Not true, they can and apparently did, issue birth certificates for people born outside the state, and the country. BUT, those certificates would indicate the correct place of birth, or at least what the state was told was the actual place of birth.
The author's point that the state could have been lied to, and that this would be led credence by a long form (vault) birth certificate that shows a home birth, with the only signatures being that of Stanley Ann and her mother or father, or just her parents, since her signature would not have been absolutely required. She would not have even needed to be in the Islands.
To date I have not seen any evidence that Hawaii did so knowingly with the intent to defraud. If they were lied to, then they didn't issue a certificate knowingly. I have to stand by my previous statement until I am shown or find evidence to the contrary.