New Senator Sworn in, Costantino Testifies: This Week at the State House

Sunday, January 17, 2016

 

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Senator John Pagliarini was sworn in, Steven Costantino testified a new student loan bill was introduced and more. Find out what happened ths week at the State House. 

Secretary of State swears in new senator, John Pagliarini
Sen. John A. Pagliarini Jr., (R-Dist. 11, Portsmouth, Bristol and Tiverton) was formally sworn into office by Secretary of State Nellie M. Gorbea. Senator Pagliarini was elected during a special election to fill the Senate seat vacated by Republican Christopher S. Ottiano. 

Click here to see news release.

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Costantino testifies before House Oversight Committee
Former House Finance Committee chairman Steven Costantino testified before the House Oversight Committee about the passage of the Job Creation Guaranty Program and the approval of a loan guaranty to 38 Studios, Curt Schilling’s video game development company, which later failed. The meeting was part of the committee’s hearings into the matters leading up to the state’s investment in 38 Studios.

Rep. McNamara introduces bill making Student Loan Bill of Rights
Rep. Joseph M. McNamara (D-Dist. 19, Warwick, Cranston) has introduced legislation that would establish a Student Loan Bill of Rights in Rhode Island. The proposed legislation would authorize the creation of the position of student loan ombudsman within the Division of Higher Education Assistance of the office of the commissioner of postsecondary education.

Click here to see news release.

Republicans introduce No Toll Bridgeworks plan
Republican representatives, led by Rep. Patricia Morgan (R-Dist. 26, West Warwick, Coventry, Warwick), introduced legislation that would fund the maintenance and repair of bridges by the motor fuel tax, motor vehicle operation violation fees, motor vehicle inspection fees, renewable energy fees, video lottery terminal sales, motion picture production and the capital plan fund account. 

Click here to see news release.

Sen. Da Ponte calls for analysis and consideration of all government debt

Senate Finance Committee Chairman Daniel Da Ponte (D-Dist. 14, East Providence) introduced legislation that requires a limit for total bonded indebtedness, authorized and/or issued, be established and voted upon for state government debt, and that of all the quasi-public entities and the municipalities.  Under the legislation, the Public Finance Management Board would review the aggregate debt totals and recommend a debt limit to the governor and General Assembly on a regular basis.

Click here to see news release.

Naval War College officers meet with legislative panel

Forty-nine domestic and foreign Naval Officers from the Naval War College in Newport met with a legislative panel in the House Chamber to learn about the legislative process in their host state of Rhode Island.  The panel was co-chaired by Sen. Louis P. DiPalma (D-Dist. 12, Middletown, Little Compton, Newport, Tiverton) and House Finance Chairman Raymond E. Gallison Jr. (D-Dist. 69, Bristol, Portsmouth).

Click here to see news release.

Rep. Canario moves to ban prone restraints in state licensed facilities

Rep. Dennis M. Canario (D-Dist. 71, Portsmouth, Tiverton, Little Compton) introduced legislation that prohibits using prone restraints at certain state licensed facilities and creates a study commission to study the restraint reporting requirements of those same facilities. The legislation is in response to the controversial technique of prone restraining that has led to cases of asphyxia and death when utilized. 

Click here to see news release.

Representatives want education aid formula linked to affordable housing

Representatives from four of the only five Rhode Island communities that have met the state’s affordable housing mandate are urging the working group studying the education aid formula to consider making communities’ affordable housing level a factor in the distribution of education aid. The letter was signed by Lauren H. Carson (D-Dist. 75, Newport), Rep. Michael A. Morin (D-Dist. 49, Woonsocket), Rep. Shelby Maldonado (D-Dist. 56, Central Falls) and Rep. John M. Carnevale (D-Dist. 13, Providence, Johnston).

Click here to see news release.

House committees review charter school bills

House committees held hearings on two bills concerning approval of new charter schools or expansions of existing ones. The Health, Education and Welfare Committee heard legislation sponsored by Rep. Patricia Serpa (D-Dist. 27, West Warwick, Coventry, Warwick) to require approval from the city or town council of each sending school district for each new charter public school or the expansion of an existing one. The Finance Committee held a hearing on legislation sponsored by Rep. Jeremiah O’Grady (D-Dist. 46, Lincoln, Pawtucket) requiring the Council on Elementary and Secondary Education to consider the financial impact on the school districts from which students would be drawn before any new charter school, mayoral academy or an expansion of one can be approved.

Pearson plans to introduce education funding formula reform

Sen. Ryan Pearson (D-Dist. 19, Cumberland, Lincoln) released an overview on how the state’s education funding formula has performed against its original goals and recommendations on reform areas. As a result of the review, Senator Pearson is making recommendations regarding mayoral academies, charters, the application process, a Municipal Incentive Fund, and annual audits. He plans to introduce formal legislation by the end of this month.

Click here to see news release.

 

Related Slideshow: Who Should Be Subpoenaed in 38 Studios Hearings

See the seven that should be subpoenaed to testify on 38 Studios.

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1.

Chief of Staff to the Speaker, Frank Anzeveno

The former legislator was the go-to staff member who coordinated the Speaker’s office and was deeply involved with the management of legislation.

As GoLocal described him in 2012, “Nothing gets done in the House without a nod from Speaker Fox’s Chief of Staff, who has to play a prominent role in deciding which legislation even makes it to the Speaker’s desk and also which legislators need to be punished for not kissing the ring of leadership. He’s been successful so far. Anzeveno has helped Fox avoid much conflict with his chamber, even when he had a lot of unhappy members during controversial debates over pension reform and same-sex marriage last year."

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2.

Ruth Desmarais, formerly Fox’s Personal Secretary

Desmarais was Fox’s personal secretary in the Speaker’s office and his scheduler.  “If you wanted to see Fox you had to go through Ruthie” was the saying in the State House.

When the Feds were looking for key Fox documents, they first went to Desmarais’ home in East Providence seeking key documents.

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3.

Steven Costantino, Presently Commissioner of the Department of Vermont Health Access

The former Chair of the House Finance Committee was politically adjoined at the hip with Speaker Gordon Fox.

In the recent documents released in the state's 38 Studios lawsuit, an email from EDC legal council Robert Stolzman in April 2010  -- before the legislation was introduced to create the job creation program that enabled 38 Studios - shows that "at the suggestion of [Chairman] Costantino]" the program's size was increased from $50 million to $125 million. 

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4.

Curt Schilling, Founder of 38 Studios

The former Red Sox great can outline the timeline of the meetings with Fox, Mike Corso and former Speaker Bill Murphy -- but to date, has not.

Schilling knows the timeline, the promises, and at a minimum, some of the details of the deal within the deal.

It is clear that Schilling may have been the second largest financial loser in the collapse of 38 Studios (to the State of Rhode Island). 

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5.

Tom Zaccagnino, Financier

Zaccagnino, a Massachusetts financier, along with the ultimate Rhode Island insider Mike Corso were meeting and working on a deal to bring 38 Studios to Rhode Island at its earliest stages.

Communications between Zaccagnino and Corso started in the summer of 2009, months before the inception of the deal were publicly reported. Zaccagnino, a former Yale lacrosse great, was the deal-maker in bringing together 38 Studios and his ability to get Rhode Island to create a $75 million loan fund.  By working with Corso, Zaccagnino had access directly to Speaker of the House Gordon Fox. 

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6.

Michael Corso, Lawyer and Tax Credit Broker

Corso was the architect of the 38 Studios deal and made millions putting the deal together. 

In his deposition in the State’s lawsuit, he pled the 5th hundreds of times to questions ranging from the timeframe of the deal, his role, and his personal relationship with Fox.

Corso over the past two decades has been able to use his relationships and political connections to make millions in fees from historic tax credits, payments on the 38 Studios deal, and movie tax credits -- all taxpayer sponsored programs. His success in part was fueled by his close relationship with Gordon Fox, the former Speaker of the House and now an inmate in federal prison. 

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7.

Gordon Fox, Former Speaker, Now Inmate in Federal Prison

Presently, the former Speaker is serving his three year sentence at Canaan Federal Penitentiary in PA. Like Corso, Fox refused to answer any questions during the course of his deposition in the State’s lawsuit.

Fox evoked the 5th Amendment approximately 800 times.

The former Speaker says he is a good person who made mistakes. He could begin the reform process by appearing before his former Chamber and explaining what happened in the deal creation for 38 Studios.

 
 

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