The Marcello 6 and the 5 liberal abstainers


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Rep. Michael Marcello addresses litigation lending at a recent State House briefing.
Rep. Michael Marcello addresses litigation lending at a recent State House briefing.

Big time props to the Marcello 6, who stuck by their speaker candidate even after realizing he didn’t have the votes to win. They are:

Greg Constantino of Lincoln, Paddy O’Neill of Pawtucket, John Lombadi of Providence, Linda Finn of Middletown, Joy Hearn from Barrington and – of course – Marcello himself. These six are now effectively the loyal opposition in the House of Representatives and I hope other progressives join them.

They are now effectively the loyal opposition in the House. Hopefully the 5 Liberal Abstainers will join them. They are:

Edith Ajello and Maria Cimini of Providence, Teresa Tanzi of South Kingstown and Larry Valencia of Richmond {Update: Andd Rep. Jeremiah O’Grady, Lincoln]. Progressives are pretty disappointed in these five. Tanzi said she did so because there were no women on the new leadership team, and Valencia told me he would explain his decision to his constituents in the future (declined to comment). My guess is Team Marcello had splintered to the point that some didn’t want to support it.

West Warwick Republican Pat Morgan also abstained, but her reasons for doing so were certainly different. She disrupted the formal vote to try to give a speech about her reasons, which seemed to be that she wanted something for her support. This generally drew ire from both parties, though Minority Leader Brian Newberry defended her on procedural grounds.

Some progressives legislators also voted for Speaker Mattiello, including Frank Ferri, of Warwick, Art Handy of Cranston and Chris Blazejewski. Blaz, of course, was initially a leader of Team Marcello and Handy was an early supporter. Handy said his decision to jump ship was an attempt to remain chairman of the Environmental Committee.

“Staying as chair and having more access to leadership is one of the best things I can do for the progressive causes I care about,” Handy said.

Scott Guthrie, Spencer Dickinson support Mattiello


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Rep. Scott Guthrie, D-Coventry
Rep. Scott Guthrie, D-Coventry

Coventry Rep. Scott Guthrie said he is supporting Rep. Nick Mattiello for speaker because “a couple people pissed me off.”

He said he initially contemplated caucusing with the group supporting Rep. Mike Marcello, but at the outset that group didn’t even know who it would put forward as the candidate for speaker.

“There was no one they had a name for,” he told me this morning. “If you have a name you can build a team around a name.”

He also said the group was “cutting deals here and there.”

“I like Michael but now it’s going to turn into silly season,” Guthrie said. “Do we have a smooth transition and do the people’s business? All this is is politics for the next election.”

South Kingstown Rep. Spencer Dickinson, another occasional ally to the progressive movement, said he too is supporting conservative Democrat Nick Mattiello.

“I began by supporting O’Neill or Lombardi, but lack of sign-on by the progressive wing made those choices unavailable,” he wrote on his Facebook wall. “I believe that if you had been with me for the last 72 hours, and seen what I have seen, you would have made the same choice.”

On my Facebook wall, Dickinson, a vocal critic of Gordon Fox and his leadership team, wrote: “Plausible intel that the Ucci Blazejewski team (that later grafted on Marcello as speaker) actually started out as the team of horses that was to keep [Frank] Anzeveno in power. Mattiello put a credible stop to that and that’s one reason why he will be the next speaker.”

Dickinson has long been at odds with the previous leadership group.

Frank Anzeveno says he’s leaving the State House once and for all


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State House Dome from North Main Street

State House Dome from North Main StreetWhoever the next House Speaker is, their chief of staff won’t be Frank Anzeveno. The top aid to the past three speakers said in a statement that he cleared out his State House desk and won’t serve the next speaker.

As is his custom, he wouldn’t speak on the record. But House spokesman Larry Berman released this statement on his behalf:

“Privately, I have known for a while that Gordon Fox would not be running for another term. He did not want to announce that decision so that the focus would be on the many challenging issues before the House of Representatives. With this knowledge and consultation with my family, I made the decision to leave at the end of this session in June. I had previously been in contact with the Employees’ Retirement System of Rhode Island and the Joint Committee on Legislative Services to make an informed decision.

“In light of recent events at the Statehouse, time has accelerated. I cleaned out my office over the weekend in anticipation that a new Speaker needs to bring in his own staff.

“It has been an honor for me to have witnessed the hard work, dedication and commitment that our public officials, as well as the loyal and conscientious staff, bring to the Statehouse every day. I will always respect the House of Representatives and wish them the best in tackling the difficult issues before them.”

Anzeveno began his State House career in 1980 as an elected representative from North Providence. Her served for 18 years and in 2001, he became Speaker John Harwood’s chief of staff, a position he retained through Bill Murphy and Gordon Fox’s tenure.

Privately, state reps said bills required his blessing, and he relished in his bad cop reputation at the State House. He had a sign on his desk – and I would love to know what happens to it now – that read, “No better friend, no worse enemy.”

Which side are you on, House Democrats?


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house chambersOne of the most pernicious myths about Rhode Island politics is that the state house is dominated by liberal, labor-backed, Democrats. The Democrat part is certainly true, but neither the liberal nor the labor-backed parts are. Rhode Island, after all, enjoys the only voter-ID vote-suppression bill in the nation voted in by Democrats. We have endured 15 years of tax cuts for the rich that have impoverished our schools and towns and allowed great profits for businesses that turn around and betray our state. We allow payday lenders to soak their customers for 260% interest rates. We were utterly unable to enact any meaningful gun control legislation in the aftermath of an appalling massacre in the next state over last year. The list goes on in a long and embarrassing fashion.

Labor gets a lot of blame for this in certain circles, but it’s a sick joke. The labor movement in Rhode Island is so disunited that pensions were “reformed” in 2005, 2007, 2008 and 2011, each time making pension coverage for state employee union members weaker and smaller. Whether it’s labor law, pensions, taxes, or municipal funding, it is difficult to think of a high-profile controversy in the legislature won by labor in the last 15 years.

The tragic part of this is that Rhode Island’s electorate is not nearly so retrograde as its legislature. Gun control polls well, as does reproductive justice and raising taxes on rich people, and yet the legislature does not act that way.

This accounts for the Machiavellian nature of legislative politics. The conservative Democrats who have held power there for decades rely on strong-arm tactics to enforce docility among the rank-and-file. Uncontroversial bills get held until after the budget is passed to assure its passage, committee chair and vice-chair seats are awarded to “team players,” malcontents are assigned to the standing committee on whatever they care least about. These are not a sign of power, but a sign of weakness. The leadership has long been aware that their hold on power is precarious, and they rely on the disunity of their opposition to maintain their hold.

Part of what maintains that disunity is the selective granting of power to a few individuals, who are allowed to sit as committee chairs or vice-chairs. These individuals imagine they have some leverage worth protecting and that their position allows them some access to the inner workings. This makes them reliable votes to protect the interests of the powerful. But a lot of it is illusion. I found myself once talking to the vice chair of House Finance committee some years ago on the very day that the Finance Committee issued its revision of the Governor’s budget. I was fascinated to notice that he knew as little about what was in it as I did. In other words, his position allowed him to think he had access, but in reality he had virtually none.

This is what is happening today. People with some small measure of influence — who will never get any more than what they have from Mattiello’s leadership — are unwilling to risk what little they have by supporting a leadership that actually favors their perspective. The tragic part, of course, is that if they could be united, they could make a change.

Tomorrow will be a test.

If Nick Mattiello becomes Speaker, the most powerful position in the state Democratic Party, it will be through the support of tea-party Republicans allied with representatives who do not believe he supports any of their priorities, but are willing to go along with him for the sake of small and ultimately meaningless favors. Do you want Republicans Doreen Costa and Joe Trillo to be kingmakers of the Democratic Party?

The conservative path of our recent history has brought us one bankrupt city and a couple more flirting with it. We have given up tax revenue and gotten nothing for it in return. Our schools, buses, streets, and virtually every other public service you depend on, has gotten smaller, weaker, dirtier, and meaner. The legislature has thwarted Governor Chafee’s attempts to restore Carcieri’s school funding cuts and any semblance of equity among the cities and towns, along with most of the other useful reforms he has proposed. You can be upset with him for not fighting harder, but he is not the obstacle to reform in Rhode Island. This is the status quo of our state, and if you are happy with it, then you have every right to be happy with the status quo of the Assembly leadership.

If you are not happy with it, though, please contact your state rep today and ask them to support change at the state house tomorrow. And if you are a state rep reading this, please remember that the bluff only works when no one stands up.

March Madness: Genuine, bonafide politics in RI House of Reps


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Rep. Michael Marcello, House Oversight Cmte Chair
Rep. Nicholas Mattiello, House Majority Leader
Rep. Nicholas Mattiello, House Majority Leader (via RI House of Reps)

The orderly transition of Harwood>Murphy>Fox has meant an astounding amount of discipline on the part of the RI House’s Democratic caucus. That discipline has been enforced in unsavory ways; the loss of committee chairs and seats, the holding up of bills, loss of party endorsement in primary races. But punishment for defying party leadership is to be expected, especially if you’re to have a functioning political party.

The ability of the RI Democrats to build a sprawling coalition from across the political spectrum and maintain control of it is no small feat. In another country, or under another political system, it would’ve fallen to pieces long ago. But in RI, USA, that discipline has held. The party’s dirty laundry is dealt with in private, not aired out in public where it could do political damage. This discipline has created a monolith of a Democratic caucus, one that papered over their differences.

We can look back at the failed budget amendment last year as a place where that discipline was breaking down. Even without Friday’s dramatic storming of the speaker’s office, it’s unclear just how long that discipline would’ve held. Regardless of how Gordon Fox left the speaker’s chair, the transition might’ve been bloodier than he’d hoped. When the news broke that law enforcement was raiding both his office and his house, you could almost hear long-dull knives being sharpened.

Rep. Michael Marcello, House Oversight Cmte Chair
Rep. Michael Marcello, House Oversight Cmte Chair (via RI House of Reps)

A disorderly transition is going to unmask the politics within the Rhode Island House of Representatives. According to the House Republican caucus, there are three Democratic factions; one led by Majority Leader Nick Mattiello, which might be termed the “establishment-conservative” faction. Another is claimed to be led by Oversight Committee Chair Mike Marcello; though majority whips Ucci and Blazejewksi are usually mentioned as among its brain trust. In Marcello’s words, this is the “dramatic change” faction. And finally, says Rep. Trillo in The Providence Journal, an “independent uncommitted” group. Whether that third group swings their backing behind a third candidate, or one of the frontrunners is unclear.

Come Tuesday, barring an early-spring blizzard interfering with the vote, we’ll finally see where the faultlines in the House Democratic faction actually are. We won’t be reading tea leaves of votes, or parsing over conjecture from the punditry. The names will align with one group or another, and we’ll see where everyone stands. If that vote is close enough and the dissenters don’t surrender, there could be a huge battle over the budget. That battle could spill into the 2014 elections, and onwards into 2015. That might be a horrifying prospect, but this is how our politics is actually supposed to work. It’s been too monolithic for too long. Now, that monolith is in ruins.

 

P.S. In a low-information environment like this, the media plays an outsized role. The whip count is being done in private and in one-on-one conversations. It behooves any faction to project an appearance of confidence of victory, in the hopes that indecisive reps will pick what they think is a winning side. That’s why we have two factions claiming to have the votes. One or both may be lying, or one or both may genuinely believe they have the votes. Maintain skepticism of such claims. Even after the new speaker is installed, it’s unlikely we’ll know the truth.

Litigation Lending: Payday Loans for Plaintiffs


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Rep. Michael Marcello addresses litigation lending at a recent State House briefing.

While payday loans have garnered a lot of attention at the State House this session, the legislature is also considering new regulations on another form of predatory lending – this one is known as litigation lending.

Litigation lending is the term used when a company will loan a potential plaintiff in a lawsuit money up front in hopes of being repaid – with huge interest rates – once a settlement is reached. It may seem like a benevolent service, but it often doesn’t end up being a benefit for the people who use these loans.

“These lenders charge outrageous interest rates to people who – as a result of an injury are in desperate straights – unable to work, without the funds they need to support their families and often facing enormous healthcare bills,” said Donald Migliori, the president of the Rhode Island Association for Justice, a group that advocates for consumer rights in the judicial system.

Rep. Michael Marcello, a Scituate Democrat, has sponsored a bill that would cap interest rates on such loans at 21 percent. Currently, the interest rates on these loans can be as high as 200 percent.

Referencing the payday loan bills, Marcello said yesterday, “This is just one more line for consumer protection.”

To understand just how predatory litigation loans are, one need look no farther than how they came to be. According to a recent article in the Rhode Island Bar Journal, “the origins of the [litigation finance company] industry are illuminating.”

A former Las Vegas loan shark and mobile home park developer named Perry Walton came up with the concept in 1998 after pleading guilty to “extortionate collection of debt” in another scheme, according to the Bar Journal.

“Walton began loaning money to plaintiffs, structuring these advances as ‘contingent obligations’ in order to sidestep usury laws,” according to the Bar Journal. “He then invited would-be lenders to seminars, charging as much as $12,400 to impart the secret of his lucrative new scheme. Two years later, 400 people has been trained by Walton and a new subprime industry was born.”

The Bar Journal referenced an example of a man who was injured at work and brought suit but needed surgery well before a settlement could be reached. He borrowed $25,000 from LawCash for the surgery. Because the 3.85 percent interest rate compounded monthly, he ended up owing $48.94 in interest daily. The man earned $80 a day prior to his accident.

“Every day, in every state, persons who have been injured by others’ negligence turn to [litigation loans] for desperately needed funds,” according to the Bar Journal. “It is only reasonable that they not be further victimized by usurious loans.”