No, that's not my understanding.
TexasDarlin has a lot more on this, but my understanding is that if the child qualifies for American birth citizenship - for instance, if Stanley Ann Dunham Soetoro considered herself to be a citizen of Hawaii and NOT a citizen of Indonesia - then there are circumstances under which Stanley Ann Dunham Soetoro could have applied for documentation of Maya Soetoro's birth from the state of Hawaii, even though the birth [apparently] took place in Indonesia.
The problem is that there is no evidence that Stanley Ann Dunham Soetoro considered herself to be a citizen of Hawaii [in fact, she was very likely a citizen of Indonesia at that point - again, a nation which does NOT recognize dual citizenship], and so, if Stanley Ann Dunham Soetoro was not a citizen of the state of Hawaii [much less a citizen of the USA], but applied for & received this Hawaiian documentation for her daughter, Maya Soetoro, as though she [Stanley Ann] were a citizen of Hawaii, then she [Stanley Ann] committed a felony [or multiple felonies].
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This must be based on some code or law regarding how one qualifies for the issuance of a valid BC that shows that one was born in Hawaii. What is that code or law?