Hanohano confronted the workers, stating that she did not want any art created by "Haoles, Japs or Pakes" and threatened to cut the department's funding.

She later apologized for the racially charged comments in a speech before the House of Representatives whose sincerity would be questioned by local observers.

[13] In 2014, Hanohano again faced controversy over racially insensitive comments, this time on the floor of the House.

During a meeting of the Ocean Management and Hawaiian Affairs committee that she chairs, Rep. Hanohano responded to testimony of Hawaii Pacific University student Aarin Jacobs about measures to protect sea life by angrily demanding to know why "all of you westerners want to come over here and tell us what to do".

It was reported on March 1, 2014, that the Hawaiian House of Representatives has launched an investigation into the matter, but that Rep. Hanohano had refused to apologize for the remark.