resources available to help farmers mitigate future crop loss.

The following have been invited to participate in this fact-finding meeting:

U.S. Department of Agriculture	Hawaii Farm Bureau Federation
National Weather Service	Big Island Farm Bureau
Hawaii Department of Agriculture	Hawaii Agriculture Research Center
UH College of Tropical Agriculture	Kona Pacific Farmers Coop
UH at Hilo College of Agricultural	Big Island Protea Growers Assoc.
Forestry and Natural Resource Mgmt.	County of Hawaii Research and Dev.