2016 Legislative Report

Dear Neighbor,

This has been a more cooperative Legislative Session as we worked together on inter-government solutions for the growing home-less population and funded the Department of Education so that it can “cool our schools.” We also pushed for ways to help meet Hawaii’s clean-energy target of 100 percent electricity through renewable-energy sources by 2045 and fought the State’s largest health insurer’s attempt to restrict medical specialists from getting critical imaging tests for patients.

In a unanimous vote, the bill to extend and expand the industrial hemp crop beyond Oahu’s former research site passed. It is the most successful hemp bill in our state and while there is room for improvements, such as lifting cumbersome restrictions, it allows even our small farmers on all islands to grow the multiuse crop. It’s a start and I thank you for your years-long support on this issue.

As we close this Session, I will continue to work on issues during the interim, and look forward to seeing you in our community.

Mahalo for the honor of serving you.

With much aloha,

Representative Cynthia Thielen

Legislative Session at a GlanceFortitude + Cooperation = Success!

Representative Cynthia ThielenState Capitol, Room 443415 South Beretania StreetHonolulu, Hawai‘i 96813

Prsrt StdU.S. PostagePAID

Honolulu, HIPermit No. 289

WINNERS

LOSERS

WINNERS FINISHING AS LOSERS

ENERGY EFFICIENT AC (HB2569) Requires the DOE to establish a goal of becoming net-zero with respect to energy use by January 1, 2035 and expe-dite the cooling of all public school classrooms.

PUBLIC SCHOOLS (SB3126) Provides for air conditioning, heat abatement, and related energy efficiency measures at public schools.

INDUSTRIAL HEMP (SB2659) Establishes an industrial hemp program to allow the cultivation of industrial hemp and distribution of its seed and resulting products.

ENERGY (HB2231) Allows a publicly owned ener-gy cooperative to receive special purpose revenue bonds for financing their projects.

UNDERGROUND STORAGE TANKS (HB2626) Prohibits the Department of Health from issuing a permit for a new underground storage tank within 100 yards of the shoreline and prohibits operation of and renewal of a permit for an underground storage tank within one hundred yards of the shoreline.

DOMESTIC ABUSE (HB2639) Requires wireless telecommunications service provider to (1) trans-fer billing authority and all rights to a wireless telephone number to the victim of domestic abuse; or (2) remove or release the victim from a shared wireless plan and assign the victim a substitute telephone number without charge.

DOMESTIC ABUSE (SB2310) Prohibits the court from granting mutual protective orders unless separate petitions are filed. This important Bill was signed by the Governor and is now law-Act 004.

ANIMALS (SB2512) Increases penalties for ani-mal desertion, except where the animal is released as part of a game management program.

MOPED REGISTRATION (HB1753) Requires registration, inspections, and number plates for mopeds.

CONCUSSIONS (SB2557) Expands the con-cussion educational program. Implements the concussion monitoring and education program for school athletics.

HOMELESSNESS (SB2559) Establishes minimum requirements for emergency shelters. Homeless

shelter stipends to be paid for achievement of performance measures. Requires homeless service provider agencies to submit to a financial audit.

TRANSPORTATION (SB2618) Requires the De-partment of Transportation to conduct a feasibility study of establishing an interisland and intra-is-land ferry system.

YOUTH TRANSITIONING FROM FOSTER CARE (SB 2878) Extends the application deadline for financial assistance for higher education available to foster or former foster youth.

MEDICAL CANNABIS (HB2707) Clarifies that amounts received for the sale of cannabis or man-ufactured cannabis products are not exempt from the state general excise tax. Allows the University of Hawaii to establish medical cannabis testing and research programs that qualify as commercial enterprises to provide testing services for medical cannabis dispensaries.

NATURAL RESOURCES (SB2647) Also known as the ban on sale or trade of ivory. Hawai‘i is the third largest market for ivory in the United States, making this legislation necessary to stop this illegal trade.

RAINY DAY FUND (HB2317) Making an appro-priation to the emergency and budget reserve fund of $150,000,000 for fiscal year 2016-2017 for the purpose of further capitalizing the emergency and budget reserve fund.

LAW ENFORCEMENT OFFICER INDEPENDENT REVIEW BOARD (SB2196) Establishes the Law Enforcement Officer Independent Review Board within the Department of the Attorney General to investigate incidents of officer-involved death.

RENTAL HOUSING (SB2561) Establishes a goal of developing at least 22,500 affordable rental housing units ready for occupancy and establishes a temporary special action team on rental housing to make recommendations to achieve this goal.

THE WORLD CONSERVATION CONGRESS (HB2037) Puts Hawai‘i on the world stage by pro-viding DLNR the means to host the International Union for Conservation of Nature World Conserva-tion Congress.

Copyright John S. Pritchett

Illegal Rentals Tax Collection (HB1850): I strongly opposed the final version of HB 1850, which morphed into an extremely bad bill in its final Conference Committee. Going into Conference, HB1850 SD3 required companies like Airbnb to verify that their listings complied with all appli-cable State & County Land Use Laws. Sadly, this requirement was removed by Senator(s) Tokuda, English, Baker and Representa-tive(s) Jordan, Onishi, Yamashita, Chang. The final bill version makes it even more difficult for officials to enforce our current land use and zoning laws as they apply to vacation rentals. Early Release of Prisoners (HB2391) Authorizes the Director of Public Safety to release certain

detainees or inmates convicted of petty misdemeanor or misdemean-or offenses. Jeopardizes the safety of the community for the purpos-es of reducing overcrowding in prison.Transit-Oriented Develop-ment (SB3077) Establishes the Hawai‘i Interagency Council for Transit-Oriented Development within the Department of Busi-ness, Economic Development, and Tourism (DBEDT). The Council consists only of State Agencies, and does not include members from the general public.Theft (HB2561) Reduces criteria to charge individuals for crimes, including theft. Nearly doubles the dollar amount thresholds for Theft in the Second and Third Degrees.

RENEWABLE ENERGY (SB2738) Establishes an energy storage system tax rebate program to encourage use of battery storage. Since HECO is not providing PV permits to most of our community, a storage system is the only viable option for many who wish to have photovoltaic panels on their home. Bill died in Conference Committee.INSURANCE LIABILITY (HB2740) States that whenev-er the authorization of medical treatment or service is delayed or denied by or through a health-in-surance company and results in the patient’s death, injury or suffering, the doctor who re-quested the authorization must be defended and compensated by that

health-insurance company against all lawsuit-related losses. It also states that if an insurer failed to meet the established standards of care, it is the insurer – and not the doctor who tried to help the pa-tient – that must take the financial hit in any and all related lawsuits. This Bill was killed in Conference Committee after Senator Tokuda was added as co-chair with Sena-tor Baker.MARSY’S LAW (SB 3034) Pro-posed amendment to the Hawaii State Constitution to provide vic-tims of crimes with specific rights related to the criminal justice process. Bill died in Conference Committee.

Making yourvoice heard

It’s risky business. Postponing health-related procedures to save money may be hazardous to your life.

Three months ago, the Hawaii Medical Service Association pulled the plug on doc-tors by revoking their earned “gold cards” that allowed them preapproval to order medical tests without delay.

These are the same physicians and specialists who in 2011 received written notice from HMSA that said:

“Your record of precertification requests validates that you consistently utilize and apply appropriate clinical criteria when ordering advanced imaging. Therefore you will be waived from precertification for MRI, MRA, CT, CTA … scans.”

Should doctors’ hands be tied by the new policies announced by HMSA?

The time-sensitive imaging tests include magnetic resonance imaging, nuclear car-diology stress tests, computerized tomography scans and stress echocardiograms. HMSA granted the red tape-waiving ability for the righteous sake of delivering the best possible patient care. That was then.

This is now. Since the “gold cards” were yanked from these doctors, who are among some 1,600 active physicians in HMSA’s network, the results show:

• delays in patient care

• specialists stopped from delivering their full scope of professional assessments and expertise without waiting until patients are in the hospital, urgent care or emergency room

• opening the door to lawsuits stemming from cost-containment efforts for which legal precedence was set in the patient’s favor in at least one Blue Cross case

One surgeon at a medical center on Oahu has more than 30 years’ professional ex-perience and is highly sought after for her life-saving abilities. After her “gold card” was terminated, denials for her patients’ testing orders tripled from about five while she had her “gold card” to about 15 at any given time. She has always complied with HMSA’s requests to submit records for ongoing evaluation of appropriateness of care and to meet the 90 percent approval rate on all reviewed records.

In addition, new patients now wait about three weeks for a first visit to her office because admittance hinges on tests. Previously, new patients waited one and a half weeks on average. Now some new patients are “flat-out denied” care, the doctor’s of-fice said, because National Imaging Associates in Arizona – the company that HMSA contracts to judge the legitimacy of doctors’ ordered tests in Hawaii – deemed that the procedures were unnecessary.

NIA’s web page boasts: “… our clients come to us for customized solutions that opti-mize … affordability. …With National Imaging Associates (NIA), you benefit from … financial resources that allow us to achieve bottom-line results and guarantee multi-year cost savings. No other solution offers you . . . more control. More power to you.”

“More power” to HMSA means less power to the patients. Loss of high quality, timely patient care are part of the collateral damage. In this physician’s office, which is typ-ical of what doctors are experiencing, the lessening of professional care is attributed to:

• increased time needed to educate staff about insurance plans and coding• doubled time for administrative work• devoting about three hours per workday to complete test orders that were previ-

ously preapproved• up time to process denials from NIA and for the doctors’ subsequent appeals• redoing work, when NIA calls with questions or to request paperwork, which was

provided in the original filings• increased staff turnoverHouse Bill 2740, which has cleared the House and is in the Senate, would prohibit health insurance preauthorization requirements that cause undue delay in receipt of medical treatment or services. It specifies that insurers, but not health care provid-ers, are liable for civil damages caused by undue delays for preauthorization.

HMSA’s abolishment of its waiver policy affects patients, doctors, staff and potentially much-needed specialists from elsewhere. Physicians, especially if they had previously earned waivers for preapprovals and who might contemplate practicing medicine here, would not want their judgment about test orders routinely questioned.

The argument that revoking this policy protects patients from too much radiation is weak. Doctors collaborate with each other; they review patients’ records including tests; and they are aware. It’s what they do. Also, not every patient fits the textbook guidelines of NIA. We have specialists because they know more than routine, text-book health solutions.

Lastly, the costs incurred by HMSA when if it is sued by patients for claims of negligence and other actions will not outweigh the savings from cost-containment restrictions that NIA promises HMSA. The tort of insurance bad faith that comes from insurers breaching their duty of good faith and fair dealing was firmly estab-lished in Hawaii by the Hawaii Supreme Court’s landmark decision in Best Place v. Penn American Insurance.

Furthermore, the California Court of Appeals found in 2013 that the administrator of a health care plan owes a duty to plan members to exercise due care to protect them from physical injury caused by its negligence in making benefit determinations under the plan.

So call it risky business, monkey business or bad business. People never win when doctors’ skilled hands are tied by a corporate insurer. Requiring these physicians and specialists, who had previously earned HMSA’s precertification approval, to go through each step in the approval process doesn’t save patient lives. It only helps HMSA’s bottom line.

Cooling the Schools for our KeikiThe big news is that more than 1,000 more classrooms will be comfortable and cool by the end of this year. Spiking classroom temperatures spurred private, volunteer, and public sectors to join forces in taking the swelter out of schools.

A special mahalo goes out to RevoluSun who recently donated an off-grid air con-ditioning system with battery storage to Kalaheo High School. Powered by solar, the system represents the leading edge in energy technology.

This solar air conditioner cools a 500 square foot classroom and a storage battery provides backup in case the sun is not shining. The unit is off-grid and separate from the classroom’s existing electrical infrastructure. We look forward to seeing more off grid air conditioning systems used as part of the DOE’s heat abatement project. Saving energy and money, while providing our students and their teachers a comfortable learning environment is a win for everyone!

Rocking the RoadshowMore students and schools than ever – 345 from seven of our District’s schools – signed up for our annual Legislative Roadshow, taking the opportunity to experience the Legislative process in front of elected officials and our staffs.

Elementary, middle and high school students researched age-appropriate House and Senate bills that were specifically chosen for them and then testified in front of our mock Legislative Committee. At each of the Windward schools, we engaged with them, listened to their reasoning for supporting or opposing the bills, and asked follow-up questions that led to more thought and discussion.

Among the bills’ topics were legislation about honeybees and insecticides; fireworks; forbidding pedestrians from crossing a street while using cell phones; and industrial hemp.

“If the pesticides that farmers are using kill the bees, then people would have to genetically modify our fruits and vegetables,” one student testified in concern.

“Without honeybees, we’d have a hard time sustaining the 7 billion people in the world,” another student stated. “I urge you to pass this bill.”

And in a letter sent to our office, a student wrote, “Thank you so much for giving me an experience of government with the Legislative Roadshow. I’ve learned how hard it is to pass a bill. The fact that you do this as a daily job is frightening. … But it was very fun and I had a great time!”

In My OpInIOnDelaying MeDical TesTs To save Money is a Dangerous gaMe

The Hawaii Medical Service Association is tying the hands of doctors by revoking their preapproval to order advanced imaging tests.By Cynthia Thielen / Published March 13, 2016 in Civil Beat

Students participate in the 2016 Legislative Roadshow, testifying for and against various House and Senate bills.

RevoluSun’s Colin Yost, Rep. Thielen, Senator Thielen and Rep. Lee celebrate the installation of Kalaheo High School’s recently installed, innovative solar-powered air conditioning unit with battery backup.

The Alzheimer’s Association Aloha Chapter “planted” a Promise Garden at the Capitol. It represents the 35,000 Hawaii residents are likely to live with Alzheimers by 2025.

You spoke we listened! 2016 brought our highest-ever number of Legislative Survey responses, giving us valuable insight into the concerns and issues that you face in our 50th District, and insightful suggestions, too. Here’s a recap:

Your answers to Question #1 revealed that Hawaii’s own farmers and ranchers have the loyal support of our District’s majority, who buy “local” every time they grocery shop. The second greatest number of people at least buy local-raised food occasionally.

Earlier this year, the Powerball jackpot of $1.5 billion had our nation talking. The responses to Question 2 indicate a near tie with about half opposing a lottery in Hawaii and half favoring it. I oppose opening Hawaii’s doors to gambling because data from other lottery states show many problems result from that industry.

Keeping residents safe is a priority and I agree with the greater number, who prefer multi-tactic notifications – radio, TV, social media and beach signage – to alert people about brown water in our areas. I have urged City and State emer-gency services to implement these methods simultaneously.

The topic of taxes elicited many replies with most respondents saying that they do not support an increase in the General Excise Tax that is tied to monies going toward the Hawaii public school system. I am against increasing the GET for any reason because our residents already bear the burden of paying the highest taxes in the nation.

Speaking of high-level matters, Hawaii’s #1 issue in 2016 is homelessness and only nine votes in our survey separated the two most popular answers for solu-tions. Most people want to see nontraditional, energy-efficient and eco-conscious housing like micro homes built on underused state and city lands. A slightly smaller group wants the City to move the homeless out of Kailua’s business and residential areas. I have met with Governor Ige and proposed affordable car-bon-neutral cabin material for State projects.

Of seemingly less concern to most survey respondents are the wild chickens that roam our District. The smaller group that is concerned thinks that the City should appoint a person to handle complaints.

There was also great consensus about the level of dissatisfaction with the Hawaii Department of Education’s pace, when it comes to cooling the temperature in our classrooms, which have reached the 90-degree range in some instances and that continue to get hotter. I wholeheartedly agree. As such, I’ve worked with a local solar company that has agreed to donate a “stand-alone” photovoltaic system and battery backup for one of Kalaheo High’s hottest classrooms to show the DOE that such technology can work independent of the electric grid.

In another question related to the DOE, the majority wants the organization to present more details including firm implementation dates for cooling schools; meet with the Kalaheo District community; and do timely online postings that specify how the public can help. I have urged the DOE to take these actions.

The question that captured the most attention and agreement was about drones. We saw an overwhelming response to banish them from flying over residential areas to preserve people’s safety and privacy. I strongly agree. Unfortunately and partly due to the newness of consumer aerial vehicles, legislation throughout the U.S. has stalled and no federal agency is clearly in charge of developing a univer-sal strategy to regulate drones.

Our last question revealed that most respondents drive on the Kapaa Quarry Road weekly. The next largest group thinks that the road is too dangerous for driving. In my meetings with City representatives, I have spoken personally to the Design and Construction Division Chief, stressing the importance of starting upgrades and repairs immediately.

Mahalo for setting aside time to complete our survey. Your responses are import-ant as I strive to continuously represent your concerns and needs in our commu-nity and state.

Rep. Thielen visited Windward kindergartners with the “Little Fire Ant” from the Oahu Invasive SpeciesCommittee, helping our young people learn more about protecting Hawaii’s native plants and animals.

It’s hempeningOn the coattails of last year’s very successful industrial hemp research project, this session Legislators passed SB2659 which significantly expands Hawaii‘s hemp pro-gram from one to multiple growing sites. The University of Hawaii’s first test plot in Waimanalo indicated that hemp grew quickly (12 feet in 10 weeks), needed no fertilizers, pesticides, and little water. Normally considered a seasonal crop, three hemp harvests a year could be grown in our State’s tropical climate.

Although there are specific requirements for those applying for licensing, this new law allows local farmers to experiment with growing hemp in a variety of locations and environments. Marketing and industry development, which includes identifi-cation of actual or potential hemp products, processors, product manufacturers, wholesalers, retailer and targeted consumers, will also be implemented.

The State Department of Agriculture will oversee the pilot program and develop licensing rules and administrative procedures to ensure law requirements are fulfilled. It has been a long road, but a journey well worth the time and effort!

Kupuna & the Care Act A top priority for our kupuna this session was successfully passing the “Care Act”. The Care Act, or HB 2252, requires that all in-hospital patients have the chance to choose a caregiver, who will be involved with and given professional help with aftercare.

This Legislation provides much-needed support by requiring the notification of the designated caregiver before the patient’s release, and by including the patient and the caregiver in the discharge-planning process. Oftentimes, family members and close friends are the people who serve as caregivers.

Also critical, this bill ensures that the patient and caretaker are given a consistent level of instruction and support before discharge so that the patient’s transition from the hospital to a new setting goes more smoothly for everyone.

This measure is particularly relevant to Hawai‘i residents because in recent years, it was estimated that our State had the highest percentage of residents aged 85 years and older. This percentage is expected to grow and these individuals are most likely to need long-term support and services.

Industrial hemp research project principal investigator Harry Ako, PhD, and Rep. Cynthia Thielen show-case a hempcrete sample and book.

Rep. Thielen enjoyed meeting with Aikahi Elementary School children at the State Capitol, where they toured the Senate and House.

Net Zero Energy for aSecure Future

Congratulations to Marine Corps Base Hawaii for committing to a Net Zero Energy policy and making significant progress in re-ducing its carbon footprint. “Net Zero” means that the energy produced onsite over the period of a given year is equal to the installation’s energy demand.

A recent Defense Science Board report indicated that critical mil-itary missions are at a high failure risk in the event of an electric grid failure. Development of on-site renewable energy supplies reduce this risk, and also contribute to the improved security of the local energy supply.

Using wind, sun, waves, and implementing proactive energy ef-ficiency programs, MCBH clearly is moving towards its goal of achieving a 96 percent site energy reduction and a 99 percent source energy reduction. By achieving this status, MCBH will set an example for other military installations, provide environmen-tal benefits, reduce costs, increase energy security, and exceed its goals and mandates.

Early each session, local businesses and organizations visit the Capitol for the HLTA Tourism Day.

The Women’s Legislative Caucus again introduced a number of important bills to improve the status of women in our community. This bipartisan Caucus, has ex-isted for over 20 years, most of which Representative Thielen has been a member. Following are some of the Caucus bills which passed this session:

HB1902 establishes penalties and strengthens enforcement for sex trafficking crimes, especially when the victim is a minor.

HB1897 ensures that all insurers in the State, including health benefits plans un-der chapter 87A, Hawaii Revised Statutes, provide insurance coverage for sexually transmitted disease screenings.

SB2317 requires the Department of Health to submit annual reports to the Legislature relating to child and maternal deaths and death reviews in the State. Requires, upon written request from the Director of Health, all providers of health care or social services and county and state agencies to disclose child death review information and to provide information or other materials relating to the condition and treatment of any person to the Department of Health, or its desig-nee, for studies to reduce morbidity or mortality.

SB2319 requires that insurance companies cover reimbursements for a 12 month period of contraceptive supplies.

Supporting Hawaii’s Business CommunityAlthough financial indicators remain cautiously positive, it is important that our State plan for a diversified economy which is now heavily dependent on military spending and tour-ism. Part of this diversification must include small business, tech enterprises, agricultural industry, as well as the entertainment/film industry. SB3110 provides for DBEDT grants to businesses with a Federal Small Business Innova-tion Research Phase II or III Awards. These grants will be available through 2017.SB2550 promotes the Department of Agriculture’s existing Made in Hawai‘i Brand Program. Managing, enforcing and promoting the Made in Hawai‘i Brand is critical for success to Hawaii’s manufacturing industry. This legislation will increase awareness about products which are truly “made in Hawaii”.SB2305 provides loans and grants to finance regional state infrastructure improvements in areas of planned growth.

Contact InformationRepresentative Cynthia Thielen

Hawai‘i State Capitol 415 S. Beretania St., Room 443

Honolulu, HI 96813Phone: (808) 586-6480

Email: repthielen@capitol.hawaii.govWebsite: www.cynthiathielen.comVisit “RepThielen” on Facebook

2016 Legislative Report paid for with Legislative Allowance

“Side by Side” with Senator Laura Thielen at the annual Women’s Legislative Caucus Easter Basket Drive for families in need.

The 2016 Legislature passed bills to address the humani-tarian crisis that Hawai‘i faces: Homelessness ranks as the #1 issue in our State government; it is deemed the worst in the U.S.; and we have 487 homeless persons for every 100,000 people. Related issues include limited land space, increasing crime, skyrocketing housing prices and the rising cost of living.Here are the bills that passed this session, in addition to the $12,000,000 in open funding requested by the Gover-nor and approved by the Legislature, to tackle homeless-ness:HB1774 - Appropriates funds to the Dept. of Human

Services and Office of Youth Services for additional out-reach to homeless individuals and families, and homeless unaccompanied youth.HB2244 - Makes appropriations to fund and support various housing programs.HB2647 - Establishes a three-year Work for a Day Pilot Program to be administered by the City and County of Honolulu that provides homeless individuals with work opportunities. SB2570 - Requires the Dept. of Human Services to establish a rapid re-housing assistance program to move homeless families or individuals into permanent housing

as quickly as possible and achieve stability in that housing. Requires the program to be designed and operated to qualify for federal emergency shelter grants. SB2560 - Requires and appropriates funds for the Dept. of Health to provide treatment and care for homeless individ-uals with serious and persistent mental health challenges as a part of its comprehensive mental health system.HB2561 - Establishes a goal of developing or vesting the development of at least 22,500 affordable rental housing units ready for occupancy between 1/1/7 and 12/31/26.HB2559- Establishes minimum requirements for emer-gency shelters.

prOtectIng Our WOMen & chIldren

HELPING THE HOMELESS

Rep. Thielen answers questions at the Legislative Women’s Caucus annual bill package presentation in early January. She also serves on the Keiki and Kupuna Caucuses, bipartisan groups which introduce and support bills directly benefiting specific populations.