www.boston.com/news/local/massachusetts/specials/012609_dimasi/
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"Sal’s pal$: DiMasi sends pac funds to friend’s tech firm"
By Casey Ross, Thursday, March 27, 2008, www.bostonherald.com, Local Politics
House Speaker Sal DiMasi has funneled nearly $120,000 in political contributions meant to re-elect Democratic colleagues to the company of a close friend, angering House lawmakers who are accusing DiMasi of using the money to benefit a politically wired pal.
A Herald review of campaign finance records between 2004 and 2007 shows that DiMasi has continually showered huge payments on Sage Systems LLC, a Boston consulting firm co-managed by William Carito, a longtime friend and political adviser.
The payments have sparked heated protests from rank-and-file lawmakers because the money was withdrawn from the Speaker’s Committee for a Democratic House, a political fund controlled by DiMasi that is supposed to help pay for the re-election campaigns of Democratic colleagues.
“He might be helping his friends, but he’s not helping us at all,” said one lawmaker who asked for anonymity.
Several House lawmakers raised concerns about DiMasi’s payments to Carito’s firm, but none would speak about the matter publicly out of fear of political retaliation.
Carito could not be reached for comment. Jane Lane, a spokeswoman for DiMasi’s political committee, said the money spent on Sage Systems provides a discount to help lawmakers purchase the firm’s software, which analyzes voters trends and demographics, and helps lawmakers target mailings to their constituents.
Lane said the speaker’s decision was driven by political strategy, not a desire to help Carito.
“Speaker DiMasi decided that it is far more effective to provide critical campaign support to his members rather than hand out direct contributions, which, under law, are limited to $500,” Lane said in an e-mailed statement.
Some House members who purchased the software said it has provided clear benefits. “The price is extremely good for what you get out of it in terms of constituent services,” said state Rep. James Eldridge (D-Acton), who ran unsuccessfully for the U.S. House and is now running for state Senate.
However, state campaign finance records show that only about 60 of 141 Democratic members of the House, or about 43 percent, have taken advantage of the discount and purchased the software for their re-election campaigns in the past three years.
Meanwhile, scores of lawmakers have given $500 and $1,000 contributions to the Speaker’s Committee for a Democratic House, which is a political action committee and has less restrictive donation rules than committees for individual candidates.
Overall, DiMasi has raised more than $350,000 for the re-election committee since 2005, with about 34 percent of it going to Sage Systems, a private firm just a few blocks from the State House.
There is no evidence DiMasi benefited financially from donating the money to Sage. But lawmakers said his use of the money contrasts sharply with the policy of former House Speaker Thomas Finneran, who used the fund to dole out tens of thousands of dollars in direct donations to House members’ re-election campaigns.
Some Democratic operatives familiar with the fund said DiMasi is trying to be more evenhanded than Finneran, who was at times accused of using the money to funnel donations to political allies instead of distributing it equitably among House Democrats.
Said one Democratic insider, “I’m willing to wager that some of the people complaining now were on the gravy train in past years.”
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Article URL: http://www.bostonherald.com/news/regional/politics/view.bg?articleid=1083148
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"DiMasi aide’s film fest nets $50G state grant"
By Dave Wedge, Thursday, March 27, 2008, www.bostonherald.com, Local Politics
A small independent film festival in Falmouth run by one of Speaker Salvatore F. DiMasi’s top aides received a $50,000 state grant last year while larger, more established fests have gone unfunded, the Herald has learned.
The taxpayer-funded grant was tucked into the 2007 budget for the Woods Hole Film Festival, which is run by DiMasi’s chief legislative assistant Judy Laster. Laster, who did not return calls, makes $84,000 a year working for DiMasi but does not take a salary for the nonprofit Woods Hole Film Festival, records show.
The film fest is also a pet project of Christy Cashman, a part-time actress married to DiMasi’s developer pal Jay Cashman.
In a statement, DiMasi spokesman David Guarino said of Laster: “She had no role whatsoever in securing any of the grants received by the festival, and legal counsel for the House of Representatives reviewed her work associated with the festival and determined that it is appropriate.”
Rep. Eric Turkington, chairman of the Legislature’s tourism and arts committee, included the money in a $29 million tourism package approved by the Legislature in 2006. The Woods Hole fest is also slated to get a piece of a new $50,000 grant to be split with similar festivals in Provincetown and on Martha’s Vineyard.
“The idea of promoting film festivals is a good one,” said Turkington (D-Falmouth). “It’s the kind of thing I think can be an economic stimulus for the town.”
According to the nonprofit Woods Hole festival’s most recent filings, officials spent $32,000 in 2005, including $6,452 on travel, $5,142 on supplies and $10,549 on various expenses. Among the miscellaneous expenses were $3,000 for “management fees” and $3,720 for “public relations,” records show.
Film Festival director of development Anne O’Brien said the grant application was filed by the organization’s board - not Laster independently.
“We’re a small nonprofit and we apply for funds where they are available,” she said. “I don’t think there’s anything inappropriate.”
The Boston and Nantucket film festivals are the state’s largest and attract many of Hollywood’s top stars, but officials from both say they have been denied state funding in the past.
The only government money to go to the Boston Film Festival was $15,000 several years ago through the state film office and two $5,000 grants from the Massachusetts Convention Center Authority, spokeswoman Robin Dawson said.
“It’s on my agenda to sit down with the legislators and show them the financials on why this is such a strong benefit for the city,” Dawson said.
Jill Burkhardt, executive director of the Nantucket Film Festival, praised the Woods Hole grant and said the state should make more aid available.
“I find (funding) to be lacking overall in this country, not just in Massachusetts,” Burkhardt said. “Most European film festivals are supported in part by their government. It’s much more difficult to get government funding in the United States.”
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Article URL: http://www.bostonherald.com/news/regional/politics/view.bg?articleid=1083149
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(A Boston) GLOBE EDITORIAL
"Big target in ethics dustups"
March 29, 2008
HOUSE SPEAKER Salvatore DiMasi has a big heart when it comes to helping his friends raise money for charities. But his old-school style of politics has put a big target on his back. For the second time in a month, the Massachusetts Republican Party is asking the state Ethics Commission to investigate the powerful North End Democrat.
The speaker's latest woes come courtesy of Cognos ULC, a Canadian software company, which offered generous support over the past several years to a favorite DiMasi charity for family members of police officers killed in the line of duty. Over a similar period, Cognos received $22 million in state contracts, including a $13 million award last year that violated the state's bidding, bonding, and scoring regulations, according to state Inspector General Gregory Sullivan. That last contract has been rescinded. A former Cognos official may also have tried to gain leverage with the state's former chief information officer by insisting that DiMasi favored the firm's bid. DiMasi's office denies intervening in any way for the company.
Only a thorough Ethics Commission investigation will clear up lingering questions. And it shouldn't drag out. If DiMasi did nothing wrong, he shouldn't have to walk under this cloud.
Meanwhile, the speaker can do a lot to avoid both actual and appearances of conflicts of interest. It may be lamentable, but DiMasi may need to distance himself from some of his charitable ventures. When he was a rank-and-file representative and even majority leader, DiMasi's signature on a fund-raising letter didn't overstimulate lobbyists or stir up pursuers of state contracts. But things have changed. In his current position, his priority should be to give the public confidence in state government.
DiMasi is an amiable, long-serving lawmaker who was schooled in an era when politicians saw their first duty as helping people. He would later develop into a policy expert with skill at wielding power. Anyone with that high a political profile must also be prepared to face the toughest scrutiny.
David Guarino, DiMasi's spokesman, says the speaker acted well within the limits of the state's conflict-of-interest law by limiting his role to general solicitation along with other members of the charitable committee. And the speaker, says Guarino, expressly avoided any follow-up solicitations or attempt to target the fund-raising materials to anyone, including those doing business with the state.
DiMasi is comfortable with the ethics statute. It doesn't change quickly. But public opinion shifts more rapidly. And the speaker needs to keep up.
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Dan Bosley or "BUREAUCRAT BOSLEY"
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Re: Dan Bosley versus the national Corporate Elite
Wednesday, 19 March, 2008
Dear Dan Bosley:
As I live in Boston's media market, I have heard a lot about casino gambling for the Commonwealth of Massachusetts. I have come to an understanding that the real corporate interests in Massachusetts State Government, much like Connecticut & New Hampshire, are Insurance Companies, which means they set the agenda a push through legislation to fit their designs over the millions of "have-nots" who make them rich. I understand that it is the Insurance Companies that are OPPOSED to Governor Deval Patrick's push for Casinos in Massachusetts. However, other more powerful national corporate interests are pushing for Deval Patrick's proposal - namely: Wealthy National Financial Institutions who profit off of the Casinos in Connecticut, New Jersey & Nevada. While the Corporate Elite in Massachusetts: INSURANCE COMPANIES-- are against the Governor's plan for Casino Gambling, the Corporate Elite in New York City and nationwide are for the governor's plan. So while you are representing the state's Insurance Companies' interests by opposing the governor's plan, you are taking on a bigger lobby nationwide.
It is all very interesting to watch, Dan Bosley. I hope the state's Insurance Companies will reward you with another 50 years of making them rich in the name of economic development. NOT!
In Dissent!
Jonathan A. Melle
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"Luck craps out in Massachusetts"
By Rosemarie Stachura
The North Adams Transcript Online
Saturday, March 29, 2008
Well, in Massachusetts it's all over except for the recriminations -- this sinful attempt to bring casinos to our blissful state. The Legislature has spoken.
The Berkshire delegation so righteously proclaimed its disdain for the voters and all but declared the democratic process of majority rule as nonexistent. Bosley, Downing, Speranzo, Guyer and Pignatelli, and, of course, the unelected and self-proclaimed wannabe governor, Salvatore DiMasi, sure showed the elected Gov. Patrick who is running the state!
Whether or not you support the establishment of resort/hotel/casinos within the confines of the state is irrelevant. The mere fact that these gentlemen wielded their might to defeat the governor's bill before it even hit the House floor indicates to me an arrogance that should scare the pants off any ordinary citizen who believes in the power of the vote and believes in fair play. This is truly dirty politics at its very worse!
Aren't you sick and tired of these so-called do-gooders who know what is good and not good for us? They tell us who to vote for, how to think and how our hard-earned dollars should be spent, while they go behind closed doors and make deals that influence their peers to vote their way on a given issue. This is done with complete disregard for and disrespect of their constituents. We all know there were several deals made last week in Boston, and one wonders just how much those deals will cost the taxpayer or affect the taxpayers.
I suppose we should all be grateful that the Legislature has rescued us from a fate worse than death: "casino culture." I have no idea what casino culture is, but it must be pretty bad!
Here in Massachusetts we have been living with "lottery culture" for several years now, all supported by our Berkshire delegation. America, in general, has been dealing with "drug culture" for many decades, with no success. We are embarking on a "cyber fraud culture" which none of our leaders have even begun to address. Berkshire County is not removed from these "cultures," which, by the way, have nothing to do with casinos.
So, what do we do now? Here in Berkshire County we have lost hundreds of jobs in the past several months, mostly due to plant closings. We are now in the throes of a recession, which will wreak a heavy toll on the residents of this county. It comes at a time when costs are higher than ever for products and services. There are more people and businesses exiting the state than are moving into the state. High energy costs and a dearth of available jobs have everyone thinking about how they are going to survive another year. Taxes have always been an issue in Massachusetts. They don't call it Taxachusetts for nothing!
All these issues, and our legislators couldn't even take a long, hard look at a proposal that, while certainly not a panacea, did have some potential to create something more than just service jobs -- like, maybe, construction jobs for at least the two to three years' building phase -- jobs that would have done a lot to ease problems in the western part of the state which includes Springfield and Holyoke. Good construction jobs mean more revenue for the state, but more than that, jobs bring a sense of well-being and worthiness to workers. Boys, what were you thinking?
Mr. Wannabe DiMasi says there are better ways to bring jobs to Massachusetts. Just how long must we wait for these men to make it happen? Wouldn't you just love to know how many jobs the above-mentioned legislators have brought into the state? We know that Bosley has made some trips to other countries, as have, I am sure, DiMasi and the others. Have any of these trips resulted in new businesses or jobs or anything that would add value to our economy in the area of our business or manufacturing environment? If someone out there has information that will indicate this, please tell your constituents. Inquiring minds want to know!
Thus far, all we have seen to stop the bleeding and add revenue to the state coffers is new increases in license fees, new venues in which to peddle lottery tickets, new increases in bridge, tunnel and road tolls and fines for those who, despite the availability of lower-cost health insurance, still cannot afford to buy the plans. Again, boys, what were you thinking?
Because every action has a reaction, here is what I think we can expect, since our legislators so smugly slammed the door in the faces of its voters: The Indian nation will get the permission it needs to build a casino or two, which will afford the state very little in the way of revenues. New Hampshire will build a casino near or on the state line, and that casino will suck up cash from our state much like a Dyson vacuum cleaner. Bus companies, which are supported by the Connecticut casinos, will continue to transport thousands of Massachusetts residents to Connecticut, where their spendable cash will be left for Connecticut to enjoy.
We won't get any new stadium like UConn got from casino revenues. And, of course, property owners in all the towns throughout Massachusetts will suffer increased property taxes because of the state's inability to deliver the funds its so generously promised but so utterly failed to deliver. Boys, what were you thinking?
After nearly eight years of Bush arrogance, incompetence and complete disregard for the lives of everyday American people, many of us have become extremely jaded. We have developed misgivings about our federal government, and, yes, distrust. It would be a sad state of affairs if we were to lose respect for, and develop a feeling of distrust for, our state government as well. Right now, with me, it's a toss-up!
Boys, you had better start thinking. Those jobs you now hold are not a guarantee you'll have them forever!
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Rosemarie Stachura is chairwoman of the Adams Finance Committee and a frequent Transcript contributor.
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"State Lottery unveils new Red Sox scratch ticket"
March 31, 2008
By Lisa Wangsness, Boston Globe staff
The Massachusetts Lottery and the Boston Red Sox unveiled a new $20 Red Sox scratch ticket at Fenway Park today.
The ticket offers a $10 million grand prize, which is as large as any instant win ticket prize in the world, officials said. It also offers 20 $1 million prizes and 100 Red Sox road trips.
The new ticket, which will go on sale April 8 – Opening Day – is expected to generate $23 million in aid to Massachusetts cities and towns. Only 10 million of the tickets have been printed and officials said they expected it to sell out by the end of the baseball season.
The $20 ticket is the third and most expensive Red Sox ticket the Lottery has issued. The first was a $5 ticket that went on sale two years ago and which is expected to sell out within the next few months, at which point the lottery will announce the winners of that grand prize, which is a pair of Red Sox season tickets for life.
The Lottery also announced that it is sponsoring a tour of both the 2004 and 2007 World Series trophies, with stops in 30 cities and towns throughout the Commonwealth.
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"Lawmakers postpone tax hike debate"
April 8, 2008
By Matt Viser, (Boston) Globe Staff
House Speaker Salvatore F. DiMasi this afternoon postponed a much-anticipated debate on Beacon Hill over whether to approve the state’s biggest tax increase since 2002 amid criticism from all sides of the issue.
The House was expected to begin debate this afternoon on legislation that would allow about $356 million in tax increases for smokers and the state’s largest corporations.
But about 20 to 30 Democratic legislators were challenging DiMasi’s plan for not being aggressive enough. Business leaders and Republicans also offered a pre-emptive strike in the debate around noon, charging that the plan would hurt businesses amid a looming recession.
“We have a fundamental problem with the timing, scope, and nature of the bill,” said House Minority Leader Bradley H. Jones, a North Reading Republican. “This tax package will be nothing but the death knell for the state’s economy.”
Debate on the proposals is now expected to take place on Thursday.
The proposals would tighten corporate tax laws – bringing in $204 million next year – and would raise $152 million by increasing the state’s cigarette tax by $1 per pack. The cigarette increase would give Massachusetts the second highest cigarette tax behind New Jersey, although New York is planning to trump both states with a $2.75-per-pack increase.
DiMasi outlined the proposals two months ago in an effort to compromise with Governor Deval Patrick, who since taking office last year has been calling for closing so-called corporate tax loopholes.
Patrick and DiMasi have both backed a plan to tighten the corporate tax codes, but they have significant differences over how deep corresponding reductions in corporate tax rates should be.
Overall, DiMasi's plan would mean that businesses would pay about $204 million more next year, but by 2011 would be back to what they pay now. Because Patrick's plan does not lower the tax rate as quickly or dramatically, businesses would still end up paying $280 million more once his plan is fully implemented in 2012.
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"Sal’s No. 2 raked in felons’ cash: 13 cons have donated $5,800"
By Dave Wedge, April 11, 2008, www.bostonherald.com, Local Politics
House Speaker Sal DiMasi’s second-in-command, Rep. Thomas Petrolati - a driving force behind major legislation on Beacon Hill - has accepted thousands in campaign contributions from reputed mobsters, bookmakers and a who’s who of corrupt Springfield pols, a Herald review has found.
Among the criminals who’ve contributed to Petrolati, the House speaker pro tempore, is Frank Colantoni, who served 12 years in connection with the 1989 mob hit on Patriarca crime family capo William Grasso. Colantoni, who has a rap sheet dating back to 1983, donated $500 to Petrolati’s campaign in 2006, records show.
Reached by phone yesterday, Colantoni said he donated to Petrolati at a friend’s request.
“I don’t even really know the man, but if a friend comes to me and says the guy’s a good guy, help him out. No problem,” Colantoni said. “I don’t think he can do a thing for me.”
A Herald review identified 13 convicted criminals who’ve donated a total of $5,800 to the Ludlow Democrat. Other felons who’ve given to Petrolati after their convictions include:
Anna Santaniello, who was convicted in 1989 of helping run a mob gambling ring;
Disgraced ex-Springfield City Councilor Francis Keough, who is serving three years for extortion for skimming cash from a homeless shelter;
Developer Michael Cimmino, who was convicted in 2004 of illegally putting slot machines in Springfield barrooms;
Restaurant owner Andrew Yee, who was convicted of lying on a loan application in 1990;
Lobbyist Charlie Kingston, a two-time tax cheat.
Reached outside his State House office this week, Petrolati, who is up for re-election, said he didn’t know Colantoni and was “unaware” of any felons on his donor list. Asked if he would return cash contributed by felons, he said: “Absolutely.”
In a statement, Petrolati’s campaign treasurer James Nascimento said: “The Committee to Re-Elect Thomas M. Petrolati . . . has never knowingly accepted donations from previously convicted felons and, now that it has been made aware of the donations, (they) will be given a refund.”
There are no rules against accepting donations from convicted felons. However, many politicians regularly review their donor lists and return contributions from criminals or donors who may pose a conflict of interest.
Pam Wilmot, spokeswoman for the government watchdog group Common Cause, said that although felons’ campaign contributions are legal, they could pose a public relations problem for politicians.
“There is a sensational aspect to having a contribution from somebody who is connected to crime and that is something that can be effectively used by an opponent. And that’s why most politicians steer away from them,” she said.
Petrolati, who worked behind the scenes to help kill Gov. Deval Patrick’s casino plans, also has taken campaign cash from several donors later convicted of felonies. Many are former public officials snared in a sweeping FBI corruption takedown in Springfield.Nascimento did not say if Petrolati would return money from donors convicted of felonies after giving contributions.
Messages left by the Herald for donors were not returned.
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Article URL: www.bostonherald.com/news/regional/politics/view.bg?articleid=1086418
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"Tax measure could cost state millions: Late amendment would create break on corporate offshore holdings"
By Matt Viser, (Boston) Globe Staff, April 24, 2008
Governor Deval Patrick's quest to tighten corporate tax laws and reap hundreds of millions of dollars in new revenue might be undermined by a last-minute amendment providing new offshore tax breaks that was tacked onto the legislation by the House, according to state officials.
The complex amendment was backed by the House leadership and approved with little debate during mid-evening voting two weeks ago as representatives were adopting the overall tax package. Several lawmakers said they were unaware of the details of the provision, which was sought by the state's largest business lobbying group.
The provision would permit large corporations to avoid up to $200 million in state taxes a year if they maintain large portions of their business operations overseas, according to an estimate by the state Department of Revenue. The tax-shelter strategy has proved controversial in other states.
Administration officials say the maneuver could essentially make a wash of the revenue raised by corporate tax reform, a cornerstone of Patrick's agenda that was expected to bring in $217 million in the first six months of 2009.
"It would allow companies to shift money overseas and avoid taxes in Massachusetts," Navjeet K. Bal, the state's revenue commissioner, said in an interview yesterday. "This is a real concern for us."
The offshore tax break still must be considered by the Senate, along with the rest of the tax bill, before reaching Patrick's desk. Through a spokesman, Patrick said the administration will lobby senators to change the plan.
"We look forward to continuing to work with the House and the Senate to craft a final loopholes plan that will ensure tax fairness and provide much needed revenue," said the governor's spokesman, Kyle Sullivan.
The state Department of Revenue is not identifying companies that could benefit from the provision, but it points to a lawsuit by Illinois against Wal-Mart and other large corporations that have employed similar offshore tax shelter strategies.
The Massachusetts Budget and Policy Center, which analyzes the state budget and tax policies, is planning to release a report today that details the consequences of the House amendment, which was adopted April 10.
"It looks like what this amendment does is create new opportunities for tax avoidance and new loopholes," said Noah Berger, the executive director of the Boston-based nonprofit. "That goes in exactly the wrong direction."
Representative Daniel E. Bosley, who sponsored the amendment, disputed the state's estimates as inflated and suggested the Department of Revenue's criticism was motivated by other provisions in his amendment that remove some regulatory power from the department.
"I just don't trust their figures," Bosley said of the department. "It's a ridiculous estimate. They're just bad at numbers."
The amendment was sought by the Associated Industries of Massachusetts, according to officials at the organization, which advocates on behalf of the state's business community.
"We don't think this is a particularly good time to be jacking business taxes," said John Regan, an executive vice president of the Associated Industries of Massachusetts.
Since he took office last year, Patrick has sought changes in the tax code to raise more revenue by closing what he considers to be loopholes. But he was repeatedly rebuffed by House lawmakers who said tax increases would send the wrong messages to businesses. When the House signaled it would embrace the plan and voted it through this month, it was considered a major breakthrough.
Under a compromise, the House adopted most of the governor's proposals, which would bring in about $217 million in new revenue during the first six months of 2009. But they could lose $100 million to $200 million every 12 months in the future because of the Bosley amendment, according to state estimates.
There was little public debate on the five-page, highly technical amendment, and it passed on a voice vote, without a roll call vote. Several lawmakers later admitted they did not realize the full extent of what they were voting on.
"It's somewhat embarrassing," said Representative Jay R. Kaufman, a Lexington Democrat who, after the vote, started looking into the issue. "Since it was introduced at the last minute - and there was a desire to get this voted on that day - there was an understanding we would be working with incomplete information."
Senate President Therese Murray declined to comment yesterday, but the Senate's chief budget writer said they would carefully examine the Department of Revenue's concerns.
The Department of Revenue "is our tax collector," said Senator Steven C. Panagiotakos, chairman of the Senate Committee on Ways and Means. "We are going to take what they say very seriously and see what makes sense and what doesn't."
The issue hinges on a complex tax regulation called combined reporting, which is designed to prevent large, multistate corporations from shifting certain profits to other states that have lower tax rates. The House-approved corporate tax legislation would require companies in Massachusetts to combine all income and apportion the Massachusetts share.
But while the overall bill tightened that rule, Bosley's 2,300-word amendment inserted language that could allow certain corporations to shift a large portion of their income to overseas subsidiaries and avoid paying corporate income taxes in Massachusetts.
Several major corporations, including Wal-Mart, McDonalds, and Burlington Northern Santa Fe Corp., have exploited these tax codes in other states, such as Illinois and Minnesota, according to state officials.
Wal-Mart, for example, set up a small real estate office in Florence to control billions of dollars of the retailer's property in the United States, the Wall Street Journal reported in November. The Illinois Department of Revenue last year demanded $26.4 million in back taxes, interest, and penalties in a case that is ongoing.
Bal wrote a letter to the Senate president last week, expressing concern over the changes and citing the Wal-Mart example to illustrate how Massachusetts could lose tax revenue.
"These changes primarily benefit a limited group of very large, sophisticated, multinational businesses," reads the letter, which was obtained by the Globe. "If left unchanged, these changes will materially reduce the additional revenue anticipated from the governor's combined reporting bill by at least $100 million to $200 million annually."
Burlington Northern did not respond to a request for comment yesterday. Public relations officials at McDonald's declined to comment. Wal-Mart said it is paying attention to the Massachusetts legislation.
"Anytime there's a lawful way to reduce our expenses and save money for our customers, we're aware of it," said Daphne Moore, a Wal-Mart spokeswoman.
Proponents say they do not want to tax businesses unfairly on profits, even if they originated in Massachusetts and then shifted to offshore subsidiaries.
"At what point do we break the backs of these businesses and corporations and force them to expand beyond our boundaries?" said Representative John J. Binienda, House chairman of the Joint Committee on Revenue. "If you did every single loophole in the world all at the same time, you'd be having layoffs by these companies. And without these corporations and having these people working we'd be a lot worse off."
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Matt Viser can be reached at maviser@globe.com.
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"Worrisome tax break"
The Berkshire Eagle - Editorial
Friday, April 25, 2008
We urge the state Senate not to sign off on the House's bill tightening corporate tax laws without first exploring a late amendment that some House members claim they didn't know the details of before their vote earlier this month. The amendment, which provides new offshore tax breaks for large corporations, could negate Governor Patrick's efforts to generate much-needed new revenue to the state.
The House bill backs the governor's effort to end the system in which companies divide their liabilities among various divisions, some in other states, to reduce their tax burdens, a measure already passed into law by 21 other states. The affected businesses would primarily be large corporations with divisions outside the state, not your typical small Berkshire business. The late add-on in the House would enable corporations to pay less in state taxes if they maintain large portions of their business operations overseas. Again, this provision would almost exclusively benefit large multi-national corporations.
The state Department of Revenue told The Boston Globe that this provision would cost the state about $200 million a year, essentially canceling out the revenue generated from the closing of a so-called "loophole" included in the same bill. Representative Daniel Bosley, a North Adams Democrat who sponsored the amendment, says the DOR's estimates are too high. All the more reason for a thorough vetting in the Senate.
While government should not burden business unduly, it does have the right and obligation to require business to pay its fair share of taxes, just as residents must. Employing strategies in which business divisions in other states or countries are used to reduce taxes paid to Massachusetts cannot be defined as fair.
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"Legislative wheels turn out of view: Biggest decisions made secretly on Beacon Hill"
By Matt Viser, (The Boston)Globe Staff, April 25, 2008
Community activist Carl Nilsson stood outside the House chamber late one night this month and spoke with any elected representative who would stop. He asked them to vote against a last-minute corporate tax amendment, one that was heavily influenced by lobbyists and business groups.
But nothing Nilsson said would matter. Behind closed doors, the decision had already been made by a handful of influential lawmakers. By 9 p.m., the five-page, highly technical amendment carried easily on a voice vote, with little public debate.
It demonstrated how the wheels of government turn on Beacon Hill. Most important decisions take place behind closed doors, including those on some of the weightiest topics in recent months: legalizing casinos, levying new taxes, and formulating the $28 billion state budget. In an increasingly common practice, even committee votes are frequently taken via Blackberry and e-mail, with the results released later.
And because the Legislature exempted itself decades ago from the state's open-meeting and public records laws, lawmakers often deliberate in private and keep key documents - schedules, e-mails, even some voting records - hidden from public view.
Democrats, who control the House and Senate, frequently hold closed-door party caucuses to hash out policy details; by the time legislation reaches public view, ready for a vote, the results are typically predetermined.
In the case of the vote Nilsson was watching, the action had serious financial consequences that were unknown that night to many legislators: The Department of Revenue now estimates that the amendment could open the door for up to $200 million in annual tax breaks for large corporations that set up overseas operations.
"It was very frustrating," said Nilsson, campaign director of Neighbor to Neighbor, a nonprofit organization that advocates for low-income families statewide. "Doing these things in the dead of night makes it harder to have a public discussion and for legislators to understand what they're voting for."
It's hardly surprising or new that Massachusetts politics includes hidden agendas and backroom deals, a practice that has been in play since John Hancock became the state's first governor in 1780. But as Massachusetts has once again become virtually a one-party state, there are fewer challenges to open up the process or questions directed at the handful of powerful legislative leaders who dictate the flow of legislation. Some of the means of centralizing authority put in place by former House speaker Thomas M. Finneran have continued under the current speaker, Salvatore F. DiMasi.
"I'm troubled by the current process," said Representative James B. Eldridge, an Acton Democrat. "There is a lot of peer pressure that inhibits members from taking their votes to the House floor, and [unless it's backed by leadership] you don't have a snowball's chance in hell of it passing. Institutionally, the House has grown comfortable with the current system, and it needs to become more open."
The opaque practices continue despite a pledge by DiMasi when he became speaker in 2004. He told colleagues that he would empower rank-and-file legislators, encourage more public policy debate in committees, and "open the windows of this institution and let the light of the 21st century in."
DiMasi declined requests for an interview, but his spokesman released a statement, pointing to efforts to increase openness by improving the Legislature's website and broadcasting 150 hours of committee hearings and floor debate online, "giving the public an unprecedented seat in the hearing room."
"Under Speaker DiMasi, the House has become inarguably more open and transparent to the public," said the spokesman, David Guarino.
Through a spokesman, Senate President Therese Murray also pointed to the online broadcasts of floor debates as evidence of openness.
Governor Deval Patrick, who ran against the "culture on Beacon Hill" and vowed to bring new levels of transparency to government, declined to comment. Patrick has denied several requests for records, including a request from the Associated Press in February for copies of his e-mails and other electronic communications.
If crafting law is like making sausage, the process at the State House makes everything appear to come out like a prepackaged Fenway Frank.
During the highly contentious casino debate, for example, lawmakers spent 13 hours in committee hearings, sustaining themselves on Gatorade and crackers as they listened to anyone who wanted to testify.
But when it came time for deliberations among committee members, there were none. To cast votes, most e-mailed and phoned them in, some not even bothering to show up at the State House.
For John Leschen, a 41-year-old historic preservation contractor from Plympton, this was the first time he had confronted State House procedures, and he expressed disappointment.
Leschen traveled several times to Beacon Hill, meeting with legislators and sitting through hours of hearings, to oppose the governor's plan to license three resort casinos. He was impressed with the amount of time legislators spent on the issue and the knowledge they had amassed, but said it was all for naught.
"It was primarily for show," said Leschen. "These things happened the next day through e-mail, a quick debate, and a couple of votes."
Legislators say e-mail voting is fairly common, particularly on routine matters, and it can come in handy in moving legislation along quickly. But it also means that lawmakers, who earn nearly $60,000 in annual base pay to represent their districts, can avoid airing their views in a public forum.
"In a perfect world, we'd all be there, and we'd all speak great thoughts," said Representative Daniel E. Bosley, a North Adams Democrat and cochairman of the committee that voted on the casino legislation. "But not everyone can be there, and . . . it's a good thing people are given options to vote."
The e-mail voting is used only in legislative committees, which is where lengthy policy discussions typically take place, and not when issues reach the House and Senate floors, where votes are publicly displayed using red and green lights on an overhead board.
There are a variety of other policies that shield lawmakers from public scrutiny or questioning. Photography and video equipment, for example, are, in most cases, banned from the House and Senate chambers. There is a rope line that keeps reporters, photographers, lobbyists, and other members of the public away from the House doors after crucial votes. If legislators want to answer questions, they can walk over to the rope to address the crowd. If they don't, they can slip out a back door.
Several of the House procedures "definitely have a way of making the process neater and smoother, but it's completely legitimate to question whether democracy is well served," said Representative Jay Kaufman, a Lexington Democrat. "If there were more debate, we would be in session longer, and it would be harder for a body of 160 members to follow. But it's definitely marked by less debate."
Years ago, the Legislature routinely debated for weeks over the budget, with spirited floor fights over individual line items. But when Finneran became speaker, House leaders made several changes that made the process quicker and more orderly by consolidating power.
When House members begin debate next week on how $28 billion in taxpayer money should be distributed, they will retreat to a spacious lounge blocked off from the public by a security guard and there decide which budget amendments make the cut.
Members have submitted about 1,500 amendments, but which ones get through is largely determined by the chairman of House Ways and Means, Robert A. DeLeo, Democrat of Winthrop.
In theory, lawmakers can appeal on the House floor. But by that time, most decisions have been made. "It really is a sad state of affairs in how we deal with this," said House minority leader Bradley H. Jones Jr. . "It's not good for democracy."
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Matt Viser can be reached at maviser@globe.com.
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www.boston.com/news/local/articles/2008/04/25/legislative_wheels_turn_out_of_view/
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(Photo of the House Lobby of the State House on Beacon Hill)
Many crucial decisions are made in the House Lobby of the State House, which is off limits to the public and media. (MARK WILSON/GLOBE STAFF/FILE)
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4/25/2008
Dear Dan "BUREAUCRAT" Bosley:
I read the news article, below, about how you inserted "a last-minute amendment providing new offshore tax breaks" to the House's tax package to raise revenues from wealthy big businesses - or the Corporate Elite in Massachusetts. "The Boston Globe" characterized your INEQUITABLE rider as "the Bosley amendment".
Do not you know whom you are representing on Beacon Hill's State House? You represent Northern Berkshire County & the surrounding areas! The corporate elite does NOT exist in your legislative district! That means that you are NOT representing your legislative district in Boston!
You even support the Massachusetts State Lottery System that is nothing more than a system of regressive taxation! Well, a majority of your constituents are poor!
In Dissent!,
Jonathan A. Melle
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The Boston Globe, Op-Ed, SCOT LEHIGH
"One bill's journey through Beacon Hill"
By Scot Lehigh, (Boston) Globe Columnist, April 25, 2008
WELCOME to the Beacon Hill Sausage Factory.
Before we start today's tour, you'd best put on a pair of coveralls and some rubber boots. The process is messy, and you don't want to get splattered.
Oh, yes, and watch out for the mice. They like to skitter out from dark corners and nibble on your wallet.
Today we're going to look at an important piece of legislation as it wends its way through the process. See this smartly designed bill? It's Governor Patrick's plan to boost the life sciences in Massachusetts.
One way it would do so is by letting the Massachusetts Life Sciences Center, a quasi-public agency, spend $500 million in capital funding on projects it judges important, as long as Administration and Finance signs off. That thoughtful legislation disappeared into the factory for months. It's still not finished, but one of the versions that has emerged looks, to use an early life-sciences allusion, a bit like Frankenstein's monster.
See that jovial fellow over there? That's Dan Bosley. He's a highly skilled sausage factory employee - actually, they prefer to call themselves state legislators - from North Adams. Representative Bosley helps run one of the factory's primary earmarking machines, known locally as the Joint Committee on Economic Development and Emerging Technologies.
Let's look at the governor's bill now that Dan's done with it. Why, there's $49.5 million - almost 10 percent of the bond money - earmarked for the construction of a science center at the Massachusetts College of Liberal Arts.
Now, the life sciences initiative is supposed to spur industry clusters and create jobs. Cutting-edge academic work in the field is usually done at big research universities, not small liberal arts colleges. Not even MCLA's biggest booster could plausibly describe the college as a life sciences leader. After all, it doesn't have any graduate programs in science.
Mind you, the college is hardly being neglected. The administration has included about $23 million for MCLA in the higher education bond bill (a sum that has now grown to $31 million in the factory). Based on an actual planning process, that $23 million is for a 28,000-square-foot addition that will let MCLA consolidate its science programs and build modern labs, classrooms, and offices.
So why the additional $49.5 million that's now earmarked for the college?
Well, here's a little quiz to see how well you understand the way the factory works. Where do you suppose the Massachusetts College of Liberal Arts is located? That's right. North Adams.
And where do you suppose Dan Bosley graduated from? North Adams State College, which is now . . . the Massachusetts College of Liberal Arts.
Let's see if we can get close enough to talk to Dan. Watch your fingers, though. If they get caught in his machine, they just might end up earmarked for the Berkshires as well.
So, Dan, how do you justify earmarking $49.5 million for a college that doesn't even have a graduate program in science? "It doesn't have a graduate program," Bosley says, "because they have no life sciences center."
But the point of this bill isn't to start life sciences programs from scratch, but rather to build on the state's existing strengths. "So . . . screw Berkshire County because they don't have anything now, so screw them?"
But what about the millions already in the proper pipeline for the college? If the college gets the $49.5 million, Bosley says, "we wouldn't use [the millions] in the higher ed bond bill."
That's hardly the only earmark in the House bill. Altogether, almost $300 million of the $500 million is specifically earmarked, with nearly all of the rest tagged by the House for a variety of grant or loan programs. (The governor can choose not to spend earmarked money, but he can't use it for other purposes.)
OK, here's the question as we complete today's tour: Now that you've seen sausage being made, how much confidence will you have in the factory's final product?
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Scot Lehigh can be reached at lehigh@globe.com.
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City
"MCLA defends science funding: The college could get more than $80 million from the House for facility upgrades"
By Scott Stafford, Berkshire Eagle Staff
Wednesday, April 30, 2008
NORTH ADAMS — In the midst of enrollment growth and increasing student interest in its science and technology programs, Massachusetts College of Liberal Arts is finding itself ill-equipped to satisfy that demand.
With laboratories in buildings that are more than 40 years old, state and college officials argue that the college's facilities limit the potential for students.
And the need is not unique to MCLA, they say. Berkshire County companies, which consistently turn elsewhere for employees with science and technical skills, could start finding those talents closer to home with a well-equipped science program churning out science majors.
This week in Boston, legislators are debating the final budget numbers, which include a proposed $49.5 million for a new science center and $31 million for other facility upgrades at MCLA.
Mary K. Grant, president of the college, said a new science building is long overdue, especially when more students are interested in majoring in science, technology, engineering or math.
In the past five years, the number of students majoring in the sciences has increased 32 percent, with a 26 percent jump coming between 2006 and 2007, according to figures provided by the college.
"Why shouldn't we have the kind of facility in our own backyard — with state-of-the-art equipment that will attract students and faculty?" Grant said in an interview yesterday. "This region should be bold and reach high. It's what we ask our students to do every day."
David M. Rooney, president of the Berkshire Economic Development Corp., said an expanded science curriculum and state-of-the-art science research facility would make Berkshire County an easier sell to attract new businesses and retain existing companies.
"If you want to attract new business, you have to create a sustainable pool of educated, talented individuals," he said. "Increased investment in higher education is an important tool for us, just as connecting eager young minds with practical experience is very important for us."
Under discussion in a House and Senate conference committee is the Life Sciences Bill, which includes MCLA's proposed science building. The Higher Education Bond Bill, which includes the $31 million for the MCLA facility upgrades, has passed both houses and is now in a House and Senate bonding committee.
One promoter of the plan is Fred Clark, chairman of the Massachusetts Board of Higher Education, the board that governs the state's university system.
"We are very anxious to get those bills through before the end of the legislative session," he said. "You can't train a work force for the future in labs that are 50 years old. Those needs have been long-neglected. We absolutely have to provide (MCLA students) with modern facilities to fill the needs of the science-based economy that is growing in Massachusetts."
"This is extremely important to our area and to our students," said state Rep. Daniel E. Bosley, D-North Adams. "The premier liberal arts college in the state is right there in North Adams, so what better place to put a life sciences center than at MCLA?"
He said other legislators are aware that other colleges in the public university system have received "$50 (million) or $60 million" for new campus facilities in recent years. And with the high-tech economic development occurring between Albany and Glens Falls, N.Y., a new facility at MCLA will help the region tap those opportunities with modern training and a ready work force.
And the total amount for MCLA, the sum of the science center and facility upgrades, Bosley said, "isn't enough to do what we need to do."
Last week, a Boston Globe columnist criticized the multimillion-dollar science center plan at MCLA and Bosley's advocacy for it; the North Adams Democrat is an alumnus of the college.
"Berkshire County deserves the same kind of opportunity as the rest of the state does," Bosley said. "I make no apologies, and I think it's grounded in sound reasoning."
One important aspect of a new science center at MCLA would be the community component, Grant noted. Last week, Mount Greylock Regional High School science students visited and conducted experiments in MCLA laboratories that they have not the equipment to do in their own school. But to make room, MCLA science classes had to juggle their laboratory times.
With a new science center, the ability for local schools and local companies to use the facilities would be greatly increased.
"At this point, it's very difficult to do," said Adrienne Wootters, the chairman of the physics department. "The labs are being used all day and into the evening to fit everyone in there. We love to have kids come to visit, but we have to shuffle things around. With a new building, classrooms and labs for local teachers and students would be accessible and useful."
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To reach Scott Stafford: sstafford@berkshireeagle.com or (413) 664-4995
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"Just the ticket for brokers: They hire an associate of DiMasi, watch scalping bill pass the House"
By Andrea Estes and Stephen Kurkjian, (The Boston) Globe Correspondent, April 27, 2008
The 2007 Red Sox season was just underway when a group of professional ticket brokers held an unusual meeting in a private room at the Baseball Tavern, the storied bar in the shadows of Fenway Park. The main item on their agenda: How to persuade Massachusetts officials to keep ticket-resale profits rolling.
One man was there with an offer of help. He was not a broker, had no known experience as a political strategist, and has never registered as a State House lobbyist.
But Richard Vitale had something that the two dozen brokers came to believe was even more important to their cause - a close personal and professional relationship with Salvatore F. DiMasi, the speaker of the Massachusetts House. Vitale told the group that he could "do things a registered lobbyist couldn't do - behind the scenes," according to one ticket seller in attendance who asked that his name not be used.
Others present also told the Globe they left the meeting with a clear understanding that Vitale was close to DiMasi. What they did not know when they decided to retain him through his firm, WN Advisors, was just how close. Vitale is the speaker's personal accountant and former campaign treasurer. And he had given DiMasi a $250,000 third mortgage on his North End condominium, according to public records. It was an unorthodox line of credit, apparently at below-market interest rates for such a loan, that DiMasi in an interview ac knowledged he had used.
Vitale's sales pitch worked, and, to a point, his promised efforts on behalf of the brokers may have worked, too.
At the urging of the group's leader, James Holzman, the president of Ace Ticket Worldwide, the brokers paid Vitale what two members in attendance at the meeting that day described as many thousands of dollars to help their cause. Months later, legislation to lift regulations on the ticket resale business glided through the House of Representatives with DiMasi's support. After passing the House, the bill got bottled up in the Senate, where it remains today.
A lobbyist or a strategist
But because Vitale, a Charlestown accountant with the firm of Vitale, Caturano & Co., was not registered as a lobbyist when he helped the brokers with their bill - and because of his financial ties to the speaker - the episode raises questions on how DiMasi and his political allies conduct business on Beacon Hill.
If Vitale was paid more than $5,000 to influence lawmakers - and several brokers briefed on his fee arrangements said he most certainly was - he would have had to register as a lobbyist. And if he was working as a lobbyist, his ongoing financial relationship with DiMasi - namely, the loan -would have run afoul of state conflict of interest laws that prohibit lobbyists from granting anything of value to a public official.
Also, if he had registered as a lobbyist, he would have been required to disclose how much he was paid by the ticket brokers for his services. Failing to register as a lobbyist carries a civil penalty of $500. Violators of conflict-of-interest law face civil fines up to $2,000 and possible criminal prosecution.
Vitale, through a spokesman, denies lobbying. The spokesman, George Regan, said Vitale worked as a "strategist" on the ticket brokers' legislation. Vitale has a "brilliant mind" and had worked as a strategist on other policy issues, Regan said, refusing to identify the other issues. "These are private, confidential matters that one's business does not reveal to the public," said Regan.
Holzman denied that the association hired Vitale because of his ties to DiMasi. He would not comment further or explain why the brokers chose an accountant with no lobbying experience to represent them.
DiMasi said neither he nor anyone on his staff ever spoke with Vitale about the ticket broker legislation; he said he ultimately backed and voted for a bill that favored the brokers because he thought it was good for consumers, too. The speaker said he took out the $250,000 line of credit with his old friend in 2006 because he needed some money, but that their personal and financial connections played no role in the fate of the ticket brokers' Beacon Hill agenda.
"I had no idea that he was working for them or what his relationship was," said DiMasi. "He's never talked to me about any legislation at all."
DiMasi said he borrowed $250,000 from Vitale because Vitale, his financial adviser, counseled him to. He said he did not go to a bank because he thought he would need the money for only a short period of time.
"I was trying to shift gears to get more income from my law office, and thought I could pay off that temporary line of credit," he said, adding that he has made some payments of principal and interest.
"I didn't accept anything from a lobbyist, no," said DiMasi, who was accompanied to an interview by a spokesman, the House legal counsel, and his chief of staff. "It has nothing to do with any legislation or anything I've done up here."
According to the mortgage filed with the Suffolk County Registry of Deeds, repayment of the June 22, 2006 loan - a revolving line of credit for five years - is not due until 2011. It was issued by Washington North Realty Corp., an entity created in the 1980s by Vitale to engage in consumer lending, according to records in the Massachusetts scretary of state's office.
Prime condo loan secured
The loan was unusual in several respects. It was secured by a third mortgage on Dimasi's Commercial Street condominium. According to real estate specialists, third mortgages are rare, and usually done through a private lender. They are essentially unsecured loans, because in the event of a foreclosure it would be unlikely the third lienholder would recoup the investment. Because of the risk, such loans generally carry interest rates that are substantially higher than prevailing mortgage rates, specialists say.
"If you're looking at a third mortgage you're probably looking at 16 or 17 percent, maybe higher," said David Milton, director of the Master of Science in Real Estate Management program at Bentley College.
But in this case, the loan was offered at prime rate, according to DiMasi's statement of financial interest, a public disclosure document he is required to file. At 8.3 percent at the time, the prime rate was significantly lower than what a borrower would ordinarily have been charged for a third mortgage, Milton said. DiMasi told the Globe on Friday that House counsel Louis Rizoli had informed him recently that the interest rate on the Vitale mortgage was actually prime plus 1 or 2 points.
DiMasi already had a $503,000 first mortgage and a $75,000 home-equity second mortgage on the property, which the city of Boston assessed last year at $973,200.
Through his spokesman, Regan, Vitale would not answer questions about the line of credit that he extended to DiMasi. Regan also would not say how Vitale came to be hired by the ticket brokers' group, what specifically he had done on their behalf, with whom he had met, whether he had spoken to DiMasi or any of his lieutenants, or how much he had been paid by the brokers association.
The legislation Vitale's clients sought to influence last year would significantly affect what agents can charge for tickets offered for resale.
Under current law, ticket resellers may charge no more than $2 above a ticket's face value, plus a service charge, though the law is rarely enforced, observers say. Consumer advocates had been pressing for tighter price controls after receiving complaints that tickets to sporting events and concerts were being sold for many times their original price.
By late September 2007, months after the brokers hired Vitale, the measures sought by consumer advocates were dead in the House. And in their place, a broker-friendly bill lifting all pricing restrictions had emerged with a favorable recommendation from the Joint Committee on Consumer Protection and Professional Licensure. A week later, that bill passed the full House.
The committee co-chairman from the House, Democrat Michael J. Rodrigues of Westport, who sponsored the bill, said he pressed the committee members to give it a favorable recommendation and forward it to the full House. Rodrigues said he initially felt that more consumer-oriented pricing restrictions should be placed on ticket sales, but that after hearing testimony during a committee hearing and consulting his staff, he decided to join a movement among several states to remove all pricing controls, and mandate instead that the ticket brokers be licensed and bonded.
"We don't have price controls on any other commodity, not even drugs, yet we try to enforce them on the resale of tickets," Rodrigues said. "It doesn't make any sense and it doesn't work."
Bill stalled in the Senate
Rodrigues said he never met Vitale. He said he spoke to DiMasi about the bill, but that the speaker only asked if there were adequate consumer safeguards in the legislation and never asked him to advance it.
The assumption of the joint committee's Senate co-chairman, Michael Morrissey, who objected to the bill, was otherwise.
"I told him I didn't think it was ready for prime time," said Morrissey. "He said he wanted to take a shot at it. I assume it came from the speaker, though I don't know."
Consumer advocate Colman Herman, who has urged tighter price controls and enforcement on the ticket brokers since 2005, decried the bill that passed the House. "This is a pro-industry bill disguised as pro-consumer," Herman said. In the interview, DiMasi said the bill was good for consumers because it allows them to sell their own tickets over the Internet or outside sporting events and concert halls.
This year, the legislation is languishing in the Senate with uncertain prospects. Morrissey said he plans to propose changes in the Senate that would put caps on ticket prices into the bill.
One of the ticket agents interviewed by the Globe was stunned to learn that the Massachusetts Association of Ticket Brokers was unlikely to have as much success in the Senate as it had in the House.
"Does this mean the bill won't pass?" he asked incredulously.
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Andrea Estes can be reached at estes@globe.com. Stephen Kurkjian can be reached at kurkjian@globe.com.
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(A Boston) GLOBE EDITORIAL
"A lobbyist by any other name"
April 30, 2008
HOUSE Speaker Salvatore DiMasi needs to tell his friend Richard Vitale to obey the law. If Vitale received $5,000 or more to influence legislation at the State House, he needs to register as a lobbyist.
Vitale is a successful accountant, and his friendship with DiMasi goes back 20 years. According to a Globe article by Andrea Estes and Stephen Kurkjian, he was hired by ticket resellers to push for legislation that would remove legal impediments to their business. The bill passed the House easily last year, with DiMasi's support, but is stalled in the Senate.
The speaker says he was only interested in helping consumers get tickets. Perhaps so, but Vitale refuses to say what he did to earn his fee. George Regan, his spokesman, says he was a "strategist," not a lobbyist, who has to disclose his work to the secretary of state.
That's a false distinction. The law defines a lobbyist as "a person who for compensation or reward does any act to promote, oppose or influence legislation." Even if Vitale did not directly speak to DiMasi, or any other legislator, about the bill, he would meet the definition if he gave advice that contributed to its passage.
According to Secretary of State William Galvin, lobbyists earned $72 million last year for their work on Beacon Hill. The public needs to know who paid them, how much, and what they did for the money. And lobbyists are closely regulated. They can't, for instance, give legislators those tickets that are the focus of the resellers' business. If Vitale won't reveal what he did, Galvin would be justified in recommending prosecution by the attorney general.
DiMasi has made many friends during his 29-year tenure in the Legislature. Friendship has sometimes seemed to nudge close to political favoritism. Even if that wasn't the case here, the law and the public good demand that Vitale come clean about what he did to earn the resellers' money.
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"GOP: Attorney general should investigate House Speaker DiMasi"
May 1, 2008, By Matt Viser, (Boston) Globe Staff
The Massachusetts Republican Party today called for Attorney General Martha Coakley to launch an investigation into House Speaker Salvatore F. DiMasi and his relationship with an unregistered lobbyist.
A Globe story Sunday reported that a group of ticket brokers hired DiMasi’s friend, Richard Vitale, last year to work on their behalf, but that Vitale never registered as a lobbyist. The story said that, beyond their friendship, Vitale also gave DiMasi a $250,000 loan secured by a third mortgage on his North End condo in 2006. It is a violation of the state's conflict-of-interest law for a public official to accept anything from a lobbyist.
"For the people of Massachusetts to have any confidence in their government, they have to believe that their elected leaders are, and will be, held accountable for their actions," Peter Torkildsen, chairman of the state Republican Party, said in a press conference outside the State House. "If members of the House will not hold themselves accountable, we will ask appropriate law enforcement officials to do so."
Coakley's office did not immediately respond to a request for comment.
Vitale told the Globe through a spokesman that he was a strategist, not a lobbyist, for the ticket brokers. Secretary of State William Galvin warned Vitale Monday to register as a lobbyist or face possible penalties.
The Republicans today also asked Coakley to investigate allegations that House members are asking colleagues to vote for them when they are not present. The Boston Herald reported last month that Representative Charles Murphy, a Burlington Democrat, was in the Virgin Islands two weeks ago when he was recorded taking seven roll call votes in the House chamber.
In the last two months, the Republican Party has filed three state Ethics Commission complaints against DiMasi. A spokesman for DiMasi said, "The speaker's actions in these matters were completely appropriate."
In addition to the complaint about the speaker’s relationship with Vitale, Republicans asked the commission to investigate whether DiMasi might have violated the state conflict-of-interest law by attempting to steer a controversial, multimillion dollar contract to Cognos, a Canadian software company with its US headquarters in Burlington.
They also asked the commission to determine if DiMasi accepted a free golf game from Joseph O'Donnell, one of the owners of Suffolk Downs, who was looking to operate a resort casino on the grounds of the East Boston racetrack.
DiMasi has denied acting on behalf of Cognos. With regards to playing golf with O'Donnell, DiMasi has said that he and O'Donnell were longtime friends, and that DiMasi offered to pay O'Donnell for the golf at the time of the outing, and he has since reimbursed him for it. In an interview with the Globe last week, DiMasi said he had no idea Vitale was working on ticket broker legislation pending in the House.
The Globe published a story today about DiMasi’s relationship with Jay Cashman and a bill that was killed that would have blocked a controversial liquefied natural project in Fall River. Cashman sold the terminal developers 73 acres and made a $14.2 million profit, according to a Globe review of real estate and legislative records.
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House Speaker Salvatore F. DiMasi
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GOP Chairman Peter Torkildsen
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www.boston.com/news/local/massachusetts/articles/2008/05/01/dimasi_business_ties_questioned/?page=full
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www.boston.com/news/local/massachusetts/articles/2008/02/26/gop_aide_calls_for_dimasi_inquiry/
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www.boston.com/news/local/massachusetts/articles/2008/03/12/state_to_cancel_contract_with_software_firm/?page=full
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www.boston.com/news/local/massachusetts/articles/2008/04/29/gop_fires_third_salvo_at_dimasi/?page=full
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"DiMasi business ties questioned: His killing of bill benefited friend"
By Frank Phillips, (Boston) Globe Staff, May 1, 2008
Just months after House Speaker Salvatore F. DiMasi killed a bill that was designed to block a controversial liquefied natural gas project from being built on 73 acres in Fall River, the landowner, Jay Cashman, sold the property to the terminal developers and made a $14.2 million profit, according to a Globe review of real estate and legislative records.
DiMasi's actions, taken in 2006, raise questions not only because of his close relationship with Cashman, a wealthy contractor, but also because DiMasi's wife has been involved for at least two years in what the speaker last week termed a "business relationship" with Cashman and his wife.
Deborah DiMasi and Christy Scott Cashman are launching a cable television show premiering this Sunday night, one produced by a Cashman-owned company. Neither couple would describe the nature of the business relationship, nor say how much money, if any, Deborah DiMasi receives for her role.
"Relationships, money, and influence is what it is all about," said state Representative David B. Sullivan, a Fall River Democrat who, along with other local officials, has strongly opposed the LNG terminal. He said the personal connections between DiMasi and Cashman tainted the terminal legislation: "It smells bad."
DiMasi said in an interview that he was making public policy decisions and that none of his legislative moves were intended to help his friend. In addition, he said, he did not know financial details of Cashman's ownership of the Fall River property at the time.
Passage of the bill would have effectively prohibited the construction of an LNG terminal on the site and would have reduced the potential sale price of the property.
In another move that dismayed some New Bedford-area officials, DiMasi also shepherded legislation through the House last fall that would ease state permitting for a wind farm on Buzzards Bay. Cashman is seeking approval to construct 120 wind turbines in those waters.
DiMasi said he sought to open up Buzzards Bay to wind farm development because he strongly supports alternative energy, not because Cashman was interested in developing the site.
"We don't talk about those things. It was all policy-driven," DiMasi said.
Cashman declined to be interviewed. His spokesman, George Regan, said Cashman did not discuss his financial interest in the LNG terminal in Fall River or in the wind farm in Buzzards Bay with the speaker.
"He goes to great lengths to keep his relationship with the speaker personal," Regan said. "It is not related to business in any way."
While the nature of the cable TV show business relationship is not known, if Deborah DiMasi accepted money in the business relationship, it could pose a violation of state ethics laws that prohibit people with interests before the Legislature from providing anything of more than $50 in value to lawmakers. The prohibition extends to lawmakers' spouses and to their business relationships, as well.
DiMasi, as the public official, is the only one subject to penalties under the ethics law's provisions. Under the ethics rules, if the legislation was general in nature and not intended to benefit Cashman, it would not be a violation. DiMasi said that was precisely the case in these instances, that he was looking at broader public policy regarding both the LNG terminal and the Buzzards Bay wind farm, not trying to help a friend and business associate of his wife.
Violations of the law can draw fines of up to $2,000 and can also trigger criminal prosecutions at the discretion of law enforcement officials.
Cashman and DiMasi have long had close ties. Cashman has supported DiMasi politically, even loaning him his Back Bay mansion for a political event, and they socialize frequently.
DiMasi has previously recognized the potential for questions about his relationship with Cashman, addressing the issue of their friendship and his wife's business connection to the Cashman couple head-on.
In March 2007 DiMasi made an official disclosure to the House clerk outlining the potential for a conflict of interest, including the production company venture that involved the Cashmans and his wife. DiMasi said in his letter to the clerk that he was publicly disclosing some details of the relationship to "dispel the impression" that Cashman could "unduly enjoy my favor" in his duties as speaker. Such a disclosure does not immunize an official from the law's provisions, according to state ethics law.
Deborah DiMasi and Christy Cashman, who co-owns the film company with her husband, are producing a monthly book review program for NECN cable television. The firm, Saint Aire Productions, boasts that the show will "expose . . . the 'naked truth' behind the works of best-selling authors and feature celebrity guests."
"It's a private matter," said Regan, when asked what compensation Deborah DiMasi receives, or who is sponsoring or paying for the show. NECN also declined to comment. .
The show will be taped in the Cashmans' Dartmouth Street mansion. Its first airing is scheduled for this Sunday.
DiMasi already is the subject of State Ethics Commission complaints filed by the state Republican Party alleging that he has used his influence to help friends and associates.
The GOP complained this week, based on a Globe story on Sunday, that the state's association of ticket brokers retained a close associate of DiMasi's to help them with their agenda on Beacon Hill. The associate, Richard Vitale, never registered as a lobbyist; in 2006, Vitale loaned $250,000 to DiMasi based on an unusual third mortgage on DiMasi's North End condominium. DiMasi later supported a bill that strongly favored the ticket brokers' business interests, and it sailed through the House.
An earlier ethics commission complaint followed Globe stories describing how DiMasi had pushed funding for a new $13 million computer program, the contract for which Governor Deval Patrick's administration improperly awarded to a computer company whose lobbyist is a close friend of the speaker. The computer company, Cognos ULC, also has been the lead sponsor of a charity golf tournament chaired by DiMasi.
In each of those instances, DiMasi has denied that he took any actions intended to favor any individuals and said he was acting in the interests of state policy.
Cashman has worked on many taxpayer-funded projects. His company dug the outflow pipes for the Deer Island sewage treatment plant, and it also laid the track for the controversial Greenbush commuter rail line. He was also one of the major contractors on the Big Dig.
Last August, when the Massachusetts Legislature hosted the National Conference of State Legislatures, Cashman allowed DiMasi to use his Back Bay estate for an event to honor other senate presidents, house speakers, and legislative leaders from around the country.
Cashman also donated about $15,000 to the national legislative group for the conference. His cash donation was part of the $400,000 that DiMasi and Senate President Therese Murray raised from Beacon Hill lobbyists, their clients, and corporate interests whose business activities are often tied to legislative actions.
Cashman's firm has made large donations to the Old North Church Foundation, a favorite charity of DiMasi's wife, who is vice chairwoman of the foundation board.
Cashman's profit on the Fall River property stems from his purchase of 73 acres on the banks of the Taunton River, the site of a former oil depot, in 2000 for $2.6 million. He later gave Weaver's Cove Energy an option on the property to build the LNG terminal, a project that was hotly opposed by Fall River political leaders.
In 2006, as the Legislature ended its session, Fall River leaders pushed a bill that Governor Mitt Romney said he would sign if it reached his desk. The bill would have effectively blocked the terminal by imposing height restrictions on ships passing under state bridges.
DiMasi said he killed the bill because Romney refused to accept an amendment that also would have shut down the existing Suez Energy LNG Distrigas terminal on the Mystic River in Everett, a major source of natural gas energy for New England. DiMasi said his North End constituents and other neighborhoods face potential disaster if there were a terrorist attack against the Everett tank. He suggested it would have been inconsistent to block the LNG plan in Fall River and not shut down the Everett site as well.
"If I'm going to protect Fall River, why wouldn't I protect my constituents, my family?" DiMasi said. "If I'm suggesting a facility would be dangerous with LNG coming down the Taunton River, is it any less dangerous in my neighborhood coming through Boston Harbor? No."
DiMasi acknowledged that he never in his nearly 30-year legislative career pushed to close the Everett terminal.
Five months after DiMasi rebuffed Fall River political leaders, Cashman sold the LNG site to Weaver's Cove Energy for $16.8 million. James Grasso, a spokesman for Weaver's Cove, said the demise of the bill blocking the terminal did not play a factor in its decision to buy the land from Cashman. The Weaver Cove's decision to buy the land stemmed from federal regulators' approval two years before, he said.
"I don't think the legislation had any impact," Grasso said.
The LNG project received an unexpected blow in October 2007 when the Coast Guard ruled that it was too risky for LNG tankers to travel in congested areas in the Taunton River. The firm is appealing the decision, while also pressing ahead with alternate plans.
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"GOP fires third salvo at DiMasi: State Republicans ask Ethics Commission to investigate a friend on possible lobbying"
By Andrea Estes, (Boston) Globe Staff, April 29, 2008
The state Republican Party yesterday filed its third state Ethics Commission complaint in two months against House Speaker Salvatore F. DiMasi, asking the commission to investigate the actions of DiMasi's friend, Richard Vitale, on behalf of ticket brokers who were seeking favorable legislation on Beacon Hill.
A Globe story Sunday reported that the ticket brokers hired Vitale last year to work on their behalf, but that Vitale never registered as a lobbyist. The story said that, beyond their friendship, Vitale also gave DiMasi a $250,000 loan secured by a third mortgage on his North End condo in 2006. It is a violation of the state's conflict-of-interest law for a public official to accept anything from a lobbyist.
Also yesterday, Secretary of State William F. Galvin warned Vitale to register as a lobbyist or face possible penalties, fines or "additional enforcement action."
"We're taking action," Galvin said. "We've done it before, and we'll do it again. We can't let people collect fees to try to influence public policy without disclosure."
Galvin's office demanded the names of "all executive and legislative officials" Vitale met with or contacted and the dates, a list of all activities concerning ticket sales; the number of hours he spent on these activities, and his "salary, retainers, and any other payments or compensation attributable to lobbying efforts."
Vitale's spokesman, George Regan, declined to comment. Regan said previously that Vitale was not a lobbyist, but a strategist for the group.
Republicans had filed two earlier ethics complaints, also after Globe stories this year, which three state officials who have been briefed on the review said yesterday are already being investigated by the ethics panel.
In one of those complaints, Republicans asked the commission to investigate whether DiMasi might have violated the state conflict-of-interest law by attempting to steer a controversial, multimillion dollar contract to Cognos, a Canadian software company with its US headquarters in Burlington.
They also asked the commission to determine if DiMasi accepted a free golf game from Joseph O'Donnell, one of the owners of Suffolk Downs, who was looking to operate a resort casino on the grounds of the East Boston racetrack.
DiMasi has denied acting on behalf of Cognos. With regards to playing golf with O'Donnell, DiMasi has said that he and O'Donnell were longtime friends, and that DiMasi offered to pay O'Donnell for the golf at the time of the outing, and he has since reimbursed him for it. In an interview with the Globe last week, DiMasi said he had no idea Vitale was working on ticket broker legislation pending in the House.
After the group retained Vitale, a bill favorable to the industry that would lift all price restrictions for any resellers licensed with the state sailed through the House last fall. It is now bottled up in the Senate, where it is unlikely to pass in its current form, according to the Senate chairman of the committee on Consumer Protection and Professional Licensure, Michael Morrissey.
"Speaker DiMasi can't just throw his hands up and claim he had nothing to do with it," charged Republican party spokesman Barney Keller. "This is a speaker who is more controlling than even Tom Finneran, so for him to deny that he had no influence on this bill is laughable.
Asked about the ethics allegations, DiMasi spokesman David Guarino responded, "The speaker's actions in these matters were completely appropriate."
Galvin's office also wrote to James Holzman, the head of ACE Ticket Worldwide, who arranged for the brokers to hire Vitale.
"If you have hired a legislative and/or executive agent who exceeds fifty hours or is compensated $5,000 or more during a six-month reporting period, you must register as a client who employs a lobbyist and report your activity to this office," said the letter, signed by Marie Marra, supervisor, lobbyist section.
Holzman said he hadn't yet received the letter.
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Andrea Estes can be reached at estes@globe.com.
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The Boston Globe, Op-Ed, JOAN VENNOCHI
"Power, arrogance, and the speaker"
By Joan Vennochi, Globe Columnist, May 1, 2008
WHEN THE powerful turn into the arrogant, they also risk turning into the ex-powerful.
Salvatore F. DiMasi, the powerful speaker of the Massachusetts House of Representatives, should remember that.
DiMasi has friends who appear to be trading on his influence. But DiMasi arrogantly refuses to acknowledge the risk of his friendly entanglements.
The Globe's Andrea Estes and Stephen Kurkjian recently reported that one friend, Richard Vitale, was hired by ticket resellers to push for legislation that would make it easier for them to do their business. They did so, according to the Globe report, because of Vitale's personal and professional relationship with DiMasi.
Vitale is also the speaker's personal accountant, former campaign manager, and underwriter of a $250,000 third mortgage on DiMasi's North End condominium. He has never registered as a lobbyist and did not do so for his work in 2007 on behalf of the ticket sellers. If he registered as a lobbyist, the loan to DiMasi, obtained at below-market interest rates, would be prohibited by state conflict-of-interest laws.
DiMasi insists that neither he nor his staff ever spoke with Vitale about the ticket broker legislation, and that his personal and financial connections played no role in his support for it. The speaker also said he did not accept the $250,000 loan from a lobbyist.
That's correct, because Vitale calls himself a "strategist," not a lobbyist.
However, Secretary of State William F. Galvin is now asking Vitale to produce the names of executives and legislative officials with whom he met; a list of all activities concerning the ticket resale issue; the number of hours spent on the matter; and the salary, retainers, and other payments or compensation attributable to those efforts.
If he was paid more than $5,000 to influence legislation, Vitale is a lobbyist as defined by state law, no matter what he calls himself.
The Vitale story inspired the state Republican Party to file its third state Ethics Commission complaint against DiMasi, and the GOP will keep the heat on as his ethics problem grows.
Republicans previously asked the commission to investigate whether DiMasi accepted a free golf game from a longtime friend, who is also one of the owners of Suffolk Downs; and whether he steered a multimillion-dollar state contract to a Canadian software company that was also represented by friends of DiMasi.
DiMasi has been blaming people around Governor Deval Patrick for generating negative news about him, as a way to undercut his opposition to the governor's casino gambling bill. But, at a certain point, the source of the attack matters less than the underlying truth of the attack.
The speaker's relationships hand his political enemies some credible ammunition. If he doesn't sense the danger, blame it on the suit of arrogance that seems to come with the speaker's office. DiMasi's predecessors wore it, too.
Thomas M. Finneran and, before him, Charles F. Flaherty were smart, engaging, and powerful leaders who convinced themselves they were invincible. They weren't.
Finneran resigned his House seat in 2004 to take a job as head of the Massachusetts Biotechnology Council. At the time, he was the subject of a federal probe into allegations that he lied under oath during a redistricting lawsuit.
The investigation cast a cloud over his final months as speaker and he ended up pleading guilty to obstruction of justice. Flaherty resigned in 1996, after pleading guilty to tax evasion. He also admitted to ethics violations - accepting gratuities from lobbyists and other interests.
The current speaker isn't invincible either.
A golf game is easy for DiMasi to rationalize. He may also duck accountability for the software contract, since the Patrick administration, not DiMasi, awarded it.
But a direct connection between a piece of legislation and a DiMasi friend is dangerous to the speaker's political health.
Arrogance is no armor against the truth. DiMasi risks losing the speaker's office and the power that comes with it.
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Joan Vennochi can be reached at vennochi@globe.com.
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PITTSFIELD, Massachusetts - The Berkshire Eagle, Op-Ed
"Blame all lawmakers, not just DiMasi"
By Robert "Frank" Jakubowicz
Monday, May 05, 2008
One of my pet peeves with the news stories about the Massachusetts House of Representatives is the heaping of the blame for legislative shenanigans almost solely on Speaker Salvatore DiMasi. He is only one out of 160 members, and he cannot do anything without the support of at least a majority of members. When stories are written about DiMasi's pushing or killing legislation, it's a majority of the members who actually make this possible, and they are spared in the media from being equally responsible for what goes on.
A case in point is the Boston Globe's recent series of stories raising questions of possible improper actions and undue influence by DiMasi in the conduct of state business. The first three of such stories resulted in three complaints, according to the Globe, being filed by state Republicans with the state Ethics Commission calling for an in investigation of DiMasi's conduct reported in those stories. But what about the Democratic members of the House? They should also be interested in such an investigation. They are not elected to blindly support a legislative leader, but to represent their constituents in among other things the conduct of proper legislative business.
The Globe has not only run still another story questioning more of DiMasi's conduct, but also an op-ed article by one of its regular columnists highlighting DiMasi as the powerful and arrogant face of the state Legislature responsible for this alleged legislative mischief. A major point missed by this columnist is that a speaker like DiMasi can only do what he does because a majority of the members allow him to act. He could quickly be removed from his office by a simple majority vote.
My point is that the members of the Legislature are equally to blame for the conduct of their leader, but they are happy with the media focus on their leader because it takes the focus off them for allowing their leader to conduct business according to his whims. The Boston Globe stories are all about DiMasi. One is about his role in having the House speedily pass a bill with little debate favoring ticket brokers. He did not pass that bill on his own. The questioned activity is that the ticket group hired DiMasi's accountant, who is also the holder of a third mortgage on DiMasi's condo for $250,000, to help them in this matter.
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Another story is about DiMasi pushing through the funding for a $13 million computer program from a company whose lobbyist is an alleged "close friend'' of his and the company is the big supporter of a charity golf tournament chaired by DiMasi. Again, DiMasi did not pass the appropriation bill on his own. And this is the way business is conducted because this state continues to have the dubious political distinction of being one of a handful of remaining states where a majority of state lawmakers still allow strong political leaders to run their legislatures virtually as personal fiefdoms.
The operative word is "allow." Every member in the state House of Representatives represents an equal number of constituents. So each representative should theoretically be the equal of every other member. But in reality this is not the case. The major reason for the way business is conducted in the House is the system of legislative perks that are shared by a near majority of veteran members who elect one of their number as speaker and support his actions. The speaker in turn appoints the others to legislative committee chairs, vice-chairs, and leadership positions. These offices afford undue clout over rank and file members to pass pet legislation and additional pay from $7,500 to $25,000.
New members are intimidated by this system for fear of not being able to get some pet legislation passed for their districts. Many such members go along because they are wannabe future legislative leaders who hope to someday benefit by the perks. House members as a whole are happy to have the speaker being made the subject of what is wrong with the Legislature rather than their being held accountable for allowing a leader like DiMasi to do what he does.
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When I was a member of the House in the 1980s, a group of us rose to oust the then speaker because we wanted to reform the House. We were only able to muster just under 30 votes. But this unexpected move set the House abuzz about change. And an ensuing legislative leadership fight between Speaker Tom McGee and George Keverian, who was ousted from the leadership team, allowed us to vote McGee out as speaker and vote Keverian in as the new speaker.
Initially, we reformed the rules to have committee chairs and leadership positions filled by a vote of the membership. But quicker then expected, the new speaker and his leadership team took over the process which reverted to the old strong speaker format.
It appears that there are no Democratic reformers in this House who would dare question the speaker's actions much less reform the House rules. However, an effort by the media to hold a majority of House members equally accountable with the speaker for legislative mischief might embarrass them into taking action to at least get rid of the strong speaker system.
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Robert "Frank" Jakubowicz, a Pittsfield lawyer, is a regular Eagle contributor.
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Newsday.com
WORLD & NATION: AT HOME
Compiled from news dispatches
May 3, 2008
A Massachusetts legislator brought state House proceedings to a halt Friday night when she told colleagues during the budget debate that another lawmaker had threatened to "really hurt" her. Rep. Jennifer Callahan, a Democrat, said a male representative approached her Thursday and started a casual conversation about a health care amendment she had discussed earlier in the week. The tone quickly changed, she said, as he said, "I've been in this building a long time" and added, "I could really hurt you if I wanted to." She did not publicly identify the lawmaker. The allegation was leveled near the end of a long week of budget debate, during which representatives started aligning behind possible successors to House Speaker Salvatore DiMasi, who is facing questions about possible ethical violations. Callahan did not have a chance to elaborate Friday before DiMasi smashed down his gavel and declared, "House will be in a brief recess."
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newsday.com/news/printedition/nation/ny-usnatl035672013may03,0,3656362.story
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"A strange and musical week on Beacon Hill"
By Jim O’Sullivan/State House News Service
May 05, 2008, Saugus - "Wicked Local"
Saugus - By Thursday last week, DeBarge, the 1980s Motown chart-climbing family group, was defending Speaker DiMasi.
DeBarge — known for such hits as “Rhythm of the Night” (http://www.youtube.com/watch?v=rXEKhLe0MY0) but sadly flamed out by the late 1980s, just as the speaker was scaling the ranks as judiciary committee chair — was deployed by Rep. Daniel Bosley during a policylicious lecture to reporters on legislation in which a friend of the speaker’s had taken an interest.
Bosley was — unfairly, in the opinion of many — picking on DeBarge as a low-drawing act to make a point about supply and demand in the ticket resale market, and you could tell that the seven chairmen gathered in a dignified, fourth-floor hearing room earnestly wanted to focus on policy, the better to restore to a purer, snow white the speaker’s reputation.
But seven loyal House chairs are no match for the double-barreled enthusiasm of the Boston dailies. And while the House is structured so that leadership dictates policy, the House during budget week is well wired for insurrection. Dealing with problems on at least two tracks, Sal DiMasi now presides over a chamber crowded by mutinous lawmakers.
A series of hurtful revelations about perceived advantages enjoyed on the Hill by DiMasi chums is not as damaging as the prospect that there could be more. House leaders acknowledged that Thursday during their press conference — at which they also attempted to deny that any subterranean tomfoolery was taking place — that members were squirming a little bit under questioning from constituents (voters).
Some DiMasi loyalists accused casino interests of trying to squeeze the Speaker. The next day, May 2, Tom Finneran, who knows a thing or two about a lot of stuff, described DiMasi’s plight as the “accumulation … of fleeting impressions.” Smells like conventional wisdom.
DiMasi sought to solve the one he should be more able to control, telling his deputies to ixnay the down-ballot shenanigans. But the speaker has not, yet, made good on his threat to kick vice-chairs and take names. To nudge him along, supporters of Majority Leader John Rogers broke with Emily Post and called for the speaker to demote their colleagues — Charley Murphy and Steve Canessa could teach Hillary and Barack a thing or two about intramural tension.
Bob DeLeo’s office strayed from message and highlighted how involved the speaker’s office was in a controversial wind farm amendment.
Some reps DiMasi risking the committee posts to which their speaker has appointed them philosophize this way about a possible demotion: If I take a bullet for Bob DeLeo or John Rogers, I am a martyr, virtuous in my sacrifice, and therefore will be rewarded in the afterlife that is a post-DiMasi House.
If I am unlucky enough to back the wrong candidate, I’m pretty well screwed anyway and thusly might as well fling caution to the wind and, to borrow a cliché, jockey with reckless abandon. Put another way: If you can’t beat ’em, split a bottle of red and side order of lyonnaise potatoes with ’em over ribeye.
And, yes, the business of government. In curiously under-the-radar fashion, the House processed the state’s $28 billion operating budget. Media coverage of these decisions about how New England’s largest corporation will function — sleeper but slightly relevant issues like which people get health care, how well the state takes care of its jails, the size and quality of afterschool programs, how many cops are on the street — was scarce.
Members, still working on Friday evening (!), plumped the bill with well over $110 million, and top House Democrats cheerfully ignored Republican members’ queries about how the state would find additional revenues.
While the Senate was quietly retouching its corporate and cigarette tax bill, the House also left some of its less winning decisions until Friday afternoon: canning an effort to pass Jessica’s Law, depositing in a study the governor’s proposed repeal of a property tax exemption for telecommunications firms. The minority leader earlier in the week had compared the deliberations to the Love Boat, presumably with unflattering intent.
But the budget happens every year. A bunch of chairs getting together to defend their speaker so strenuously does not. Similarly, the notion of Bosley, the North Adams Democrat, getting down at a DeBarge concert, on the heels of the startling revelation a few weeks ago that Gov. Patrick went BACKSTAGE at a 50 Cent show, seemed out of place, even in a week that saw a series of unusual events: Robert Parish, Andre Tippett, King Kpoto-Zounme Hakpon III of the Republic of Benin, and Irish Taoiseach Bertie Ahern all stopped by; one rep performed the Heimlich maneuver on another, successfully, in the budgetary situation room; and Barbara Walters confessed to an affair with Ed Brooke, the former state attorney general and U.S. senator.
But, then, this week a lot of House members were thinking the unthinkable.
Patrick says revenues healthy
Gov. Deval Patrick said May 1 that revenues through the all-important month of April continued to beat projections, a trend that has major implications for budget formulations, and appears likely to hold off the possibility of midyear budget cuts. But the state refused to disclose the up-to-date fiscal 2008 figures, even while the House worked through its fiscal 2009 budget.
If revenues hold up through the end of the year, taxpayers will see the first of four prospective incremental rollbacks of the state income tax, the News Service reported April 28. Beacon Hill leaders seem in agreement that, while the state can ill afford to forego revenue, it’s probably best not to intercede with that reduction.
Senate Minority Leader Richard Tisei alleged that a politicized Department of Revenue was withholding the numbers, which he claimed might winnow support for tax increases, but department officials said they just needed more time to crunch the final numbers because it was a “big month.”
GOP has paltry candidate roster
The state Republican Party, with three of its 24 members in the 200-seat Legislature retiring at the end of this year, has again fielded a roster of about 60 candidates for the November elections, leaving little chance that the GOP will make up much ground on Democrat-run Beacon Hill. The ballyhooed “Team Reform” having flunked the 2004 elections, the GOP has little in the way of a successful recent history.
No statewide candidate has yet stepped up for the 2010 elections, and privately Hill Republicans convey little optimism for growing their small minority in the Legislature. This week’s deadline for candidates to submit nomination papers came and went with few waves.
[D]an Haley, an attorney and former top aide to Kerry Healey running to succeed Rep. Paul Loscocco, said, “It’s a tough environment, no doubt about it, but the flip side of that is the state has had a chance to see what one party rule is like, has had a chance to see what the results of that are.”
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The Boston Globe
New England in brief
"GOP files new ethics case against DiMasi"
May 6, 2008
The Massachusetts Republican Party yesterday filed another complaint with the state Ethics Commission against House Speaker Salvatore F. DiMasi, the fourth complaint filed by the Republicans in the past two months. The most recent complaint asks the panel to investigate whether DiMasi helped a close friend, contractor Jay Cashman, who earned a $14.2 million profit on the sale of land targeted for a liquefied natural gas terminal in Fall River after DiMasi killed legislation that would have blocked the project. Last week, the state GOP asked Attorney General Martha Coakley to launch a separate investigation into DiMasi's alleged ethical violations. DiMasi has repeatedly said his actions were driven by policy considerations alone.
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"DiMasi pays off mortgage loan from friend: Vitale also files as state lobbyist"
By Andrea Estes, (Boston) Globe Staff, May 10, 2008
House Speaker Salvatore F. DiMasi said he paid off the balance of an unusual $250,000 third mortgage on his North End condominium yesterday, after the lender, his close friend Richard D. Vitale, who is under scrutiny for work he did last year on behalf of the state's ticket brokers, registered as a lobbyist.
The moves, made in tandem, were an attempt by DiMasi and Vitale to stay within the bounds of state laws that prohibit anyone from lobbying public officials without registering and bar lobbyists from giving anything to a public official.
Whether the strategy would work remained unclear, however, because Vitale's registration did not cover the time that he worked on behalf of the ticket brokers. Secretary of State William F. Galvin, whose office oversees lobbying rules, said he continues to investigate the matter.
A Globe article two weeks ago said Vitale never registered as a lobbyist despite his efforts on behalf of the brokers in 2007; he was paid to help them win passage in the House of a bill that would essentially deregulate their industry. The article, which also disclosed the $250,000 third mortgage Vitale provided for DiMasi in 2006, sparked the review by Galvin.
Neither DiMasi nor Vitale provided detailed information yester day about their actions, leaving unanswered a number of key questions about their financial relationship and the extent of Vitale's legislative activities. DiMasi also would not say how much he paid off on the $250,000 mortgage.
"As soon as the question arose about the possibility that Mr. Vitale could be a lobbyist, Speaker DiMasi took immediate action to determine how to pay off his loan and has paid off his loan using money from his retirement funds," said DiMasi spokeswoman Victoria Bonney.
Vitale, a Charlestown accountant, registered as a lobbyist for 2008, but he listed no clients, no payments from clients, and no legislation that he is seeking to influence. He did not register for 2007, when he offered to use his influence to assist the ticket brokers.
Vitale's spokesman, George Regan, insisted yesterday that Vitale is not a lobbyist, but said he registered because "we figured it was the easiest thing to do.
"We have a great deal of respect for Secretary of State Galvin, and we don't want any misinterpretation or any problems," Regan said. "This is going forward. The reason we don't list any clients is because we don't have any clients."
Regan said Vitale acted as a business strategist for the ticket brokers. Since House passage, the legislation, which would allow ticket brokers to charge any price in the ticket resale market, has been bottled up in the Senate.
Galvin said yesterday that the law does not distinguish between strategist and lobbyist and added that he believes what Vitale did on behalf of ticket brokers in 2007 constituted lobbying. He said he is awaiting filings from the Massachusetts Ticket Brokers Association, the group that hired Vitale, before deciding whether to take further action.
"The statute speaks of promoting legislation," Galvin said. "Clearly what Mr. Vitale did was to promote legislation. It is no longer in dispute. We'll wait for the additional reports to come in from the other entities and explore them for their thoroughness and completeness."
Last month Galvin's office requested the names of "all executive and legislative officials" whom Vitale met with or contacted and the dates of those contacts; a list of all his activities concerning ticket sales; the number of hours he spent on these activities; and his "salary, retainers, and any other payments or compensation attributable to lobbying efforts."
Through Regan, Vitale has declined to be interviewed by the Globe on those subjects.
Yesterday Donald Stern, a lawyer who represents the ticket brokers, would not say whether the brokers will file as Vitale's employer. Letters sent Tuesday from Galvin's office to Stern and Vitale's lawyer, Richard Egbert, state clearly that both Vitale and the ticket brokers must register for 2007 and 2008.
The Globe reported on April 27 that the loan Vitale gave the speaker in 2006 was a $250,000 revolving line of credit on his North End condo. It is a violation of the state's conflict-of-interest law for a lobbyist to give anything, regardless of value, to a public official. DiMasi said that he was unaware of any work that Vitale did for the ticket brokers and that he accepted nothing from a lobbyist.
Vitale also has worked as DiMasi's accountant and has served as his campaign treasurer. In addition, DiMasi has hosted an annual golf tournament that honors Vitale's brother, a Saugus police officer who died in the line of duty in the 1980s.
The tournament's sole "platinum" sponsor was Cognos ULC, a Canadian software firm that the inspector general's office found was improperly awarded a $13 million state contract last year. The Patrick administration has asked Cognos's new parent company, IBM, to refund the money.
Vitale's accounting firm - Vitale, Caturano & Co. - also sells Cognos products to its clients, according to the company's website.
The state Republican Party has filed a complaint against DiMasi with the State Ethics Commission, asking the commission to investigate Vitale's actions on behalf of the ticket brokers and his financial relationship to the speaker.
"The fact that Mr. Vitale registered as a lobbyist simply acknowledges what everyone knows," GOP spokesman Barney Keller said yesterday. "His change of title only serves to cast a darker cloud over Speaker DiMasi, who still needs to explain how a $250,000 loan from Mr. Vitale doesn't violate state law. "
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Andrea Estes can be reached at estes@globe.com.
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"DiMasi attempts to defend his reputation in letter"
May 12, 2008, 12:19 PM, By Andrea Estes, (Boston) Globe Staff
House Speaker Salvatore DiMasi has sent an impassioned letter to legislators, defending himself against recent news articles and complaints from the Republican Party that he allegedly violated the state's conflict-of-interest law by advancing legislation that helped his friends.
"I am outraged that my reputation, my integrity and my good name have been called into question," said DiMasi, in the two-page letter. "I have followed the rules and laws by which we are governed ... I have never strayed and will never stray from these principles."
DiMasi suggested his problems are the result of the "conduct or actions of others.”
“As elected officials, we in the Legislature are all subject to the unfortunate inclination of others to use our name without our knowledge or authorization," he wrote.
Last week, his longtime friend and accountant Richard D. Vitale registered as a lobbyist after the Globe wrote that he was hired by a group of ticket brokers to push legislation that would benefit their industry. However, Vitale, who had also given DiMasi a $250,000 line of credit secured by a third mortgage on his Commercial Street condo, did not list the Massachusetts Association of Ticket Brokers as a client. He listed no clients and no payments.
Richard D. Vitale
A DiMasi spokeswoman last week said DiMasi had recently repaid the loan.
The GOP has also asked the state attorney general to investigate allegations that House members are asking colleagues to vote for them when they are not present. The Boston Herald reported last month that Representative Charles Murphy, a Burlington Democrat, was in the Virgin Islands two weeks ago when he was recorded taking seven roll call votes in the House chamber.
In the last two months, the Republican Party has filed four state Ethics Commission complaints against DiMasi. In addition to the complaint about the speaker’s relationship with Vitale, Republicans asked the commission to investigate whether DiMasi might have violated the state conflict-of-interest law by attempting to steer a controversial, multimillion dollar contract to Cognos, a Canadian software company with its US headquarters in Burlington.
They also asked the commission to determine if DiMasi accepted a free golf game from Joseph O'Donnell, one of the owners of Suffolk Downs, who was looking to operate a resort casino on the grounds of the East Boston racetrack.
DiMasi has denied acting on behalf of Cognos. With regards to playing golf with O'Donnell, DiMasi has said that he and O'Donnell were longtime friends, and that DiMasi offered to pay O'Donnell for the golf at the time of the outing, and he has since reimbursed him for it. In an interview with the Globe last week, DiMasi said he had no idea Vitale was working on ticket broker legislation pending in the House.
The Globe published a story last week about DiMasi’s relationship with Jay Cashman and a bill that was killed that would have blocked a controversial liquefied natural project in Fall River. Cashman sold the terminal developers 73 acres and made a $14.2 million profit, according to a Globe review of real estate and legislative records.
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"DiMasi fires back at ethics charges: Calls GOP complaints baseless; faults others; Defends reputation, conduct in office"
By Andrea Estes, Boston Globe Staff, May 13, 2008
House Speaker Salvatore F. DiMasi issued a broad and emotionally worded defense of his conduct in office yesterday, saying he was outraged by accounts that he backed legislation and a state software contract that benefited his friends.
In an extraordinary letter to House colleagues, DiMasi called the charges baseless and suggested that others were to blame for the episodes that have been the subject of reports in the Globe in recent weeks and a subsequent series of State Ethics Commission complaints filed by the state Republican Party. The coverage has also resulted in stepped-up politicking by his would-be successors in the House.
"Like any of us, I do not control the conduct or actions of others," wrote DiMasi, without mentioning names or specific instances. "As elected officials, we in the Legislature are all subject to the unfortunate inclination of others to use our name without our knowledge or authorization."
He also defended his long history of public service.
"I have made my decisions based solely on the best interests of my constituents and the people of the Commonwealth," he wrote. "I have never, ever conducted myself in a way that would favor the interests of any individual.
"All my personal relationships and financial transactions have been at arm's length from any state business, have been fully disclosed to the public, and have never influenced my decisions on any legislative matter," he said. "I am outraged that my reputation, my integrity, and my good name have been called into question."
In an interview in his office, DiMasi returned to the themes in the letter, which he also released to the media.
"I want to be judged by what I do. I can't control what others do," DiMasi said. He added that widespread accounts of unrest in the House over leadership are "overly exaggerated" and that his colleagues support him. He said he plans to seek the powerful speakership again in 2009.
Despite DiMasi's repeated efforts to quell the controversy, it has remained a distraction for the speaker. He canceled a press conference on key legislation yesterday, and he skipped his weekly leadership meeting with Governor Deval Patrick and Senate President Therese Murray. Instead, he spent much of the day meeting with reporters, individually, trying to make his case.
"The speaker asked to postpone those events to later this week and spent all day directly confronting these baseless charges head on," said his spokesman, David Guarino.
DiMasi issued the letter days after he paid off the balance of an unusual $250,000 third mortgage on his North End condo given to him by his close friend and accountant, Richard Vitale. Last week the speaker refused to say how much of a balance he paid off. Yesterday, Guarino said the amount was $178,000, paid from personal retirement funds associated with his law practice.
Vitale, hired by a group of ticket brokers to help with 2007 legislation that would benefit their industry, did not register as a lobbyist until Friday. He registered for 2008, but did not list the Massachusetts Association of Ticket Brokers as a client. He listed no clients and no payments. Through a spokesman, he said he is not actually a lobbyist but filed the paperwork to prevent problems with Secretary of State William F. Galvin. The state's conflict-of-interest law prohibits lobbyists from giving anything to public officials.
DiMasi said in the interview that he had no idea Vitale was working on behalf of ticket brokers last year. "I was very surprised he would be involved," he said. "If he did anything at all and I learned about it, I would have told him not to do it." .
DiMasi said he has not spoken to Vitale about reports that he had worked on legislation for the ticket sellers. "I refuse to talk to him about it," he said, when asked if he had had any contact with Vitale since learning of Vitale's activities.
Meanwhile yesterday, DiMasi backers said they hope the letter will end speculation about the speaker's future and stop the jockeying among members looking to line up behind a successor, either the chairman of the House Ways and Means Committee, Robert DeLeo, or the majority leader, John Rogers.
"This should put an end to the questions about the speaker's integrity and about his seriousness of purpose, " said Representative Jay Kaufman, Democrat of Lexington and chairman of the Joint Committee on Public Service. "But cynics and skeptics abound in this business, and all of us in it know that. It was a very good, straightforward positive response to a lot of negative press. The kind of barrage that he and we have been enjoying is unusual in its intensity, so I think it was appropriate for there to be a forthright response."
But DiMasi opponents said that the letter will not stem the infighting and that the speaker is trying in vain to regain his grip on a situation that has spiraled out of control.
"He's trying to fix his image outside of the State House and to say to people here that he's not going anywhere," said Martin J. Walsh, Democrat of Boston. "He wants everyone to stop politicking, but it's still going on."
A spokesman for the Republican Party, which has filed four ethics complaints against DiMasi, accused the speaker yesterday of grandstanding by writing the letter and ignoring "the gravity of the situation and most of the facts.
"If speaker DiMasi didn't do anything wrong, why did he pay back the $250,000 loan and why did Richard Vitale register as a lobbyist?" said Barney Keller. "Speaker DiMasi's grandstanding . . . indicates that he doesn't have much time left."
Republicans have also asked the State Ethics Commission to investigate whether DiMasi might have violated the state conflict-of-interest law by steering a multimillion dollar contract to Cognos ULC, a Canadian software company with US headquarters in Burlington.
In the interview, DiMasi said he never interfered in the contract process, nor did he contact administration officials on behalf of Cognos. DiMasi's friend, lobbyist Richard McDonough, reported earning $100,000 from Cognos in the year the company received the state contract. And a former administration official has told investigators that a representative selling Cognos software had told her DiMasi wanted Cognos to get the work.
"I would never put myself into a compromising position like that," DiMasi said.
Republicans have also asked the commission to determine if DiMasi accepted a free golf game from Joseph O'Donnell, an owner of Suffolk Downs who sought to operate a resort casino on the grounds of the East Boston racetrack. DiMasi has said that he and O'Donnell were longtime friends, and that DiMasi had offered to pay O'Donnell for the game and has since reimbursed him for it.
The Republicans also asked the ethics panel to look into DiMasi's relationship with the developer Jay Cashman, a close friend of the speaker who made a $14.2 million profit on the sale of a site for a liquefied natural gas project after DiMasi killed a bill that would have blocked the controversial project. DiMasi took those actions though his wife is involved in a business relationship, through a film-production company, with Cashman and his wife.
Yesterday DiMasi continued to refuse to divulge what financial benefits his wife gets from working for the production company and her participation in the book-review program it produces. He also said his public disclosure of his and his wife's relationship with the Cashmans protects him from any potential conflict issues.
He argued that his support and work on the LNG legislation that benefited Cashman was legal because it was "general legislation" and not directed at any specific individuals.
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Frank Phillips of the Globe staff contributed to this report. Andrea Estes can be reached at estes@globe.com.
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Beacon Hill
"DiMasi lashes out at critics: The House speaker is 'outraged' by allegations that he's used his post to aid friends and lobbyists"
By Matt Murphy, (Berkshire) Eagle Boston Bureau
Tuesday, May 13, 2008
BOSTON — House Speaker Salvatore F. DiMasi yesterday blasted back at opponents who have accused him of using his power and position to help friends and lobbyists, telling lawmakers in a forceful letter that he was "outraged" by the allegations.
He also downplayed the jockeying going on behind the scenes at the Statehouse by supporters of Majority Leader John Rogers, D-Norwood, and Ways and Means Chairman Robert DeLeo, D-Winthrop, who are both angling to succeed DiMasi.
"I'm not going anywhere," DiMasi told the Associated Press. "The vast majority of members are supporting me. John Rogers and Bob DeLeo are supporting me. We need to put this distraction behind us and move on."
Local lawmakers responding to the letter said it was important for DiMasi to defend himself, but doubted that yesterday's effort to end speculation on his future would stop the whispering in the halls.
"That letter doesn't do anything to put this to bed," said state Rep. William "Smitty" Pignatelli, D-Lenox. "I'm not one to judge. I think it's important to let this go through the process, and this will work itself out one way or another."
Pignatelli went on to say it's sad that some of the criticism has started to go beyond DiMasi and is being directed at his family.
"It's unfortunate. I've been in this business long enough to know when you make it to the top someone will try to bring you down," he said. "But when you live in a glass house, you have to be careful where you shower."
DiMasi broke an extended personal silence on the controversy swirling around his speakership by sending the letter to all House members yesterday morning. He canceled a public announcement scheduled in the afternoon, at which he was supposed to tout a "green jobs" program, and instead spent the day meeting one-on-one with select media.
"I am outraged that my reputation, my integrity and my good name have been called into question," DiMasi wrote. "I have followed the rules and laws by which we are governed by fully disclosing all of my personal financial interests, and by fully disclosing relationships so that there would be no suggestion or any appearance of impropriety."
The unusual communication from the speaker comes as his reputation has been sullied by a string of negative media reports questioning the role he played in legislation that benefited friends and business partners.
The state Republican Party has filed four ethics complaints against DiMasi in response to stories written mostly by the Boston Globe.
DiMasi has been accused of steering a $13 million state contract to a software company represented by his friend Richard Vitale. Vitale's role in representing ticket brokers in support of a ticket resale bill has also been under scrutiny because Vitale, a friend of DiMasi's who gave the speaker a $250,000 third mortgage on his North End condo, never registered as a lobbyist.
DiMasi last week announced he had paid off the mortgage, and Vitale registered as a lobbyist after being warned by Secretary of State William Galvin that he might be breaking the law.
Another friend of DiMasi's, well-known developer Jay Cashman, sold a piece of Fall River property for $14 million to an LNG company after the House passed a bill protecting plans for an LNG terminal in that city.
"The newspaper suggestions and the complaints of the Republican Party are baseless," DiMasi wrote in his letter. "I am angered and hurt by these accusations and innuendoes, as is my family and, I know, many of you."
State Rep. Geoffrey Hall, D-Westford, said he agreed with the speaker when he said the media went out of its way to raise questionable concerns about DiMasi's actions.
"They want to make it seem like seem like there were some improprieties. I talked to people who worked on the legislation and there was no interference," Hall said. "I have no reason not to believe (DiMasi). He's always been upfront with me."
The state GOP, however, refused to back down in light of DiMasi's comments.
"Speaker DiMasi's whitewashing completely ignores the gravity of the situation and most of the facts," said Barney Keller, spokesman for the Republican party.
"Speaker DiMasi's grandstanding today indicates that he doesn't have much time left," Keller continued.
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A Boston GLOBE EDITORIAL
"Smoking out DiMasi"
May 13, 2008
HOUSE Speaker Salvatore DiMasi took a step yesterday aimed at regaining control of his restive House and refocusing attention on the issues remaining in this legislative session. The embattled speaker sought to defend his long political career by stating in an unusual open letter to House members that "I have at all times adhered to the highest standards of ethical conduct" and "I have never, ever, conducted myself in a way that would favor the interests of any individual."
But the letter is a political document, not a legal one. For the speaker's sake as well as the public's, the State Ethics Commission needs to move quickly to investigate allegations that have been made against him.
House Republicans have filed four complaints before the commission based on news reports in the Globe and elsewhere that friends or associates of DiMasi's stood to benefit from legislation he advanced through the House. The Ethics Commission has been known to take up to a year or more to investigate such complaints. This is unacceptable with the stakes so high; the House is at risk of paralysis as members gossip about the speaker's fate and some jockey covertly to succeed him. State ethics law is murky enough and has enough exceptions and caveats that it should not be left to amateurs or political opponents to decide if DiMasi is in violation.
For example, there is a matter of timing. It is illegal for an elected official to accept anything of value from a registered lobbyist. DiMasi's friend and accountant, Richard Vitale, gave him a $250,000 loan in 2006. Then, Vitale was hired by a group of professional ticket brokers to help "strategize" how to move a bill through the House that would lift restrictions on their business. (The bill passed the House but is stalled in the Senate.) Vitale has since registered as a lobbyist, but DiMasi repaid the loan on the same day Vitale registered, and Vitale has not disclosed whom he was lobbying for or how much he was paid. The public, and the commission, need to know more.
Another example involves the long friendship between DiMasi and developer Jay Cashman. Under the law, not just DiMasi but members of his family, including his wife, are prohibited from receiving an "unwarranted" benefit because of his official position or an official action he has taken.
The Globe has reported that last year DiMasi pushed an alternative energy bill that would have weakened the state Ocean Sanctuaries Act, making it easier for Cashman to build a proposed 120-turbine wind project in Buzzards Bay. Cashman also profited handsomely - to the tune of $14 million - after a bill was killed in the House that would have blocked the development of a liquefied natural gas project on land Cashman owned in Fall River.
Debbi DiMasi and Christy Cashman are in business together, producing a television program about celebrity authors that they sold to the New England Cable News network and hope to market elsewhere. DiMasi refuses to divulge the details of his wife's business arrangement or how much money has changed hands. He says her business is private, but it is demonstrably not. DiMasi needs to fully disclose the financial details of their arrangement.
The DiMasis' relationships with the Cashmans could pose a serious conflict. But (and there are many "buts" in the state ethics law) the oceans bill could have benefited any developer of alternative energy generally, not just Cashman. And DiMasi said he had legitimate public policy objections to the LNG bill. And even if DiMasi's wife is receiving a benefit from her business relationship with Cashman's wife, is the benefit "unwarranted"? These are all matters for the Commission to sort out.
DiMasi is no reformer. He came into politics to help people, and he has built a web of friendships and favors over the years that could be entirely legitimate. But there is a lot of smoke in DiMasi's chambers. He needs to air it out.
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http://www.boston.com/news/daily/12/dimasi_letter.pdf
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"Ticket brokers paid Vitale $60,000: DiMasi's friend said he wasn't group's lobbyist"
By Andrea Estes, (Boston) Globe Staff, May 17, 2008
The Massachusetts Association of Ticket Brokers yesterday filed reports with the secretary of state's office indicating it paid Richard D. Vitale $60,000 to work on its behalf in 2007 - contradicting assertions by Vitale that he did not lobby for the group.
The papers filed with William F. Galvin's office show the group paid Vitale's WN Advisors LLC $30,000 between January and June 2007, and another $30,000 between July and December 2007. In addition, the group said it paid an Ohio law firm, Roetzel & Andress, $532 on June 5, 2007, to testify at a legislative hearing.
The association, which said it severed its relationship with Vitale on Tuesday, reported earlier this week that it employed Vitale in 2008 as well, but filings for this year are not due until July.
Vitale, an accountant and close friend of House Speaker Salvatore F. DiMasi, has insisted through spokesman George Regan that he was a "strategist" and not a lobbyist for the group.
Even so, Vitale registered as a lobbyist last week because, Regan said, Vitale wanted to avoid "any misinterpretation" by state regulators.
Vitale registered for 2008 but listed no clients, no payments from clients, and no legislation that he was seeking to influence.
He did not register for 2007, when he pushed legislation that would essentially deregulate the industry by allowing licensed ticket brokers to charge whatever the market would bear. Under existing law, ticket resellers can charge only $2 above a ticket's face value, plus a service charge. The bill passed the House but has been languishing in the Senate since last fall.
In 2006, Vitale gave DiMasi an unusual $250,000 third mortgage on his Commercial Street condo at an interest rate that was below prevailing rates. DiMasi paid off the loan last week, saying he acted as soon as he learned that Vitale might have been a lobbyist. The state's conflict of interest law prohibits lobbyists from giving anything of value to a public official.
On Wednesday, Vitale retired from the Charlestown accounting firm he cofounded, Vitale, Caturano & Co., under pressure from firm partners who warned him to resign or be let go. A spokesman for the firm said he had been working as an employee of the firm since reaching the mandatory retirement age of 62 last year. His photo and profile have been removed from the firm's website.
In a written statement issued yesterday, Regan insisted the ticket brokers' filings were consistent with Vitale's. He pointed to one of several disclaimers in the association's filings, which noted that "No apportionment has been made to determine what amount, if any, is attributable to any lobbying, or if such lobbying activities were in fact performed."
"That doesn't disagree with Mr. Vitale's position that he provided strategic advice rather than lobbying," the Regan's statement said.
But Galvin said there are "inconsistencies" in the reports, which he will try to reconcile next week through "appropriate enforcement action."
He said his office does not distinguish between "strategy sessions and overt lobbying. The statute speaks of promoting legislation. And that's what it appears these payments were for.
"We're going to examine the documents completely " he said, adding that he "appreciates the cooperation of the association" and its lawyer, former US attorney Donald Stern.
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Andrea Estes can be reached at estes@globe.com
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www.boston.com/news/local/articles/2008/05/17/ticket_brokers_paid_vitale_60000/
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"Bill frenzy awaits on Hill: Lawmakers hurry to pass major legislation before the end of this summer's session"
By Steve LeBlanc, Associated Press, (via The Berkshire Eagle Online)
Saturday, May 17, 2008
BOSTON — Suddenly there are signs of life on Beacon Hill as lawmakers sprint to pass major bills before the end of their formal two-year session this summer.
The House recently approved its version of the state budget, the Senate is set to debate its own spending plan on Wednesday and a series of major bills — from a $1 billion life sciences plan to a renewable energy initiative — are picking up speed.
That could spell good news for supporters of the bills — and equally good news for some of the state's top political leaders eager to change the subject.
Chief among them is House Speaker Salvatore F. DiMasi, who cleared his schedule earlier this week to meet one-on-one with reporters in a public relations push to sweep away gathering storm clouds over his office.
DiMasi tried to put to rest a series of nagging ethics questions and reassert control over an increasingly rambunctious House of Representatives. He also was eager to quell talk of a simmering leadership battle between House Ways and Means Chairman Robert DeLeo, D-Winthrop, and House Majority Leader John Rogers, D-Norwood, to replace him.
"There is no speaker's fight going on. This has totally been exaggerated," DiMasi said in an interview with The Associated Press on Monday. "It's minimal, more idle chatter."
To reinforce the message, DiMasi sent a strongly worded letter to House members calling the ethics charges "baseless" and chalking up four ethics investigations requested by Republicans as political attacks.
But the story refused to die. Just two days after DiMasi sent the letter, Rogers, in an interview with the MetroWest Daily News, publicly confirmed he was interested in the speaker's chair, boasting he has "more (votes) than the other guy," referring to DeLeo.
Rogers, who supported DiMasi in 2004 to avoid a speaker's battle, told the paper he was not interested in trying to unseat DiMasi, but wants the job whenever DiMasi decides to leave the powerful post.
DiMasi hopes to refocus attention back on some of his legislative priorities before the session ends in July, including a "green jobs" initiative designed to dedicate $50 million over the next five years to encourage the growth of environmentally friendly jobs, from wind farms to renewable technology.
Ironically, DiMasi had planned a press conference Monday with Gov. Deval L. Patrick and Senate President Therese Murray, D-Plymouth, to push for the legislation — but had to scrap it to deal with questions about his leadership of the House.
Patrick also is eager to chalk up more wins before the session ends. And Patrick, who got off to a rocky start during his first months as governor and was dealt a blow with the defeat of his plan to license three resort-style casinos, could be having more luck.
This past week he announced a final version a bill to borrow $3 billion over the next eight years to repair hundreds of structurally deficient bridges across the state. Patrick called the bill a "robust" solution to fixing the state's crumbling transportation infrastructure.
"It should enable us to get to somewhere between 250 and 300 bridges over the course of the next several years, and create an awful lot of very good jobs along the way," Patrick said.
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Action also is expected in coming weeks on other bills Patrick supports, including:
* legislation designed to protect the state's coastal waters by requiring that all decisions about development in the state-controlled waters conform to a single management plan. The bill has the backing of Democratic leaders, virtually guaranteeing its passage, and the Senate unanimously approved the compromise version of the bill Thursday;
* a clean energy bill that would require the state to gradually increase its reliance on renewable forms of power, from solar to wind to geothermal. The bill fits in with Patrick's push to make Massachusetts a renewable energy hub for the nation;
* the governor's $1 billion, 10-year life-sciences bill, which he hopes will do for stem cell and other kinds of cutting edge biologically based sciences what he hopes the energy bill will do renewable energy technology.
For Patrick, who's suffered some external and self-inflicted political wounds, the prospect of signing major bills would be a welcome change of pace.
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"DiMasi poses referendum on casinos"
By Matt Viser, (Boston) Globe Staff, May 22, 2008
Just two months after defeating Governor Deval Patrick's casino proposal, House Speaker Salvatore F. DiMasi proposed yesterday to reopen the state's heated debate on gambling by putting a nonbinding question on the November ballot.
Senate President Therese Murray said she was open to DiMasi's idea for a referendum, which would probably trigger a frenzy of spending by casino interests trying to sway public opinion.
But Patrick administration officials quickly signaled opposition. They said that Massachusetts residents have already spoken in favor of casino gambling in various public opinion polls and that the state should focus on life sciences and clean-energy legislation for the remainder of the 2008 legislative season.
"Poll after poll has shown solid support for the governor's resort casino proposal," said Daniel O'Connell, Patrick's economic development secretary and chief adviser on gambling issues. "With all due respect to the speaker, we feel that a nonbinding referendum may not be the best course of action at this time."
O'Connell's statement suggested that the administration would wait until at least 2009 to try again in the Legislature.
Putting a question on the ballot would require approval of the House, Senate, and the governor. His aides would not say yesterday whether the governor would veto such a bill because it is not yet known how a referendum question would be worded.
The dynamics of a nonbinding referendum - basically, an official measure of voter sentiment that lawmakers could use, or not, as a guide for action - could draw groups on both sides of the question into an expensive public relations showdown. Casino supporters would be expected to spend heavily.
Under one possible scenario, the Foxwoods and Mohegan Sun casinos in Connecticut might decide to oppose a Massachusetts referendum to stave off regional competition. If they lost and casinos were approved in the Bay State, they could team up with a local partner or forge ahead on their own.
Explaining his surprise move yesterday, DiMasi said in a written statement that he was worried about budget deliberations getting bogged down by casino amendments and passionate debate of the type that gripped Beacon Hill for months until Patrick's plan was defeated in March.
DiMasi released a statement proposing the referendum just before the Senate began debate on the state budget yesterday. Among the items the Senate was considering: a procasino amendment introduced by Senate Republicans.
"I remain opposed to casino gambling," DiMasi said in his statement. "Rather than have our budget negotiations stall over a potential casino impasse, I suggest we put this before the voters in a nonbinding referendum question and reconsider it next year."
The chairman of the Senate Ways and Means Committee, Senator Steven C. Panagiotakos, a Lowell Democrat who supports casinos, first argued in favor of a nonbinding referendum in March, saying House opponents would be persuaded if the public is given a chance to voice its opinion.
"Given the magnitude of what the Senate is considering," DiMasi said, "I would support as a compromise Senator Panagiotakos's proposal to put an advisory question on casinos before voters this fall."
Casino lobbyists, lawmakers, and political observers puzzled over DiMasi's sudden move, because there had been no indications that the Senate was poised to adopt the Republican amendment favoring casinos, and it failed on a 29-to-9 vote later in the day.
Panagiotakos said that if DiMasi is serious, he should file legislation for the referendum and send it to the Senate. A spokesman for DiMasi said the speaker planned to discuss the issue with Murray and Patrick.
"It's an interesting ploy by DiMasi," said the Rev. Richard McGowan, a Jesuit priest and professor of economics who studies gambling at Boston College and who believes that voters would back casinos. "But given DiMasi's status right now, the governor probably thinks he can get a better deal."
Last year, Patrick proposed a plan to license three resort casinos in Western Massachusetts, Southeastern Massachusetts, and metropolitan Boston, which he estimated would generate 20,000 jobs and $2 billion in economic activity. But DiMasi was adamantly opposed to the legislation, saying it would introduce a "casino culture" to Massachusetts.
Since the defeat in March, the governor has sought to focus on other proposals, although earlier this month he told the Brookline Chamber of Commerce that his gambling plan "may yet come back in the Legislature." He did not elaborate.
"Someone said it's like a bad penny that keeps turning up," DiMasi said this week at a breakfast at the UMass Club.
Polling has suggested that state voters are in favor of casino gambling, but not by big margins. A Globe poll last September indicated that 53 percent of Massachusetts residents supported the governor's proposal. That raises the possibility that a nonbinding referendum could slip the other way, against casinos, or that even a victory for casino opponents would be clouded by heavy opposition.
Murray said through a spokesman that she was open to the idea of putting the question to voters Nov. 4.
"If a separate piece of legislation were to be filed by the speaker in regard to a referendum, she would support a full debate by the Senate," said her spokesman, David Falcone.
Secretary of State William F. Galvin said his office would need to be notified by late June in order for the question to join other likely ballot questions, including proposals to eliminate the state income tax and ban greyhound racing.
Ballot questions have had varying degrees of success in other states, said David G. Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas.
"There will be a lot of people trying to make the case pro or con," Schwartz said. "There will be lots of numbers flashed around on both sides. And lots of money."
In 2006, gambling-related ballot questions in five states triggered $53.7 million in spending, according to the National Institute on Money in State Politics. Nearly 90 percent of the money was spent by progambling interests. Still, only one of the five ballot questions was approved.
There was little surprise yesterday that the gambling debate had bubbled up again.
"From day one, my sense was we would probably get a week or a month reprieve, and then we'd be back in one way or another," said Dennis Murphy, the lobbyist for casino and real estate mogul Donald Trump. "It's not going to be shut off quickly."
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Matt Viser can be reached at maviser@globe.com.
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"Galvin seeks details on Vitale"
By Andrea Estes, (Boston) Globe Staff, May 22, 2008
Secretary of State William F. Galvin asked Richard D. Vitale's lawyer yesterday to explain why Vitale reported receiving no lobbying income from the Massachusetts Association of Ticket Brokers when the group reported paying him at least $60,000.
The discrepancy is part of a controversy over whether Vitale, a friend of House Speaker Salvatore F. DiMasi's, worked as an unregistered lobbyist in 2007 after lending DiMasi $250,000 in a third mortgage on DiMasi's home in 2006.
"These serious discrepancies require your immediate attention, and failure to do so may result in further enforcement efforts," wrote Alan Cote, director of the Public Records Division of the secretary of state's office, to Vitale's lawyer, Richard Egbert.
Last week, the Ticket Brokers Association reported employing Vitale's firm WN Advisors LLC in 2007 and 2008. The group said that in 2007 it paid $60,000 to WN Advisors, with lobbyists Vitale and attorney John T. McLaughlin. It is not clear whether the group paid WN Advisors additional amounts in 2008, because lobbying reports are not due until next month.
"It's been pretty clear; we've got some discrepancies," Galvin said. "We're going to move on to the next level. We now have evidence that at least $60,000 was expended to influence public policy, and we need to know what the parties were hired to do. The record has to be complete."
Vitale spokesman George Regan said: "We have great respect for Secretary of State Galvin, and obviously we've been trying to supply whatever information he needs and will continue to do so. It's the full focus of our attention to satisfy his needs."
Regan has denied that Vitale did any lobbying, saying he acted as a business strategist for the group.
A bill that would remove any price caps on the resale of tickets passed the House last fall, but has been bottled up since then in the Senate.
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Andrea Estes can be reached at estes@globe.com.
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"DiMasi met with friend on legislation: Had denied speaking with Hub contractor"
By Frank Phillips, (Boston) Globe Staff, May 23, 2008
Boston contractor Jay Cashman met privately last fall with House Speaker Salvatore F. DiMasi in a bid to ease permitting rules for wind farms in Massachusetts waters, a meeting that appears to contradict DiMasi's earlier assertion that he never spoke with Cashman, a close friend, about legislation affecting Cashman's business.
Asked last week about Cashman's previously undisclosed presence at the Oct. 18 meeting in DiMasi's State House office, DiMasi confirmed that Cashman was there, but said that they did not specifically discuss Cashman's pending plan to build a wind farm on Buzzards Bay and that he never influenced legislation to help Cashman. In addition to being close friends with the speaker, Cashman has a business relationship with DiMasi's wife, Deborah DiMasi.
"It was not my intention to give the im pression that I didn't meet with Mr. Cashman," DiMasi said. "Whether Cashman was here or not, I believed DeVillars was talking for Cashman's interests." John DeVillars, former state environmental secretary, is a consultant working for Cashman.
That assertion differs with what DiMasi said in a Globe interview in April.
"We don't talk about those things; it was all policy driven," DiMasi said then, when first asked if he had spoken directly to Cashman about the wind project.
A spokesman for Cashman also confirmed that he was at the Oct. 18 meeting and said Cashman has never denied meeting with the speaker on the wind farm legislation. Also present were two top aides to DiMasi and DeVillars. DeVillars declined to comment.
A month after the Oct. 18 meeting, DiMasi inserted language into an energy bill that would loosen permitting rules that would make it easier for Cashman to build 120 turbines.
On another occasion, at a January meeting with House members opposed to the wind farm, DiMasi quoted from a four-page memorandum prepared by Cashman's lawyer, Thomas R. Kiley, to argue in favor of the amendment, according to a legislator who was at that meeting. The memo was contained in packets Cashman had distributed to lawmakers, arguing for DiMasi's amendment.
DiMasi's Oct. 18 meeting with Cashman and his use of the memo show that lobbying contact between Cashman and DiMasi was far greater than DiMasi previously acknowledged.
DiMasi's spokesman, David Guarino, said DiMasi did not remember his use of the memo written by Cashman's lawyer, but added that if he did use it, it was to highlight differences of opinion in general state laws.
DiMasi said he has never taken any actions intended to benefit Cashman financially. The two men are not only friends and political allies, but their wives work together in a TV and film-production business owned by Cashman and his wife, Christy Cashman, creating a risk of conflict of interest in their contacts that DiMasi acknowledged last year in a letter to the House clerk. Cashman, a wealthy Boston contractor with a broad array of major projects around New England, is not required to register as a lobbyist if he is advocating on behalf of his own business.
DiMasi and Cashman have declined to disclose the nature of the business relationship between the Cashmans and Deborah DiMasi, including whether and how much Deborah DiMasi is paid. If Deborah DiMasi accepted money from the Cashmans, it could pose a violation of state ethics laws that prohibit people with interests before the Legislature from providing anything of more than $50 in value to lawmakers or their immediate families. DiMasi, as the public official, is the only one subject to penalties under the ethics law's provisions.
If the interests before the Legislature were general in nature and the legislation DiMasi backed was not intended to benefit a specific Cashman business interest, it would not be a violation, under the ethics rules.
DiMasi has said he did not violate any conflict-of-interest statutes because he publicly disclosed his connections to Cashman and because all of his actions were based on broad policy considerations and not specific to Cashman's business interests.
In an interview with the Globe in April, DiMasi said he had never spoken with Cashman about legislative issues affecting Cashman's financial interests. That assertion was contained in a May 1 Globe report about DiMasi's backing of the wind farm legislation and a separate action he took that kept alive a proposed liquefied natural gas facility in Fall River, where Cashman subsequently sold land for the LNG project and made a $14.2 million profit.
DiMasi said last week that he thought the Globe's questions in April only pertained to speaking with Cashman in social settings about legislation, which he said never happened. As to the presence of Cashman in his office Oct. 18, DiMasi said he invited Cashman to make a formal presentation on general wind farm law. He said it was not unlike a separate meeting he had with developers of Cape Wind, a proposed wind farm in Nantucket Sound.
"I met with Mr. Cashman in my office, like I would with anyone else," DiMasi said. He said that Cashman and DeVillars advocated changes in the statute that governs the siting of wind farm development in ocean sanctuaries.
"They thought it should be clarified . . . and cleaned up of any ambiguity and clearly express the policy intent to create offshore renewable energy," DiMasi said. "We did not discuss anything specific about his projects."
Cashman has declined to be interviewed on the subject. His spokesman, George Regan, said in April that he was uncertain about whether DiMasi was present at any meetings Cashman held to brief House and Senate members on wind farm legislation. Regan said in April that Cashman thought that DiMasi had been present at one of the briefings. "He wasn't absolutely sure," Regan said in April. "He couldn't remember."
Regan said last week that Cashman does not remember details of the Oct. 18 meeting in the speaker's office.
"We've never denied any meeting with the speaker, and in fact we informed the Globe that he met with the speaker's staff and that the speaker may have been present," Regan said. "Jay has taken painstaking efforts to ensure that his friendship with the speaker does not involve any conflict."
Although DiMasi took pains to cast his Oct. 18 meeting with Cashman and DeVillars as general in nature, and the resulting policy as broad, the amendment that he put into the legislation would have allowed renewable energy projects in five specific places on the state's coast, including Buzzards Bay.
DiMasi initially included the measure in a bundle of amendments that were passed without debate. After its first passage in an energy bill in November, DiMasi, facing an uproar from opponents who said they were blindsided by the move, backed off the measure. In January, he pushed it through a second time, attaching it to an oceans policy bill, after a floor debate.
State Republicans have already filed a complaint asking the State Ethics Commission to review the personal and business relationships between the Cashmans and the DiMasis and whether those ties affected legislation.
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"IBM, Cognos to refund state $13m: Software contract found in violation Bidding rules seen bypassed"
By Andrea Estes, (Boston) Globe Staff, May 23, 2008
IBM, the corporate parent of Cognos ULC, agreed yesterday to refund Massachusetts $13 million from a software contract that the state Inspector General found was awarded last year in violation of basic bidding rules.
In a four-page agreement hammered out over the past several weeks, IBM and Cognos agreed to return the money within 10 days. In return, Governor Deval Patrick's administration agreed to remove Cognos software from state computers.
Neither Patrick nor IBM executives would agree to interviews on the agreement. They issued statements that stressed that the contract was awarded to Cognos last August, before IBM bought the company in November.
"We won't disclose any information beyond what was revealed and announced in the agreement itself," said IBM spokesman Chris Andrews. "Any other actions are internal matters."
House Speaker Salvatore F. DiMasi had taken a strong interest in the contract last year. The former head of the Information Technology Division told state officials that the middleman in the deal, former Cognos executive Joseph Lally, had bragged about his relationship with DiMasi and suggested that DiMasi wanted the contract to go to Cognos. Cognos also contributed generously over several years to a charitable golf tournament hosted by DiMasi at his home course, the Ipswich Country Club.
DiMasi has strongly denied exerting any influence on behalf of Cognos. DiMasi has said he wanted the state to buy the special software, which allows state officials to track and monitor government services and operations from their desks. But he said he didn't care which vendor was awarded the contract.
The Patrick administration voided the contract in March, demanding a refund after Inspector General Gregory Sullivan found the administration had picked Cognos in an unusually rushed procurement process that bypassed basic bidding rules.
Not only was Cognos the high, rather than the low, bidder, but the bid review took weeks instead of months and did not conform to the requirements contained in a special bond bill that authorized the software purchase, Sullivan found. In addition, when the six-member team evaluating the bids recommended that the process be suspended until state officials could determine how they would use the software, state information technology officials ignored the recommendation and moved ahead with the purchase.
Sullivan launched his investigation last fall, after rival bidders complained and employees raised concerns about the procurement process.
The Patrick administration had also urged Sullivan to step in.
Jack McCarthy, Sullivan's spokesman, said yesterday that he was pleased that IBM is "doing the right thing.
"The inspector general's office laid out a case that demonstrated that procurement rules were not followed," McCarthy said. "We're happy that IBM has decided to recognize that and do the right thing by returning the money to the citizens of the Commonwealth."
According to the agreement released yesterday, the refund does not "reflect any dissatisfaction " with the "quality or functionality" of the software and states that IBM and Cognos will not be prohibited from bidding on future contracts.
The governor's office said the contract will now be rebid, but McCarthy said the inspector general is urging that the administration first determine whether it needs to make such an expensive purchase.
Before rebidding the contract, he said, the state should talk to employees "to see how or if they would use such a type of software."
"If they see a need, they've already discussed running their procurement strategy by the IG's office, and we're happy to work with them to make sure it's done openly, fairly, and competitively."
The $13 million software was intended for use by 20,000 state employees, according to state records, but because of the questions that arose the software was not widely distributed. After the first year, the state planned to pay Cognos an additional $2.45 million a year for support services.
Andrews said Cognos will submit another proposal if the contract is put out to bid again.
Cognos, a Canadian company with US headquarters in Burlington, was the sole "platinum" sponsor of the charity golf event hosted by DiMasi, held to honor the late brother of DiMasi's accountant and former campaign treasurer, Richard D. Vitale.
DiMasi has denied soliciting donations from Cognos or other sponsors, who have included Richard McDonough, a veteran lobbyist who earned $100,000 from Cognos in 2007, and Jay Cashman, another DiMasi friend and major state contractor.
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Globe correspondent Stephen Kurkjian contributed to this report.
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The Boston Globe, Op-Ed, SCOT LEHIGH
"Lack of candor hobbles DiMasi"
By Scot Lehigh, May 30, 2008
DARK CLOUDS of doubt surround Sal DiMasi's speakership.
To clear those clouds, the speaker needs to be candid and forthcoming. Instead, DiMasi has sought refuge in the letter of the law, lawyerly hair-splitting, and dubious distinctions.
The latest example: The speaker filed his financial disclosure statement this week, but once again didn't reveal the amount his wife, Deborah DiMasi, makes for her work with Christy Cashman, the wife of contractor Jay Cashman, a close friend of the speaker. Mrs. DiMasi and Mrs. Cashman co-host a television show produced by a company the Cashmans own.
Asked why he hadn't, DiMasi noted that the law doesn't require an elected official to disclose his wife's income. True enough. Still, Deborah DiMasi's compensation is highly relevant, for this reason. Jay Cashman has any number of business interests in this state - and as the Globe's Frank Phillips has reported, those interests have stood to benefit from behind-the-scenes actions the speaker has taken.
Cashman, for example, hopes to build a wind farm on Buzzards Bay. Last year, DiMasi quietly tucked into energy legislation an amendment that, had it become law, would have helped clear the way for such a project.
Queried about that and other actions, DiMasi initially asserted that he and Cashman never discuss the contractor's various plans or projects or legislation affecting them. He has said much the same about other close friends, friends like his accountant and financial adviser Richard Vitale. As Andrea Estes and Stephen Kurkjian have reported in the Globe, Vitale, who in 2006 extended DiMasi a $250,000 third mortgage, was later hired to help the professional ticket brokers in their efforts to lift ticket-resale restrictions.
Vitale's role was news to him, DiMasi would have us believe. "I had no idea that he was working for them . . . ," the speaker said. "He's never talked to me about any legislation at all."
Hmmmm. We do know, however, that DiMasi has talked business with at least one of his powerful friends. In February, Joe O'Donnell, a co-owner at casino-coveting Suffolk Downs, told the Globe that when he and DiMasi golfed, he tried to bring the speaker around on casinos. So there's reason to doubt that DiMasi keeps things as compartmentalized as he claims.
That doubt doubles when it comes to Cashman. Here's what DiMasi said when first asked about Cashman and his business interests: "We don't talk about those things. It's all policy driven," adding in the same April interview that "I don't talk about his business with him and he doesn't talk about it with me."
Problem: As Phillips reported last week, DiMasi met privately with Cashman and his consultant in the speaker's office last October to discuss easing permitting rules for wind farms.
Now, by most conventional understandings, that would seem to fall into the category of discussing Cashman's business interests. Questioned about the meeting, DiMasi maintained that they hadn't specifically talked about Cashman's wind farm plans. Further, he claimed to have thought the Globe's original question pertained only to whether he and Cashman discussed business in social settings.
"It was not my intention to give the impression that I didn't meet with Mr. Cashman," he said.
All that hair-splitting strains credulity. And it raises this question: If DiMasi wasn't trying to be evasive in April, why didn't the speaker mention then that he had met with Cashman in his office?
Hobbled by controversy, DiMasi needs to commit himself to restoring public confidence.
A first step should be full disclosure of any money or other financial benefits his wife, and therefore the DiMasi household, receives from the Cashmans' company.
A second should be a promise to recuse himself from the specifics of issues where any friend stands to benefit.
A third: to ask the State Ethics Commission to include the Cashman matter in its probe, if it hasn't already.
A fourth: to make public all testimony he offers before the commission.
For its part, the commission, whose past investigations have sometimes dragged on like the court case Jarndyce and Jarndyce in "Bleak House," needs to ensure that the various issues surrounding DiMasi are investigated in expeditious fashion, that the facts are fully disclosed - and that its judgment isn't swayed by the shadow of the speaker's power.
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Scot Lehigh's e-mail address is lehigh@globe.com.
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"DiMasi's friend is ordered to explain lobbying income at hearing: Asked to clear discrepancies in offical reports"
By Andrea Estes, (Boston) Globe Staff, June 4, 2008
Secretary of State William F. Galvin ordered yesterday Richard D. Vitale, a close friend of House Speaker Salvatore F. DiMasi, to appear at an extraordinary public hearing tomorrow to explain why he failed to report lobbying income he received from the Massachusetts Association of Ticket Brokers.
Galvin took the step after repeatedly warning Vitale's lawyer, Richard M. Egbert, that Vitale needed to clear up discrepancies between a lobbying report he filed this year that showed he received no income from lobbying and a report from the ticket brokers, who said they paid Vitale's firm, WN Advisors LLC, $60,000 in 2007 to lobby on their behalf.
"We've worked very hard to try to get compliance; our patience is exhausted," Galvin said, adding that it appears from the record thus far that Vitale "violated the lobbyist law."
"We want to ask Mr. Vitale: What did you do, and when did you do it," Galvin said. "We have a signed statement from an employer saying they paid you to lobby. You're saying you didn't."
Despite Galvin's order, it was unclear whether Vitale will appear at the hearing. His spokesman, George Regan, refused to say.
"The situation is in the very capable hands of excellent attorneys," Regan said.
If Vitale refuses to answer questions under oath, Galvin said, he may refer the matter to Attorney General Martha Coakley for prosecution.
Vitale is DiMasi's financial advisor and former campaign treasurer. The Globe reported on April 27 that in 2006, Vitale loaned DiMasi $250,000 in an unusual third mortgage on DiMasi's North End condominium, a loan that was given at a below-market interest rate.
The Globe also reported that last year, without registering as a lobbyist, Vitale helped push legislation that benefited ticket brokers, who were coming under fire for selling tickets to sporting and entertainment events at several times face value. A bill that would allow them to charge any price passed the House last fall with DiMasi's support, but it has languished in the Senate since.
Regan has denied that Vitale lobbied for the ticket brokers, saying he was their business strategist. But Galvin said the ticket brokers' filings make it clear that Vitale was "attempting to influence public policy," the definition of lobbying.
If Vitale had been a registered lobbyist when he worked for the group, he and DiMasi might have violated the state's conflict-of-interest law.
Last month, DiMasi repaid the balance of the loan, which had been issued at the prime rate, according to DiMasi's disclosure forms.
In an interview with the Globe in April, DiMasi said House counsel Louis Rizoli had told him the interest rate was actually higher than prime, prime plus one or two points. But when DiMasi filed his annual statement of financial interest last week, the interest rate was still listed as prime.
Asked about the discrepancy, DiMasi's spokesman, David Guarino, said last week that the interest rate was prime.
A lawyer listed by the ticket brokers association as another representative of WN Advisors LLC told Galvin's office that he addressed association members at two meetings, but did not lobby.
"The comments I made during the first meeting were of a general nature to educate the members . . . about the legislative process," lawyer John T. McLaughlin wrote in a May 30 letter.
"My comments were similar to those a teacher might give to a political science class."
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Andrea Estes can be reached at estes@globe.com.
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"DiMasi's friend to defy order to attend hearing on lobbying"
By Andrea Estes, Boston Globe Staff, June 5, 2008
Defying an order from Secretary of State William F. Galvin, Charlestown accountant Richard D. Vitale will refuse to appear at a hearing today to answer questions about allegations that he lobbied on behalf of a group of Massachusetts ticket brokers.
Vitale's lawyer sent a letter yesterday to Galvin's office saying that Vitale was refusing to comply with the order and answer questions under oath because, in the lawyer's opinion, the secretary of state appeared to be overreaching.
"We do not believe that [Galvin] . . . has any authority, statutory or otherwise, to conduct such a hearing," Vitale's lawyer, Richard Egbert, wrote in a letter to the director of Galvin's public records division, Alan Cote.
In response, Galvin accused Vitale and Egbert of making a mockery of state lobbying laws.
"His interpretation of the lobbying laws would make them Swiss cheese," Galvin said in an interview. Galvin said he is not sure what action he will take next.
Among his options, he said, are to disqualify Vitale from working as a lobbyist or to refer the matter to Attorney General Martha Coakley for investigation.
"If they won't cooperate, I'll have no choice but to refer this for criminal prosecution," Galvin said.
The secretary of state's office had scheduled a hearing for this morning to delve into discrepancies between a lobbying report Vitale filed in May and one filed by the Massachusetts Association of Ticket Brokers. The ticket brokers reported that they paid Vitale and his firm, WN Advisors LLC, $60,000 to lobby on their behalf in 2007. But Vitale registered as a lobbyist only for the year 2008 and reported no income or clients.
Vitale, who is House Speaker Salvatore F. DiMasi's close friend and financial adviser, has declined to be interviewed. Through his spokesman, he has said he never lobbied for the group but was a strategist.
Last year Vitale helped the ticket brokers advance legislation that would remove caps on ticket prices. The bill, with DiMasi's support, passed the House last fall, but has been stalled in the Senate for several months.
If Vitale had been a registered lobbyist at the time he was advising the ticket brokers, he could have run afoul of the state's conflict-of-interest law, which prohibits registered lobbyists from giving anything to a public official. In 2006, Vitale gave DiMasi a $250,000 third mortgage at an interest rate that was below prevailing rates on the speaker's North End condo. Last month, after Vitale registered as a lobbyist, DiMasi repaid the loan.
In his legal argument disputing Galvin's order, Egbert said the law only allows the secretary of state to inspect reports and make sure they are filed, but does not give him the power to investigate. Even if a hearing were permitted under the law, Egbert said, Galvin's office had not given Vitale enough time to prepare.
Furthermore, Egbert said that Galvin's office agreed to let Vitale register only for 2008, but is now reneging on the deal, an assertion Galvin denied.
"Your request is a clear breach of the explicit agreement I reached with you and Marie Marra in early May, 2008," Egbert wrote, alluding to the supervisor of Galvin's lobbyist section.
Egbert also asserted that Vitale could not file lobbyist reports for past years because he has not retained any records of his activities.
That also drew a strong response from Galvin. "The assertion he has no records is very hard to believe, given the fact that his profession is an accountant," Galvin said. "It's generally accepted that accountants advise you to keep records, not destroy them. The suggestion that records are being destroyed adds an even greater urgency to our inquiry."
Galvin said officials know "for a fact, admitted by Mr. Egbert, that [WN Advisors] was paid money in 2007."
"That is an indisputable fact," Galvin said. "They clearly were paid by an entity that had an interest in legislation, and that legislation received affirmative treatment in 2007.
"When you cut away all the fancy legal talk it comes down to this: Mr. Vitale is not above the law. We have laws that say that people who get paid to influence public decisions need to tell us not only what they were paid but for what they were paid. Mr. Vitale needs to comply with the law."
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Andrea Estes can be reached at estes@globe.com.
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"Galvin cracks down on DiMasi CPA — again: Secretary of State William Galvin is accusing a close friend and accountant to House Speaker Sal DiMasi of trying to skirt state law by filing incomplete reports about his Beacon Hill lobbying activities."
The Boston Herald Online, Wednesday, June 11, 2008
Galvin penned a letter today to the accountant, Richard D. Vitale, to complain that his recent disclosures contain inconsistencies with information filed by the Massachusetts Association of Ticket Brokers, an association he lobbied for in 2007.
The association disclosed that it hired Vitale in early 2007 to push legislation to lift price restrictions on ticket resellers – a move that came just months after Vitale provided DiMasi with a $250,000, cut-rate mortgage loan on his North End condo.
Vitale has failed to acknowledge any of the 2007 lobbying activity, even though the association reported that it paid him $60,000 for his work. The ticket resale legislation passed the House but has been held up in the senate.
“It appears to his office that your client’s filings do not conform to law,” Galvin wrote in a letter to Vitale’s attorney, Richard Egbert. “These discrepancies require your immediate attention and…may result in further enforcement efforts.”
Vitale said through a spokesman that he will comply with requests for further information.
Vitale stepped down last week for the his accounting firm, Vitale Caturano, as legal pressure over his ties to DiMasi threatened to cast a cloud over the firm.
Galvin also sent a letter to John McLaughlin, an associate of Vitale, to inform him that he must register his lobbying activities in 2007 and 2008. The ticket broker association disclosed that McLaughlin had also lobbied on its behalf through Vitale’s firm, WN Advisors.
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"Speaker speaks too soon: Won’t even pretend your vote matters"
By Michael Graham, Thursday, June 12, 2008, www.bostonherald.com, Op-Ed
Cynical citizens often say that Massachusetts is run like a Third World country. I disagree.
In Third World countries, they at least pretend that elections matter.
Not Sal DiMasi.
The House speaker has a message for all the cranky taxpayers who are thinking about voting to get rid of the state income tax, and it’s a message we cannot publish in a family newspaper.
DiMasi was asked by the MetroWest Daily News about a petition to repeal the personal income tax that’s likely to appear on the November ballot, and he took the opportunity to remind the naive taxpayers of Massachusetts that when it comes to your tax dollars, we’re gonna do things the DiMasi Way.
“I’m against doing it and I find myself hard-pressed to say that I would try to completely implement an elimination of the income tax,” he said. “I can’t see myself doing that in the future, but I know people are hurting and I know people want to send a message . . . that their taxes are too high.”
Not even in a future where the voters have passed it overwhelmingly, Mistah Speaker?
“I’m hoping the people of Massachusetts don’t vote that way. I’m asking them not to vote that way.”
And there’s the rub. The “problem” with democracy, according to people like DiMasi, is that the voters don’t always heed the advice of their betters. Sometimes the taxpayers decide - foolishly, mind you - that maybe they could spend their own money better than he can.
Silly voters. Where do they get these crazy ideas?
The speaker knows better, and he’s letting taxpayers know it before the first ballot is cast. This is why it’s unfair to compare Sal DiMasi to a Third-World dictator. Unfair to the dictators, that is.
Seriously, do you think Venezuelan strongman Hugo Chavez could get away with announcing in advance that he was dumping the results of an election before they even passed out the ballots? Would Fidel Castro in his heyday have had the nerve to declare Cuban democracy “a nice way to spend a Tuesday, but a total waste of time”?
But the way DiMasi sees it, voting only gets in the way of the important work of democracy, namely spending other people’s money. Why should a little thing like an election matter?
Oh sure, there’s that annoying “rule of law” thing. Read the Massachusetts constitution on the petition process, and it’s full of words like “shall” and “will.” If, for example, the petition repealing the income tax passes, the constitution mandates that the repeal “shall” take effect “in 30 days” after the election.
But state law also requires people who get paid $60,000 to lobby for ticket resellers to register as paid lobbyists.
Power-hungry politicians are nothing new. What makes Massachusetts politicos stand out from the corrupt crowd is their utter shamelessness. If hypocrisy is the homage vice pays to virtue, we are woefully lacking in hypocrites. Whatever happened to the backroom deal? Back then, politicians at least felt enough shame about screwing over the taxpayers that they did it behind closed doors.
Not our speaker. He’s like Eli Wallach, playing the bandito in the movie “The Magnificent Seven,” who grins down at the helpless townspeople he’s pillaging and says “If God did not want them sheared, he would not have made them sheep.”
Massachusetts taxpayers, say “baaaa.”
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Article URL: www.bostonherald.com/news/opinion/op_ed/view.bg?articleid=1100238
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"Where were pols on numbers gain?"
The Berkshire Eagle - Letters
Friday, June 13, 2008
After reading that the daily numbers game has progressed to twice daily, I was looking for comments from House Speaker Salvatore DiMasi and State Rep. Dan Bosley condemning such a move. After all, weren't they both concerned about casino gambling infecting and addicting our citizens and creating more poor and homeless people?
Where are they and their blindly loyal followers now with those concerns? It must be the extra $27 million revenue the daily numbers game will bring in that is keeping them quiet. Funny, I thought casino gambling would have strongly exceeded that amount.
I am still waiting for more of Mr. DiMasi's ingenious ideas for raising revenues for the state that are not to the detriment of the taxpayer.
DAN COLELLO
Pittsfield, Massachusetts
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The Boston Globe, Op-Ed, JOAN VENNOCHI
"Coakley's political hot potato"
By Joan Vennochi, June 15, 2008
LIKE IT or not, Attorney General Martha Coakley is about to get a political hot potato: a report that raises questions about whether a good friend of House Speaker Salvatore F. DiMasi complied with state lobbying laws.
Richard Vitale, DiMasi's accountant, former campaign manager, and one-time lender, is refusing to tell Secretary of State William F. Galvin what he did for the Massachusetts Ticket Brokers Association. The ticket brokers, meanwhile, filed a report saying that they hired Vitale's firm and paid him $60,000. But the ticket brokers refused to give Galvin any more information, saying he has no legal authority to order hearings or investigate alleged violations of lobbying laws.
By statute, Galvin said his only recourse now is to refer the matter to the attorney general. "I'm not trying to pass the buck. I would have preferred to resolve it. But when you have people who are absolutely not going to cooperate, you can either ignore it or refer it," said Galvin.
The details of who did what and when are important.
In 2006, Vitale loaned DiMasi $250,000, which the speaker recently paid back. The ticket brokers say they hired Vitale's firm in 2007; legislation they support passed the House with DiMasi's support. Vitale registered as a lobbyist for 2008. He denies lobbying in the past, calling himself a "strategist." If Vitale worked as a lobbyist when he loaned DiMasi the money, he would have violated the state's conflict-of-interest law.
Once Galvin files his report, the next step is up to Coakley. Pamela Wilmot, executive director of Common Cause Massachusetts, said Coakley should investigate the matter. "The attorney general is the chief lawyer for the commonwealth. It's her job to enforce the laws. If he [Vitale] refuses to comply with the secretary of state's process, yes, that's a matter for her," said Wilmot.
In April, the Massachusetts Republican Party also asked Coakley to investigate the work Vitale did on behalf of the ticket brokers. At the time, the AG issued a statement that revealed nothing about her intentions.
"It is extremely important that the public have confidence that government and government officials comply with the law when they undertake public business," she said. "We are also aware that there are multiple state agencies with jurisdiction to look into allegations of impropriety or misconduct and we recognize our own responsibilities . . . to respond to and investigate allegations that affect public confidence in the workings of government."
Investigating the powerful can be perilous territory for an attorney general with aspirations for higher office.
When he ran for governor in 1998, Democrat and two-term AG Scott Harshbarger was undermined by fellow politicians, including some in his own party, who resented the cases he brought against their friends. Some high-profile failures helped Harshbarger's critics argue that he prosecuted on less than airtight evidence in order to grab headlines and advance his own political ambition.
Thomas F. Reilly, the attorney general who followed Harshbarger and also ran unsuccessfully for governor, shied away from such cases. Reilly's refusal to prosecute Cardinal Bernard Law over the clergy sexual abuse scandal was a bitter pill for victims to swallow.
Whether Vitale did or didn't comply with laws requiring him to register as a lobbyist is just the tip of a bigger iceberg that is before the state ethics commission.
The ultimate question is whether DiMasi knew of Vitale's dealings with the ticket brokers and whether his mortgage with Vitale violated ethics statutes. It's possible the ethics commission will ultimately refer the matter to Coakley. The US attorney's office could also be involved.
Coakley, who is serving her first term as attorney general, is a political star with a bright future. When the talk turns to potential candidates for governor or US Senate, her name comes up. She has earned her place in the political establishment.
What happened to Harshbarger is a reminder that the establishment doesn't like to be investigated.
But the AG is the people's lawyer. This is one hot potato that must be handled with the people in mind. That means taking on the powerful.
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Joan Vennochi can be reached at vennochi@gobe.com.
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"Lobbying laws lack teeth"
The Berkshire Eagle - Editorial
Monday, June 16, 2008
The controversy over whether or not House Speaker Salvatore DiMasi was lobbied by his friend Richard Vitale, who loaned him money at the same time he was employed by the Massachusetts Ticket Brokers Association, has revealed, if nothing else, that the state's lobbying disclosure laws lack muscle. Secretary of State William Galvin was rebuffed by both Mr. Vitale and representatives of the brokers group when he requested they come to his office to discuss their relationship, and Mr. Galvin has no legal recourse to make them do so. In failing to show, said the speaker, they are not only thumbing their noses at him but the "citizens of Massachusetts." Legislation enabling the secretary of state to conduct hearings and issue summonses for witnesses and documents is currently before a House committee, and we hope it will emerge soon for a positive vote of the full Legislature.
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"Track slot machine bill appears dead: Lawmakers at odds over fate of gambling measure Proposal caught in House-Senate procedural dispute"
By Matt Viser, (Boston) Globe Staff, June 27, 2008
Like the governor's plan before it, a proposal to install slot machines at the state's racetracks appears to have died for this year, a victim of a procedural dispute.
Representative David L. Flynn, a Bridgewater Democrat who was spearheading the effort, conceded defeat yesterday afternoon on legislation that would have allowed each of the state's four racetracks to install 2,000 slot machines, a plan that proponents said would have generated up to $500 million.
The bill had been considered a long shot, at best, this year, but Flynn had been expecting at least a House floor debate. He acknowledged it was dead just hours after House Speaker Salvatore F. DiMasi said the bill was "in limbo."
"It's very disappointing," said Representative Richard J. Ross, a Wrentham Republican whose district includes Plainridge Racecourse. "We're giving up a big chunk of change."
The bill appears to have died in a disagreement over which committee should consider it. The Senate wanted the bill to go to the Consumer Protection Committee, while the House sent it to the Committee on Emerging Technologies and Economic Development.
Flynn immediately blamed the Senate, singling out Senate President Therese Murray, rather than DiMasi, who had previously promised Flynn to allow the issue to come to the House floor for debate.
"You can't have a hearing on a bill that the Senate has refused to admit," Flynn said in a statement. "But that's OK. I'm going to refile this and have it ready for the '09-'10 session. And by that time I think it is going to be manifestly clear that the financial crisis our state, cities, and towns are now facing has grown exponentially worse."
Murray shot back that the Senate was not the culprit in the measure's demise.
"It is unfortunate that Representative Flynn would make such an accusation," Murray said through her spokesman. "It couldn't be further from the truth. He either misunderstands or has been misinformed."
Track owners had been quietly laying the groundwork for the debate, sending letters this week to all legislators and officials in all 351 cities and towns. The letters detailed how much money local officials would receive if the legislation is approved, and plays up the amount of budget cuts cities and towns are going through.
But there were several major hurdles, including little support from gambling backers who wanted full-blown resort casinos. There are also growing questions about demand for gambling in New England and whether it has reached a pinnacle. Twin River, a lavish slot palace operating at a dog track in Lincoln, R.I., is struggling to remain solvent after an expensive expansion and earlier this month asked state officials for help.
The owners of Twin River want to drastically reduce the percentage of casino proceeds it gives to Rhode Island, from 61 percent to 25 percent. Twin River would give the state a one-time payment of $560 million as part of the deal, but the state would lose money in the long run.
A Twin River spokeswoman has called the situation dire and said the track may have to consider bankruptcy if the state doesn't agree to change its contract.
Connecticut casinos, long cited as some of the most successful in the world, have also suffered declining slot revenues.
Slot machine revenues at the two casinos, Foxwoods and Mohegan Sun, were down 4 percent from July 2007 to May 2008, compared to the same 11-month period a year earlier, according to the Connecticut Division of Special Revenue.
Two of the partners who bought Lincoln Park in 2005 and rejuvenated it as Twin River, Len Wolman and Sol Kerzner, have joined with the Mashpee Wampanoag tribe to push plans for a casino in Middleborough.
Tribe officials say they are not worried about the financial woes of Wolman and Kerzner, who also own several ailing racetracks in Colorado, and would look for additional financial backers if they were unable to finance the $1 billion casino in Massachusetts.
"It's not a concern to the tribe," said Scott Ferson, a spokesman for the tribe. "It's a deal that stands on its own, and the tribe will be the owner and operator of the facility."
Governor Deval Patrick filed legislation last year that would have licensed three casinos in Massachusetts, which he said would create 20,000 permanent jobs and at least $400 million in annual revenue for the state.
While the legislation gained strong support from unions, it was opposed by DiMasi and it did not get a favorable vote from a key legislative committee. Gambling supporters in the House said DiMasi agreed to allow track supporters to bring a slots bill to the floor later in the session. His commitment diverted support from the governor's casino bill, with supporters hoping to bring lucrative slot machines to tracks in their districts in the place of casinos.
"That's actually in limbo right now," DiMasi told reporters yesterday, when asked about the slots legislation. He said it would come to the House for debate only if they can figure out which committee to send the bill to.
Shortly after DiMasi's comments, Flynn issued his statement conceding defeat.
But while any gambling expansion appears unlikely this year, all sides have eyes on the next legislative session, which starts in January.
When the governor was asked this week whether he plans to refile his casino legislation - and tie its proceeds to funding his education initiative - he smiled broadly but would give no further indication of his intentions.
"Everything is on the table," he said.
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Matt Viser can be reached at maviser@globe.com.
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(A Boston) GLOBE EDITORIAL
"Loophole after loophole"
June 30, 2008
AS LEGISLATORS have been working to wrap up the state budget, they have also been seeking agreement on changes in corporate taxes that should bring in more money. Unfortunately, one House-backed proposal could provide the tax avoidance lawyers of multinational corporations a new way to reduce their obligations to the state.
The plan from Governor Patrick and legislative leaders is to close corporate tax loopholes while at the same time lowering the 9.5 percent corporate tax rate. The House would lower the rate to 7.5 percent; the Senate to 8 percent. Both chambers are targeting a loophole that allows firms to duck Massachusetts taxes by shifting profits to subsidiaries in other states without corporate taxes. Between the lower rate and the closed loopholes, state coffers could rise anywhere from $135 million to $297 million in the coming fiscal year, according to the Department of Revenue. In future years, the amount would fall as the rate cuts are fully phased in.
The joker in the deck is a proposal backed by Representative Daniel Bosley of North Adams. It would let big corporations evade state taxes by shifting income to overseas affiliates. In one example, Wal-Mart has established a small real estate office in Italy, with responsibility for billions of dollars worth of Wal-Mart property in the United States. The state of Illinois saw this as a tax dodge and fought the big retailer in court.
Bosley says he cannot estimate how much the same provision would cost Massachusetts. But in a letter in April to Senate President Therese Murray, state revenue Commissioner Navjeet K. Bal offered a projection: about $140 million to $170 million. At a time when Massachusetts is trying to keep firms from using other states as safe havens for their profits, it would be self-defeating to open the door to the use of overseas shelters.
As much as corporate leaders say they want transparency and predictability in the tax system, Bosley's provision could well have the opposite effect, judging from the legal wrangles it has caused elsewhere.
Lowering the corporate tax rate is a sensible way to encourage all companies, large and small, to locate and expand in Massachusetts. Closing the loopholes carved out by big corporations' tax attorneys can offset the revenue loss from a lower rate and generate additional funds to cover the rising cost of healthcare, education, and infrastructure maintenance. Plus it is the fair thing to do. It makes no sense at all to negate the benefit of closing some loopholes by creating an entirely new and potentially very costly one. If the conference committee approves the overseas operations provision, Patrick should veto it.
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July 21, 2008 - 9:43am
"Being the Speaker’s CoS is like ‘conducting an orchestra’"
By Jeremy P. Jacobs
BOSTON -- Talking with Maryann Calia, it doesn't take long to realize everything that happens on Beacon Hill goes through her at some point. When asked to describe her job as House Speaker Salvatore DiMasi's (D-Boston) chief of staff, Calia relied on metaphors.
"I feel like I'm conducting an orchestra sometimes," she said. "You have to make sure the players are there and that they're all doing their parts. And if you see someone either playing their part too loudly or not playing their part loudly enough, you're the one that has to go in and make sure everything gets back in sync."
Calia, 52, has come a long way in politics since working on her first campaign when she was just 16. Referred to by other representatives as DiMasi's "right hand man," Calia sits at the intersection of politics and policy in Massachusetts. One would be hard pressed to find a staff member that has more influence on what legislation is voted on, what hearings are held and the general direction of the legislature than Calia.
Asked what it feels like to wield the power of the Speaker's office, Calia tries not to let the position go to her head. "You respect everyone," she said, "You're dealing with people that have a lot of good knowledge. These are very informed people. You give them their due respect as well."
And according to state Rep. Daniel Bosley (D-North Adams), the chairman of the Joint Committee on Economic Development and Emerging Technologies, Calia has accomplished that goal. Bosley has worked with Calia on a number of pieces of legislation and had nothing but good things to say about her.
"She's great," he said. "She does a lot of stuff with the administration, scheduling, getting people on the same page. She coordinates everything. She's the person that talks to the chief of staff in the Senate, the governor's people, chairmen, everyone."
"She's just extremely, extremely valuable," he added. "She's sort of a check on everything in the process."
Calia's desk: Politicker PhotoCalia's sparsely decorated but roomy Statehouse office is a testament to how demanding her job is. Her desk is piled high with folders, papers and documents, all for her to review before the legislative session ends on July 31. Calia, however, doesn't seem to let the amount of work bother her and often lets out an infectious laugh that is emblematic of her enthusiasm for her job that began with her first foray into politics when she was 16.
When Calia when is high school in Boston's North End, she took a political science class that assigned her to develop an entire campaign plan for a fictional candidate. Calia immediately fell for the excitement of campaigning.
"I just loved it," she said. "I thought it was great. I just had so much fun doing it."
In particular, Calia liked the public relations aspects of campaigns - dealing with the media, planning events, writing speeches - and quickly began making phone calls for her first campaign, Jack Cole for Boston City Council.
Calia, a self-confessed "political junkie," also realized in that class that she had a knack for politics.
"We had about 40 kids in the class," she said. "They asked us who our congressman was, and I was the only one in the class who knew who he was."
Calia went to Boston College where, after a brief stint as in pre-med, she double majored in political science and communications. When she was just 19, DiMasi, who was then an assistant district attorney, moved into next door and, having heard of her from friends, asked her to write speeches for his 1976 campaign.
DiMasi lost that race, but Calia loved her role in the campaign.
"I got right into the whole thick of things and I was hooked from then," she said. "I just loved political campaigning."
And Calia has been working for DiMasi almost ever since, a job she loves but that comes with its fair share of trials and tribulations.
"It's been great," she said. "Don't get me wrong, there are times when you are pulling your hair out because you don't think you can get something done. But then miraculously you find it in yourself and in the staff to get it done."
When DiMasi was elected in 1978, Calia started out as a legislative aide in his office. It was a tough job, she said, since she was working primarily with constituents and she couldn't always deliver what they wanted.
Calia was ready to leave that position and DiMasi became chair of the committee on criminal justice and offered her a position as research analyst. She saw the role as the perfect combination of politics and policy.
"I found that it was really an extension of what I was doing as far political campaigning and constituent work because it was the real meat and potatoes of what the legislature does," she said.
In that role, she worked collecting petitions from the public, organizing testimonies for the committee's hearings and researched legislation so she could make recommendations to the members of the committee.
It was in that role that her passion shifted from politics to policy - two parts of government that she believes are inseparable.
"They are married in a way," she said. "Unless you are serious about the policy, unless you understand what's happening and unless you're good at what you do as far as policy, you can't run a good campaign. It can't just be rubber stamping what your constituents want because that's not necessarily responsible."
"What people do up here is important because you need to look at other states," she went on. "You have to look at all sides. You may have grassroots advocates coming in on one issue but then big companies come in on the other side of it."
Since becoming DiMasi's chief of staff four years ago, Calia has worked to open up the legislative process to the public. In February of 2007, she brought on David Guarino, a former Boston Herald reporter, to spearhead the speaker's media outreach, which she wanted to be more proactive, instead of reactive.
"Before, I think, it was more crisis management," she said, "not that we don't have crisis management. It's something that we've tried to do from the very beginning. We do such an important job, it's important that people understand how we do it because I don't think the general public does understand it. They don't understand the amount of time and work and energy that goes into making a law."
Calia also charged Guarino with making more of the of the House's proceedings available online. Guarino has since added several aspects to the House's web site, including posting and archiving video of every committee hearing.
Guarino said the shift into politics from covering politics has been smooth largely because of Calia.
"It's been great," he said. "It's a great staff overall and Maryann really keeps it together. This place is like a pressure cooker sometimes...What you really need from someone in this role is someone who can keep their head even as those around them are losing them. She does that because she has the history, the knowledge and the experience to say let's go this way and that has a calming effect on the process in the House and in this office."
Ultimately, the importance of Calia's role in the Massachusetts government isn't lost on her.
"You have to recognize the responsibility of the position," she said. "Sometimes it's a little frightening but if you are serious about it and you put the time in and you are smart about it, then you shouldn't make any mistakes. And nothing is perfect because the law is always evolving; it's a living organism as we say."
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Category: LocalTags: Salvatore DiMasi, Maryann Calia, Daniel Bosley
Maryann Calia: Politicker Photo
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www.politickerma.com/jeremyjacobs/421/being-speaker-s-cos-conducting-orchestra
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"Firm paid fees to DiMasi friend: $340,000 to lobbyist not reported"
By Andrea Estes, (Boston) Globe Staff, July 23, 2008
Cognos ULC, a Burlington computer software firm, paid lobbyist Richard McDonough hundreds of thousands of dollars to push software contracts with state officials over three years, according to filings the company made this week.
The payments for the years 2004 through 2006 had not previously been reported by Cognos or McDonough, as required by state law.
Secretary of State William F. Galvin ordered McDonough and the company to make public their ongoing relationship after the Globe reported earlier this month that McDonough, a friend of House Speaker Salvatore F. DiMasi, helped the company secure funding for a $4.5 million Department of Education software contract in 2006, even though he was not registered as a lobbyist for the software firm at the time.
Galvin said yesterday that he is reviewing the law and may impose fines - up to $1,200 a year on Cognos and up to $200 a year on McDonough - for each year they failed to file. He said those are the maximum fines permitted under the state's lobbying law.
It would be the second time in recent months that Galvin tried to force compliance with the state's lobbying laws.
In May, Galvin ordered Richard Vitale, another friend of DiMasi's, to report income he received from the Massachusetts Association of Ticket Brokers as he helped the group promote legislation on Beacon Hill favorable to their industry.
After Vitale, who was paid $60,000 by the group, insisted he did not lobby, Galvin referred the matter to Attorney General Martha Coakley for possible criminal prosecution. Her spokeswoman, Emily LaGrassa, declined to comment yesterday. Galvin said his office has not been contacted by the attorney general's office on the matter.
"We're disturbed," Galvin said. "We've seen a pattern emerging of lobbyists not fully reporting their income, whether it's through inadvertence or deliberately. The purpose of the lobbying laws is to provide information to the public while things are occurring, not three years later."
In its filings, Cognos reported paying McDonough $340,200 between 2004 and 2006 as he worked to help the company win software contracts from the state. According to the newly filed reports, Cognos paid McDonough $120,000 in 2006, $120,000 in 2005, and $100,200 in 2004.
In his reports McDonough acknowledged lobbying in 2006 for funding of the Education Department contract, which was contained in a House budget amendment. During the other years, he wrote, he "monitored General Court (Legislature) and executive branch for potential high-tech procurement opportunities."
He was registered as Cognos's lobbyist from 1997 to 2003, but did not register again until 2007, when funding for the state's $13 million software purchase from the company was being approved by the Legislature through a bond bill. It was Cognos's largest contract with the state. During that year, Cognos reported paying McDonough $100,000, less than it paid him in any of the three prior years.
The state canceled the $13 million contract after state Inspector General Gregory Sullivan found it had been awarded in a faulty and rushed process. At the state's request, Cognos's new owner, IBM Corp., refunded the money.
None of the fillings by Cognos or McDonough provided a written explanation for their filing gaps. Neither Cognos officials nor McDonough returned phone calls from the Globe.
If McDonough had refused to respond to Galvin's request, Galvin could have used the most powerful tool he has under existing lobbying law, the authority to suspend a violator's right to lobby for three legislative sessions. McDonough earns hundreds of thousands of dollars a year in fees from a long list of clients, according to lobbying records.
Threatening to suspend Vitale's lobbying rights would have had no effect, Galvin said, because he is an accountant, not a professional lobbyist. The Massachusetts Association of Ticket Brokers, in its filings with Galvin's office, reported paying Vitale's firm, WN Advisors, $30,000 in the first half of 2007 and $30,000 in the second half.
In its most recent filing, submitted July 15, 2008, the ticket brokers reported paying WN Advisors nothing in 2008.
If Vitale had lobbied for the ticket brokers, he may have violated the state's conflict-of-interest law, which prohibits lobbyists from giving anything to public officials.
Vitale, through his firm Washington North Realty Trust, gave DiMasi a below-market-rate third mortgage on his Commercial Street condo in 2006. DiMasi has since paid the money back.
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"More deals for DiMasi's friends: Speaker's associates got work as Cognos got state contract"
By Andrea Estes, (Boston) Globe Staff and Stephen Kurkjian, (Boston) Globe Correspondent, July 30, 2008
Software company Cognos ULC hired House Speaker Salvatore F. DiMasi's law associate, and a key Cognos sales agent hired DiMasi's personal accountant during a period when the firm was winning millions of dollars in state contracts.
The involvement of lawyer Steven J. Topazio and accountant Richard D. Vitale adds two more names to what has become a roster of close DiMasi associates who received Cognos-related money as the company was doing lucrative, though highly controversial, business with the state.
DiMasi took an active interest in a software contract awarded to Cognos in 2007 that has been sharply criticized by the state inspector general and revoked by the state. The contract award is now under investigation by the State Ethics Commission.
Topazio and Vitale could prove problematic for DiMasi because the two maintained business relationships with the speaker as they were accepting money from Cognos or from the company's independent sales agent, Joseph P. Lally.
DiMasi declined to be interviewed or to respond to written questions about the ties between his business associates and Cognos. Lally, through his lawyer, also declined to comment.
Topazio, a lawyer who has maintained a private law practice with DiMasi, acknowledged in an interview that he was hired by Cognos, though he declined to divulge his role, other than to say it related to a "legal matter."
As Lally worked on Cognos contracts, he also paid undisclosed sums for consulting services to a firm founded and operated by Vitale, DiMasi's accountant and former campaign treasurer, according to two people with knowledge of the business relationship.
For Vitale, it is the second known instance in which he was paid by outside interests who were trying to influence State House actions on issues that ultimately the House of Representatives acted upon favorably. The Globe reported in April that Vitale was paid thousands of dollars by an association of ticket brokers to help push through the House legislation that deregulated its industry.
In addition to working as DiMasi's personal accountant, Vitale's financial relationship with DiMasi was expanding around the time of his work with the ticket brokers and Lally. In July 2006, Vitale gave an unusual $250,000 third mortgage to DiMasi at below market rate.
Since the Globe reported in late April on Vitale's work with the ticket brokers and his mortgage loan to DiMasi, Vitale has resigned from his accounting firm, DiMasi has said he paid back the loan in full, and the secretary of state required Vitale to register as a lobbyist and referred the matter to the attorney general for possible prosecution.
Vitale, through his spokesman George Regan, declined to comment this week about his work for Lally. His lawyer, the late Richard Egbert, initially asked for questions in writing with a promise he would answer them. After Egbert received the questions, Regan issued a statement saying, "As we have emphasized for weeks, we are not going to engage in a public dialogue on this matter, nor are we going to respond publicly to every question asked by the Boston Globe." Egbert died last week, apparently of a heart attack.
Topazio, interviewed in his downtown law office, where DiMasi's name is on the entry, confirmed he was paid by Cognos at Lally's behest. Although Topazio and DiMasi have previously shared expenses, Topazio said none of the money he received from Cognos benefited DiMasi financially and denied lobbying the state on Cognos's behalf.
"I know what people will think when they see that I received money from Cognos," he said. "But all I can say is it had nothing to do with any contracts they were seeking from the state or anyone else. All I can say is that it's not what you think."
Topazio would not say how much he received, though two individuals aware of the relationship said it amounted to less than $10,000 annually. He said Lally was referred to him by someone close to the speaker, but he would not identify the person.
With Lally as the high-powered salesman and DiMasi providing a powerful political push for the kind of software that Cognos produced, Cognos was successful in its quest for Massachusetts business, landing at least two major contracts, one for $4.5 million in 2006 for the state Department of Education and then a controversial $13 million contract in 2007 for the Executive Office of Administration and Finance.
Several months before the Patrick administration signed the 2007 contract for "performance management software," DiMasi told a key state technology official that the Commonwealth should purchase such software, without specifically naming Cognos. A 2007 bond bill that paid for the software was approved by the Legislature in a week, with DiMasi's support.
When Lally and Cognos sought funding for the $4.5 million Department of Education contract in 2006, it came in the form of a House budget amendment, which DiMasi described to House colleagues as a priority, according to an official involved in budget deliberations.
While winning the contracts, Lally took aggressive steps to advance Cognos's interests. He boasted to state officials about his ties to DiMasi, offering a job to a key staff member of the Department of Education who oversaw the $4.5 million procurement. Lally and Cognos also sponsored a charity golf tournament hosted by DiMasi, in honor of Vitale's late brother, in 2004, 2005, and 2007.
Also working on Cognos's behalf during this period was lobbyist Richard McDonough, another close friend of DiMasi's, who was paid hundreds of thousands of dollars to help the company secure state work. He failed to report more than $300,000 in lobbying fees until a Globe story earlier this month detailed his extent of his relationship with Cognos.
Topazio and DiMasi have shared a law office since the mid-1980s. Although they were never formally partners, they divided expenses. Sometime after DiMasi was elected speaker in late 2004, Topazio said, DiMasi sold his practice to Topazio and became "of counsel." In that role, he receives a percentage of the fees paid by clients he refers to Topazio. Topazio said he believes all of DiMasi's current law income comes from those fees.
Last year, DiMasi reported earning between $20,000 and $40,000 from his law practice. In 2005 and again in 2006, he reported earning between $60,000 and $100,000, according to state ethics filings.
DiMasi has had a different financial relationship with Vitale. On July 21, 2006, Vitale - through his company, Washington North Realty Trust - gave DiMasi a $250,000 revolving line of credit secured by a third mortgage on the speaker's Commercial Street condo.
Vitale, through a separate company called WN Advisors, worked for Lally's private software resale firm, Montvale Solutions, according to two people with knowledge of the business relationship. Lally had been the Cognos vice president of government sales, and when he left the company earlier that year to go on his own, he was allowed to take several key accounts with him, including the Commonwealth of Massachusetts, which had been his customer.
As a business partner of Cognos, Montvale Solutions was able to generate huge commissions, described by several former employees as 20 to 25 percent of a contract's value. It was Montvale Solutions that acted as a broker for both the $4.5 million Education Department contract and the $13 million contract with the Administration and Finance office.
After rejecting a Globe request for an interview on the Cognos-related payments to his associates, DiMasi asked for written questions, but later refused to answer them or provide a statement. In prior interviews, DiMasi has insisted he never interceded on behalf of Cognos and was unaware that Vitale worked for the ticket brokers. In a letter to House members in May, DiMasi blamed friends and associates for taking advantage of his position, behavior he said he could not control.
"Like any of us, I do not control the conduct or actions of others," wrote DiMasi. "As elected officials, we in the Legislature are all subject to the unfortunate inclination of others to use our name without our knowledge or authorization."
Both the Department of Education and the administration's computer software contracts have drawn controversy in recent months.
In March, the office of Inspector General Gregory Sullivan sharply criticized the administration for rushing through the purchase in violation of basic bidding rules. That contract has been canceled and the money returned to the state.
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Andrea Estes can be reached at estes@globe.com. Stephen Kurkjian can be reached at kurkjian@globe.com.
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"Sal DiMasi, Thomas Petrolati raked in $42G as eye bill stalled"
By Dave Wedge, Thursday, July 31, 2008, www.bostonherald.com, Local Politics
House Speaker Salvatore F. DiMasi and his second-in-command hauled in a combined $42,000 in two days from eye doctors and their lobbyists as a law that would hurt their business was condemned to legislative limbo, a Herald review has found.
DiMasi and Speaker Pro Tempore Thomas M. Petrolati (D-Ludlow) raked in the special interest cash from dozens of eye doctors last year as part of an organized campaign to block a bill that would allow optometrists to prescribe eye medicine. Currently, Massachusetts is the only state in the nation where only opthamologists can prescribe medicine for ailments like glaucoma - even though optometrists are authorized to diagnose the disease.
The bill has been stalled on Beacon Hill since January, despite an impassioned plea last month from Rep. Daniel Bosley, who sponsored the proposal. Bosley (D-North Adams) penned a letter signed by 70 lawmakers to DiMasi asking the speaker to release the bill to the Senate, saying the proposed law would make eye care more affordable and accessible, especially for seniors suffering from glaucoma.
“Opthamologists currently enjoy a de facto monopoly on the treatment of glaucoma, causing increased health care costs and decreasing access to care,” Bosley wrote in the June 6 letter. “Allowing optometrists to expand their options would save the commonwealth money as more patients could be treated by optometrists, as opposed to seeking care from a specialist.”
Originally filed in January 2007, the bill has been mired in the House Committee on Second Reading since January. Yesterday, it was moved to the House Committee for Third Reading, where it remained last night.
Two lawmakers with knowledge of the situation, including a member of the Speaker’s leadership team, said DiMasi lieutenants “put a hold” on the bill.
Asked about the donations and the stalled bill, DiMasi spokesman David Guarino responded: “That is one of hundreds of bills still under consideration as our formal sessions end. The speaker has heard from proponents and opponents on this and is still considering the details of the bill.”
The special interest money to DiMasi and Petrolati poured in on two days last year from opthamologists and their lobbyists. DiMasi received a total of $23,650 in campaign cash on Jan. 25, 2007. Petrolati, meanwhile, received $18,650, all of it donated on June 30, 2007, records show.
In 2007, optometrists gave just $1,350 to Petrolati and $900 to DiMasi, records show.
Among those donating to both lawmakers on those days was lobbyist Joseph Grant, who worked against the bill on behalf of the Massachusetts Society of Eye Physicians & Surgeons and the Massachusetts Medical Society.
The two special interest groups have paid Grant a combined $210,000 since 2007, records show. Grant declined to comment.
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Article URL: www.bostonherald.com/news/regional/politics/view.bg?articleid=1110154
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The Boston Globe, Op-Ed, JOAN VENNOCHI
"The two sides of DiMasi"
By Joan Vennochi, (Boston) Globe Columnist, July 31, 2008
SAL DIMASI, champion of progressive causes. Sal DiMasi, champion of insider deals.
The two sides of House Speaker Salvatore F. DiMasi are getting equal play this week. Unfortunately for the speaker, the political operator has the potential to cancel out the political crusader.
Liberals shouldn't ignore allegations of ethical lapses, in deference to DiMasi's leadership on issues that matter to them.
Advocates for same-sex marriage rights won a huge victory when the House voted to repeal a 95-year-old law that stopped gay and lesbian couples from most other states from marrying here. It was DiMasi who insisted on bringing the measure to the floor, even though some lawmakers wanted to avoid voting on a gay marriage question just before election season.
Because of his leadership on the repeal of the 1913 law, DiMasi was the hero of the moment for the gay community and liberals generally at the same moment another troubling connection between DiMasi and software company Cognos ULC was revealed.
The speaker's law associate, Steven J. Topazio, was working for the software company as the state was negotiating lucrative contracts with Cognos. And DiMasi's onetime personal accountant, Richard D. Vitale, was hired by a Cognos sales representative during those negotiations. The Globe previously reported that Richard McDonough, a longtime DiMasi friend, also worked as a lobbyist for Cognos.
The Patrick administration, not DiMasi, awarded the contracts. But the web of DiMasi friends connected to the company continues to raise questions about the speaker's role. Under the golden dome, the Cognos saga is undermining DiMasi's hold on the House. Two legislators, Representatives Robert A. DeLeo of Winthrop and John H. Rogers of Norwood, are openly jockeying to succeed him as speaker.
Can DiMasi withstand the internal pressure? He stands a greater chance if liberal constituencies outside the House remain faithful to him. To keep them loyal, he needs to give them what they want, and that he is doing.
A recent post on www.bluemassgroup.com, a compendium of mostly liberal bloggers, thanked DiMasi for his support in repealing the 1913 law that stopped same-sex couples from outside Massachusetts from marrying here. The same post also made a case for the House to take up a global warming solutions act, which caps emissions.
It didn't take long for David Guarino, DiMasi's communications director, to post this response: "Thanks from the speaker's office for the praise, it is appreciated. We do have a lot of work to get to before we end formal sessions, and your priorities are certainly noted - as they were before. On global warming solutions, stay tuned. There is a chance we may yet have something for you there before the session ends."
Sure enough, redrafted global warming legislation was scheduled for debate yesterday in the House.
DiMasi is also working to get additional funding from healthcare providers and insurers to cover healthcare reform costs, another cause dear to Massachusetts liberals.
There's nothing hypocritical or dishonest here. DiMasi is staying true to his liberal roots. But he also knows that every time he plays the advocate for high-profile liberal causes, he forces liberals to consider the cost of losing him as speaker.
Does the gay community want to lose a speaker who will do whatever it takes to guarantee their rights? Do healthcare reform advocates want to lose a leader who pushes the business community to pay its fair share and keeps alive the Massachusetts healthcare reform effort?
What's more important? The policy DiMasi champions for liberal constituencies or the connections he champions for friends?
Should liberals close their eyes to problematic behavior, just as they are doing with another liberal, state Senator James Marzilli? The Arlington legislator has been charged with accosting several women, but refuses to resign even though he has not returned to work since his arrest and has said he will not return.
The double standard is a mistake. Self-interest in the promotion of a certain ideology shouldn't trump accountability for certain actions.
If the contrast between DiMasi's two sides grows sharper, it will get harder to let the speaker off the hook. At least it should.
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Joan Vennochi's e-mail address is vennochi@globe.com
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JOSH REYNOLDS/ASSOCIATED PRESS. Speaker DiMasi with Governor Patrick hailed action July 31 allowing out-of-state gay couples to marry in Massachusetts. (JOSH REYNOLDS/ASSOCIATED PRESS)
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"How leaders warmed a State House chill: Apologies served Patrick, DiMasi"
By Frank Phillips and Matt Viser, (Boston) Globe Staff, August 22, 2008
For months, the powerful leaders had been at daggers' points, barely speaking while exchanging accusations and recriminations in the press. But in May, Governor Deval Patrick and House Speaker Salvatore F. DiMasi sat down for a private dinner in the North End that has proved crucial to salvaging the first half of Patrick's term.
The restaurant meeting - with no aides, just the governor and speaker - was the keystone in a broad rapprochement, Patrick and DiMasi both said in recent interviews.
"We had a great, quiet, come-to-Jesus kind of conversation with each other," Patrick said.
Coming on the heels of a bitter fight in March over the governor's effort to license casinos, it broke a political impasse that had gripped Beacon Hill and threatened to block many of the governor's initiatives. The high-level heart-to-heart explains in large part how Beacon Hill Democrats managed to wrap up a peaceful legislative session last month after months of disarray and infighting.
"We were both feeling like there was some blood on the floor after the casino vote," the governor said. The meeting, in an undisclosed restaurant on DiMasi's home turf, was preceded by a meeting for drinks a couple of weeks before and an unusual apology from the governor to DiMasi, delivered in a handwritten note that DiMasi still keeps beneath his desk blotter.
"We got together and bared our souls," DiMasi said. "We agreed to apologize for some of the things both of us said, and we agreed to put the past behind us. We decided to get back to work together, to get back to being friends."
Now, nearly four months later, Patrick can point to a host of initiatives - on economic development, tax policy, education, other issues - that had been languishing in the Legislature but were approved in the final weeks of the session. The accomplishments gave the governor a much-needed boost as he moves into the national spotlight next week at the Democratic National Convention in Denver.
"We have seen over the last several months a lot more . . . willingness to compromise and willingness to take his lumps and move on," said Paul Watanabe, a political scientist at the University of Massachusetts at Boston. "That strikes me as reflective of hard work. And the word that comes to mind is maturity."
Patrick's renewed confidence will be tested again in the coming months, as the state faces further fiscal problems and the possibility of emergency budget cuts. In addition, tensions with DiMasi and other lawmakers could easily reignite in 2009 if the governor revives his failed plan to license three casinos, a proposal DiMasi strongly opposes.
In the meantime, however, Patrick is basking in a political resurgence. Those who have worked with him say the diplomatic thaw with DiMasi shows he is learning the complicated dances and arcane customs that govern Massachusetts politics and grease the policy agendas at the State House.
From the sidelines in the battle of wills, Senate President Therese Murray, the other key power figure on Beacon Hill, attributes the decline in friction, in part, to a new governor and the speaker learning to get along.
"Sometimes it is a guy thing, like the new kid on the block," said Murray. "Now they get along very well. They have both gone through a lot."
The shift has been a huge relief for some of Patrick's early supporters.
"In the last couple of months he has shown all the intellectual and political skills, as well as the courage that I saw in him as a candidate," said state Representative Jay Kaufman, a Lexington Democrat. "It took a while to get his feet under him. It is certainly very encouraging."
In his State of the State address in January, Patrick publicly chastised the Legislature for its slow pace in deciding on his proposals, scolding lawmakers for the "cost of inaction." Through late winter and into March, the battle over Patrick's proposal to license casinos made things even worse. DiMasi, using the full weight of his position, crushed the plan with a lopsided vote. Patrick felt that he had been publicly humiliated by the speaker using heavy-handed tactics.
The already tense political climate was exacerbated when the governor left the State House before the final casino vote and traveled to New York to sign a $1.35 million book contract.
DiMasi did not gloat publicly over his victory. Instead, he made the first move to reach out to the governor after their bitter clash. They arranged to meet at the Seaport Hotel for a drink before the governor appeared at an April 24 event there. DiMasi proposed that the two apologize to each other and that they start anew
"I'm glad you said that to me, Sal," Patrick told him.
The next day, Patrick sent the speaker a handwritten note of apology. "I agree the past is the past. Let's move forward in partnership and friendship," he told DiMasi, who shared a portion of the note with the Globe.
DiMasi had a stake in encouraging a thaw. The speaker was facing his own crisis. A series of Globe stories raised questions about whether he influenced legislation or used his position to benefit his friends. The articles contributed to political unrest among his Democratic colleagues in the Legislature.
Patrick, instead of reveling in his rival's political misery, used the opportunity to draw the House leader closer. He suggested that they go to the North End for dinner. The two leaders would not say what was said or even disclose the name of the restaurant.
After that, the two began talking almost daily, having spent the first year speaking mostly through staff. Patrick said he spoke with DiMasi about the death of two members of DiMasi's family.
"He's a human being. I know that was affecting him," Patrick said. "We talked often through that. Sometimes you just pick up the phone in the morning on the way in and check in. He's done the same for me."
The good feelings paid off. As the Legislature rushed to end its session by July 31, Patrick's major priorities began arriving on his desk. In a gesture that captured the new climate, Patrick made a surprise appearance in the House chamber in late July as lawmakers were sprinting toward the conclusion of the session. Proceedings were brought to a halt as he shook hands with lawmakers. When he left, the representatives rose in wild applause.
The governor pointed at DiMasi, who replied with a thumbs up.
As Patrick exited, a choir standing outside in the marble hallway broke into song. Accompanied by a steel-string guitar and a wooden bongo, the choir, on tour from Ireland, sang "May the Road Rise to Meet You."
The governor smiled wide and said, "Thank you. Thank you."
On a stage where he's had his struggles, he could not have appeared happier.
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DiMasi's aide said the speaker would act if necessary.
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"Speaker cool to a crisis session: Some see bid to curb House rivals"
By Andrea Estes and Matt Viser, Boston Globe Staff, October 22, 2008
House Speaker Salvatore F. DiMasi, facing investigations focused on financial dealings of his close associates, is resisting calls for the Legislature to return to Beacon Hill in emergency session to consider Governor Deval Patrick's plan to address the state's financial crisis.
DiMasi told House members last week in a closed-door caucus that he does not want to risk opening the legislative agenda to issues not related to Patrick's budget-cutting proposals.
But there is a debate at the State House over whether DiMasi is also wary of losing his grip on the House, now that Attorney General Martha Coakley has launched a grand jury to investigate DiMasi's personal accountant and former campaign treasurer, who accepted large payments from businesses seeking state contracts and favorable legislation.
Despite his repeated entreaties for months, DiMasi also has been unable to quell organizing efforts within the House by two people who are vying to succeed him: Robert DeLeo, chairman of the Ways and Means Committee, and John Rogers, the majority leader.
DiMasi's unwillingness to summon lawmakers back to deal with the economic crisis dominating headlines is a source of frustration for some lawmakers as they campaign for reelection in their home districts.
"It's amazing. There is an obvious desire by leadership to avoid our coming together," said Representative Paul Casey, Democrat of Winchester, a sometime critic of DiMasi. "We as a Legislature have looked inept and wary of any action. We want to be proactive, not just victims.
Senate President Therese Murray has not proposed returning in emergency session, but she is open to the idea. "She is ready to bring the Legislature back," said someone who has been briefed on Murray's deliberations.
Jay Kaufman, a Democrat from Lexington and a member of DiMasi's leadership team, said the House members are divided over whether they need to come back early.
"I don't think there's any truth to the story that the reason for not coming back is the speaker's concerns about control," he said. "I've heard nothing to suggest that's true."
Patrick unveiled a plan last week to close a $1.4 billion budget gap through a variety of measures. About one-third of his plan requires approval from the Legislature, including tapping $200 million from the rainy day fund; allowing communities to levy taxes on telephone poles, generating $13 million; and saving the state $28.5 million through restructuring healthcare payments for state employees.
"We need these tools," Patrick said last week. "And we need them soon."
In reality, the question of whether to return for a formal session is largely a political one. The state has enough cash to pay its bills until at least January, when formal sessions start anew.
"I'm not saying it's a bad idea, but I don't see the absolute urgency," said Michael J. Widmer, president of the Massachusetts Taxpayers Foundation. "It can be addressed in January."
Spokesman David Guarino said the speaker "wouldn't hesitate" to bring members back if necessary. In addition, he said, House rules prohibit convening right before or after an election, to prevent lame-duck legislators from voting.
Within weeks, Patrick may also file additional legislation to reorganize and possibly eliminate several state agencies. The measure would require the Legislature to vote yes or no, without any amendments, within 60 days, or it would automatically pass. Such a move would box in the Legislature and probably force members to either return to Beacon Hill or go along with the governor's plan. House and Senate lawmakers are currently weighing whether several noncontroversial aspects of the governor's plan can be handled during informal sessions, when unanimous approval is needed.
But there are other parts of Patrick's plan, especially the telephone-pole tax and the tiered healthcare payments for state workers, that would require formal debate. Several House lawmakers have publicly urged a return to Beacon Hill to deal with the crisis, to deliver for the governor and also demonstrate they are actively working to fix economic problems.
The speaker has not resolved a relatively minor Westwood liquor license dispute that for weeks has blocked the flow of routine informal session business in the House. Managing contentious debate over a budget-balancing package with the full House in attendance would require a much greater degree of political might.
In addition to Coakley's office, four other entities are reviewing the activities of DiMasi's friends and business associates: the FBI, state Inspector General Gregory Sullivan, Secretary of State William F. Galvin, and the State Ethics Commission.
DiMasi was scheduled to speak yesterday at the dedication of a park in honor of former state treasurer Robert Crane, but did not show up. He had a last-minute conflict, Guarino said. Instead, DeLeo addressed the crowd. DiMasi, Guarino said, was planning to speak last night at an event sponsored by the Medford Chamber of Commerce.
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"Galvin to investigate payments to lobbyists: DiMasi associates, friends got $1.8m"
By Andrea Estes, Boston Globe Staff, October 11, 2008
Secretary of State William Galvin yesterday said he will investigate payments to friends and associates of House Speaker Salvatore F. DiMasi by a Burlington software company to determine whether the associates violated state law by not reporting more than $1.8 million in lobbying fees.
"If there are significant omissions or misleading statements - these are things we have to evaluate," Galvin said.
Galvin said he will also look at whether the lobbyists received "success fees," that is, fees paid only when something specific - like the awarding of a contract - takes place. Success fees for lobbyists are prohibited by state law.
The Globe reported yesterday that Cognos ULC and its independent sales representative, Joseph Lally, paid more than $1.8 million in undisclosed fees to three friends and business associates of DiMasi as part of a secretive campaign by the company to win $17.5 million in state contracts.
Two of them - DiMasi's accountant Richard Vitale and longtime DiMasi friend and Cognos lobbyist Richard McDonough - received large sums on the same day that the state wired Cognos $13 million as payment for one of the contracts, the largest in the company's history. On that day, Aug. 31, 2007, Vitale received $500,000 and McDonough received $200,000.
Vitale and McDonough said through spokesmen yesterday that they followed all state laws and reported everything to Galvin's office that they were supposed to report. The third associate, longtime DiMasi law associate Steven Topazio, could not be reached.
Attorney General Martha Coakley would not comment. Galvin has referred another case to Coakley regarding Vitale, in which he allegedly lobbied for state ticket brokers without disclosing $60,000 in fees.
"We can't comment right now," said Coakley spokeswoman Emily LaGrassa.
The Republican Party renewed calls yesterday for an investigation by Coakley. "There are enough serious allegations to warrant an investigation by the attorney general," said party spokesman Barney Keller.
House Minority Leader Bradley Jones called the circumstances detailed in the Globe story yesterday "troubling."
"It merits further digging and delving," he said.
But he said he would be more concerned if the Legislature had awarded the contracts to Cognos, instead of Governor Deval Patrick's administration. The two biggest Cognos contracts - a $13 million contract with the Secretary of Administration and Finance and a $4.5 million contract with the education department - both required Legislative funding. DiMasi was a strong advocate of the type of software that Cognos was selling and backed funding for the projects; state officials have told investigators that they believed DiMasi wanted the 2007 contract to go to Cognos.
The $1.8 million in undisclosed payments were discovered by Inspector General Gregory Sullivan, who collected internal Cognos records after the Globe reported in July that Cognos had paid Vitale and Topazio in connection with Massachusetts contracts.
Representatives of Sullivan's office, who detailed the undisclosed payments in a letter to Galvin Thursday, are expected to meet with Alan Cote, head of Galvin's lobbying branch, next week.
Though Topazio told the Globe in July that he never lobbied for Cognos, the company's records show he received $125,000 in lobbying fees over that two-year period, according to Sullivan.
Topazio, a lawyer who shares downtown office space with DiMasi, was paid a $5,000-a-month retainer by Cognos from 2005 until March 2007 - the month the Legislature approved an emergency bond bill that paid for the $13 million technology contract, according to a person who has been briefed on the Cognos records.
Vitale collected $600,000 in fees from Lally over two years - none of which was reported to Galvin's office. McDonough received $1.45 million over five years, $1.1 million of which he did not report to regulators.
Galvin has previously demanded that Vitale and McDonough disclose all their lobbying activities and fees. "There may be issues of perjury here" if they did not fully disclose, said Galvin, whose office regulates lobbyists.
Vitale, DiMasi's former campaign treasurer, gave DiMasi a $250,000 third mortgage on his North End condo in 2006. If Vitale was lobbying for Cognos contracts in 2006, as Sullivan's records suggest, the mortgage would have violated state ethics law. Lobbyists are prohibited from giving anything to a state official.
Vitale spokesman George Regan yesterday refused to say what services Vitale performed, calling it a "private business matter." Regan said the fees he received are not required to be reported to the state.
"Richard Vitale is and has always been a highly respected business professional for over 30 years," said Regan in a written statement. "He has always conformed his conduct to all ethical, legal, and regulatory rules, and standards."
McDonough said through a spokesman that he believes he too reported all the fees he was required to report.
Common Cause executive director Pamela Wilmot yesterday called the Cognos contracts "a terrible deal for the Commonwealth."
She said "success fees" were banned long ago, for good reason.
Under the state's relatively loose lobbying laws, Galvin has few ways to force lobbyists to obey the rules.
He can disqualify registered lobbyists for up to six years for violating any of the reporting rules. In addition, he can impose a fine of up to $5,000 under some circumstances, and he can refer the matter to the attorney general's office for possible prosecution.
For those people who lobby but never register, Galvin's powers are more limited.
He has already tried to force Vitale to report earnings he received from the Massachusetts Association of Ticket Brokers in 2007. But Vitale defied Galvin and refused to show up for a hearing. He insisted the $60,000 he received from the group to help with legislation on Beacon Hill was a fee for strategic help, not lobbying - prompting Galvin to refer the matter to Coakley.
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Andrea Estes can be reached at estes@globe.com.
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News: www.politickerma.com, October 23, 2008, 5:13 P.M.
"On blog, Bosley rips Globe for DiMasi coverage"
By Jeremy P. Jacobs, PolitickerMA.com Reporter
State Rep. Dan Bosley criticized the Boston Globe's recent coverage of House Speaker Salvatore DiMasi in remarks on a blog Wednesday.
Bosley, a North Adams Democrat, left a comment on the Massachusetts Liberal blog in response to a post on the Globe's coverage of DiMasi's reluctance to convene a special session to consider the parts of Gov. Deval Patrick's budget cuts that require legislative approval.
Bosley's office confirmed that the comment was left by the legislator.
Below is Bosley's full statement, which also refers to the Globe's coverage of DiMasi's relationship with Richard Vitale. The Globe reported Tuesday that Vitale's business dealings are now being investigated by the attorney general.
"Don't fall victim to the innuendo of the Boston Globe. Yesterday they reported that "sources" said that a grand jury was convened to look into this issue. Today, they report the grand jury formation without the caveat that sources have said this without on the record confirmation. This falls into a familiar pattern that we have seen lately concerning the Speaker and this paper.
Today, "sources" said that the House may not come back because of the leadership jockeying. The only sources that was named for the record denied this allegation, but that didn't stop the story from its negative direction. Tomorrow the Globe will "report" this as fact.
It is a shame that, at a time when many of us are working hard to come up with solutions for coping with the largest budget crisis in the past twenty years, the Globe ignores these attempts in favor of continuing this campaign of suggestion and innuendo. And it is a shame that in a past session of landmark legislative initiatives such as the Senate President [Therese Murray]'s Health Care bill, Gov. [Deval] Patrick's Life Science bill and the Speaker [DiMasi]'s Green community and clean energy bills (to name a few) the Globe has opted for titillation and gossip over news reporting. One wonders how much casino advertising is anticipated by the New York overseers that they should place this much effort into attacking a Speaker that by everyone's estimate has a political philosophy very much in line with (the old Boston directed) Globe ideology."
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JEREMY P. JACOBS is a PolitickerMA.com Reporter and can be reached via email at jeremy.jacobs@politickerma.com.
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Reader's Comment:
"Damn straight", posted by Ryan's Take - (10/23/2008) -
when Bosley gets it right, he gets it right.
A) this stuff is about casinos, both the Globe's coverage and the initial stories, which were retribution for the speaker's anti-casino stance.
B) the Globe's coverage has been piss poor. Not only have they ignored the far more important issues - hello, we have a fiscal meltdown! - but the actual articles on the Speaker have been atrocious. Witness the most recent front page one on the Vitale situation, in which they made the intro about the Speaker as well as the headline, while it's VITALE who's under investigation for doing things that were his own doing and had nothing to actually do with the speaker. It's nothing but guilt by association.
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Source: www.politickerma.com/node/1618
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"The DiMasi investigation"
The Berkshire Eagle - Editorial
Friday, October 24, 2008
The state doesn't really need the distraction of an investigation into the financial dealings of House Speaker Salvatore DiMasi right now as it explores ways of handling a major economic crisis, but the attorney general has begun one and justifiably so. It might have been avoided had the speaker been more forthcoming and we still hope that he will be.
Attorney General Martha Coakley is investigating how three close associates of the speaker came to receive more than $1.8 million in what Inspector General Gregory Sullivan describes as unreported lobbying expenses from the awarding of a $17.5 million state contract to Canadian software firm Cognos ULC in 2006 and 2007. The three associates are Richard Vitale, Mr. DiMasi's former campaign treasurer, attorney Steven Topazio and lobbyist Richard McDonough. The contract has been canceled and the money returned.
Mr. DiMasi has denied interceding in the matter and says he was unaware of what his associates were doing, but if the speaker could be more informative, an issue that has drawn the interest of the FBI according to state officials could perhaps be resolved after buzzing in the background on Beacon Hill for months. Top officials of the House are angling for position in case Mr. DiMasi resigns, and it would be better if they were focused on important state business.
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10/24/2008
Re: Bureaucrat Bosley rips the Boston Globe!
Dear Daniel E "Bureaucrat" Bosley:
You rip the BOSTON GLOBE for covering the CORRUPT House Speaker! That is terrible of you! You should want to not only reform the corruption in Massachusetts State Government, but also, TRANSFORM the structure of top-down, closed door, special interests, elitist governance to giving the people a grassroots voice, transparency in state government, the common good and populism.
The following is my Blog page on your current Speaker, Sal DiMasi - (herein).
The following is my Blog page on you, Dan "BUREAUCRAT" Bosley:
www.jonathanmelleonpolitics.blogspot.com/2007/10/daniel-e-bosley-hypocritical-big.html
After reading my Blog pages on your Speaker and then on yourself, you will see that you are a top-down BUREAUCRAT impostering as a Legislator in order to serve the elitist special interests and the corrupt state government perverse incentives.
You, Daniel E "BUREAUCRAT" Bosley, state:
"It is a shame that, at a time when many of us are working hard to come up with solutions for coping with the largest budget crisis in the past twenty years,..."
Well, that is your deficient public record, NOT the Boston Globe's fault. You have allowed CORRUPTION in Massachusetts State Government and Special Interest politics during your top-down, bureaucratic tenure as a "State Representative".
In closing, if you were honest and had any integrity whatsoever then the many flawed policies that have lead Massachusetts into bankruptcy could have been averted. It is your fault, Dan "BUREAUCRAT" Bosley, that Massachusetts is no longer able to pay its expenses! That is your doing!
In Dissent!
Jonathan Melle
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House Speaker Salvatore F. DiMasi (left) stood with Governor Deval Patrick and Senate President Therese Murray in March. (Suzanne Kreiter/ Globe Staff)
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"DiMasi refuses to provide records: Ethics panel files motion to force his compliance"
By Andrea Estes and Stephen Kurkjian, Boston Globe Staff And Boston Globe Correspondent, November 3, 2008
House Speaker Salvatore F. DiMasi is refusing to comply with a demand for records from the state Ethics Commission in its conflict-of-interest investigation, leading to a secretive legal showdown that has yet to be resolved, according to officials familiar with the matter.
After DiMasi rebuffed the Ethics Commission and refused to furnish requested documents, lawyers representing the panel filed a motion on Oct. 21 in Suffolk Superior Court to force him to comply, said the officials, who spoke on the condition of anonymity.
The motion, which is pending before Judge Geraldine Hines, was filed under DiMasi's name but was later changed to John Doe, a court official said. Specifically what records the commission's investigators are seeking from DiMasi and his reasons for not complying could not be learned. All of the court documents have been shielded from public view by court orders.
DiMasi spokesman David Guarino declined to comment on the speaker's refusal to cooperate, saying, "The law is very clear: Anything that may or may not be before the Ethics Commission is confidential and there are penalties for anyone who violates that, so we have no comment."
As DiMasi was spurning the ethics panel, his personal accountant, Richard Vitale, unsuccessfully attempted to quash a state grand jury subpoena last week for e-mail records, according to another court official briefed on the matter. The rejection of his motion by a Suffolk Superior Court judge means he will be required to comply with the subpoena and produce the e-mails. Those court proceedings also are not public because of grand jury secrecy rules.
The dual investigations - the Ethics Commission and state Attorney General Martha Coakley's grand jury - are attempting to detail variations on a similar theme: the circumstances of payments made to a close cadre of DiMasi friends from entities seeking to win state contracts or influence legislation on Beacon Hill.
The private legal maneuvering continued last week even as Beacon Hill was publicly rocked by separate allegations in the Legislature, with the arrest of state Senator Dianne Wilkerson on federal bribery charges.
This is not the first time DiMasi has tried to fend off an Ethics Commission inquiry. In 1994, when he was House chairman of the Judiciary Committee, he won a Supreme Judicial Court case in which he challenged the legality of the commission's demand for his records relating to $700 worth of meals, golfing, and entertainment he had accepted from a lobbyist over the two previous years.
This time around, the political stakes are much higher for DiMasi, who is the highest-ranking member of the House and one of the most powerful elected officials in state government. The demand for records from the Ethics Commission came in the form of a summons, which has the same legal effect as a subpoena. If he loses his challenge of the summons, and still refuses to comply, he could be held in contempt of court, according to state law.
"It would be a cause for concern," said House minority leader Brad Jones, of North Reading, when asked to comment on DiMasi's refusal to cooperate.
One DiMasi backer expressed similar sentiments, but insisted on anonymity because the representative remains a loyal DiMasi ally.
"I do believe it will raise questions among the members about why he isn't cooperating," the representative said.
The Ethics Commission is looking into multimillion-dollar state contracts awarded to a software company, Cognos ULC, in 2006 and 2007. Cognos and an independent sales agent paid some of DiMasi's friends and business associates more than $2 million while the software firm was pressing for lucrative state business. DiMasi had been actively pushing other state officials for the exact kind of performance management software that Cognos produces.
One of those friends was Vitale, who was given payments totaling $600,000 by the Cognos sales agent - in two lump sums after Cognos won state contracts. As he was working for Cognos, Vitale had extended DiMasi a highly unusual $250,000 revolving line of credit, secured by a third mortgage on DiMasi's North End condominium. After the Globe reported the existence of the loan in May, DiMasi paid it back, Vitale was dismissed from the Charlestown accounting firm that bore his name, and the Ethics Commission launched its probe.
Vitale is also a central figure in the grand jury investigation headed by the attorney general, officials have previously told the Globe. That inquiry has begun by reviewing Vitale's work on behalf of an association of ticket brokers pushing to gut antiscalping laws on Beacon Hill. Vitale was secretly paid $60,000 by the association a year after Vitale was extending DiMasi the loan.
The scalping measure easily passed the House, though it was bottled up in the Senate.
Vitale's lawyer, Martin Weinberg, filed a motion in Suffolk Superior Court to quash a subpoena that asked for all of Vitale's business e-mail records, according to a court official who spoke on the condition of anonymity. The sealed motion went before Judge Carol Ball, who recused herself because she lives in DiMasi's North End district, a court source said. It was shipped to Judge Charles Spurlock, who initially took the request under advisement, then ruled in favor of the attorney general on Friday, the court official said.
Weinberg refused to discuss the case, but issued the following statement: "Innocent people get investigated by law enforcement. Richard Vitale violated no laws. He is a successful businessman, consultant, and professional with a wide range of prominent clients. Any payments he has ever received from any client were received in full conformity with all ethical, regulatory and legal standards."
Richard Nicolazzo, a spokesman for the accounting firm Vitale Caturano, where Vitale worked before he was forced to resign this year amid the ticket-broker controversy, said the company is cooperating with investigators but declined to say what documents, if any, had been provided.
In addition, two State Police officers visited the company's Charlestown headquarters last week in search of tapes from the security cameras in the building's underground garage, according to an executive familiar with the company. But the troopers left empty-handed after being told the cameras had been installed earlier this year and the tapes were maintained for only short periods of time before being reused, the executive said.
The Globe previously reported that the Ethics Commission and Coakley's office are two of the five agencies looking into the money that some of DiMasi's friends and business associates received from groups with business interests on Beacon Hill. The FBI has also made initial inquiries, according to state and federal sources. And Secretary of State William F. Galvin has been investigating whether Vitale and two other friends of DiMasi's received lobbying fees without reporting them, as required by state law.
Inspector General Gregory Sullivan has been investigating the circumstances surrounding the awarding of two major Cognos contracts - a $4.5 million contract with the education department in 2006 and a $13 million technology contract with the state's Executive Office for Administration & Finance. The latter contract was revoked after a scathing inspector general report, and the money was returned to the state.
DiMasi has denied steering any contracts to Cognos, and said he didn't know his friends were receiving any payments.
Though the contracts were awarded by executive agencies, they required special funding from the Legislature. Former Cognos employees and state officials have said that Joseph Lally, a former company vice president turned independent sales broker, bragged that he was friends with DiMasi and could have money added to the budget for the software.
Vitale and Lally were not the only ones who benefited from the Cognos deals. Steven J. Topazio, a criminal defense lawyer who shares office space with DiMasi, received a $5,000-a-month retainer from Cognos for two years. Topazio has not responded to requests for comments. And lobbyist Richard McDonough, a longtime DiMasi associate and Cognos's lobbyist, received $1.45 million from Cognos and Lally, $1.1 million of which he failed to report to state regulators, according to the Inspector General. McDonough has denied violating any lobbying laws.
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Andrea Estes can be reached at estes@globe.com. Globe staff writer John A. Ellement contributed to this report.
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"DiMasi 'very upset' his 'good name' called into question"
November 3, 2008, 4:35 PM, By Matt Viser, Boston Globe Staff
House Speaker Salvatore F. DiMasi this afternoon sought to defend himself against a Globe report that he is refusing to comply with a demand for records from the state Ethics Commission in its conflict-of-interest investigation.
“I’ve always acted in the most ethical ways here in the Legislature,” DiMasi said as he entered Governor Deval Patrick’s office for a weekly leadership meeting. ”And any decision I’ve ever made was in the best interest of the people in the Commonwealth of Massachusetts.”
“I’m very upset that -- and I’m disturbed -- that my good name has been called into question,” he added. “Obviously, you know, I don’t like that. I don’t like that at all. And I will defend myself in that manner in any way I can.”
DiMasi would not answer questions about the commission’s investigation, or even say whether he was cooperating with them, citing the confidential nature of the investigation.
“I really can’t say much about anything,” he said.
He would not answer whether he would run for speaker again in January.
Senate President Therese Murray, as she was entering the meeting, would not answer any questions about DiMasi, saying, “I don’t know anything about that.”
The Globe reported this morning that DiMasi rebuffed the Ethic Commission’s request for documents. Lawyers representing the panel filed a motion on Oct. 21 in Suffolk Superior Court to force him to comply, said officials familiar with the matter who spoke on the condition of anonymity.
The motion, which is pending before Judge Geraldine Hines, was filed under DiMasi's name but was later changed to John Doe, a court official said. Specifically what records the commission's investigators are seeking from DiMasi and his reasons for not complying could not be learned. All of the court documents have been shielded from public view by court orders.
Here is DiMasi’s complete response to questions from reporters this afternoon:
Q: Mr. Speaker, what can you say to the voters of Massachusetts about the report that you’re not cooperating with an ethics committee investigation?
A: Well let me just say, I’ve said this before, that I’ve always acted in the most ethical ways here in the legislature. And any decision I’ve ever made was in the best interest of the people in the Commonwealth of Massachusetts. I’ve said this before and I’ll say it again. You know, I’m very upset that -- and I’m disturbed -- that my good name has been called into question. Obviously, you know, I don’t like that. I don’t like that at all. And I will defend myself in that manner in any way I can.
Q: Are you going to turn over records?
A: You have to understand that, you know, I have always conducted myself in the most ethical way. The problem is that we have laws that say that anything that may or may not be before the ethics commission is confidential. And therefore I won’t violate that either. That’s a violation of the law. So obviously I can’t say anything about that.
Q:You could certainly say if you were cooperating fully with them.
A: I really can’t say much about anything. There is nothing I can tell you about whether there is or isn’t anything before the Ethics Commission because of strict confidentiality, and I think everybody should abide by that. That’s all I can say.
Q: Do you think you could you stay as speaker if you weren’t cooperating with them?
(No response)
Q:Do you plan to run again in January for speaker?
(No response)
Q:What about any records, Sal. Are you going to turn over records they asked for?
A: “I can’t confirm anything that might be before them.”
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House Speaker Salvatore F. DiMasi said, ''I've always acted in the most ethical ways here in the Legislature.'' (November 3, 2008)
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"Amid inquiry, DiMasi defends self: Doesn't say why he's resisting request"
By Matt Viser and Andrea Estes, Boston Globe Staff, November 4, 2008
House Speaker Salvatore F. DiMasi sought to defend his reputation yesterday even as he again declined to explain why he is resisting an Ethics Commission demand for his records, a move that has sparked a behind-the-scenes legal struggle with the commission's lawyers.
DiMasi said he would not discuss anything about the Ethics Commission investigation into his relationships with friends and associates seeking favors on Beacon Hill because the commission's work is supposed to be confidential.
"I really can't say much about anything," DiMasi said as he entered Governor Deval Patrick's office for a weekly leadership meeting. "There is nothing I can tell you about whether there is or isn't anything before the Ethics Commission because of strict confidentiality, and I think everybody should abide by that. That's all I can say."
"I'm very upset that - and I'm disturbed that - my good name has been called into question," he added. "Obviously, you know, I don't like that. I don't like that at all. And I will defend myself in that manner in any way I can."
The Globe reported yesterday that DiMasi is refusing to comply with a records request from the state Ethics Commission in its conflict-of-interest investigation of large payments made by business interests to DiMasi's close friends and associates. Lawyers repre senting the panel filed a motion Oct. 21 in Suffolk Superior Court to force him to comply, said officials familiar with the matter who spoke on the condition of anonymity.
There were rumblings among House members yesterday about the political consequences for DiMasi.
Some said they were nervous about voting for DiMasi if he decides to ask his colleagues to reinstall him as speaker in January. Others said they were getting questions about the speaker in their districts.
But while some stalwart DiMasi supporters said privately that the speaker's hard-line stance against the Ethics Commission investigation gave them pause, none were willing to say anything publicly.
"I have no comment," said Representative John Binienda, a Worcester Democrat and House chairman of the Joint Committee on Revenue. "I don't want to get embroiled in any of that."
The absence of open criticism from House colleagues may be an indication that DiMasi remains strong enough for lawmakers to fear retribution. Another factor that appeared to mute any negative fallout yesterday: Most lawmakers were in their districts preparing for Election Day.
The Republican Party, which filed some of the Ethics Commission complaints against DiMasi after reports in the Globe of payments by business entities to his close associates, criticized the speaker's position.
"There is more than enough to justify an investigation," said Peter Torkildsen, chairman of the Massachusetts Republican Party and a former US representative. "Now that the Ethics Commission is apparently pursuing a real investigation, for anyone to attempt to thwart it goes beyond the original questions about violations of law.
DiMasi did not respond to a question from reporters about whether he planned to run again as speaker in January. But David Guarino, spokesman for the speaker, said later that DiMasi "will absolutely be a candidate for speaker."
"I've always acted in the most ethical ways here in the Legislature," DiMasi told reporters. "And any decision I've ever made was in the best interest of the people in the Commonwealth of Massachusetts."
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Estes can be reached at estes@globe.com. Viser can be reached at maviser@globe.com.
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www.boston.com/news/local/articles/2008/11/04/amid_inquiry_dimasi_defends_self/
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Photo by Ted Fitzgerald
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"Sal DiMasi: I’m not leaving: Won’t release records to ethics panel"
By Hillary Chabot, Friday, November 7, 2008, www.bostonherald.com, Local Politics
Facing persistent ethics charges, embattled House Speaker Salvatore DiMasi ushered leadership into his office yesterday to quell growing speculation that he’s leaving, amid rumors that potential successors may try to oust him.
DiMasi, under investigation by the attorney general and Ethics Commission, told his inner circle he is staying and defended his decision to withhold records.
“The speaker is not only staying, he is running for re-election for speaker of the House,” said Rep. Paul Donato (D-Medford), one of the reps who met with DiMasi yesterday.
But as an onslaught of investigations continues to hit the speaker, rumors have circulated that the two lawmakers vying to replace DiMasi won’t wait until he steps down.
“They’re considering overthrowing him,” one lawmaker said on condition of anonymity.
A spokesman for Rep. Robert DeLeo (D-Winthrop) declined comment, while a spokesman for Rep. John Rogers (D-Norwood) heatedly denied any hint of mutiny.
“He’s made it clear he is loyal to the speaker and he would not be a candidate until after the speaker steps down,” a Rogers spokesman said. “Some of (Rogers’) supporters would like to see otherwise, but he’s been clear about it.”
DiMasi met with members of his inner circle along with House counsel to discuss why he won’t release to the Ethics Commission records concerning a multimillion-dollar contract awarded to Cognos, a software company.
“He’s trying to quell this rumor that he’s not releasing (the records) because he’s done something wrong,” said one lawmaker who met with DiMasi yesterday. DiMasi is citing Article 21, a constitutional clause allowing members to withhold certain records.
“He knows this couldn’t come at a worse time, but he’s not going to break confidentiality,” said the lawmaker.
Another lawmaker said speculation of DiMasi’s exit was the talk of Beacon Hill yesterday.
“I think the pressure is certainly building (on the speaker),” said the lawmaker. Two others said DeLeo’s comments in yesterday’s Herald that he would support slots at racetracks as a revenue source signal a growing rift between DiMasi and DeLeo.
“That’s the first time I’ve seen a split like that,” one lawmaker said.
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Article URL: www.bostonherald.com/news/politics/view.bg?articleid=1130621
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"Legislature to face fiscal challenges"
By Matt Murphy, [North Adams] Transcript Statehouse Bureau, Friday, November 7, 2008
BOSTON -- Now that the votes have been counted and winners decided, the new state Legislature and Gov. Deval Patrick will walk a thin tight rope for the next two years as they struggle to balance shrinking revenues with the need for key investments in education, roads and public safety.
Much like President-elect Barack Obama and the newly minted Democratic Congress, Massachusetts politicians face of microcosm of the national economic crisis that has already forced the governor to cut about $1 billion from the state budget.
The state Legislature will reconvene in January for the start of a new two-year Legislative session, typically a time when lawmakers file thousands of new bills that help to set the agenda for the next session.
This time around, however, lawmakers find themselves walking into a host of financial problems from day one instead of the surpluses of past years. That climate could force the House and Senate to tackle uncomfortable topics like new taxes, fees or even a revival of the casino gambling debate.
New revenue, according to some lawmakers and policy analysts, will be necessary if the state is to afford investments in programs trumpeted by the governor and others such as pre-kindergarten, road and bridge repair, free community college and community policing.
"It doesn't have the option, I think, of being a do-nothing Legislature," said Paul Watanabe, a UMass Boston political science professor who watches state government. "The nature of its work is not going to be one in which it's busy spending surpluses. Its going to be one in which they have to deal with a pretty significant financial crisis."
The state released it's October revenue figures Tuesday showing a $58 million decline in tax collections over last year and a $123 million decrease in total revenue. The collections did, however, surpass the state's downward adjusted revenue estimate by $10 million, indicating that Patrick's cuts might be enough to carry the state through the rest of the rest of the year.
State Sen. Steven Panagiotakos, however, said no one will really know the extent of the economic meltdown until at least January when early capital gains tax figures become available.
One the House's new members, Representative-elect Jim Arciero, of Westford, already suggested that preserving the local aid and Chapter 70 education funding might be a best case scenario.
"Priorities, everything is based on a tough fiscal climate and now more than ever we're going to need true fiscal discipline to weather this economic storm," he said. "My number one priority and my number one message since the beginning of the campaign is to keep local aid strong and schools strong in the form of Chapter 70, and keeping property taxes low,"
Arciero told supporters Tuesday night. Education Secretary Paul Reville yesterday at a roundtable discussion on the governor's Readiness Project said the administration has no plans of backing off the ambitious 10 year plan, but may look to cost savers like school regionalization and private sector investment first.
Watanabe said tough decisions will have to be made in terms of both cuts to the budget and developing new sources of revenue.
"You almost can't cut your way our of this situation because after the first round of cuts of about $1 billion, it's pretty clear your not cutting fat, but muscle. If you cut any more, you start cutting arteries and if you cut arteries the patient dies," Watanabe said.
He said everything will have to be on the table, including casinos, higher taxes such as the gas tax or sales tax, fees, pension reductions or increased health care premiums.
Patrick has already proposed a new tiered health care plan for state employees that would require those earning more to pay higher premiums. The Legislature will consider that proposal in January.
Democrats increased their majority in the House in Tuesday's election grabbing three open seats that were previously held by Republicans, diminishing their ranks in the House to just 16 of 160. The five Republican members of the state Senate all held on to their seats, but are still greatly outnumbered in the 40-member upper chamber.
In total 17 new faces will arrive on Beacon Hill in January, not necessarily enough to change the dynamic of either the House or the Senate on gambling or other key issues.
Patrick has not made a decision whether to offer a modified casino proposal to the Legislature early next year, but the gambling debate is still far from over.
Less than a full day after Massachusetts voters decided to ban dog racing in the state that could force tracks like Wonderland in Revere and Raynham-Taunton Greyhound Park to close, House Rep. David Flynn called on the governor to lead the push for slot machines at the state's four race tracks.
Flynn's slot machine bill never came up for a vote last session because the House and Senate never agreed on what committee should hear the bill.
Patrick yesterday said he asked Secretary of Labor Suzanne Bump to start developing a plan to implement the ban that "softens" the impact on track workers as much as possible.
He didn't take a position on either slots at the tracks or casino gambling, and Lt. Gov. Tim Murray said no decision has been made.
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"DiMasi case casts pall over state representatives"
By Matt Viser, Boston Globe Staff, November 8, 2008
He's been stopped in the hallways, called on the phone. One member, he said, "bared their soul."
State Representative David L. Flynn, the most senior member of the House, said last night that five colleagues have approached him and asked him to serve as interim speaker in the event that House Speaker Salvatore F. DiMasi steps down as a result of the ethics controversies swirling around him.
Flynn's disclosure and the open discussion of DiMasi's future is stark evidence of declining discipline in the chamber and eroding support for DiMasi, who has been speaker since 2004 and has held an iron grip on the chamber.
"It's just getting weirder and weirder up there," Representative Brian Wallace, a South Boston Democrat, said between chuckles. "You don't know what's going to happen next. Everyone's just got to take a deep breath and figure out where we are."
Flynn, who is a golfing partner of DiMasi, said he has no intention of challenging DiMasi and plans to vote for him for another term. "Lightning would have to strike" for him to try to become the House speaker, he said.
Yet, other members continue to ask him to step up, even if it is only to serve several months to clear the way for other candidates.
"I just think there's a general malaise laying over a lot of members," Flynn said. "They would just rather let the dust settle for a little while. They're reluctant to cast a vote. There's a vacuum there and they don't know where to turn to."
The State House has been rocked in recent weeks by ethical scandals, capped last week by allegations that Senator Dianne Wilkerson was taking bribes, in one instance stuffing money down her sweater in a posh Beacon Hill restaurant.
The FBI has blanketed the State House and City Hall with subpoeneas.
In addition, DiMasi and three of his close friends and associates are the subjects of an Ethics Commission probe as well as other investigations relating to large payments the associates received from a software company that won multimillion dollar state contracts.
There has been growing unrest among House lawmakers this week after the Globe reported that the speaker was refusing to cooperate with the Ethics Commission's conflict-of-interest investigation.
On Thursday, DiMasi held closed-door meetings with members of his House leadership team and committee leaders in an effort to shore up support in the chamber.
DiMasi has been invoking a constitutional claim of legislative immunity in his refusal to cooperate with a State Ethics Commission demand for his records.
Constituents are beginning to confront lawmakers, who have said privately that they are worried about voting the reelect DiMasi as speaker in January.
Two top lawmakers - Ways and Means Committee chairman Robert DeLeo and John H. Rogers, the majority leader - have been jockeying to line up support in case DiMasi leaves. Both have said that they would not try to oust DiMasi and that they only want to be ready in case the speaker leaves.
The chamber has been bitterly divided into Rogers and DeLeo camps, but members approaching Flynn could suggest that some are thinking about coming up with a compromise candidate.
Flynn said members were also approaching Representative Daniel Bosley, a North Adams Democrat, and Representative Eugene O'Flaherty, a Chelsea Democrat. Bosley and O'Flaherty could not be reached for comment last night.
A spokesman for DiMasi, David Guarino, declined to comment.
Flynn is a 75-year-old father of nine and grandfather of 28 who is frequently spotted walking through the State House hallways with a beaming grin, shaking hands and joking with colleagues.
The news that Flynn, the House chairman of the Joint Committee on Bonding, Capital Expenditures and State Assets, was being approached by other members was first reported yesterday by State House News. When Flynn got home last night, he said, he had 13 messages on his phone.
If he were to ascend to the speakership, it would have a dramatic impact on the question whether to install slot machines at the state's four racetracks, which he has advocated for years. Flynn's district, which is based in Bridgewater and Raynham, includes the Raynham-Taunton Greyhound Park. DiMasi has opposed any efforts to allow the tracks to install slot machines.
Flynn said he tried to talk to DiMasi Thursday to discuss the situation, but the speaker was in other meetings and the two were not able to get together. Flynn said yesterday that he sent DiMasi a message by fax saying that he still supported the speaker. He also gave him a phone number so DiMasi could contact him when he goes on vacation.
"If something happens in two weeks, I don't care. I won't be there," he said. "I'm going to Florida on vacation with my wife."
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Matt Viser can be reached at maviser@globe.com.
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READERS' COMMENTS:
1. We the citizens of Massachusetts- All of us must become involved to assure that rooting out corruption in our state government does not stop. We are the ones who must keep the pressure on. We cannot let people in MA and Boston government control these investigations. The corruption, cronyism, cynicism, extortion, stealing- this is all done with OUR MONEY. Each of us can get involved in some manner, no matter how small.
by GeneA November 08, 4:51 AM 530981 Report Abuse
2. Has the Commonwealth become Rhode Island? Has the Commonwealth become Rhode Island?
by TarheelChief-2 November 08, 4:53 AM 533982 Report Abuse
3. DiMasi should have resigned or have stepped aside temporarily once it became public that a grand jury had been convened to review his personal accountant's role (and DiMasi's?) in the award of a million-dollar state contract. Instead, Speaker DiMasi decided to tough it out. But what does that action really say? It tells the citizens of the Commonwealth --- and every single state representative --- that Sal DiMasi's personal and political comfort is more important than the public good and the reputations of 159 other House members. It is a petty, selfish, cynical act by Sal DiMasi. If the speaker is frog-marched out of the State House, it is going to be very difficult for ANY state representative to explain to his or her constituents why they voted to re-elect DiMasi as speaker. That calls into question the "judgment" of the legislator. Any future opponent will campaign against that legislator's lack of judgment. After all, if they don't possess the judgment to vote against an unethical or corrupt speaker, why would any constituent expect them to have the judgment necessary to vote on critical fiscal, economic and environmental issues? I already wrote my state rep. If he votes for DiMasi as speaker, my wife and I will never vote for him again!
by tallyho57 November 08, 5:35 AM 8233981609272004573 Report Abuse
4. And the beat goes on. Sal's Golf partner to be speaker if Sal steps down. YOU HAVE TO BE KIDDING ME. It is not even the State House anymore. It is called the Beacon Hill gang. Here is a News Flash. NY. Mayor has mention that he wants to put a 6 cent tax on plastic bags at the check out counter he claims that it will generate $16 million. Oh I can't wait till the tax on toilet paper goes Up.
by Tuneefish November 08, 5:40 AM 6042674784191198295 Report Abuse
5. Instead of having wasted the initiative petition on dog racing for the animal rights faction we should initiate an initiative petition calling for term limits. Legislators at all levels of government local, State and Federal have become too comfortable in the "business as usual" mentality. Also rans such as John Kerry, Barny Frank, Sal (Czar) Demasi assume (sadly so) they'll be re-elected. Finneren went to the extent of trying to insure re-election by fashioning redistricting. The founding Fathers never meant "Politician" to be a vocation. In recognition of the dangers of constant re-election after the Reign of FDR term limits were in place for the presidency. Many states have term limits on their governors and some even on legislators. One doesn't have to run for office to get involved they need only pressure for term limits and even simpler dump the incumbents every two years at the ballot box. This isn't a Republican or Democratic problem. There are entrenched charletons on both sides of the aisle.
by XENOPHON November 08, 5:48 AM 534138 Report Abuse
6. DiMasi can always join WRKO with Tommy Finneran. Ah, what a state we live in.... by duckmano November 08, 7:17 AM 443878 Report Abuse
7. Are the taxpayer paying for DiMasi's "spokesperson" Dave Guarino ? Why does Di Masi need a "spokesperson" - can't he speak for himself, he is employed as "Speaker." Isn't Guarino the same spokesperson former AG Reilly employed both in the AG's office, then in his campaign and then back to the AG's office ? The states top law enforcement officials are not mindful of ethical issues and seek to generate press for themselves and their personal ambitions through the use of public office.
Martha Coakley should clean up the corruption instead of running for another office.
It seems absurd to employ someone to say "no comment."
Mike Sullivan US Attorney, gets it. He makes his own announcements but then again, he actually works for the
people.
by Governmentisnotabusiness November 08, 7:29 AM 7818960957304710033 Report Abuse
8. These State Representatives. How pathetic. They feel "lost" without Mista Speekah.
What they need do, of course, is unnatural. It's called "representing". The instruction is in their title, but then again, so are "leaves" - the stuff we endlessly rake.
Which brings up a useful admonition for Beacon Hill do-nothings: don't know what you should be doing with your life? Aimless without someone telling you how to vote? Then leave.
by k1mgy November 08, 7:45 AM 461582 Report Abuse
9. I'll say it again...This is only a part time job. These fools should be working in the DPS like the rest of us contributing to the economy. Beacon Hill is a cesspool of corruption and a drain on the real workers of the commonwealth.
by Frankdec November 08, 8:05 AM 7427916978637232874 Report Abuse
10. Sad to say but term limits are the only thing that will clean up government. Why would DiMasi's constituents vote him out??? While he's very bad for the state and causing very expensive damage he's also very powerful and can bring home the bacon to his district.
They'd be crazy to vote him out!
You'll notice something else, at every level of government and across both aisles, the most corrupt politicians are the ones that have been in office longest: Frank, DiMasi, Kennedy, and let's not forget Stevens up in Alaska - reelected despite being CONVICTED!!!
Term limits now...we need a referendum going.
by LennyM-1 November 08, 8:55 AM 7615459848164192001 Report Abuse
11. The largest collection of unethical dogs in the entire state. Instead of getting rid of the greyhounds last Tuesday, the fools in Massachusetts should have tossed these bums out. I did what I could, but my 1 vote isn't enough. Apparently the voters of Massachusetts feel good about their state legislators. What does that say about the voters? They are absolute imbeciles.
by m-k-ell November 08, 8:58 AM 467768 Report Abuse
12. Elitism. Our moral compass on Beacon Hill spends much of their time deciding what is best for us poor fools. We are indeed fools for re-electing seat warmers. In between elections we wring our hands and gnash our teeth only to re-elect the same losers time after time. The only way to solve this is term limits. I'll gladly hold and circulate a petition to have a worthwhile referendum to instigate term limits. It's way past time to clean House and Senate both here and on Capital Hill. Obama will get little done with entrenched Pols with their own narrow agendas. Many of these people we've elected never held a real job. How on earth can they claim to empathize with us working fools?
by XENOPHON November 08, 9:31 AM 534138 Report Abuse
13. Maybe an investigation should start on DiMasi's "golf partner" who still wholeheartedly supports him and says he would never force him out. I wonder who is paying for those greens fees? What does he have to hide?...as they say, birds of a feather. This whole situation is a total embarassment.
by workerbee2 November 08, 9:53 AM 4845464138119617971 Report Abuse
14. I have an idea...why don't all you whiners get off your asses and do something about it. Get involved with your local town committees and run for office. Or help someone else run for office.
If we don't do anything to root out the bad seeds, how can we blame the system?!
There are plenty of good reps out there and some of them have been in office for several terms.
So, enough of the generalizations, you sound like a bunch of idiots.
by cramizzor November 08, 10:25 AM 438131 Report Abuse
yay! Cramizzor! Exactly my feelings. The people in DeMasi's district need to get rid of this sleazeball and field someone new. yay! Cramizzor! Exactly my feelings. The people in DeMasi's district need to get rid of this sleazeball and field someone new.
by FransBevy November 08, 10:52 AM 447974 Report Abuse
15. However this plays-out, Sal DiMasi has already injured the Commonwealth's ability to conduct its business, because he is stubbornly, arrogantly (cowardly?) clinging to comfort without regard for how continuing in his leadership role is impugning the integrity of the legislature! He appears to be overcome from the smoke from his own exhaust, to expect that his legislative cohorts & the electorate would view his current (in)actions as anything less than a shoot-out with a desperate, cornered crook!
Sal nobody expects you to walk the plank or jump overboard without due process, but we hope that you will quickly realize that you currently do not command the confidence in your integrity needed to lead others effectively. I have to believe that you will receive all the appropriate legal protections & due process throughout what you seem determined to make a very-protracted investigation into your ethics. In the meanwhile, you DO need to relinquish your leadership role, so that the Commonwealth can move forward on addressing needs of the citizens in a time of crisis & critical challenges for the citizens & the government of the Commonwealth!
by deltaman November 08, 10:58 AM 4636540564940682386 Report Abuse
17. Cream not Crap should rise to the top. The political process in this country is BROKEN. Things are even worse in Socialist and Communist systems. The problem is with us, the people. Republicans and Democrats or whatever party you choose are infected like cancer with corrupt and self serving politicians. If you replace the crooks with other crooks you only reinforce the problem. So why do Democrats keep electing the Kennedys? Why do Republicans re-elect Stevens of Alaska even though we KNOW they are FELONS. It is because we, the people are also self serving and so I guess we deserve what we get.
by maddogmazz November 08, 11:25 AM 511585 Report Abuse
18. Wait who is that waiting in the shadows. Is it the one person deidicated to jumping in and saving mass.? is this person, the one to restore honest and integrity to the goverment? Yes it can happen, into the light, enters our hero, I can see it now.
our champion has arrived, drum roll
please, (people going wild)
our new leader, who will guide
us to path of honesty and
integrity.
her excellency
Dianne big W.
by trottier November 08, 11:27 AM 500197 Report Abuse
19. The first order of business in the new legislature should be to vote DiMasi out of the Speaker's chair. He is a disgrace to the institution.
by Krogstad November 08, 11:34 AM 6779084198593846448 Report Abuse
20. Time to clean corruption out of the State House. Where's that UZI again?
by AppletonStreet-2 November 08, 1:11 PM
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"Sal DiMasi pooh-poohs State House power struggle"
By Hillary Chabot, Tuesday, November 11, 2008, www.bostonherald.com, Local Politics
Embattled House Speaker Salvatore DiMasi yesterday brushed aside rumors of a divided House seeking to topple him, saying he has strong support despite persistent ethics investigations.
DiMasi, flanked by several of his strongest allies, joked that Rep. David Flynn (D-Bridgewater) suggested serving as interim speaker only to push through a bill the 75-year-old has been trying unsuccessfully to pass - slots at the racetracks.
“I’m as surprised as anybody to read anything in the newspaper that suggests that we’re not working very hard and that we’re not working cooperatively,” DiMasi said, “We need to get the message out that the work is being done . . . That’s what leadership is all about and that’s what we’re doing here in the State House.”
DiMasi, under investigation by the State Ethics Commission and the attorney general, again said he has nothing to hide. But his recent decision to withhold records sparked unrest in the chamber, and Flynn said five representatives approached him asking him to act as interim speaker should DiMasi have to step down.
“My team is here with me, behind me,” DiMasi said yesterday after an economic summit in his office. He declined to comment further on the ethics investigations, citing confidentiality.
Rep. Dan Bosley (D-North Adams) defended the North End Democrat and bashed the media for tarnishing DiMasi’s reputation.
“I’ve dealt with them all over the years over several investigations,” Bosley said. “I think unfortunately these things get into the newspaper. Many times these things go away on their own because there’s no merit to them. Unfortunately, when they get into the newspaper, there’s no place to go to get your reputation back.”
DiMasi also weighed in on Gov. Deval Patrick’s recent ethics task force, saying it may not be necessary considering the state already has the toughest ethics laws in the country.
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House Speaker Salvatore DiMasi said yesterday he has strong support at the State House despite rampant rumors to the contrary.
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Photos by Angela Rowlings
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Speaker of the House Sal Dimasi speaks during a news conference at the State House, Monday, November 10, 2008.
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"E-mails counter DiMasi on Cognos: Suggest contract drew his interest"
By Andrea Estes, Boston Globe Staff, November 11, 2008
The state's highest ranking education official wrote an e-mail to subordinates saying that House Speaker Salvatore F. DiMasi was "very interested" in a computer software contract and was "OK with" the winning bidder, Cognos ULC, in an apparent contradiction to the speaker's repeated assertions he played no role in the award.
The e-mail, obtained by the Globe with a public records request, indicates that DiMasi did not want the contract to go to "a bidder he does not have confidence in," and that he used a trusted House lieutenant to intervene with the education commissioner.
As the Department of Education was planning to award the software contract in October 2005, then Commissioner David P. Driscoll sent an e-mail to his staff describing DiMasi's interest in the contract. The e-mail also suggests that Driscoll believed that picking Cognos would help win political support from the speaker for funding.
"The speaker was very inter ested in our bid for the data wharehouse [sic]," Driscoll wrote. "Now - his interest was in making sure we did not pick a bidder he does not have confidence in."
"We are close to awarding the contract to Cognos (which he is OK with) and I believe we could get his support for a $6m supp," Driscoll wrote, referring to a supplemental budget request for the contract.
While a batch of Department of Education e-mails obtained by the Globe fall short of saying that DiMasi specifically pushed for the controversial Cognos contract, they do indicate a level of involvement that the speaker has never publicly acknowledged.
DiMasi has sought to distance himself from controversies involving Cognos, a Burlington company that made nearly $2.2 million in payments to close friends and business associates of DiMasi as it was winning two lucrative state contracts - $1.8 million of which was never disclosed to state regulators.
"Speaker DiMasi had absolutely nothing to do with the awarding of this or any other contract by the administration," his spokesman, David Guarino, said in June when the Globe first reported about the controversial education contract.
Responding to Globe questions last week about the Driscoll e-mails, DiMasi issued a written statement saying that he never intervened on behalf of any contractor.
"As I have said repeatedly, I have never advocated anyone - including former Commissioner Driscoll - for any contract which the administration awarded, period. Anyone who suggests that I had an interest in a specific business or entity which received any state contract is just plain wrong. I remain greatly disturbed that my name and reputation continue to be unfairly called into question through innuendo and distortion."
Driscoll also denied last week that the speaker pushed for Cognos. Asked about the message, he said the speaker simply wanted to make sure the department did not award the contract to a company that had sold software to the court system. The judiciary was dissatisfied with the vendor, Driscoll said. He said he couldn't remember the company's name.
"If the Speaker were ever to say to me 'I think you ought to go with this one or that one,' it would violate a trust we had. It would never have occurred," Driscoll said in an interview last week.
The Driscoll e-mail provides an unusual window into how DiMasi's political leverage was perceived by a top official, Driscoll, who had served under three governors. The content also appears to contradict Driscoll's assertion to a Globe reporter earlier this year that there was no political interest in the awarding of the $4.5m Education Department contract to Cognos.
In late October 2005, a $925,000 contract was awarded to Cognos for a pilot program to test its data warehouse software. The next year, the software contract was expanded at a cost of $4.5 million, paid for through a House Ways and Means budget amendment.
That contract, and a $13 million technology contract awarded Cognos by the Executive Office of Administration & Finance in 2007, are now the subject of investigations by multiple agencies, including the FBI, the state Inspector General, and the state Ethics Commission. The inquiries are focused on DiMasi's close associates who received large, undisclosed payments from Cognos and its sales agent, Joseph Lally.
DiMasi is refusing to cooperate with an Ethics Commission demand for records, telling his colleagues last week in closed-door sessions that he is invoking a constitutional claim of legislative immunity from outside scrutiny of the activities of him and his staff.
Driscoll's e-mail introduces a previously undisclosed intermediary through which DiMasi apparently expressed his interest in the contract: Assistant majority leader Lida Harkins.
"He had Lida Harkins call me twice," Driscoll wrote in his Oct. 16 e-mail.
"I have absolutely no memory of that," Harkins said in an interview last week. "My interest was in being able to secure data we needed to make policy. I probably was asking when it would be ready, when it would be done. It was an interest of mine." Harkins was not on either an education or technology-related legislative committee.
Cognos was chosen over 10 other bidders for a yearlong pilot to test the data warehouse software, which let the department collect, track and share data about students, teachers, and finances collected from districts across the state.
Education department officials chose Cognos for the pilot though it ranked only fifth in raw scoring by a team of bid evaluators, according to documents reviewed last spring by the Globe.
Driscoll told the Globe earlier this year that he had never spoken to DiMasi about the contract and did not even know Lally, the Cognos sales agent who was described by other education officials as having unfettered access to the Education Department's building in Malden.
But in a separate e-mail, written June 10, 2006, Driscoll expresses a familiarity with Lally. He wrote the e-mail to the department's chief information officer as he strategized about how to win funding from the Legislature for the expanded Cognos contract.
"Ironically ran into the real COGNOS lobbyist (Lally takes his orders from him) Richard McDonough (son of the legendary "Sonny" McDonough) and after phone calls and my letter to the Speaker we are expecting . . . a mtg with the speaker in a couple of weeks to talk about about [sic] a supp. Keep confidential," Driscoll wrote.
Driscoll said last week he still doesn't "ever remember meeting or knowing" Lally, and that his name was merely mentioned to him by another state official.
Cognos or Lally paid McDonough, a registered lobbyist who is a close friend of the speaker, $1.45 million; DiMasi's accountant, Vitale, $600,000 in two lump sums; and Steven Topazio, a law associate of DiMasi's, $125,000 in a $5,000 a month retainer, according to records obtained by state Inspector General Gregory Sullivan.
In 2007, as he was seeking the $13 million contract, Lally bragged to state officials about his friendship with the speaker and told some state officials that DiMasi wanted Cognos to get a state contract, according to statements by state officials who have been interviewed by investigators. DiMasi has denied that Lally was speaking for him. Lally also offered a job to the department's chief information officer, Maureen W. Chew, who declined, Chew has told investigators.
Department of Education e-mails also show that IBM, which has since bought Cognos, complained to Driscoll on Jan. 23, 2006 about the bidding process after the contract was awarded to Cognos, saying "it seems difficult to believe that anything in the demonstration or subsequent evaluations could catapult Cognos from number five to number 1."
In a return e-mail sent on Jan. 27, 2006, Driscoll insisted, "It is not true that Cognos was rated #5 at any point. They were either #1 or # 2 in each phase and aspect. . . . I am satisfied that the process was thorough and fair," he wrote.
Driscoll said last week that he didn't remember why he told IBM that Cognos was ranked first or second, when it was actually ranked fifth overall.
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Globe correspondent Stephen Kurkjian contributed to this report.
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"The Cognos contract"
The Boston Globe, November 11, 2008
Here is the October 2005 e-mail exchange between then-Education Commissioner David P. Driscoll and members of his staff about getting legislative funding for a software contract that was ultimately awarded to Cognos ULC. Driscoll's e-mail explains House Speaker Salvatore F. DiMasi's influence on the selection of bidders and his OK of Cognos as a recipient of the contract.
From: Driscoll, David P.
Sent: Sunday, October 16, 2005 10:16 AM
To: Smith, Sylvia M.; Nellhaus, Jeffrey M; DeLorenzo, Anthony P; Bickerton, Robert P; Thomson, Carole S; Dow, Juliane; Bynoe, John L
Cc: Winklosky, Melanie S; Perlman, Heidi
Subject: E: H.4440 (SUPP BUDGET)
We may have blown an opportunuity. The Speaker was very interested in our bid for the data wharehouse. Now - his interest was in making sure we did not pick a bidder he does not have confidence in - but nonetheless he had Lida Harkins call me twice. We are close to awarding the contract to Cognos (which he is OK with) and I believe we could get his support for a $6m supp. when the next one is considered which I suspect would be around Feb. if revenues remain up - right Tony? I think we are likely too late now.
From: Smith, Sylvia M.
Sent: Friday, October 14, 2005 2:35 PM
To: Driscoll, David P; Nellhaus, Jeffrey M; DeLorenzo, Anthony P; #Historical Data - NDC; Bickerton, Robert P; Thomson, Carole S; Dow, Juliane; Bynoe, John L
Cc: Winklosky, Melanie S; Perlman, Heidi
Subject: FW: H.4440 (SUPP BUDGET)
Importance: High
Let me know if you are interested in submitting any amendments. Thank you. - Sylvia
From: Coelho, Michael (GOV)
Sent: Friday, October 14, 2005 1:54 PM
To: Flagg, Jennifer (EPS); McMillan, Maura (EPS); Schneider, Ellen (EED); Garrity, Robert (DCC); Giles, Joshua (EHS); Smith, Sylvia M.; Paquette, Catherine (EOT); Stone, Kathryn; Steiner, Bethann (ENV); O'Keefe, Joe (ENV)
Cc: Grew, Matthew (EHS); O'Keefe, John (GOV); Garriepy, David (GOV)
Subject: FW: H.4440 (SUPP BUDGET)
Importance: High
Dear Folks:
Here is the supp that will be debated next Tuesday. Please review ASAP. If there are amendments that absolutely need to be filed, please send them to us for review. Amendments must be filed by Tuesday at noon. - Mike
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''I am not hiding anything,'' House Speaker Salvatore F. DiMasi said yesterday (11/10/2008). (Bill Greene/Boston Globe Staff).
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"Speaker balks at demand for his records"
By Matt Viser, Boston Globe Staff, November 11, 2008
House Speaker Salvatore F. DiMasi continued to defend his reputation yesterday after refusing to comply with an Ethics Commission demand for his records, a move that has sparked a behind-the-scenes legal struggle with the commission's lawyers and questions among House lawmakers over whether he will remain as speaker.
"I am not hiding anything," said DiMasi, emerging from a meeting with banking officials. "Absolutely not."
DiMasi reiterated his opposition to calling lawmakers back for an emergency formal session to deal with Governor Deval Patrick's plan to close a $1.4 billion budget gap.
"I don't think we should, no," he said. "We just passed most of the governor's plan."
House and Senate lawmakers approved several large components of Patrick's budget plan, but several other items remain.
The State House has been rocked in recent weeks by ethical scandals, capped by allegations that Senator Dianne Wilkerson was taking bribes, in one instance stuffing money in her sweater in a posh Beacon Hill restaurant.
DiMasi and three of his close friends and associates are the subjects of an Ethics Commission investigation as well as other investigations relating to large payments the associates received from a software company that won multimillion-dollar state contracts.
There has been growing unrest among lawmakers after the Globe reported last week that the speaker was refusing to cooperate with the Ethics Commission's conflict-of-interest investigation. DiMasi has been invoking a constitutional claim of legislative immunity in his refusal to cooperate.
Although he said he was not hiding anything, DiMasi would not comment any further on the investigation. "It's going through that process," he said. "The process should take its ordinary course. Other than that, I can't say much more."
In response to the rash of ethics and legal issues on Beacon Hill, the governor last week appointed a 12-member public integrity task force. He wants the group to make recommendations within 60 days to strengthen current laws. DiMasi did not criticize the effort yesterday, but he also said he did not see the need.
"I think we have the toughest laws on ethics in the entire country," DiMasi said. "We have comprehensive, in-depth laws in Massachusetts, and I think they work well."
Several lawmakers have said privately that they are worried about voting for DiMasi as speaker in January.
State Representative David L. Flynn, the most senior member of the House, said on Friday that five colleagues had asked him to serve as interim speaker if DiMasi steps down as a result of the ethics controversies swirling around him.
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Matt Viser can be reached at maviser@globe.com.
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"Sal DiMasi to host summit for business"
By Associated Press, Monday, November 10, 2008
House Speaker Salvatore DiMasi is hosting an economic summit with banking and business leaders in his office as the state grapples with the ongoing fiscal downturn.
The meeting comes a week after DiMasi and House leaders sat down with top economists to discuss the state’s financial woes.
Today’s meeting with banking and business leaders includes representatives from state chartered banks and credit unions, local deposit insurance entities and other leaders in the financial services industry.
The closed door meeting in DiMasi’s office will be followed by a press conference.
A final summit is scheduled for next week with business leaders from the life sciences, hospital and medical industries and manufacturing sectors.
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"DiMasi: Mass. banks in good shape, able to lend"
By Associated Press, Monday, November 10, 2008
BOSTON - House Speaker Salvatore DiMasi is offering reassuring words about the state’s community banks and credit unions, saying they are in good shape and able to make car, home and business loans.
DiMasi hosted an economic summit in his office Monday with banking and business leaders.
DiMasi said a law passed last year is helping ease the number of foreclosures in Massachusetts by giving homeowners and banks a 90-day period to work out financing problems.
Critics of that law, including Secretary of State William Galvin, have said the state should require those seeking to foreclose on a property to obtain a court order.
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News
"Speaker saga continues", By Jeremy P. Jacobs, PolitickerMA.com Reporter
The saga surrounding whether Salvatore DiMasi will face a challenge for his speakership in January continues, as the Boston Globe reports that state Reps. Robert DeLeo and John Rogers are trying to figure out if they have enough support to take on DiMasi.
But the Globe also notes that based on several interviews with lawmakers Wednesday, it appears DiMasi currently has enough backers to retain his post.
All of this speculation comes as DiMasi's, a Boston Democrat, has the state Ethics Commission investigation looking into whether a software company unlawfully sought influence in awarding a state contract by making payments to his associates.
The Globe also reports that supporters of DeLeo, a Winthrop Democrat and chair of the Ways and Means Committee, "have become increasingly confident in his positioning to become the next speaker."
Rogers backers are sorting out how much damage will come from recent allegations that he channeled funds from his campaign account through a consultant to make mortgage payments on a vacation home, the Globe reports, and some of the Norwood Democrat's backers are meeting Thursday at a Beacon Hill restaurant to discuss the situation.
The Globe also notes other representatives who have been mentioned as successors to DiMasi including: Daniel Bosley (D-North Adams), Eugene O'Flaherty (D-Chelsea), John F. Quinn (D-Dartmouth), James Vallee (D-Franklin), Martin Walsh (D-Boston) and David Flynn (D-Bridgewater).
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JEREMY P. JACOBS is a PolitickerMA.com Reporter and can be reached via email at jeremy.jacobs@politickerma.com.
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"Trouble in the House"
The Berkshire Eagle - Editorial
Friday, November 14, 2008
The controversy over House Speaker Salvatore DiMasi's possible involvement in the awarding of a state software contract to three business associates has escalated to the point where it threatens to complicate the House's ability to address the complex economic problems that imperil the state. The only person who can quickly defuse this controversy to any extent is the speaker himself, which he shows no inclination to do.
The state inspector general has concluded that the three DiMasi associates received $1.8 million in lobbying fees from Cognos, the software company. The speaker has denied steering the contract, which has since been voided, to Cognos, but the Ethics Commission is pursuing the matter. Unfortunately, Mr. DiMasi is refusing to cooperate with the commission on the grounds that the state constitution grants immunity to the Legislature and its leadership.
What the state constitution does is protect legislators from lawsuits based on their official actions. This protection, which is also granted legislators on the federal level, enables lawmakers to act in the state's interest without fearing that they will be dragged into court and their livelihood threatened by disgruntled constituents. It is hard to imagine government functioning without this provision, and it is disappointing to see the speaker abuse it by insisting that it applies where it clearly does not.
According to Mr. DiMasi's interpretation, a legislator could never be investigated by the Ethics Commission, which, if true, would raise the question of why the commission even exists. His refusal to cooperate with it by providing statements and documentation creates the impression that he has something to hide.
While the national economic crisis dries up state tax revenues and threatens the viability of important programs and aid to communities, the House is focused on a possible leadership battle. House Ways and Means Committee Chairman Robert DeLeo and House Majority Leader John Rogers are circling, and although Mr. DiMasi says he will seek a new two-year term as speaker in January, it is possible that one or both of these potential successors could challenge him. This is not an ideal time for a leadership fight. Nor are these good times in general for the Legislature on the ethics front.
Representative Rogers is nagged by charges that a consultant used funds from Rogers' campaign fund to make a mortgage payment on a Cape Cod home owned by the majority leader. In the Senate, Diane Wilkerson has been indicted on federal bribery charges and Senate President Therese Murray, while not accused of any crimes, was apparently asked by Ms. Wilkerson to secure a liquor license for a person she was allegedly bribed by, according to the FBI, which is seeking the testimony of Ms. Murray and other legislators.
All this comes as Governor Patrick's new task force on public integrity swings into action. The times call for strict regulations on ethics, and their strict enforcement, and we eagerly await the task force's two-month study.
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The Boston Globe, Op-Ed, SCOT LEHIGH
"Memo to DiMasi: Come clean or go"
By Scot Lehigh, November 14, 2008
WHEN TOM FINNERAN bid farewell to his House colleagues in December of 2004, he joked that he was leaving three letters for Sal DiMasi, the new speaker, to open in times of trouble. The letter for the first crisis, he said, contained this advice: "Blame your predecessor." The guidance for the second: "Blame the press." And his counsel for the third crisis? "Write three letters." Mr. Speaker, if you can't reassure your members and assuage public doubts about the cloud swirling around you, it's time to get out pen and paper and write your letters.
No one knows where the controversy centering around Cognos ULC and your possible role in the contracts it was awarded will wind up, but this much we do know: It's casting a deepening pall over Beacon Hill.
Determined reporting by the Globe's Andrea Estes has uncovered a troubling pattern of payouts from the Burlington software company or its sales agent to your close associates. You've essentially adopted a Sergeant Schultz defense. That is, I knew naww-thing. And yet, what the rest of us have now learned can't help but make people skeptical.
You pushed for a performance-management software system. Cognos's sales agent, who claimed to be your friend, reportedly spread word that you were specifically interested in Cognos.
Other friends of yours got big - and largely unreported - payments, either from Cognos or its sales agent. A nifty $125,000 went to Steven Topazio, your law associate; a cool $1.45 million landed in the pocket of Richard McDonough, a lobbyist pal; and $600,000 found its way to Richard Vitale, your accountant and former campaign treasurer - and, interestingly, the person who had recently extended you a highly unusual $250,000 third mortgage on your North End condo.
It all smells fishy. No wonder several different state agencies or offices - and perhaps the FBI as well - are looking at various aspects of the tangled affair. And now, Department of Education e-mails suggest that former education commissioner David Driscoll had heard from one of your top lieutenants about another contract Cognos sought. The e-mails also suggest that Driscoll thought those calls were made on your behalf and that picking Cognos would help win your support for more expansive funding.
There may not be a smoking gun yet, but the smoke itself is getting awfully thick.
Perhaps you could overcome all this if you were completely open. That would mean answering all the nagging questions to everyone's satisfaction.
Unfortunately, that's not the course you've chosen. Instead, as Estes has reported, you're battling the Ethics Commission over documents it seeks. And you're falsely asserting that confidentiality requirements keep you from commenting. Asked about the ethics probe last week, you claimed that "the problem is we have laws that say that anything that may or may not be before the Ethics Commission is confidential, and therefore I won't violate that."
That's malarkey. As the commission itself has said, you're not bound by the requirement of confidentiality.
Further, the decision to invoke constitutional privilege to withhold information from the Ethics Commission is hardly yours alone.
"Because the privilege is meant to protect the separation of powers, the ultimate decision rests with the House, not the individual," notes attorney Harvey Silverglate.
The controversy is paralyzing the State House.
"It just keeps getting worse and worse," says one lawmaker who has numbered among your supporters. "People are getting nervous about whether or not they will be able to vote for him in January."
Everyone thinks the real reason the Legislature hasn't been called back into formal session to address several important fiscal issues is that you're worried about what might come of having the members together and talking.
But those conversations are occurring anyway. You might still be able to save the situation.
However, if you can't or won't be candid and forthcoming, then you need to face this reality: It's time to go.
Your best course then would be to announce that you won't seek reelection as speaker come January.
It's your choice. But you have to make it.
And the sooner, the better.
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Scot Lehigh can be reached at lehigh@globe.com.
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"DeLeo escalates drive for speaker: Reportedly says he has votes"
By Matt Viser and Andrea Estes, Boston Globe Staff, November 15, 2008
Representative Robert A. DeLeo, escalating his bid to become the next speaker of the House, has begun telling House colleagues that he has rounded up enough votes to win the post if Speaker Salvatore F. DiMasi chooses to depart.
DeLeo's assertions drew a rebuke from his chief rival, House majority leader John Rogers, who said DeLeo is demonstrating "poor leadership and misplaced priorities" by moving aggressively to lock down the job.
Some Rogers supporters said DeLeo was bluffing, that he had not clearly demonstrated he could wrap up the job if it came to a vote of the chamber.
DeLeo held a dinner on Thursday in Worcester, attracting about 70 House members to an expensive restaurant in a 100-year-old restored factory. The number of attendees did not represent the 81 votes he would need to clinch the speaker's gavel, but it was nonetheless a dramatic show of force.
As they dined on filet mignon and drank from an open bar at the Maxwell Silverman's Toolhouse Restaurant, DeLeo told his supporters that he was "comfortable and confident" that he will succeed DiMasi.
DeLeo supporters said the meeting was initially going to involve only lawmakers from central Massachusetts, but ballooned into a dinner involving legislators from across the state. DiMasi was not at the dinner, several legislative sources said.
DeLeo refused to comment yesterday, instead asking surrogates to speak on his behalf. He also declined to release a list of supporters that would confirm the numbers he has been privately touting.
Those in attendance said there was no talk of ousting DiMasi, and some said they would only support DeLeo if DiMasi goes.
"Whenever the current speaker decides to leave, whenever that may be, Bob DeLeo by all indications has the votes to become the next speaker," said Representative Garrett J. Bradley, a Hingham Democrat and a DeLeo supporter. "There was no discussion whatsoever of a takeover of the House. These votes are contingent upon Speaker DiMasi leaving, whenever he decides to leave."
Several attendees said the dinner, which lasted nearly three hours, was designed in part to be a preemptive shot at Rogers or anyone else who might want to face-off against him for the chamber's top position.
Rogers's supporters said yesterday that DeLeo is exaggerating his numbers and called on him to act now if he really believes he has enough votes.
Rogers also blasted DeLeo's assertion that he has the necessary votes.
"It is a revealing example of poor leadership and misplaced priorities by Mr. DeLeo to focus on his political future at a time when the speaker, the minority leader, and a solid majority of the House are more appropriately focused on the future of our constituents and our ability to help them survive these economically troubling times," Rogers said yesterday in a statement.
Even with feverish activity taking place behind the scenes, DiMasi has said that he has no intention of resigning and that he plans to run in January for another two-year term as speaker. His office declined to comment yesterday.
DiMasi has been under intense political pressure because of a State Ethics Commission investigation and a state grand jury investigation into large payments made to his close associates by business entities seeking favorable state action. DiMasi has refused to cooperate with a demand for records by the Ethics Commission, claiming immunity granted to the Legislature and its leaders by the state constitution.
The scene playing out is similar to a speaker's fight in 1996, when Thomas M. Finneran, who was chairman of the Ways and Means Committee, battled with the majority leader, Richard A. Voke, to succeed House Speaker Charles F. Flaherty after he resigned amid a federal probe.
Finneran quickly claimed victory by having his supporters, including an unusual coalition of Democrats and Republicans, stand up behind him. Rogers supporters said DeLeo's action does not carry the same weight.
"We don't believe any of it," said Representative Paul Kujawski, a Democrat from Webster and close Rogers ally. "When Finneran had the votes, he had the 81 people standing behind him and he declared it as such. I haven't seen that happen. Until I see that happen, I doubt that he has 81."
Lawmakers said DeLeo, who has long been said to be DiMasi's chosen successor, would not act so boldly without DiMasi's assent, hosting an expensive dinner to entertain nearly half of the House membership. DeLeo paid for the dinner, which cost nearly $3,000, using his campaign funds, a DeLeo aide confirmed.
Staff members were not invited to the event. Eighty people were served in a fifth-floor private dining room, the restaurant's general manager said.
It is unclear how many of those served were lawmakers, but several who attended said there were 60 to 70 legislators and several DeLeo supporters were not able to attend.
"Bobby has got to make sure he's in a strong position if and when it happens," said Representative Michael J. Moran, a Democrat from Brighton and a DeLeo supporter. "I'm very comfortable in our position. I'm very happy. This is going to be a real seamless transition. I don't see much in the way of a problem here."
DeLeo supporters say he has 75 solid commitments, several others in the works, and will probably gain more in January when newly elected lawmakers are sworn in.
"Tomorrow I am 100 percent certain that if Sal DiMasi were to leave, that Bobby DeLeo absolutely unequivocally wins," Moran said. "There's no question in my mind."
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Frank Phillips of the Globe staff contributed to this report. Matt Viser can be reached at maviser@globe.com.
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Burlington, Massachusetts, with news from "The Burlington Union", & www.wickedlocal.com
"DiMasi fighting Ethics Commission"
By Kyle Cheney and Gintautas Dumcius, Monday, November 17, 2008, 7:19 AM
Burlington -
Emerging from his office earlier this week, smiling and accompanied by several loyal supporters, House Speaker Salvatore DiMasi told reporters the work of the House would continue despite an ethics investigation into his relationships that has threatened his hold on power.
“I’m as surprised as anybody to read anything in the newspaper that suggests that we’re not working very hard and that we’re not working cooperatively,” DiMasi said, adding, “We need to get the message out that the work is being done . . . and let the people know that we’re working on their problems out there. That’s what leadership is all about and that’s what we’re doing here in the State House.”
After Gov. Deval Patrick triggered almost $900 million in midyear budget cuts, the Legislature and Patrick agreed to other measures last week, namely draws from rainy day and pension funds, in an attempt to close a $1.4 billion budget gap. The Legislature and its committees are largely inactive though, with a new session starting in January.
The State Ethics Commission is fighting with DiMasi over documents related to their investigation into whether DiMasi associates received possible payments for influencing contracts and legislation. The investigation, along with another reportedly launched by the state attorney general, has largely played out on the front pages of the Boston Globe and has drawn criticism from one top lawmaker.
With representatives Daniel Bosley, Ronald Mariano and Marie St. Fleur standing next to a podium outside the House chamber after an “economic summit” in the speaker’s office, DiMasi emphasized “my team is here with me, behind me.”
As reporters pressed DiMasi about the investigation, Bosley, co-chair of the Committee on Economic Development and Emerging Technologies, quickly stepped in to defend DiMasi, saying lawmakers, particularly committee chairmen, have “all gone through this at one time or another.”
“I’ve dealt with them all over the years over several investigations,” he said, referring to the Ethics Commission, the U.S. attorney’s office, or a federal agency. “I think unfortunately these things get into the newspaper. Many times these things go away on their own because there’s no merit to them. Unfortunately, when they get into the newspaper, there’s no place to go to get your reputation back.”
Bosley, a North Adams Democrat, had sharper words last week, directly accusing the Ethics Commission of illegally leaking information about the investigations.
“While we obviously take our ethics laws very seriously, there are apparently those in the Ethics Commission that are less than rigorous in following their own laws,” Bosley said, responding to a post on the blog, “Massachusetts Liberal,” about DiMasi’s tussles with the Ethics Commission. “These deliberations are supposed to be private in order to protect all parties until there is a final decision in these cases. Yet, it is standard operating procedure to see these things on the front page of the newspapers as they unfold.”
The commission enforces the state’s conflict-of-interest and financial disclosure law, and periodically holds free educational seminars for state, county and municipal employees.
Bosley has declined to be interviewed about the posting. Commission officials did not return phone calls seeking comment.
Rep. Bradley Jones, the House minority leader, said leaks dealing with the investigation are a “legitimate concern,” with stories accusing officials of ethics violations sometimes ending up on the front page and stories clearing them in the back pages. “That can create a penalty that people serve for something that never happened,” he said.
But while saying he doesn’t expect the speaker to “forgo any of his legal rights or prerogatives,” Jones, R-North Reading, said the matters must be resolved quickly and by next year.
“I think the speaker needs to do anything and everything he can to resolve these outstanding matters as quickly as possible,” he said. “They’re absolutely unequivocally hanging over the institution, and that institution is impacted both in terms of the way the public views the institution and the way the public views the members of the institution.”
For his part, DiMasi defended has his decision to withhold certain documents from commission investigators, and remained tight-lipped about the allegations. He and Bosley cited constitutional principles that protect debate in the House chamber and in their offices.
“I really can’t say much more about that. There is a confidentiality aspect to this and there’s also, allegedly, there’s some court documents that are being impounded there,” DiMasi told reporters.
DiMasi also played down recent reports that House Dean Rep. David Flynn was being courted by some members to seek a temporary speakership if DiMasi was forced to step down as a result of State Ethics Commission findings.
“Dean Flynn supports me,” DiMasi said. “He’s a good friend.”
For the dean, a strong supporter of bringing gambling to racetracks, DiMasi joked that an interim speakership would be “a good way to get slot machines.”
Asked about Patrick’s recently convened task force on ethics and integrity, DiMasi said he was confident that Massachusetts has the “toughest laws on ethics in the entire country.”
“I think we have very comprehensive in-depth ethics laws in Massachusetts,” he said. “I think they work well.” DiMasi said Patrick’s task force would “probably look at the legislation we’ve passed in Massachusetts and look at it as a model for the country.”
Patrick has lamented the “pall” cast over the State House by a series of alleged ethical violations by public officials.
His 12-member bi-partisan task force, chaired by his chief legal counsel Ben Clements, is expected to craft legislation updating ethics laws within 60 days.
It is unclear whether meetings of the task force will be open to the public – an aide to Patrick said Monday that those determinations were being made.
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Massachusetts
"DiMasi: Ethics changes will be 'considered'"
The Associated Press, Tuesday, November 18, 2008
BOSTON (AP) — House Speaker Salvatore F. DiMasi says any proposed changes to the state's ethics laws will be "fully considered."
DiMasi said the state already has some of the toughest rules in the country, but acknowledged calls for stricter standards by Gov. Deval L. Patrick and legislative leaders.
DiMasi is facing ethics questions over payments close associates received from a computer company that won state contracts.
He made the comment after supporters of a potential successor to his seat, House Majority Leader John Rogers, unveiled an ethics package that would limit the Speakers' terms to three.
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The Boston Globe, Op-Ed, SCOT LEHIGH
"Good policy, good politics for DiMasi"
By Scot Lehigh, Boston Globe Columnist, November 21, 2008
SAY THIS about Speaker Sal DiMasi. He is one shrewd pol.
With a single stroke on Wednesday, the embattled speaker has changed the state's policy debate and rearranged the political dynamic on Beacon Hill.
That move: calling for an increase in the state gas tax as an alternative to another hike of turnpike and tunnel tolls.
This is a case where good policy is good politics. Obviously no one wants higher tolls or taxes, but the cost of Big Dig debt and maintenance can't simply be wished away. So the issue is not whether to pay, but rather how to raise the revenue.
It's a travesty to expect commuters from MetroWest and the North Shore to absorb yet another toll hike on behalf of a project whose primary benefits go to those who enter the city on I-93.
Basic fairness dictates that the burden should be spread. Adding toll plazas on I-93 would waste time, energy, and money, however. That leaves a hike in the gas tax as a better alternative.
The governor has been reluctant to embrace the idea. Now, DiMasi has gone where Patrick declines to tread.
Some suspect what we're seeing here is a bad cop, good cop routine, with Patrick pushing an unpopular toll hike to set the stage for DiMasi to step in with a more palatable idea. However, sources close to both men deny that.
DiMasi's stand means the gas tax will be one of the primary topics on Beacon Hill early next year.
"The speaker is taking an important leadership role here," says Mike Widmer, president of the Massachusetts Taxpayers Foundation. "The large proposed toll increase now makes the gas tax a live issue."
Patrick remained noncommittal yesterday. Senate President Therese Murray stressed that she wants to take a comprehensive look at the transportation system before making any decision about new revenues.
"Reforms have got to come first," she told me.
Still, expect DiMasi's announcement to have these political effects.
First, it will strengthen him with House liberals, some of whom are uneasy, if not yet queasy, about the Cognos software-contract controversy that swirls around the House leader. This step, like his efforts for gay marriage and renewable energy and against gambling, underscores what they like about DiMasi: his willingness to push forward on issues they consider important.
"I am delighted that the speaker took the lead on the gas tax," says Representative Ruth Balser, Democrat of Newton. "His forthright stand on finding an equitable solution to the transportation crisis is consistent with four years of leadership on issues of equity."
Second, DiMasi's demarche should make him a particular hero to MetroWest and North Shore legislators, who are feeling the heat from constituents upset about the prospective toll increase. Although high tolls have long been a pressing issue for them, area lawmakers have had little luck in winning top-level support for their cause. Now DiMasi has positioned himself as ready to ride to their rescue.
"Sal really stepped to the plate as a leader looking out for the Commonwealth as a whole," says Representative David Linsky, Democrat of Natick, who is pushing for a gas tax increase to forestall higher tolls.
All of that may well stabilize DiMasi's speakership. House Ways and Means Chairman Robert DeLeo has been trying to send the message that he has wrapped up the votes to succeed DiMasi; even though DeLeo's efforts aren't aimed at challenging the House leader directly, they have helped create the impression that DiMasi's days are limited. But the speaker's gas tax gambit sends a signal that he intends to stay - while giving some legislators a concrete reason to want him to remain at the House helm.
The view here is still that DiMasi needs to clear up public doubts and questions raised by the Cognos controversy, and further, that his insistence that he can't talk about a matter before the Ethics Commission is a transparent dodge.
Let's acknowledge reality, however. At least for the moment, the speaker has changed the subject in a dramatic way.
This was a card skillfully played.
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Scot Lehigh can be reached at lehigh@globe.com.
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"Free rides for pols: Lawmakers urge hikes, but won’t feel pinch"
By Dave Wedge, Friday, November 21, 2008, www.bostonherald.com, Local Politics
Top lawmakers poised to slam motorists with toll hikes and a gas tax won’t feel the pain themselves thanks to all-expenses-paid campaign-funded cars - and in some cases, taxpayer-subsidized travel allowances to boot, a Herald review found.
House Speaker Salvatore F. DiMasi pilots an $845-a-month Lincoln Navigator, paid for out of his campaign war chest, and even takes a taxpayer-financed $10-a-day stipend under the controversial “per diem” system. He also paid $2,563 in gas, $261 in tolls and even $83 for car washes out of his campaign account this year, records show.
“The speaker has responsibilities beyond his district,” DiMasi spokesman David Guarino said. “The appropriate way to pay for (the SUV) is out of his campaign funds.” Guarino added that the speaker reimburses his campaign about $800 a year for any personal use of the vehicle.
Other lawmakers who pay for vehicles out of their campaign and also collect taxpayer-funded travel stipends include:
Sen. Joan Menard (D-Fall River), whose campaign covered her $862-a-month Cadillac STS while she collected $3,240 in per diems;
Rep. Paul Kujawski (D-Webster), who charged his $397-a-month Ford to his campaign while collecting $5,220 in per diems; and
Sen. Mark Montigny (D-New Bedford), whose campaign paid for a $471-a-month Infiniti while he collected $2,745 in per diems.
The practice of accepting per diems while paying for a car through a campaign account appears to be an ethical gray area.
According to a 2001 Office of Campaign and Political Finance memo, lawmakers can pay travel costs, including leasing a car, if travel is “related to campaigning for votes” and fund-raising or is used in connection with constituent services.
But, the memo states: “By law, a political committee may not pay for any expense which is otherwise paid, provided or reimbursed by the commonwealth such as a legislator’s per diem for mileage.”
Still, campaign office spokesman Jason Tait said, “There are situations where a lamwaker can accept a per diem and at the same time use their campaign account for travel costs and motor vehicle leases.”
Kujawski said: “I have explained everything and been OK’d through Campaign and Political Finance.”
Asked how he spends his per diems, Kujawski said “tolls, meals and other travel expenses.” The law allows lawmakers to pay for travel, meals and lodging with per diems, which vary based on how far from the State House a lawmaker lives.
Montigny and Menard did not return calls.
House Minority Leader Rep. Bradley H. Jones (R-North Reading) warned against the practice, saying: “I’ve always thought if you’re going to have your campaign pay for your car, you probably shouldn’t take the per diem.”
State GOP spokesman Barney Keller criticized DiMasi, saying, “Considering that Speaker DiMasi likes to talk about raising the gas tax as a fair way to inflict punishment upon the taxpayers, it would appear that his rhetoric is nothing more than hot air.”
Other lawmakers who drive campaign-paid vehicles don’t take the per diem.
Senate President Therese Murray (D-Plymouth) pays for a 2006 Jeep Cherokee as well as new tires, gas, car washes and insurance with campaign funds, but has rejected per diems.
“The president doesn’t take the per diem because she doesn’t want to use taxpayer money to pay for her work travel,” Murray spokesman David Falcone said.
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Article URL: www.bostonherald.com/news/politics/view.bg?articleid=1133874
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"Detectives interview DeLeo's lawyer: They ask about ticket resale bill"
By Andrea Estes, Boston Globe Staff, November 26, 2008
The investigation of Richard Vitale, House Speaker Salvatore F. DiMasi's close friend and personal accountant, has led State Police to the House Ways and Means Committee, where they interviewed a lawyer for its chairman, Representative Robert A. DeLeo, about efforts by Massachusetts ticket brokers to gut the state's antiscalping laws.
Last Friday, troopers working with Attorney General Martha Coakley's office visited the home of James Kennedy, the committee's general counsel, said a state official who has been briefed on details of the visit. They asked him about legislation approved by the House last year that benefited the Massachusetts Association of Ticket Brokers, which paid Vitale $60,000 in 2007 to help with its legislative agenda, the official said.
It is the first time the Ways and Means Committee has been the focus of questions about Vitale's work on behalf of the ticket brokers, which is the subject of a state grand jury investigation. It also highlights the role of DeLeo, who is seeking to succeed DiMasi as speaker, in working behind the scenes on ticket resale legislation that is now the subject of the investigation.
As chief lawyer for DeLeo's committee, Kennedy reviewed the bill, which underwent a few key changes before the full House passed it without debate on Oct. 2, 2007. Kennedy was also in a position to know who was involved in the behind-the-scenes discussions about the bill, which essentially would have deregulated the ticket resale industry by allowing licensed brokers to charge any price, regardless of a ticket's face value.
Kennedy did not return phone calls seeking comment. Kennedy, 33, joined DeLeo's staff in 2007, after having worked for several years as a policy staff member for Representative Daniel E. Bosley, chairman of the Joint Committee on Economic Development and Emerging Technologies.
In an e-mailed statement, DeLeo said: "During the five days we had [the] bill in committee, we worked as hard as we could to make it the best bill possible, as we always do."
The bill passed the House nearly unanimously and was sent to the Senate, where it languished before dying at the end of the legislation session. Current law, which is rarely enforced, allows ticket brokers to charge only $2 more than face value, plus a service charge.
Coakley convened a grand jury after Vitale refused demands by Secretary of State William F. Galvin that he report the ticket brokers payments as lobbying fees. Vitale has insisted he did not lobby and has told regulators that he was paid to provide strategic help.
DiMasi has said he didn't know that Vitale was working for the group and had no involvement in the bill's drafting or passage. Vitale has refused all requests for comment. If he registered as a lobbyist, he would have to disclose that information.
The Globe reported in April that Vitale gave DiMasi a $250,000, below-market-rate third mortgage on his North End condo in 2006. The state's conflict-of-interest law makes it illegal for a lobbyist to give anything of value to a public official. DiMasi repaid the loan in May, after the Globe report, which also detailed Vitale's association with the ticket brokers' group.
The bill had its beginnings in 2007, when consumer advocates were pressing for controls on ticket prices, which the advocates said were spiraling out of control.
But by late September, legislation sought by the advocates to control prices was dead in the House. In its place, a broker-friendly bill lifting all price restrictions emerged from the Joint Committee on Consumer Protection and Professional Licensure chaired in the House by Representative Michael J. Rodrigues, Democrat of Westport. The bill allowed any ticket broker who was licensed and bonded to charge whatever the market would bear.
After an Oct. 1 meeting in the speaker's office, with DiMasi present, the ticket brokers' bill was rewritten before emerging the next day from DeLeo's Ways and Means Committee, the state official said.
Under the new bill, there were changes that benefited online ticket sellers like eBay and StubHub. Internet sites were excluded from the requirement that sellers be licensed by the state. The final bill also removed a cap on transaction fees the ticket broker websites could charge consumers of 25 percent of the transaction's value.
Also gone were provisions that would have made it illegal for brokers to secure tickets by bribing employees of venues like sports stadiums or arenas and another that would bar employees of ticket brokers from "intimidating or obstructing" people waiting to buy tickets.
It was unclear yesterday at whose request the changes were made. DiMasi said in an interview last spring that he never met with Vitale about the legislation or pushed it with House members. He said he was concerned about consumer price gouging.
Yesterday, DiMasi spokesman David Guarino said that a meeting like the Oct. 1 session in DiMasi's office was commonplace. "It is not at all unusual for him to be discussing legislation on the eve of floor debate," said Guarino.
Investigators from Coakley's office have also interviewed the two chairmen of the legislative committee that handled ticket resale legislation, Rodrigues and Senator Michael W. Morrissey, Democrat of Quincy.
Rodrigues said he told the investigators that he had never spoken to Vitale or had even heard of him until the first Globe report appeared last April. He told them that he had met with DiMasi on the legislation and that it was he, not DiMasi, who was the driving force behind the bill.
Morrissey said he met with lawyers last week and agreed to provide documents showing the history of ticket broker legislation. He had filed a bill more stringent than the one passed by the House, limiting the amount brokers could charge to twice the face value of the ticket.
"I am cooperating with the attorney general's office in their investigation," Morrissey said, adding that he had never spoken to Vitale about any legislation.
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Globe correspondent Stephen Kurkjian contributed to this report.
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"Sal DiMasi’s power hangs in the balance"
By Hillary Chabot, January 2, 2009, www.bostonherald.com, Local Politics
Days before scandal-wracked House Speaker Salvatore DiMasi faces re-election, the weakened Beacon Hill powerhouse could face a full-scale revolt if he tries to restore order and crack down on rebellious members.
DiMasi, up for re-election Jan. 7, vowed last year to punish rivals actively jockeying for his job, but supporters already are plotting action against him if he strips either Majority Leader Rep. John Rogers or Ways and Means Chairman Robert DeLeo - the two men who have fought to succeed him - of their chairmanships.
“It may be his undoing. If he takes Rogers out it angers the Rogers people, if he takes DeLeo out he angers them,” said a DeLeo supporter, adding DeLeo backers already are discussing a plan of action should DeLeo be removed as Ways and Means chairman. “Then the gloves are off. Then we just (gather support) publicly.”
But a top lawmaker said DiMasi - dogged by the roiling succession campaign and eroding support from his members - needs to put an end to the distracting jockeying that has continued even after he begged members to stop.
“It almost seems to me that he has to. He needs to show who’s in charge,” said Rep. Joseph Wagner (D-Chicopee).
The Democratic caucus can vote on DiMasi’s chairmanship choices, and while members may not have enough votes to overrule the speaker’s decisions, they could create enough opposition to cast doubt on DiMasi’s control of the House.
“We could cause a lot of havoc in that caucus,” said a Roger’s supporter. “I don’t think he’ll change anything. Right now he’s just trying to survive.”
DiMasi remains weakened by an ongoing Ethics Commission probe while several friends and associates are facing investigations of their own, including his personal accountant and close ally, Richard Vitale, who was indicted last month on charges he violated lobbying and campaign finance laws.
Committee chairman and DeLeo backer Rep. David Torrisi (D-North Andover) this week became the first to publicly announce he won’t vote to re-elect DiMasi, saying the scandals plaguing the embattled speaker make it difficult for him to remain effective.
If DiMasi is re-elected, he has extensive discretion over chairmanships that pay an extra $7,500 and boost influence and power. He’s expected to make those decisions in late January or early February. Both DeLeo and Rogers say they expect to remain in their posts despite actively lobbying for support after DiMasi asked them not to.
“I haven’t been part of any discussions about the future,” DeLeo said. “I’ve been continuously working on the budget and he hasn’t told me to stop.”
DiMasi spokesman David Guarino declined to comment on the committee assignments, but said DiMasi has broad support. “The speaker is focused on the important issues before the House in the next session and won’t be distracted from the challenges facing the commonwealth,” Guarino said.
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Article URL: www.bostonherald.com/news/politics/view.bg?articleid=1142545
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A BOSTON GLOBE EDITORIAL
"Postpone the speaker's vote"
January 6, 2009
THE ARRAIGNMENT scheduled for yesterday of Richard Vitale, a close friend of House Speaker Salvatore F. DiMasi, has been delayed until next week, and his lawyer is fighting to keep details of the case secret. The postponement comes just as the House is preparing to vote on another term for DiMasi as speaker, scheduled for tomorrow. Since House members and the public need to know as much as possible about Vitale's involvement with DiMasi, the House should defer the speaker's vote until after the arraignment.
Vitale - DiMasi's longtime friend, personal accountant, and former campaign manager - was scheduled to be arraigned yesterday in Suffolk Superior Court on alleged violations of lobbying and campaign finance laws. The state attorney general's office planned to file a statement of the case against Vitale at the arraignment.
But Vitale's lawyer, Martin Weinberg, requested that his client's presence at the arraignment be waived because Vitale is vacationing. Prosecutors were prepared to fight the request. Then, Magistrate Gary Wilson postponed the arraignment until next Monday when Vitale will be present - and, as Weinberg requested, Wilson told prosecutors not to file a statement of the case in court.
According to the attorney general's office, the statement of the case includes an outline of the state's evidence after an investigation that included the examination of thousands of e-mails. Except in cases involving sexual abuse, it's rare to have such evidence sealed.
DiMasi has an interest in seeing the attorney general's evidence muzzled as long as possible. Vitale was not registered as a lobbyist while representing the Massachusetts Association of Ticket Brokers. At around the same time, Vitale gave DiMasi an unusual third mortgage on his home, valued at $250,000.
DiMasi has said he knew nothing about Vitale's alleged lobbying activities on behalf of the ticket brokers. However, at the time of Vitale's indictment, Attorney General Martha Coakley said Vitale communicated directly with DiMasi and his top lieutenant, Thomas Petrolati, on legislation sought by the ticket brokers. Coakley said Vitale had numerous direct contacts with DiMasi and Petrolati in meetings and via e-mails, as he lobbied on behalf of the ticket broker association, which paid him $60,000. The House passed the legislation sought by ticket brokers; the Senate did not.
DiMasi is expected to retain the backing of fellow legislators, at least partly out of respect for his commitment to a liberal agenda. But House members should be wary of voting on another term for DiMasi without full knowledge of the information gathered by the attorney general's office.
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"Sal DiMasi re-elected by Dems amid questions"
The Associated Press, Monday, January 07, 2009
BOSTON (AP) — Salvatore DiMasi has moved toward certain re-election today after his fellow Democrats voted overwhelmingly to make him their choice for House speaker, despite ethics questions that have dogged him for months.
The Boston Democrat won his party's caucus backing in a voice vote during which no lawmaker called out an objection.
DiMasi faced a second vote later Wednesday before the full chamber, but his re-election was assured. Democrats outnumber Republicans in the House 144-16.
Addressing his fellow Democrats, DiMasi said that when he became speaker four years ago, he thought he was assuming a lonely job with little prospect for friendship because he would inevitably disappoint hopeful members at one time or another.
"I found out that I had a lot of friends, and that was important to me, because in this job, you need a lot of friends — or at least 81 friends," he said to laughter, alluding the majority needed in the 160-member chamber.
DiMasi noted he broke with tradition by not asking members of his leadership team to nominate him. One of them, House Majority Leader John Rogers, has been openly seeking support to succeed DiMasi should he step down, against the speaker's wishes.
The speaker-designate said he was not punishing people like Rogers, but seeking to show the breadth of his support by asking conservative and liberal, black and white, male and female, suburban and urban members to nominate and second his choice.
One of those speakers, Rep. James Fagan, D-Taunton, hinted at the recent controversy, saying, "We need someone who will do that's right because it is right, not because one media outlet or another proposes it."
DiMasi's troubles stem in part from his relationship with Boston accountant Richard Vitale, who has been indicted by a grand jury on charges of using his friendship with DiMasi to benefit ticket brokers seeking to shape ticket-scalping legislation.
On Monday, Vitale succeeded in delaying his arraignment and blocking the release of detailed information in his influence-peddling case until next week.
Other friends of DiMasi are under investigation after allegations they used their friendship with DiMasi to gain payments from a Burlington software company that won a $13 million state contract. Gov. Deval Patrick subsequently canceled that contract.
DiMasi has denied any involvement in either activity.
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A BOSTON GLOBE EDITORIAL - "A good chance to clean house" - January 7, 2009
GOVERNOR PATRICK'S task force on public integrity did its part yesterday to identify and address weaknesses in the state's conflict-of-interest and lobbying laws. Now it falls to the Legislature to adopt the sound recommendations aimed at restoring the public's confidence in state government.
With just 60 days to complete the report, the 13-member task force didn't waste any time. The report bluntly notes that the state's civil and criminal penalties for violations of ethics and lobbying laws are weak and ineffective. The task force recommends sharp increases in the criminal penalty for bribery and in civil penalties for violations of the conflict-of-interest laws. The penalty for giving or receiving a bribe to influence an official act would rise to $100,000. It is now $5,000, the lowest in the nation. The task force also wisely recommends granting subpoena power to the secretary of state, who now lacks the clout needed to oversee disclosure requirements for lobbyists.
The task force managed to address an impressive array of issues ranging from enhancing the authority of the state Ethics Commission to closing loopholes now exploited by unregistered lobbyists.
But with the exception of a recommendation to improve searchable online databases of lobbying activities, every recommendation would require action by the Legislature. And state lawmakers are notoriously slow when it comes to cleaning up their own house.
Yesterday, House Speaker Salvatore DiMasi seemed to downplay the report in a statement that promised to review the recommendations but only after citing the "serious challenges" legislators face to balance the budget and reform the state's transportation system. DiMasi, whose personal accountant was indicted recently on charges of violating lobbying and campaign finance laws, is in the middle of an ethics maelstrom kicked up by his friends and associates, who are suspected of collecting questionable fees from a software company seeking state contracts.
The Legislature should be capable of quickly addressing both budgetary matters and ethics reform in the new session, especially since Governor Patrick is providing them an already drafted, comprehensive public integrity bill contained in the report. One section would give state law enforcement officials the power to seek judicial approval to secretly monitor and record conversations during public corruption probes. Most states allow this sensible practice. Another needed change would strengthen the state's illegal gratuity law, which is now so narrowly interpreted by the courts as to be almost meaningless.
The task force is giving legislators a valuable gift - a chance at restoring public confidence. They should accept it.
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The Boston Globe, Op-Ed, FRED SALVUCCI
"Don't overlook DiMasi's successes"
By Fred Salvucci, January 7, 2009
IT HAS BEEN hunting season, and the media have been trying to bag their third consecutive Massachusetts speaker of the House through a process of accusation, trial, and conviction by the press.
But driving a speaker from office should not be a spectator sport; it is a political decision, and one that ought to be based on a balanced view of the merits of the speaker's record.
A prophet without honor in his hometown newspapers, Sal DiMasi received national recognition as one of the "Public Officials of the Year" by Governing Magazine, published by the Congressional Quarterly, for his leadership on healthcare. To mention only a few of his most significant achievements:
Universal healthcare. More than 100 years after Bismarck recognized healthcare as a right of citizenship that would strengthen a country, the United States remains the only industrialized nation without a coherent system of universal healthcare. Massachusetts took a leadership position on this fundamental issue, and hopes are high that with the leadership of President-elect Barack Obama and Senator Edward Kennedy there will be federal action on this fundamental issue. DiMasi made the Massachusetts healthcare reform law more progressive and affordable, and is recognized as one of the principal authors of this success.
Gay rights. When the Massachusetts Supreme Judicial Court took the position that prohibiting the right to marry violates the constitutional rights of gay people, the talk-show world insisted that people should be able to vote to deny this right. DiMasi led the successful fight to prevent a constitutional right from being subject to referendum, a victory for protecting the rights of all minorities from the tyranny of the majority and preserving an independent judiciary's actions in defending individual rights.
Casino gambling. The speaker deserves credit for blocking casino gambling legislation, which would have unleashed a gusher of gambling industry lobbying and influence peddling. First, for permits, then for a barrage of advertising aimed at persuading people to gamble away their ability to support their families in pursuit of unearned wealth, all the while with the odds heavily stacked for the casino owners (and a slice for the state).
The whole casino "debate" would have been accompanied by a carefully orchestrated campaign to persuade people that the Commonwealth can get better public services without paying for them, by exploiting the shortsightedness of gambling addicts.
While the focus on DiMasi may raise questions about the judgment of some of his associates, it raises even more questions about the judgment of the rest of us.
Why do the local media, which largely encouraged his positive role in advancing universal healthcare and in blocking a referendum on gay marriage, seem to have amnesia in their current reporting and editorializing? Why are the beneficiaries of his leadership now gaming who the next speaker may be, rather than considering the overall record of the speaker we have?
The enormously positive public benefit of DiMasi's leadership needs to be considered before the media blitz hustles us into driving him from office. Particularly with the economic and fiscal crises facing the Commonwealth, his strong and effective leadership is important to all of us.
Of course, elected officials need to be held accountable for their mistakes as well as their achievements, but the media attention must be balanced in order for the public to make intelligent judgments. Is it too much to ask that both sides of the equation get equal weight? After all, the fall season for big-game shotgun hunting officially ended on Dec 14.
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Fred Salvucci is a former Massachusetts transportation secretary.
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The Boston Globe, Op-Ed, JOAN VENNOCHI
"The warped morality on Beacon Hill"
By Joan Vennochi, January 8, 2009
THIS IS WHAT passes for moral clarity on Beacon Hill.
House Speaker Salvatore F. DiMasi is a liberal. So it matters less that he might also be a liar.
That was the thrust of a Globe op-ed by Fred Salvucci, a former state transportation secretary who is an expert on the subject of the importance of ideology. As father of the Big Dig, Salvucci is used to winning praise as a transportation visionary, and escaping blame for any of the project's flaws, at least partly because of his liberal politics.
Many legislators applied that rubric yesterday, as the House overwhelmingly reelected DiMasi as their leader. He supports gay marriage, universal healthcare, and the gas tax. He opposes casino gambling. Therefore, he should be speaker, even if he may be lying about friends who may be lying about cashing in on their friendship with him.
For others, it was just about backing the status quo. In the end, DiMasi won the support of 135 out of 160 representatives. Fourteen members - seven Republicans and seven Democrats - voted present. Another nine Republicans backed Representative Bradley H. Jones Jr., the minority leader. One Democrat, Representative William G. Greene Jr., voted for himself. One legislator was absent.
Afterward, they celebrated by accepting bear hugs from their embattled speaker. "You humble me with your trust," he told them.
DiMasi has not been charged with a crime. So far, he is merely the powerful link to a network of friends who appear to be benefiting from their connections to him. Some friends are under state and federal investigation; one friend, Richard Vitale, has been charged by the state attorney general with violations of ethics and campaign finance laws.
Those probes mean this morality play will not automatically end with DiMasi's reelection to a third term as leader of the House. Some fascinating political theater lies ahead, with several plot lines still under development. Among them:
What happens next week when Vitale is finally arraigned?
On Monday, a Suffolk Superior Court clerk magistrate delayed Vitale's arraignment for a week, and granted his lawyer's request to stop prosecutors from filing a statement of the case in court. That action ensured that House members could vote on DiMasi's reelection without knowing the details of his involvement with Vitale, who was paid $60,000 to represent the Massachusetts Association of Ticket Brokers; Vitale also gave DiMasi a $250,000 mortgage, which the speaker has since paid back. Will the clerk go along with the request of Vitale's lawyer to keep secret the details of communication between DiMasi and Vitale?
If that happens, what's the next step for Attorney General Martha Coakley?
When she indicted Vitale on ethics and campaign finance violations, she said that Vitale communicated directly with DiMasi about legislation sought by the ticket brokers. However, DiMasi has said he did not know Vitale represented the group and never spoke to him about the matter. Will Coakley try to increase the pressure on Vitale? If she does, will Vitale cut a deal to save himself?
How long will US Attorney Michael J. Sullivan remain in that post?
Sullivan's office is investigating a $13 million contract to Cognos ULC, a software firm that paid friends and associates of DiMasi $1.8 million. Vitale, for example, received $600,000 for his work on the Cognos deal, which has since been rescinded. But Sullivan, a Republican appointee, is on the wrong political side of the incoming Obama administration. If Sullivan goes, will the Cognos investigation go with him?
What will be the fate of Governor Deval Patrick's sweeping proposal to overhaul the state's ethics and lobbying laws?
That may be the easiest to predict. In response to Patrick's proposal, DiMasi said the state faces "serious challenges" from the budget to the transportation crisis. "The best way to maintain and build upon the public's trust is by tackling these problems directly," he said.
The speaker knows that political action, not personal morality, counts most on Beacon Hill.
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Joan Vennochi can be reached at vennochi@globe.com.
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Correction: House Speaker Salvatore F. DiMasi spoke to a state official about the kind of software Cognos and others make, not about "Cognos software," as I wrote in Sunday's column.
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"Devoted to DiMasi"

Posted by Dan Wasserman January 7, 2009, 5:29 P.M.
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"Sal Dimasi wins, but foes not backing down"
By Hillary Chabot, Thursday, January 8, 2009, www.bostonherald.com, Local Politics
Despite an overwhelming re-election yesterday, hardball jockeying to succeed House Speaker Salvatore DiMasi continued as rumors of his imminent departure persisted.
Some representatives, after DiMasi’s re-election by an impressive 94 percent, returned to recruiting supporters in the struggle to succeed the embattled speaker almost directly after casting a vote for him.
“Oh, yeah. I was doing it an hour ago,” said a supporter of Majority Leader John Rogers (D-Norwood). “It’s not going to stop.”
Rogers and House Ways and Means Chairman Robert DeLeo (D-Winthrop) have been locked in a battle to replace DiMasi if the North End Democrat, embroiled in an ethics investigation, steps down. DiMasi asked both Rogers and DeLeo several times to halt the disruptive lobbying last year, but the power plays continued.
DiMasi told members that he is leaving soon, a DeLeo supportersaid, adding he expects the speaker’s race to continue. DiMasi contradicted those rumors earlier this week, saying he will be around next year.
Rep. Thomas Calter, (D-Kingston), who did not support DiMasi’s re-election yesterday, said the jockeying will continue.
“Although I have great hope that everyone will now settle down to do the people’s work, I fear that we will have more of the same,” Calter said.
Some members brushed off the threat of punishment yesterday, saying the speaker is too weak to shake up the current leadership. A top lawmaker said DiMasi would chastise those jockeying.
“From what I understand, the lobbying better stop. He knows the people who are doing it and he’s not afraid to punish them,” said the top-tier pol.
DiMasi is expected to create the committees, with chairmanships that promise power and an extra $7,000, by early February.
Only nine Democratic representatives did not support DiMasi during the vote yesterday, with eight abstaining and Rep. Bill Greene (D-Billerica) voting for himself. Most of the dissenters said the ethics investigations surrounding DiMasi has hurt his ability to lead.
“I don’t think we have the public’s trust,” said Rep. Jennifer Callahan (D-Sutton), who voted “present.” “For me it was a vote in the affirmative to make sure we’re hearing their voice.”
An emotional DiMasi thanked members for sticking with him during a Democratic caucus preceding the official vote, and asked them to work with him on the slumping economy.
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Article URL: www.bostonherald.com/news/politics/view.bg?articleid=1143849
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Richard Vitale (David Kamerman/Globe Staff)
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"DiMasi confidant arraigned; case details kept secret"
January 12, 2009, 11:15 A.M., By Andrea Estes and Andrew Ryan, Boston Globe Staff
A close confidant of House Speaker Salvatore F. DiMasi pleaded not guilty to lobbying and campaign violations today during a brief hearing in which a judge ordered that an outline of the case be kept secret.
"Not guilty" were the only words uttered by Richard Vitale during the proceeding in Suffolk Superior Court. His attorney, Martin Weinburg, successfully argued to the judge that the 18-page statement of the case should not be filed as a public document with the court. Weinburg maintained that the lengthy description of the allegations would be prejudicial to his client and would "harm the uncharged, unindicted people."
Prosecutors from the state attorney general's office argued that it was standard practice to file summaries of cases, which can be useful if there is a change in a proceeding, such as a new judge.
"I don't think it's necessary," said Superior Court Judge Peter Lauriat, who agreed with the defense that an 18-page summary was excessive. If prosecutors deemed it necessary, they could file a one- to two-page statement of the case, Lauriat said.
Vitale, 63, served as DiMasi's accountant and campaign treasurer. DiMasi's spokesman, David Guarino, said on Saturday that Vitale was no longer the speaker's accountant. They severed their business relationship several months ago, Guarino said. DiMasi had not previously disclosed that Vitale was no longer his accountant.
Vitale was indicted Dec. 18 on charges of violating lobbying and campaign finance laws stemming from work on behalf of a ticket brokers’ organization. He is accused of secretly pushing legislation on behalf of the ticket brokers, which included directly lobbying DiMasi and House Speaker pro tempore Thomas Petrolati on several occasions.
Weinberg has described the charges as regulatory offenses and maintained his client had done nothing wrong.
Vitale and his company, WN Advisors, were indicted on 10 counts. The charges include two counts of failing to file timely registration statements; making an illegal agreement for compensation contingent on the passage of legislation; and four counts of making campaign contributions in excess of the $200 maximum per year. WN Advisors is charged with two counts of failing to file timely registration statements and making an illegal agreement for compensation contingent on the passage of legislation.
Vitale is scheduled to return to court on Feb. 9, with a trial date set for June 15. He had been scheduled to be arraigned last Monday, but his attorney asked that his presence at the hearing be waived because he was vacationing with his family. That request was rejected and Vitale was ordered to appear this morning.
Last Monday was the first time that prosecutors attempted to file a statement of the case outlining alleged violations of lobbying and campaign finance laws. Magistrate Gary Wilson sidestepped the issue last week by telling prosecutors not to file the statement of the case in court, a move that kept the document shielded from public view. In the meantime, House members overwhelmingly reelected DiMasi to a third two-year term as speaker.
On Friday, Wilson was removed from Vitale's case because the magistrate donated annually to DiMasi's campaign committee. While Wilson did nothing wrong and acted "by the book," he was removed to avoid "any perception of a conflict of interest," according to Maura Hennigan, Suffolk Superior Court's clerk for criminal business.
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A Boston Globe Editorial, Short Fuse, January 11, 2009
"Beacon Hill: Ethics vs. politics"
It didn't take long for Representative James Fagan of Taunton, who chairs the House Committee on Ethics, to shake off the effects of serving on Governor Patrick's high-minded task force on public integrity. One day after Fagan signed off on the report that identified weaknesses in the state's conflict-of-interest and lobbying laws, he moved in caucus to reelect House Speaker Salvatore DiMasi, several of whose close friends are being investigated by state and federal officials on suspicion of influence-peddling on Beacon Hill. One has been charged criminally with trading on his pull with the speaker. Amid the ongoing inquiries, it is unseemly for the House's ethics chief to extend his imprimatur to DiMasi.
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"Massachusetts House speaker's friend pleads innocent"
By Steve LeBlanc, Associated Press Writer, January 12, 2009
BOSTON --An accountant accused of using his friendship with House Speaker Salvatore DiMasi to push ticket-scalping legislation and concealing his work as a lobbyist pleaded not guilty Monday, as his lawyer succeeded in blocking the release of more details of the case.
Richard Vitale, of Boston, was arraigned on two counts of failing to register as a lobbyist, one count of making an illegal agreement for compensation contingent on the passage of legislation and four counts of making campaign contributions over the $200-per-year limit for lobbyists.
WN Advisors LLC, an entity owned and controlled by Vitale, was charged with two counts of failing to register and one count of making an illegal agreement for compensation.
Vitale, 63, is accused of using his connections to DiMasi, for whom he once served as campaign treasurer and once gave a $250,000 third mortgage, to win House approval of the legislation. It subsequently stalled in the Senate.
His lawyer, Martin Weinberg, has argued Vitale did not have to register as a lobbyist -- and thus made legal donations -- because he did not exceed a minimum mandatory threshold of 50 hours work on behalf of the ticket brokers.
Weinberg persuaded the court Monday to block public release of an 18-page summary of the case from prosecutors, which he said would prejudice the jury pool. He also said it violated the secrecy of grand jury deliberations and served no practical purpose since there was no bail issue and Vitale said he planned to plead not guilty.
"Someday there will be a trial and Mr. Vitale will need an unbiased jury," Weinberg said.
He also said some of the e-mails referred to in the summary were illegally obtained. A copy of the summary was given by prosecutors to Weinberg, who said he would not release it.
Assistant Attorney General Andrew Rainer argued that courts in Massachusetts have routinely accepted summaries to help decide such issues as setting bail or accepting pleas. He said the case against Vitale includes hundreds of pages of testimony and thousands of pages of discovery.
"There is a reason why the court has welcomed these for years," Rainer said. "We think this is entirely called for due to the nature of the case."
Judge Peter Lauriat disagreed.
"I don't think it's necessary," he said, adding that he might accept a one or two page summary.
The case focuses on Vitale's alleged efforts on behalf of the Massachusetts Association of Ticket Brokers. Prosecutors said WN Advisors was paid a total of $60,000 by the group to promote legislation regulating the resale of tickets to sporting and entertainment events.
Prosecutors said Vitale communicated and met with DiMasi and Speaker Pro Tempore Thomas Petrolati on multiple occasions to promote the bill, delivered printed copies of e-mails from a group representative to Petrolati and forwarded e-mails from the representative to a personal e-mail address of Speaker DiMasi.
On one occasion, they said, Vitale delivered an e-mail which requested specific changes to the bill, which the House of Representatives made before passing it.
Investigators also allege Vitale signed an agreement with the ticket broker's association for an additional $20,000 if the bill passed.
State law prohibits anyone from making an agreement for compensation contingent on the passage or defeat of legislation.
Vitale and WN Advisors face up to $32,000 in fines and two years in prison.
DiMasi declined to comment on the case.
"There's a court process going on and I don't think it's really appropriate for me to comment on a court process so I'll just let that play out," he said.
Although they were barred from submitting their summary of the case, prosecutors filed a list of hundreds of documents they obtained during their investigation. The list offers clues to the scope of their investigation.
Among the documents listed were two e-mails from Vitale to DiMasi's wife Debbie DiMasi. One of the e-mails dated Feb. 2, 2008, included a copy of a separate e-mail from James Holzman, CEO of Ace Tickets and founding member of the Massachusetts Association of Ticket Brokers.
A second e-mail from Vitale from Feb. 8, 2008, to Debbie DiMasi referenced the "ticket law."
There were other e-mails from Vitale to a second friend of DiMasi's, Richard McDonough, who found himself at odds with Secretary of State William Galvin for refusing to detail his lobbying efforts on behalf the software company Cognos ULC while the company was seeking state contracts.
Other documents in the list included:
-- An Aug. 28, 2008, letter to Speaker DiMasi from the state Ethics Commission about incomplete answers on his ethics disclosure form regarding his spouse's business activities;
-- A May 7, 2006, e-mail from Vitale citing "DiMasi/Petro meetings," a reference to Petrolati;
-- A June 22, 2006, promissory note regarding a revolving line of credit to DiMasi and his wife on property on Commercial Street in Boston.
In 2006, Vitale gave DiMasi an unusual $250,000 third mortgage on his Commercial Street condo at an interest rate that was below prevailing rates. The speaker later repaid it.
DiMasi declined to comment on the e-mails to his wife.
"That is also part of the case and that obviously has to be worked out with the court," he said.
Vitale is due back in court on Feb. 9.
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(Boston Globe Staff / John Tlumacki)
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The Boston Globe, Op-Ed, SCOT LEHIGH
"An uncertain future for ethics reform"
By Scot Lehigh, Boston Globe Columnist, January 14, 2009
DESPITE the controversy that swirls about him, Sal DiMasi easily won another term as speaker of the House last week.
Now this question looms: Will the recrowned House leader ignore the far too gentle reform impulse on Beacon Hill?
Our story so far: A topflight task force chaired by Ben Clements, the governor's legal counsel, has issued a well-researched and reasoned proposal for strengthening our ethics and lobbying laws.
DiMasi, however, has responded as though the panel had recommended an unnecessary root canal, and without benefit of novocaine. That is, he has made it clear he considers the matter something less than a pressing priority.
Of course, the speaker had previously said that Massachusetts already has some of the toughest ethics laws in the nation.
That's not what the task force found. That group included such respected figures as former attorney general Scott Harshbarger; Joe Savage, erstwhile chief of the public corruption unit for the US attorney's office; Pam Wilmot, executive director of Common Cause Massachusetts; and Charles Baker, CEO of Harvard Pilgrim.
It concluded that our underfunded ethics commission lacks the regulatory and investigative reach necessary to enforce the ethics laws effectively; that the secretary of state doesn't have the tools to enforce our insufficient lobbying laws; that the attorney general's office can't use investigatory methods routinely employed by other states; and that our penalties for ethics and lobbying violations are far below those elsewhere.
How could that be? Well, past efforts to toughen some of those laws have sunk in quicksand because of quiet opposition from defense lawyers in the Legislature.
"I always felt that was a significant issue in terms of the legislative response," says Harshbarger, who as attorney general pushed some similar proposals. "The defense attorneys object to much of this." In that light, it's worth noting that one of the most prominent of the state's lawyer-legislators has long been a certain Salvatore F. DiMasi.
Now, it hardly needs to be said that the Beacon Hill regulars aren't interested in ethics reform. They don't want Bill Galvin, the state's tenacious secretary of state, armed with enforceable subpoena power and the ability to assess civil penalties. They don't want an ethics panel whose summonses are harder to defy. They don't want a more effective attorney general's office. And they certainly don't want steeper penalties for violating ethics and lobbying laws.
That leaves the liberal good government types. It was amusing indeed when, back in 2004, they convinced themselves that because DiMasi was a fellow liberal, he would be a reformer as speaker. Still, DiMasi has tapped a goodly number of them for leadership roles. And since hitting turbulence, his once-leisurely speakership has been energized by a shark's imperative: keep moving or die. On liberal issues like hiking the gas tax as an alternative to higher tolls, he has filled a leadership vacuum.
So, having supported his reelection despite the unresolved questions and investigations, will liberals now hold DiMasi's feet to the fire on ethics reform?
Behold the diplomatic House Democrats.
"I don't think we have to push for it," says Dan Bosley of North Adams, a DiMasi chairman. "I think it is going to come up this year."
"I fully expect we will do ethics reform," says Jay Kaufman of Lexington, another DiMasi chairman, who spoke in favor of DiMasi's reelection in last week's proceedings. "I doubt he will kill this."
"I think we will encourage him that it makes sense to do it," says Ellen Story of Amherst, a vice chairman, who also spoke for DiMasi.
But what if the speaker balks?
"If he absolutely doesn't want to, there is nothing we can do to make him," says Story.
These are good people, but those responses are too diffident. The issue here should be what the public wants, not what DiMasi desires.
And there, Cory Atkins of Concord, who voted present rather than supporting DiMasi last week, has it exactly right.
"Voters have had it," she says. "They want a better way of doing business."
Given the moment, if the liberals insist, they'll be hard to resist.
But the cause calls for less deference and more determination.
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Scot Lehigh can be reached at lehigh@globe.com.
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"DiMasi reportedly considers resigning"
By Andrea Estes and Frank Phillips, Boston Globe Staff, January 24, 2009
Embattled House Speaker Salvatore F. DiMasi, dogged by a series of influence-peddling controversies involving close friends, is considering resigning his post as early as next week, according to two members of his leadership team with knowledge of his thinking.
"He has not told anyone definitely what his plans are," said one of the members. "He is considering his options."
"No final decision has been made," said the other leadership team member. Both spoke on the condition of anonymity.
Even without that final decision in place, DiMasi's private deliberations set off pandemonium across Beacon Hill yesterday. His potential successors openly lobbied for support. Rank-and-file legislators burned the phone lines with questions and rampant speculation. DiMasi's office issued a statement referring to "State House rumors and gossip."
"It's been insane," said Representative Martin J. Walsh, a Democrat from Boston. "I'm getting calls from everybody - lobbyists, members, elected officials, staff. If it's just a rumor, a lot of people are sure reacting to it."
At every turn, people saw signs of DiMasi's potential departure. Several DiMasi staff members have been looking for other jobs, according to two state officials who talked on the condition of anonymity. One of his aides has told people he will run for the North End state representative seat that DiMasi has held since 1978, another elected official said.
One rumor even had the clerk's office, in expectation of a resignation letter, staying open late. It wasn't.
DiMasi, who was first elected speaker in 2004 after the departure of Thomas M. Finneran, has been beset by ethics questions in recent months. State and federal grand juries have been investigating payments made to friends and business associates by interests seeking favorable treatment on Beacon Hill.
DiMasi's close friend and former accountant, Richard Vitale, has been indicted by the state grand jury on misdemeanor charges that he secretly lobbied DiMasi and members of the speaker's leadership team on behalf of a group of Massachusetts ticket brokers. Vitale's lawyer, Martin G. Weinberg, has called the charges regulatory offenses and insisted Vitale broke no laws.
A story in Thursday's Globe said that Vitale paid $7,500 in legal debts run up by DiMasi's in-laws.
The story also reported that a DiMasi aide met with the head of the ticket brokers' association at Vitale's office on the same day that DiMasi and his wife signed the paperwork for a $250,000 third mortgage Vitale gave them on their North End condo.
House Ways and Means chairman Robert A. DeLeo, a DiMasi ally and candidate to succeed him, has told several people that he believes DiMasi's departure is imminent, according to one lawmaker who has spoken with DeLeo.
DiMasi's spokesman, David Guarino, sought to tamp down the speculation, issuing the following statement: "The speaker is focused on the important work before the House and won't be distracted by the latest round of State House rumors and gossip."
If DiMasi left, Democratic lawmakers would convene a caucus to choose their candidate and then the full Legislature would vote in the new speaker.
Both DeLeo, and majority leader John H. Rogers, also a candidate for speaker, have been scrambling to shore up support in the event a vote for a new speaker happens quickly.
Both stayed in their State House offices late into the evening, and they both issued statements trumpeting their qualifications.
"As rumors abound, the phone is ringing off the hook," said Rogers in an interview. "During these fiscally tumultuous times members of the House want proven leadership to steer us through these times. . . . That's why they've been calling me all day because of my proven track record as the past chairman of House Ways and Means Committee, offering fiscal recovery budgets that led us out of difficult times."
DeLeo made a similar statement a short while later.
"There have been a lot of rumors swirling around the State House today, but the speaker, to my knowledge, has not issued any statement indicating his intentions," DeLeo said. "I am very encouraged by the increasing and growing support I have among the membership."
Federal authorities are also looking at why Vitale and other associates of DiMasi's, including the lawyer who shared a downtown office with DiMasi, received large payments from Cognos ULC, the software company that won $17.5 million in state contracts in 2006 and 2007.
Vitale received $600,000 from Cognos's sales agent in those years. The lawyer, Steven Topazio, was paid $125,000 between 2005 and 2007.
The amounts were discovered during an investigation by Inspector General Gregory Sullivan.
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"DiMasi will resign: Speaker defends record, says ethics issues not forcing him out"
By Frank Phillips, Boston Globe Staff, January 26, 2009
House Speaker Salvatore F. DiMasi plans to resign from his powerful post tomorrow and depart the North End legislative seat he has held for three decades, saying yesterday that he is proud of his record and is departing with his "head high" despite ongoing ethics controversies swirling around him.
DiMasi - the third consecutive Massachusetts speaker to leave under a cloud - was reinstalled as speaker three weeks ago. But he has remained under public scrutiny, an Ethics Commission investigation, and a pair of grand juries looking at the influence-peddling allegations involving his close friends.
"My head is held high and I am proud of my record. That is how I am leaving," DiMasi said in a telephone interview with the Globe late yesterday afternoon, shortly after his staff sent out letters informing all 159 House colleagues of his decision.
The speaker's announcement, which comes at a perilous time for the state's finances, triggered a renewed frenzy of jockeying to succeed him. He plans to give a farewell speech tomorrow, and a House Democratic caucus has been scheduled for Wednesday morning to vote on a replacement.
"I am losing a valued partner and a good friend in the Legislature," Patrick said last night in a statement issued by his office. "Sal DiMasi leaves the House with an impressive and lasting legislative legacy - an architect of health care reform, a protector of marriage equality, and a tenacious representative of his beloved North End."
In the interview, DiMasi denied that the ethics allegations are playing a role in his departure, yet he did not clearly explain the timing. He said that with all the serious fiscal issues facing the state, he decided to step aside for a new speaker who would be fully engaged. He said he plans to return to his private law practice and, possibly, to a job in the healthcare industry.
The speaker blamed most of the ethical controversies plaguing him on "powerful special interests," particularly the gambling industry, which he defied when he blocked Patrick's proposal last year to license resort casinos.
"They are going to be pretty happy by the fact I won't be here," he said. "I can hear the clanking of the slot machines now."
DiMasi suggested that he was the target of enemies who were unhappy with his role in major issues. He pointed to a record that included protecting gay marriage, playing a major role in shaping the state's landmark initiative to extend health coverage to all residents, and defeating resort casinos.
"That is why you are attacked and criticized. It is part of the territory. It is not anything new," he said.
Since March, the Globe has published stories that spurred federal and state criminal investigations of DiMasi's close friends.
His former accountant, Richard Vitale, has been indicted by a state grand jury on misdemeanor charges of secretly lobbying DiMasi on behalf of an association of state ticket brokers. Attorney General Martha Coakley has said Vitale repeatedly contacted DiMasi and other House leaders in his lobbying push, including sending information to DiMasi's personal e-mail account. Her allegations contradicted DiMasi's previous public statements that he knew nothing of Vitale's activities.
A federal grand jury is investigating the activities of Vitale and other close DiMasi associates who lobbied for a $13 million software contract for Cognos ULC. Cognos also was a major supporter of a charity golf tournament chaired by DiMasi.
DiMasi has not been charged with any crimes, although he remains the subject of an Ethics Commission investigation that began after the Globe published the story about the Cognos contract.
DiMasi has insisted repeatedly that he did nothing wrong, and that he played no role in awarding the computer contract. In his letter to his House colleagues, DiMasi again defended his integrity.
"No matter what the cynics and critics will say, all of my actions as state representative and as speaker were based solely on what I thought was the best interests of my district and the people of the Commonwealth," said DiMasi, 63, who has represented the North End and other Boston wards since his election to the House in 1978.
DiMasi is expected to file for his state pension. With his more than 30 years as a state employee, he will get about three-quarters of his average pay over the past three years. He now makes $93,000 a year.
The two most likely successors are House Ways and Means Chairman Robert A. DeLeo, a Winthrop Democrat, and John H. Rogers, a Norwood Democrat. Both men have said in the last several days that they are confident they have the majority votes in the 160-member House. The infighting is getting particularly tough.
DeLeo supporters said last night that DeLeo had wrapped up the post with 86 commitments, and his office released a list of his supporters last night.
Rogers's supporters are pointing out that some of the ticket brokers legislation at the center of the state and federal probes was passed by DeLeo's committee, although no one has accused DeLeo of wrongdoing.
DeLeo's allies, in turn, have pointed out that Rogers is being dogged by campaign-finance questions. He had made undisclosed monthly payments from his campaign funds to a close friend and political consultant who used the money to help him buy a Cape Cod vacation home they say they co-own.
Massachusetts residents have grown accustomed to watching their House speakers leave office while fending off allegations and charges.
Charles F. Flaherty was forced to resign in 1996 when federal prosecutors charged him with income tax violations after months of investigating his relationship with lobbyists.
His successor, Thomas M. Finneran, who grabbed the speaker's post by cobbling together a coalition of Democrats and Republicans, was under federal investigation in 2004 when he resigned to take a high-paying trade association job.
He pleaded guilty to obstruction of justice charges in January 2007 for having lied under oath in a civil suit involving a legislative redistricting plan.
Three weeks ago, DiMasi appeared to be holding on, despite the raft of investigations. He was reelected speaker by an overwhelming majority of his colleagues earlier this month.
But in recent days, DiMasi has confided to allies that he was becoming more and more conflicted about remaining as the House leader, particularly after a Globe story last week that said Vitale had paid $7,500 in legal debts amassed by DiMasi's in-laws.
As word spread last week that the speaker was considering stepping down, the politics at the State House moved into overdrive. Stressed lawmakers huddled in their Beacon Hill offices and made calls from their districts, trying to scope out the shifting landscape.
The stakes for all of them are huge. They are facing a new regime in which a speaker would appoint loyalists to the influential, extra-paying positions, while assigning opponents to the back benches.
"This is personally very dicey for everyone because your future accomplishments and your agenda - your career - are on the line, depending on how you vote," said Representative Paul Kujawski, a Webster Democrat, who is backing House majority leader John H. Rogers. "These decisions are career-makers or career-breakers."
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Related Stories:
"House speaker's relationships contributed to his undoing"
By Andrea Estes and Matt Viser, Boston Globe Staff, January 26, 2009
He was a darling of the liberal set, embracing causes whether they were fashionable or not, from universal healthcare to gay and abortion rights.
But House Speaker Salvatore F. DiMasi, steeped in the cozy culture of Beacon Hill during a 30-year career in the House, at times seemed oblivious to appearances. He frequently golfed with those who had business before the state, frolicked on the shores of Puerto Rico with registered lobbyists, and socialized with people who were in a position to benefit from their friendship with him.
It was those associations - including one with his close friend and former accountant, Richard Vitale, indicted last month on charges of lobbying DiMasi on behalf of a group of ticket resellers - that contributed to his undoing. DiMasi said last night that he will resign the seat he has held since 1978.
In doing so, he becomes the third consecutive State House speaker to exit under a cloud of controversy, leaving behind a liberal following that is at once appreciative of his work but frustrated that his departure amid ethics questions has left its agenda vulnerable.
"His legacy is a mixed bag," said David Kravitz, a cofounder of Blue Mass Group, a left-wing blog. "He's got some really impressive achievements in the policy area that he should be proud of, and I think he is. But it's too bad that he ends up leaving under a cloud, and under the pressure of not being able to withstand what appears to be a bunch of ethical problems coming home to roost."
DiMasi's talents were many, perhaps none as envied by his colleagues as his ability to seamlessly cross traditional divides. While the consummate arm-twisting insider on Beacon Hill with a penchant for nice meals and golf at private clubs, he was hailed by his constituents in the North End as the populist champion of the common man. While an occasionally tart-tongued boyo prone to dicey jokes, he was celebrated by liberals for his stands that were nothing if not politically correct.
"No one thought he'd ever be speaker," said Mayor Thomas M. Menino. "Sal came a long way from where he started and became a major figure in government in Massachusetts. It's unfortunate we're losing a good friend of Boston."
When Senate President Therese Murray became the first woman to hold the office, DiMasi compared her with her predecessor, telling reporters, "When I hug her, it will probably be a little bit different. It will probably feel a lot better than [Robert] Travaglini." After hugging Mitt Romney, then governor, in 2004, DiMasi told reporters the only thing he got out of it was "frostbite."
But his easy, flippant style often masked the hard-nosed ways he could persuade his members to toe the line. DiMasi stood in the way of many of Governor Deval Patrick's early priorities, almost single-handedly blocking the governor's proposal to bring casinos to Massachusetts.
In fact, their relationship has been a complex one. When Patrick took office, the first Democrat to be governor in 16 years, DiMasi began taking immediate swipes.
But after the casino defeat - and as DiMasi was increasingly embattled - they met for a private dinner in the North End, where the pair had what the governor described as a "great, quiet, come-to-Jesus kind of conversation."
"Sal has been an absolute hero to the gay community for the last 25 years," said gay rights activist Arline Isaacson, who called his role in the 2007 referendum to defeat gay marriage "absolutely critical."
DiMasi, the state's first Italian-American speaker, was also instrumental in crafting the state's healthcare reform legislation, which advocates have hailed as a national model.
But his long record of legislative achievements may ultimately be marred by the ethical questions that triggered multiple investigations and may have prompted his resignation.
"I would hope and pray that every member of the Legislature who wants to grow up to be a leader pays attention," said Judy Meredith, a longtime human services lobbyist. "They should pay attention to their relationships when they take a loan or golf fees."
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Matt Viser can be reached at maviser@globe.com. Andrea Estes can be reached at estes@globe.com.
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Representative Robert A. DeLeo (D-19th Suffolk)
www.boston.com/news/local/speaker_candidates/
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"Take back the House"
The Berkshire Eagle, Editorial, Tuesday, January 27, 2009
House Speaker Salvatore DiMasi was on the side of the angels on many important issues, and his resignation later today from that important leadership position and from his House seat will constitute a loss in that regard. It is unseemly, however, for the speaker to play the victim, and with Mr. DiMasi becoming the third consecutive speaker to depart with ethics issues encircling him it is apparent that there is something inherently wrong with the way the House is run.
State and federal investigations of close friends of the speaker, most notably Richard Vitale, who has been indicted on charges of secretly lobbying Mr. DiMasi on behalf of an association of ticket brokers, are ongoing. The speaker, who has not fully addressed these charges or cooperated with the Ethics Commission in their exploration of them, said Monday that they had nothing to do with his departure, which was motivated by a desire to have a speaker in place who is fully engaged in the serious fiscal issues facing the state. If that is the case, then why run for another term as speaker just three weeks ago? All that has changed in the interim is a Boston Globe story indicating that Mr. Vitale had paid $7,500 in legal debts amassed by Mr. DiMasi's in-laws.
Mr. DiMasi has fought hard against efforts to bring casinos into the state but he offered no tangible support of his assertion that the casino industry was behind his demise. If this was the case, then why surrender to his enemies given his claim that criticism and attacks are "part of the territory."? We see no evidence of a great man brought down by evil forces.
There is evidence, however, that the speakership is too powerful a position, one that at the least breeds arrogance, and at the worst corruption. We are told it is dangerous for legislators to stand up to the speaker, but there are not enough closet-sized offices to which dissidents can be exiled if there is a rebellion. Time for lawmakers to take back the House.
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The Boston Globe, Op-Ed, SCOT LEHIGH
"The road to the DiMasi departure"
By Scot Lehigh, Boston Globe Columnist, January 27, 2009
WHAT CAN you say about Speaker Sal DiMasi on his way out the door?
Well, this, certainly: If self-justification and malarkey were precious metals, DiMasi could pay off his mortgages.
And this: If DiMasi is leaving with his head held high, as he told the Globe on Sunday, then Beacon Hill's standard for highly held heads has hit an all-time low.
In fact, the speaker is resigning amid ethical questions so thick one can scarcely see his head at all, questions which have the state's various investigatory agencies working overtime.
What will come of the various probes involving the speaker and his associates is hard to say.
But let's be clear: what's occasioned DiMasi's precipitous departure a mere three weeks after his reelection as speaker is hardly a sudden desire to turn the House over to a new leader who will be more engaged.
More likely it's the latest revelation from the Globe's Andrea Estes. To wit: In September 2007, Richard Vitale, the now-indicted DiMasi friend and former accountant, paid some $7,500 in debts for the speaker's in-laws. That happened around the same time that prosecutors contend Vitale was illegally lobbying the speaker on behalf of a group of Massachusetts ticket brokers. Vitale, of course, is also the man who in June 2006 extended DiMasi a $250,000 third mortgage, since repaid, on his North End condo.
The speaker has claimed he had no idea Vitale was working for the ticket brokers and that the two never discussed the legislation that group was interested in. Alas for DiMasi, when he uttered those statements, he apparently had no idea that Attorney General Martha Coakley would end up investigating the matter. The version of events her office laid out in indicting Vitale made it impossible for any but the terminally credulous - and certain members of the speaker's leadership team - to believe DiMasi's account.
To sum up in a way that both groups can understand: Compared to Sal, Pinocchio has a petite proboscis.
And then there's the masterpiece of self-justification DiMasi sent around to his colleagues Sunday.
"No matter what the cynics and critics will say, all of my actions as state representative and as speaker were based solely on what I thought was in the best interests of my district and the people of the Commonwealth," he wrote, adding: "I am proud of all I have done and I leave with no regrets, not one."
Those sentiments call to mind a line from the man who once preached at the Old North Church in DiMasi's district.
"The louder he talked of his honor," Ralph Waldo Emerson wrote, "the faster we counted our spoons."
But what's truly comical about DiMasi's departure are his dark mutterings about the potent forces he contends did him in.
"Powerful special interests" like the gaming industry, upset that he had blocked casinos in Massachusetts, were behind most of the ethical controversies swirling about him, he told the Globe.
"Yeah, right," one disgusted state representative said yesterday. "That may work for the people who don't know what's going on, but as for the rest of us, would you just shut up?"
Here's what actually happened. Last spring, after a critical column about DiMasi, a tipster concerned about the cost of the software contract won by Cognos ULC e-mailed the Globe to suggest a closer look. The state's inspector general was already investigating that same matter.
The inspector general's investigation and Estes's reporting peeled back the cover on an undercurrent of cash that had flowed from Cognos or its sales agent to Vitale and other DiMasi friends, including his law associate. Reporting by Estes and Stephen Kurkjian also revealed the role Vitale had played on behalf of the ticket brokers - and the loan he had extended DiMasi.
Once persisent journalism brought those issues to light, other investigations ensued. The idea that gambling interests were somehow behind it all is so absurd that it's hard to think DiMasi himself truly believes it.
Still, if he does, there's a silver lining for him here in Massachusetts.
After November's ballot question, whatever he's smoking may well be legal.
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Scot Lehigh can be reached at lehigh@globe.com.
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A BOSTON GLOBE EDITORIAL
"DiMasi's old-school problems"
January 27, 2009
HOUSE SPEAKER Salvatore DiMasi didn't want to be pushed out of office by the controversies swirling around his leadership. So he jumped.
DiMasi's resignation from the Legislature, expected today, is a sad coda on a career marked by many accomplishments. But even if DiMasi is no longer a public figure, the public still needs to know what really went on between DiMasi and certain friends allegedly trying to peddle their influence with him. We expect the ongoing federal and state probes into those relationships to continue, as they should.
DiMasi was an old-school pol with progressive politics. He helped block a constitutional ban on gay marriage, protected abortion rights, pushed financing for green energy, and was a crucial ally in passing the state's landmark healthcare bill - all positions this page enthusiastically supported. But at a minimum, he couldn't see how the actions of his political associates placed him in real or apparent conflicts of interest. A comment yesterday by the disgraced former House speaker Tom Finneran, of all people, put it well: "You have to be toughest on those with whom you are closest," he said during his morning radio show.
DiMasi wouldn't, or couldn't, do that. His questionable actions ranged from the petty (whether he took a free golf game from a friend who wanted a resort casino at Suffolk Downs) to the significant: whether an odd $250,000 third mortgage from his friend and accountant, Richard Vitale, was actually a contribution from a lobbyist, or even given in anticipation of favorable action on legislation of interest to Vitale's clients.
A federal grand jury reportedly is investigating payments to Vitale and other DiMasi associates by a software firm, Cognos ULC, after it received lucrative state contracts. DiMasi has repeatedly said he did not have a hand in awarding the contracts.
Even DiMasi's wife, Debbi, came under scrutiny for a business partnership she has with the wife of developer Jay Cashman, who profited handsomely when a bill to block an LNG project on land Cashman owned in Fall River was killed in the House.
In his resignation letter DiMasi reiterated that all his actions as speaker were "based solely on what I thought was in the best interest" of his district and the state. That may be so, but it is not enough. His statements that he had no idea Vitale was a paid "strategist" for clients with interests before the House lack credibility.
The state is facing one of the worst budget deficits in decades. The transportation system is in crisis. The House vote to choose a successor to DiMasi should not be postponed to allow for more jockeying. But whoever succeeds DiMasi, it is imperative that he or she not go the way of the last three House speakers, who resigned under indictment or a cloud. That will require honesty, caution, and an extra dose of humility.
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"House seethes in fight for speaker: DeLeo appears to have the votes; Deep divisions amid fiscal crisis"
By Frank Phillips and Andrea Estes, Boston Globe Staff, January 27, 2009
State Representative Robert A. DeLeo, a politically conservative and personally low-key Democrat from Winthrop, appeared yesterday to have cobbled together enough supporters to secure the speaker's gavel. But his determined quest to succeed Salvatore F. DiMasi stirred the House into a cauldron of infighting, with sharp accusations and deep factional divisions.
The camps of DeLeo and his rival, majority leader John H. Rogers, circulated negative news clippings and traded harsh innuendo as DiMasi tried, with limited success, to broker a peace.
DiMasi and other leaders feared that hard-core Rogers backers would become so alienated by the bitter leadership fight that they would make it difficult for the House to conduct business as the state faces its worst fiscal crisis in decades.
Another wild card in the fast-paced events was a snowstorm forecast for Wednesday. The weather report spurred speculation that DiMasi would seek, at DeLeo's urging, to accelerate the timetable and call for a caucus vote today for a new leader.
After hours of wrangling, DiMasi, who triggered the maneuvers by announcing Sunday that he would resign, stuck to the original schedule. The informal caucus, followed by a formal vote on the House floor, is expected to be held tomorrow.
It was a day in which policy discussion and issues were starkly absent from debate. Rather, the battle between DeLeo and Rogers was about personal loyalties and the potential for future favors, the currency of Beacon Hill.
"We are in deep trouble, and everybody's got to work together," said an obviously frustrated Representative Daniel Bosley, a North Adams Democrat and a close DiMasi ally who jumped onto DeLeo's team only yesterday. Bosley decried the smear tactics employed by both DeLeo and Rogers supporters.
DeLeo supporters passed out articles about campaign finance questions facing Rogers, whose financing for a house on Cape Cod has come under scrutiny. Rogers supporters sought to tie DeLeo to the ethics problems swirling around DiMasi, pointing out that as a committee chairman, DeLeo was involved in the passage of a controversial bill.
DeLeo has worked behind the scenes slowly and methodically for months, trying to line up support in the event of DiMasi's departure. His efforts undermined what Rogers has said was a deal between him and the speaker, reached in 2004 when DiMasi won the job, that Rogers would be DiMasi's successor.
DeLeo appeared to have lined up enough support yesterday to withstand the challenge by Rogers, publicly releasing the names of 92 representatives who have pledged to vote for him.
Rogers has not released a full list of his supporters, and he continued to seek a delay in the vote.
Rogers supporters called publicly for DeLeo to explain his involvement in the controversial ticket broker legislation that is at the center of one of the criminal inquiries into DiMasi's close friends and associates that led to DiMasi's resignation. They circulated an e-mail demanding that DeLeo "clear the air."
"The final ticket scalping legislation was sponsored and substituted on the floor of the House by Chairman DeLeo, which was favorable to the ticket brokers," said the e-mail signed by seven rank-and-file lawmakers. "Does he not know the content of the bill that he authored? That may be even worse than knowing what actually was in the bill."
DiMasi's friend and former accountant, Richard Vitale, was accused last month by Attorney General Martha Coakley of using his influence with DiMasi to push for a bill that would benefit his client, the Massachusetts Association of Ticket Brokers.
The Rogers material also tied DeLeo into the $17.5 million worth of state contracts that went to a computer software company, Cognos ULC. Investigators are looking into fees that DiMasi's friends received for their work for Cognos.
DeLeo insists that no investigators have contacted him.
"This type of gamesmanship is exactly what the people of Massachusetts have said they don't want from their elected leaders," DeLeo said in a statement yesterday. "I am focused on issues, not issuing attack statements. I'm just not interested in playing schoolyard political games when people are hurting across our state and we are expected to try and solve tough problems."
Some of the strained feelings are now directed at DiMasi. Representative Paul Kujawski, a Webster Democrat and a Rogers supporter, said he believes that DiMasi and DeLeo secretly plotted to transfer the speakership before DiMasi was reelected speaker on Jan. 7.
Kukawski and other Rogers supporters said the speaker and DeLeo were plotting to make the transfer after Jan. 7, after newly elected representatives who backed DeLeo were sworn into office and could participate in the leadership vote.
"When we met with [DiMasi] in December and he asked us for his vote, he said: 'I'm not going anywhere. I want to stay,' " said Kujawski, referring to DiMasi. "We believed everything he said, but it looks like he was just orchestrating the handing of the gavel to DeLeo. I feel completely deceived."
Rogers supporters were also upset that DiMasi and DeLeo met in private Saturday to discuss the transfer of power, said State House officials involved in leadership discussions. DiMasi asked DeLeo Saturday to find jobs for DiMasi's staff members in the House after DiMasi's departure, the officials said.
Rogers supporters said that about a dozen of the representatives on a list of DeLeo supporters that DeLeo released Sunday night, moments after DiMasi's resignation announcement, had previously committed to Rogers.
But one of the dozen - Jay Kaufman, Democrat of Lexington - said he had never pledged his support to Rogers.
"I had conversations with John about his candidacy, but was never specifically asked and certainly never committed," Kaufman said. "I give them credit for creativity."
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"DeLeo named speaker"
By Matt Murphy, Berkshire Eagle Boston Bureau, Wednesday, January 28, 2009
BOSTON — Sal DiMasi banged the gavel for the final time as speaker of the House on Tuesday, bidding farewell to a job he has held for the past 30 years as a new leader emerged in Rep. Robert DeLeo to take the reins of the House.
DiMasi, 63, in a speech delivered mostly off-the-cuff to his colleagues in the House of Representatives, said he leaves the Legislature proud of his accomplishments hoping people look back on his legacy and say he "did good" for his constituents and the people of Massachusetts.
He said his decision was based on his conclusion that it was time to look for another job and a new challenge. He said it would have been unfair, given the financial challenges facing the state, to remain on if he could not commit to fulfilling his two-year term as speaker. He was re-elected to the post just weeks ago.
DiMasi's remarks did not address the lingering cloud of ethics investigations surrounding him, insisting that he looks at his departure not as a resignation, but as "retirement" after a 30-year career in the Legislature.
"I like to think when I leave I heeded the words of my father and did my job well, and I am certainly proud of what I accomplished here in the House of Representatives," DiMasi said.
DiMasi spoke about growing up in a cold-water flat in Boston's North End, and the pride he felt in having risen to become the first Italian-American speaker of the House.
He received a standing ovation from the nearly full House chamber, delivering hugs to many of his closest friends.
No sooner had DiMasi said good-bye to his colleagues than DeLeo, Ways and Means chairman, emerged from the chamber to claim the mantle as the next leader of the House.
Berkshire County lawmakers largely backed DeLeo in his bid for the top spot over Majority Leader John Rogers, D-Norwood. Rep. William "Smitty" Pignatelli was the lone exception.
Rep. Denis Guyer, D-Dalton, said on Tuesday morning that he had confidence in DeLeo ability to manage the budget and said it was important for lawmakers to get back to work as soon as possible.
DeLeo is expected to be formally voted in as Speaker by the membership this afternoon, in a vote that could change the debate on Beacon Hill with regard to several major issues, including casino gambling. DeLeo, whose district includes the Wonderland and Suffolk Downs tracks, supports slot machines and said he would be open to a discussion about other forms of expanded gaming.
He is also more socially conservative, initially opposing gay marriage before voting to block a Constitutional amendment that would have made it illegal.
DeLeo called himself "more of a moderate than a conservative" with no true ideology.
"I call them as I see them," he said.
Gov. Deval Patrick said earlier this week he was undecided on the future of his casino plan, the same plan DiMasi thwarted last year.
"There is no new proposal right now. It's neither on or off the table," Patrick said. "It's never been about gambling. I'm interested in the revenue, and the jobs."
DeLeo, D-Winthrop, and Rogers have been engaged in a bruising succession battle that ended on Tuesday when Rogers conceded the vote to DeLeo.
"John Rogers just spoke to me in the chamber prior to the speaker's address and he stated that (today) at the caucus he feels that I will be the winning nominee and he is going to urge all of his supporters to support me tomorrow as the next Speaker of the House," DeLeo told reporters after DiMasi's speech.
Rogers said he realized this morning that he would not be able to muster the votes to top DeLeo, who sent out a list of 92 lawmakers Monday backing his candidacy.
"There must be an orderly transition, not for the politicians but for the people," said Rogers, a conservative Democrat. "A prolonged battle is not in the best interest of the House."
Rogers backers on Monday were calling for a delay in the vote to elect a new Speaker until early February when DiMasi associate Richard Vitale returns to court to face charges of campaign finance law and lobbying violations.
Rep. Colleen Garry, D-Dracut, said it was important to make sure DeLeo would not be caught up in the allegations of influence peddling on Beacon Hill that may have prompted DiMasi's departure.
DeLeo addressed those charges on Tuesday, stating that neither Attorney General Martha Coakley nor any other law-enforcement officials have spoken to him in the course of their investigation into whether Vitale wielded his relationship with DiMasi to win support for legislation on behalf his ticket-broker clients.
Other Rogers backers, however, said they looked forward to working with DeLeo and would vote to support him.
"There's winner and loser in this business and I'm ready to move on," said Rep. David Nangle, D-Lowell. "Bob DeLeo has the knowledge, experience with the budget and know-how to hit the ground running."
Nangle said he hated to watch DiMasi leave after working alongside him for many years and respecting his leadership and the way the speaker provided support to his district.
"I wish him well, and maybe now his golf game will get the attention it needs," Nangle joked.
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The Boston Globe, Op-Ed, YVONNE ABRAHAM
"How low can we go?"
By Yvonne Abraham, Boston Globe Columnist, January 28, 2009
Can't we do better than this?
There was a lot of love in the House chamber yesterday, as Speaker Sal DiMasi gave his emotional farewell speech.
Today, the bereft legislators he left behind anoint his successor.
There's a lot at stake here. DiMasi is the third speaker in a row to resign under an ethical cloud. As a result, the public standing of legislators has sunk to spectacularly low levels.
So do the lawmakers move to rehabilitate their images? Do they seek a white knight to lead them out of the moral morass? Do they look to transcend their abysmal track record with someone who is entirely above reproach?
They do not.
Instead, they line up behind two men who have been awfully close to the toxic sludge oozing on Beacon Hill lately, if not in it.
Robert DeLeo, Winthrop Democrat and House Ways and Means chairman was said by some to have been DiMasi's candidate. The outgoing speaker affectionately placed his hands on his grinning successor's cheeks in the chamber yesterday.
Today, legislators are set to formalize DeLeo's ascension.
He seems like an affable guy. But the ticket scalping legislation at the center of DiMasi's troubles came out of DeLeo's committee. The attorney general says that legislation was pushed by DiMasi buddy Richard Vitale, a man who gave DiMasi an unusual third mortgage on his North End condo. DeLeo's committee also made last-minute alterations to the legislation that Vitale and his clients wanted.
DeLeo was also ways and means chairman when software company Cognos ULC was awarded millions in state contracts. Investigators are also looking into payments by Cognos to DiMasi's buddies concerning those contracts.
Now, DeLeo says he never met with ticket brokers or Vitale on the ticket legislation. He says he wasn't in the speaker's office when the bill was altered the night before it went before the members.
And he has no memory of the legislation that paved the way for the Cognos windfall, he said. In fact, he told the Globe he didn't even know what Cognos was.
OK, so let's assume DeLeo is telling the truth. But if he's blameless, that would make him clueless.
Then there is the man who conceded the battle to DeLeo yesterday afternoon. That would be House majority leader John Rogers.
It is a testament to the tone-deafness of this body that Rogers was ever a serious contender in the first place.
The gentleman from Norwood is in a bit of a pickle himself. It seems some of his campaign funds went to a friend and political consultant who made 22 mortgage payments on a Cape Cod vacation home Rogers owns. Rogers says it was all perfectly legal.
Still, you would think that even a hint of scandal would make him radioactive on Beacon Hill right now.
You would be wrong.
On Monday afternoon, while Rogers and DeLeo were beating the stuffing out of each other in their battle to succeed DiMasi, a far more mature affair was underway in Room A1 at the State House.
In a hearing on ethics reform, Attorney General Martha Coakley talked about the need for more checks on people who seek undue influence on legislators. Secretary of State William Galvin called for an expansion of the definition of lobbying, so the public can better know who is trying to influence public decisions.
The governor urged lawmakers to act on the legislation within weeks.
DeLeo said yesterday that the ethics reform package would be one of his first priorities.
The best way this DiMasi lieutenant can prove himself and mark a clean break with his institution's inglorious recent history is to make good on his word.
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Yvonne Abraham is a Globe columnist. She can be reached at abraham@globe.com.
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The Boston Globe, Op-Ed, SCOT LEHIGH
"Some advice for the next speaker"
By Scot Lehigh, Boston Globe Columnist, January 28, 2009
DEAR Representative DeLeo,
Congratulations. You're about to be elected the next speaker of the Massachusetts House of Representatives.
Or are condolences in order? After all, becoming speaker these days is as risky a means of ascension as marrying Henry VIII once was. The last three House leaders have all left under a cloud.
You'll need to keep your head about you to avoid the mistakes of your predecessors.
For starters, beware the Beacon Hill blindness that so often besets new legislative leaders. Having labored long in relative obscurity, they don't realize their new post is in effect a statewide job - and that it gets a whole different level of media attention.
That was one of Sal DiMasi's mistakes. Accustomed to operating under the radar, he wasn't ready for the scrutiny that comes with being speaker. So prepare yourself. Everyone's watching - and dimes will be dropping.
Then there's what we'll call the Little Match Girl Syndrome. As speaker, you'll often feel like the waif in Hans Christian Andersen's story, peering through the window at a mouth-watering banquet. You'll see the merry gentlemen of the lobby earning megabucks to influence you, while you're beavering away making $96,440.19. It's easy to start thinking, hey, if those guys are living the good life based on their supposed access to me, shouldn't I be doing better?
Thank goodness you don't golf; it's always tempting for a speaker to let others pick up his greens fees. But other perils abound. Like, say, the temptation to fly to some sunny locale, ostensibly to attend a Council of State Governments conference, but actually to party with lobbyists, as Charlie Flaherty did during his speakership. Lord knows, the State Legislative Leaders Foundation - or as it should be called, the Lobby the State Legislative Leaders Foundation - regularly puts on events that provide plausible cover for that sort of travel. But get yourself photographed rubbing shoulders with the special interests that fund that outfit, and you'll find yourself in hot water at home.
Frankly, the wise course is not to pal around with lobbyists at all, but rather to keep them at arm's length.
Understand that the speaker's job is one that takes real work. As former Ways and Means chairman, you likely already know that. Still, DiMasi didn't, despite his long years in the Legislature. He got off to a poor start because he thought Fridays should be golfing holidays.
Don't let your ego go on steroids. Tom Finneran sometimes forgot he was speaker and not king. Lapse into that mindset and you get impatient with criticism or dissent and start thinking the rules don't apply to you. That makes it even easier to stumble, the way Finneran did by lying under oath in a redistricting lawsuit.
Resist the urge to punish your rival's supporters. Yes, your long tussle for the speakership with John Rogers has rubbed feelings raw. But don't consign the talented folks in Rogers's camp to unimportant committees and lousy offices. That's petty - and it will hurt the body you're trying to lead. Talent is already in short enough supply there.
Empower the House. The last time committee chairmen really mattered was under Flaherty. A control freak, Finneran centralized everything - and centralized everything has stayed. Consolidating power is a natural impulse for any speaker, particularly one who has been Ways and Means chief. Resist it. Let your chairmen and chairwomen take real responsibility and initiative. It will make the institution a much better place. And it wouldn't be a bad legacy to be the speaker who restored democracy and debate to the House.
Finally, don't plan on staying forever. Figure out some things you want to do, work hard at them, and then get out.
As you well know, it's hard to cite a successful speaker from the recent ranks.
But on the Senate side, Robert Travaglini was elected president in January of 2003, spent four productive years, and left in March of 2007. He was deemed a big success by everyone. And that's a relatively rare thing for a legislative leader.
In closing, good luck. If past is prologue, you'll need it.
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Scot Lehigh can be reached at lehigh@globe.com.
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The Boston Globe, Op-Ed, JOAN VENNOCHI
"Shortcuts are easy if no one cares"
By Joan Vennochi, Boston Globe Columnist, January 29, 2009
IF VOTERS are more interested in Tom Brady's girlfriend than Sal DiMasi's friends, Beacon Hill stays the same.
The faces change, not the culture.
The campaign for real ethics reform began when longtime Secretary of State William F. Galvin challenged Beacon Hill's thriving network of friends with fiscal benefits.
Galvin pushed and House Speaker Salvatore F. DiMasi fell.
But now, how does this story end? With one man's fall from power and grace, or with tougher laws?
Galvin, a former legislator who served with DiMasi, said he called him to wish him well. "I like Sal. He's a nice guy," he said. "This wasn't about Sal . . . It was about complying with the law."
It's also about understanding what gets done in government, how it gets done, and who benefits from it.
A small circle of DiMasi's friends made big money off their friendship.
Richard Vitale was one of them. He was DiMasi's accountant, former campaign manager, and also, it turns out, his private lender. Vitale gave mortgage money to DiMasi and was also hired by a client to use his influence with DiMasi.
Galvin's office oversees the filing of disclosure reports required by lobbyists and those who retain them. He asked Vitale for information about his work on behalf of a client, the Massachusetts Association of Ticket Brokers. Vitale refused to comply, and his lawyer argued that Galvin lacked the authority to make him.
Thwarted in his efforts, Galvin urged Attorney General Martha Coakley to investigate. The AG did. Vitale was indicted and charged with violations of ethics and campaign finance laws. DiMasi has not been charged with anything. But his relationships with Vitale and others drew scrutiny from law enforcement officials. This week, DiMasi resigned.
Because of the ethics concerns swirling around DiMasi and Beacon Hill, Governor Deval Patrick is also promoting a serious reform package that needs approval from lawmakers. New House Speaker Robert DeLeo is pledging to make ethics reform a priority. But there's reason for skepticism, given the track record on Beacon Hill.
"If it doesn't pass soon, it won't pass," Galvin predicted.
If it doesn't pass, blame it on the combination of Beacon Hill culture and public apathy.
Bonds of political loyalty and personal friendship take precedence over other considerations under the Golden Dome. Lawmakers look the other way when a colleague comes under fire, and prefer to give each other the benefit of the doubt. DiMasi's colleagues illustrated the mindset when they gave him the benefit of the doubt three weeks ago and reelected him as speaker.
Beyond that, the public is also less interested in what is happening on Beacon Hill. That allows Beacon Hill to be less interested in what the public thinks, empowering the influence peddlers.
Lobbyists who filed reports with Galvin's office for the first half of 2008 received a total of $38 million - and that, of course, covers only those who filed. Who knows how many influence peddlers consider themselves as Vitale did - a "strategist" not a lobbyist? The proposed ethics package would eliminate the distinction for reporting purposes.
As Galvin points out, if lobbyists/strategists didn't get results, they wouldn't be paid such grand sums of money.
The special interests they represent have the right to hire people to promote their agenda. But the public has the right to know who is being hired, how much they are being paid, and who their friends are.
Will tolls go up or will there be a gas tax increase? Will racetracks get slots? Will casinos sprout in Massachusetts? Will utilities and healthcare providers continue to benefit from deregulation?
There are lobbyists for every cause. They aren't hired to look out for the public interest. They are hired to persuade a legislator to vote a certain way, to change a certain law, to enrich a certain person or entity.
Galvin said the body of law about ethics and lobbying has one goal: to keep the system corruption-free, by demanding transparency.
But the public has to care, or Beacon Hill won't.
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Joan Vennochi can be reached at vennochi@globe.com.
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"Pressure is on DeLeo"
The Berkshire Eagle, Editorial, Sunday, February 01, 2009
Robert A. DeLeo, a moderate Democrat from Winthrop regarded as low-key and unaffected by delusions of grandeur, has become the latest speaker of the Massachusetts House. In articulating his goals last week, he did not mention ending at three the streak of Speakers to leave the House ensnared by allegations of questionable ethics, but he should have. The House, during these terrible economic times, needs stability more than ever.
Mr. DeLeo, who was chairman of the House Ways and Means Committee, had been eyeing the speakership along with Majority Leader John Rogers for months as former Speaker Salvatore DiMasi confronted troubling ethics issues. The backstage battle was a nasty one, and the victorious Mr. DeLeo must end it without punishing his rival and his supporters as past speakers have done.
We are encouraged that Mr. DeLeo has promised to pursue ethics reform in the wake of Mr. DiMasi's dismissal of a report from a task force appointed by Governor Deval L. Patrick recommending major changes. The definition of lobbying is too vague and penalties for failing to report lobbying activities are too modest. The Ethics Commission lacks teeth and the secretary of state's office lacks investigatory power. We expect Mr. DeLeo to lead the House in supporting the task force's efforts and it must be as high a priority as the economy because if voters have no confidence in the integrity of the Legislature they will have no faith in its economic solutions.
There is plenty the House, and Senate as well, can do to prevent these all too frequent ethics controversies from afflicting Beacon Hill again. Both the House speaker and Senate president should be made subject to term limits. The collection of power and influence over the long term is inherently corrupting. The Legislature should no longer exclude itself from the main precepts of the open meeting law. Beacon Hill's affection for backroom deals invites both ethics abuses and the skepticism and cynicism of voters.
Opening up the Legislature would draw attention to committee chairmen and empower them in the process. The House in particular has been too centralized since the less than benevolent dictatorship of Speaker Thomas Finneran. Empowering committee chairmen, and by extension committee members, is democratic, and diluting power dilutes the potential for corruption and its partner, arrogance.
The presence of an actual two-party system would be beneficial, but this cannot be legislated. The national Republican Party's incompetence, partisanship and extremism have knocked it out of the American mainstream, let alone the Massachusetts mainstream. Bay State Democrats seem intent on handing Republicans an opportunity, but there is no indication that the GOP is in any shape to grasp it.
Little in Mr. DeLeo's go-along-to-get-along history indicates he is the man for the task ahead, but we are prepared to be surprised. An aggressive House, however, could prod him into becoming that leader so desperately needed for the times ahead.
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"Salvatore DiMasi’s computers on lockdown"
By Dave Wedge & Hillary Chabot, Saturday, February 7, 2009, www.bostonherald.com, Local Politics
Computers from the office of former House Speaker Sal DiMasi were removed and secured on the advice of his lawyer in the event information stored on them is needed in ongoing ethics investigations, the Herald has learned.
A source with knowledge of the situation said the several computers were put into a locked storage area at the State House as a precaution. Authorities have subpoenaed documents from DiMasi but have yet to seize any of his computers.
Newly elected Speaker Robert A. DeLeo’s staff has received new computers. DiMasi quit two weeks ago.
A spokesman for DeLeo declined to comment.
DiMasi’s lawyer Thomas Kiley said the former speaker did not take any computers with him when he stepped down last month. Kiley also said he has not received any warrants or subpoenas for DiMasi’s computers and had no knowledge of any law enforcement activity at the speaker’s former office.
The U.S. Attorney’s Office is reportedly probing a $13 million state software contract issued to Cognos during DiMasi’s tenure.
DiMasi has been implicated - although not charged - in a scandal involving passage of legislation to benefit ticket brokers. DiMasi’s longtime friend and former campaign treasurer, Richard Vitale, has been indicted by state Attorney General Martha Coakley on illegal lobbying charges for allegedly pressing lawmakers, including DiMasi, to pass the measure.
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Article URL: www.bostonherald.com/news/politics/view.bg?articleid=1150554
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"DeLeo seeks term limits for speaker: Bid is part of his proposal to curtail power of the office"
By Andrea Estes and Matt Viser, Boston Globe Staff, February 6, 2009
Eight years ago, the Massachusetts House of Representatives voted to lift term limits from the job of speaker in a move that critics decried as a power grab by Speaker Thomas M. Finneran, who was quickly dubbed "speaker for life."
Two speakers, two criminal investigations, and two resignations later, the House has had enough.
In a bid to curtail the power of the office, House Speaker Robert A. DeLeo will ask lawmakers next week to vote on a rule that would return an eight-year limit to a speaker's tenure, the same as the state Senate president.
"My major goal right now is to restore the public's trust in state government," DeLeo said in an interview last night. "We have to show that we're moving in a certain direction, and I think this is something the public will appreciate."
It is the first formal initiative offered by DeLeo after his election last week to succeed Salvatore F. DiMasi, who resigned as state and federal investigators probed large payments by business entities that were made to his friends and associates.
In some ways, it is a symbolic move, because most speakers in recent memory left before eight years. The former speaker lasted a little over four years and had just been elected to his third term when he resigned Jan. 27.
Before DiMasi, Finneran also left under the cloud of an investigation, and he pleaded guilty to a federal obstruction of justice charge in January 2007 for trying to conceal his involvement in House redistricting. Finneran was speaker for about 8 1/2 years.
"Is it a symbolic move? Maybe it is," DeLeo said. "But sometimes symbolic moves can do a great deal in instilling public trust."
DeLeo has called ethics reform his top priority and said he considers term limits to be a part of his overall reform package because it would mandate that the powerful position change hands regularly.
"It's important in a position such as speaker for there to be an opportunity for fresh ideas, and the only way you can ensure that is to put term limits on the speaker," DeLeo said. "Sometimes folks feel they're concerned about political figures getting stale. This shows that there's opportunity for change.
"Whether it's president of the United States or speaker of the House, there's an opportunity to bring fresh ideas."
Overhauling the state's ethics and lobbying laws has been a focus on Beacon Hill. In addition to the troubles in the House, state Senator Dianne Wilkerson resigned her post Nov. 19 after being indicted on federal bribery charges.
Governor Deval Patrick has proposed a package of reforms that is pending in the Legislature. In November, followers of DeLeo's rival for speaker, majority leader John Rogers, offered their own term-limit measure.
"I want to congratulate Speaker DeLeo for putting forth an important reform to bring a level of transparency to the office of speaker," said one of the authors, Representative John Quinn of Dartmouth, whose proposal called for a limit of six years, plus the rest of any unexpired term.
"The speaker's position should not be held by the same individual for extensive periods of time," Quinn said. "When the same person is calling the shots, there are no fresh ideas brought into the House."
Representative Ruth Balser of Newton, one of only 15 Democrats who voted to keep term limits in 2001, yesterday welcomed the possible change.
"The job as speaker is an internal position," she said. "It's more like being a chairperson of a board of directors. It's healthier to have that kind of leadership turn over every few years to keep the institution really vigorous."
Garrett Bradley, a Hingham Democrat, said that changing the policy "would signal a fresh start . . .of doing business."
"A lot of people have been looking for that," he said when told of the proposal. "It's important for this speaker to have his own stamp and throw the shutters open, shed some light, and show the public that he knows there's a distrust out there."
But Representative Daniel Bosley, Democrat of North Adams, said he generally opposes term limits.
"You don't want to stifle people who have good ideas," he said. "It's one of those things that we do that gives people this false sense of security that things will change."
Speakers are typically elected for two-year terms, unless they start with a partial term because of a sudden vacancy.
Limits to the House speakership were first imposed in 1985, when George Keverian ran on a rules reform platform and ended Thomas McGee's 10-year tenure, the longest in Massachusetts history. Many members thought McGee had amassed too much power, and once Keverian took over, he set up the four-term limit.
The eight-year limit on the Senate presidency was adopted in 1993 during William Bulger's presidency, although it didn't take effect until after he left.
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Robert A. DeLeo addressed fellow Representatives after a Democratic caucus elected him Speaker of the Massachusetts House of Representatives. (Globe staff/Bill Greene)
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"To Speaker DeLeo, it's all 'relative'"
boston.com, February 9, 2009
Governor Deval Patrick's speech is peppered with folksy aphorisms, such as "a crisis is a terrible thing to waste," or "life happens while you're making plans."
Former governor Paul Cellucci would take the G's off his words, as did Republican vice presidential nominee Sarah Palin, to sound more like a regular Joe. Mayor Thomas M. Menino talks in a garbled fashion that earned him the nickname "Mumbles."
Newly elected House Speaker Robert A. DeLeo has his own verbal tic: "Relative to . . ."
A state representative for 18 years and former chairman of the House Ways and Means Committee, DeLeo speaks as if he is drafting legislation. He has used the phrase "relative to" in nearly every public appearance since becoming speaker.
"Relative to expanded gambling, you all know that I have been a supporter relative to slots at racetracks, and that we'd like to have some further discussion relative to how to proceed with expanded gambling," he said.
Asked about his priorities as speaker, he said, "The first thing out of the box has to be a discussion relative to ethics reform."
What about the governor's budget proposal? "The biggest issue I had was relative to the stimulus money."
DeLeo's tenure is not even two weeks old, so it's still too early to tell what type of reputation he'll have over the long term - relative to the English language.
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MATT VISER
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"Two top Patrick aides to testify: Pair subpoenaed in Cognos probe"
By Andrea Estes, Boston Globe Staff, February 14, 2009
Two of Governor Deval Patrick's top aides have been subpoenaed to appear before a federal grand jury investigating the award of multimillion-dollar state contracts to the software company Cognos, according to officials briefed on the matter.
Patrick's chief of staff, Doug Rubin, and his deputy chief of staff, David Morales, were summoned this week to testify at a date to be determined, the officials said. Both Morales and Rubin have hired private lawyers, who have been assured that the aides are not targets of the probe, one of the officials said.
The grand jury subpoenas serve as a clear sign that federal authorities continue to pursue the Cognos investigation, despite the January departure of former House speaker Salvatore F. DiMasi. Without citing the ethics controversies that swirled around him, DiMasi resigned as state and federal grand juries probed influence-peddling allegations involving some of his closest associates. Cognos was at the center of some of the most serious allegations.
"The administration has received requests for information from the US attorney's office in connection with a pending investigation," Michael Pineault, Patrick's deputy chief legal counsel, said in a statement provided to the Globe last night.
"It has cooperated from the beginning and will continue to cooperate fully with all such requests, including making members of the administration available to investigators to provide information upon request," the statement said. "To avoid jeopardizing the investigation, the administration will not comment on the subject matter of the investigation or the specific requests that have been received."
As two of Patrick's most senior and trusted advisers, Rubin and Morales have their hands on virtually every aspect of the executive operation, including the governor's relationships with members of the Legislature. As DiMasi's aides repeatedly pointed out as the ethics controversies deepened, the Legislature funded the contracts, but it was the executive branch that awarded them.
Rubin and Morales joined the Patrick administration in spring 2007. Morales was previously one of former Senate president Robert E. Travaglini's top aides, while Rubin was the mastermind behind Patrick's surprising election victory in 2006. Both worked to rehabilitate Patrick's image after a series of missteps during his first months in office and have become his most trusted advisers.
The FBI, the US attorney's office, and the state inspector general have been looking into the circumstances surrounding the awarding of two contracts to Cognos, a Canadian software firm with a Burlington office: a $4.5 million education contract awarded in 2006 and a $13 million technology contract awarded in 2007.
Federal authorities launched their investigation after the Globe reported that friends of DiMasi had received huge payments from Cognos or its independent sales agent, Joseph Lally, as the company was pursuing state business.
Inspector General Gregory Sullivan discovered that DiMasi's law associate, Steven Topazio, was on the Cognos payroll, collecting a $5,000-a-month retainer for two years between 2005 and 2007. DiMasi's former accountant, Richard Vitale, received $600,000 from Lally, the bulk of which came on the same day the state wired Cognos its $13 million payment.
Both contracts received the required funding from the Legislature. But after the Globe reported problems with the bidding process, the administration rescinded the $13 million contract and asked IBM, the new parent company of Cognos, to return the money.
DiMasi's former spokesman, David Guarino, has repeatedly said DiMasi had no say over which company got the contract.
A former state technology official - Bethann Pepoli, who worked in both the administrations of former Governor Mitt Romney and Patrick - has told investigators that DiMasi was pressing the administration in 2006 to buy the exact kind of software that Cognos produced.
In a report issued in March, 2008, Sullivan found that the bidding process for the contract was flawed, with scores incorrectly totaled and administration officials rushing to complete the process before knowing how the software was to be used.
At the time the proposals were being reviewed, Patrick was looking to score some legislative victories and repair strained relations with DiMasi.
The contract was originally scheduled to be awarded in May of 2007, but was delayed after a rival bidder and some state employees complained.
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Andrea Estes can be reached at estes@globe.com.
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The Boston Globe, Op-Ed, JOAN VENNOCHI
"The case against Vitale"
By Joan Vennochi, Boston Globe Columnist, February 15, 2009
BENDING over backwards to be fair can go too far.
It's getting there in the case of Richard Vitale, the friend and former accountant of ex-Speaker of the House Salvatore F. DiMasi.
Details of the charges against Vitale remain secret, because prosecutors were blocked three times from revealing them in court.
"Feel free to keep working on it," Suffolk Superior Court Judge Peter Lauriat said last week, after refusing to let Assistant Attorney General Edward Bedrosian submit a five-page narrative of the charges against Vitale.
"What Judge Lauriat did was unusual, but not outrageous," said David Yas, a lawyer and the publisher/editor of Massachusetts Lawyers Weekly.
Prosecutors were trying to file a "statement of the case" - a generally short narrative of charges and evidence against a defendant. Defense lawyers don't like them, but "they are typically allowed as a matter of course," said Yas.
Vitale's case isn't typical and never was. After all, it revolves around his alleged interactions with a once-powerful friend who is now an ex-speaker.
In December, Attorney General Martha Coakley charged Vitale with secretly lobbying DiMasi and House Speaker Pro Tempore Thomas Petrolati on behalf of a client, the Massachusetts Association of Ticket Brokers. DiMasi, who allegedly changed proposed legislation to suit the ticket brokers' interest, said he didn't know his friend was working for them. But Coakley said Vitale had numerous direct contacts with both lawmakers. Vitale was paid $60,000 for his services.
A lot has happened since then, most notably DiMasi's dramatic decision to step down on Jan. 27.
Vitale didn't show up on his Jan. 5 arraignment date, but his lawyer successfully fought to keep prosecutors from filing an 18-page document outlining alleged violations of lobbying and campaign finance law. Gary Wilson, the clerk magistrate who made the call, told prosecutors, "It's more than I clearly would need for arraignment."
Two days later, DiMasi was overwhelmingly reelected as speaker, despite a cloud of ethical questions.
Wilson was replaced after it turned out he donated annually to DiMasi's campaign fund.
Lauriat, the judge who replaced Wilson, also refused the 18-page document when Vitale was finally arraigned on Jan. 12; on Feb. 9, Lauriat refused the shorter document. In between Vitale's two court appearances, DiMasi resigned. He has not been charged with anything.
A person with no connection to the AG's office and who is familiar with the 18-page document that prosecutors originally tried to file believes its outline of contacts would have made lawmakers think twice about reelecting DiMasi.
Martin Weinberg, the lawyer who represents Vitale, argued in court that the statement prosecutors tried to enter into the record would promote pretrial publicity that would affect his client's right to a fair trial and would also risk the privacy of third parties who were named, but not charged.
"A lot of people would like a lot more information out there," said Weinberg. "Judge Lauriat's decisions were totally appropriate. He weighed the costs, he weighed the benefits, and he made the right decision."
Lauriat also stopped prosecutors from filing lists of documents and other materials they collected during their investigation. A list of documents they filed last month included phone and bank records, e-mails, invoices, and daily calendars. That list showed that DiMasi and his wife were in Vitale's office to sign papers for a third mortage from Vitale on the same day a DiMasi staffer met with the head of the ticket brokers group.
If Vitale's case goes to trial, much of the information now suppressed would likely be admitted.
As usual with the law, there are two sides as to whether it should be part of the record now. "Prosecutors would say 'It's ridiculous. This is a garden-variety filing.' Defense attornies would say, 'This compromises a fair trial,' " said Yas, of Massachusetts Lawyers Weekly.
It looks like Lauriat is "bending over backwards" to be fair to Vitale, said Yas. It also looks like Lauriat might be bending over backwards to be fair to a former politician who ruled Beacon Hill.
Who will bend over backwards to be fair to the public and its right to know what really happened?
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Joan Vennochi can be reached at vennochi@globe.com
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A BOSTON GLOBE EDITORIAL: Short fuse, February 18, 2009
"Speaker DeLeo: New boss, same as the old boss?"
House Speaker Bob DeLeo sent a disappointing message with two of his recent leadership decisions. First, DeLeo opted to keep Representative Thomas Petrolati as House speaker pro tempore. The post, created by ex-speaker Sal DiMasi and awarded to his loyalist, is the legislative equivalent of a sixth wheel. Meanwhile, DeLeo demoted Representative Dan Bosley from the House chairmanship of Economic Development and Emerging Technologies to vice chairman of a low-level panel. [BUREAUCRAT] Bosley is smart, diligent, and well-regarded, but he was late to throw his support to DeLeo in the fight to succeed DiMasi. To bounce [Daniel E] Bosley while retaining Petrolati suggests that for DeLeo, loyalty trumps talent.
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The Phoenix, 2/19/2009 -- "DeLeo's Diverse Team"
In this week's issue of the Boston Phoenix -- out today -- I note that the elevation to Speaker of yet another aging white man, 58-year-old Robert DeLeo, has paradoxically hastened the fall from power of the aging white men in the House. Angelo Scaccia, David Flynn, Dan Bosley, Tom Golden, Jim Fagan, Jim Miceli, Geoff Hall, Stephen Tobin, David Nangle, Joe Wagner... Not a good day for the over-45 white guys.
Moving up were a number of young, black, Hispanic, and/or female reps, including quite a few from right in and around Boston.
I don't want to make it sound like the old white guys' days are done in the House -- they still hold a lot of key positions -- but it's a trend worth noting.
I also look at concerns that environmental advocates have about the new assignments in both chambers -- including the unexpected appointment of East Boston's Anthony Petruccelli to chair the senate environment committee.
Published Feb 19 2009, 07:05 AM by David S. Bernstein
The article is here:
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"Youth infusion: The surprisingly diverse leaders of team DeLeo. Plus, do environmentalists have reason to worry?"
By DAVID S. BERNSTEIN, thephoenix.com, February 19, 2009
As the dust settled from new House Speaker Robert DeLeo's massive re-shuffling of state legislative leadership this past week, insiders and pundits pored over the assignment lists like high priests reading entrails, divining the winners and losers on Beacon Hill — and clues to the style and ideology that might prevail for the new two-year legislative session and beyond.
Largely unnoticed, though, was a trend that mere names on paper failed to convey: the move away from leadership by aging white men.
The state's House of Representatives, as a whole, still looks like a throwback in our new age of government diversity — and the new 58-year-old Speaker is no Barack Obama.
But in DeLeo's restructuring, white, non-Hispanic men older than 45 fell from power in droves. Among those taking their places in leadership roles were a number of ambitious young DeLeo loyalists from Greater Boston. First-time chairs — all under the age of 45 — include Linda Dorcena Forry of Dorchester (Community Development and Small Business), Jeffrey Sánchez of Jamaica Plain (Public Health), and Michael Moran of Brighton (Election Laws). Kathi-Anne Reinstein of Revere, who is 38, is on the leadership team as one of DeLeo's four Division chairs.
In addition to those from the immediate Boston area, the under-45 crowd in the House includes the new majority leader and the new chairs of Ways and Means; Bills in Third Reading; Economic Development and Emerging Technologies; Financial Services; Telecommunication, Utilities, and Energy; and other high-profile committees.
DeLeo, in an interview with the Phoenix after announcing the new assignments, says that he was not specifically looking for young chairs — just people with knowledge on the issues, who were willing to work hard.
One observer suggests this is the "Flaherty model," referring to former Speaker Charlie Flaherty: "Find the people who are serious and smart, put them in positions of power, and give them enough room to either rise or fall."
Sal DiMasi, and Tom Finneran before him, both preferred lower-profile loyalists, who would follow orders from command central.
DeLeo says he wants the new chairs to be leaders in shaping the agenda, and will give them some latitude. "I didn't name them a chair just to be a lapdog of the Speaker," he insists. On the other hand, he says, ideas will have to be vetted through the Speaker and leadership team.
Women are well represented among the leadership positions, despite comprising just a quarter of House Democrats. Close to 60 percent of the female House Democrats have leadership positions, according to Marty Walz of the Back Bay — who was named chair of the Committee on Education.
"I do think it's a benefit" to have women in those positions, says DeLeo. "A lot of these women . . . have been untapped resources, to be very frank with you."
While African-American and Hispanic representatives are still few and far between in the House, DeLeo found spots not only for Forry and Sánchez, but also for Byron Rushing, Cheryl Coakley-Rivera, and Elizabeth Malia.
Walz is also one of several liberal appointments, which sparked interest from those worried the House might take a rightward turn under DeLeo. Another is Alice Wolf, the legendary Cambridge leftie, who at age 75 has received her first chair assignment.
"People don't know how to pin me down [ideologically,]" says DeLeo, who seems to want to be thought of as pragmatic. "I didn't pick people based on ideology. I just want you to work hard."
Of course, the decisions were also based on rewarding those who helped DeLeo rise to Speaker. Some picks, like Walz, suggest that women and young progressives were with DeLeo, at least in part, because they felt he would allow them to thrive. After all, if DeLeo is calling all the shots, it doesn't matter whose faces surround him.
Green concerns
Young Boston-area state senators also made out well, in the relatively limited reshuffling done by State Senate President Therese Murray. Jack Hart of South Boston moved up, and Anthony Petruccelli of East Boston and Anthony Galluccio of Cambridge, each with less than a full term in the chamber, were made chairs of the Environment, Natural Resources, and Agriculture and Higher Education committees, respectively.
Petruccelli's appointment took local environmental advocates by surprise — he has little track record on the issue, and Eastie is not normally thought of as one of the tree-hugging capitals of Massachusetts. And with less than two years in the Senate, Petruccelli doesn't seem to bring much clout to the committee, some say.
Petruccelli realizes that his selection might come as a surprise. "People look at it and scratch their heads out of curiosity," he says.
Adding to environmentalists' worries, DeLeo appointed a new House Environment chair, William Straus of Mattapoiset, who is also largely unknown on the issue.
This is a big shift. The Committee on Environment, Natural Resources, and Agriculture had been co-chaired by State Senator Pam Resor and Representative Frank Smizik, both considered friendly to eco-interests. Resor did not seek re-election in 2008, and Smizik will chair a new House global-warming committee.
Some environmental activists worry that the appointments of Petruccelli and Straus signal that their issues will be moved to the back burner on Beacon Hill, after an extraordinarily productive 2007–'08 session that saw the passage of laws on global warming, ocean management, renewable energy, and green jobs.
It would be easy for the legislature to pat itself on the back and move on. But activists say there's a lot more to be done. "We have a long way to go," says George Bachrach, president of the Environmental League of Massachusetts.
This session's priorities include legislation to protect the state's water supply and to reduce the use of toxins in manufacturing. Bachrach is also hoping to see an increase in spending on environmental issues, which he says are being funded below their 2003 levels. In addition, strong advocates are needed to keep an eye on the implementation of this past session's complex environmental laws.
Petruccelli insists that his appointment is no indication that environment has been moved down the priority list. "To the contrary, I'm excited about the opportunity," he says. "I think this is a hot committee right now."
He also predicts that environmentalists will find him to be a strong ally. "People in East Boston are more interested in environmental issues than people realize," he says, citing as examples Logan Airport, automobile traffic, and beaches.
And Speaker DeLeo says that Straus also has a history of being "extremely interested in the environment."
Susan Reid, of the Conservation Law Foundation in Boston, agrees. "Straus is a pretty smart guy, with a good track record" on pollution issues relating to his home district, she says.
While environmental advocates are cautiously optimistic on Petruccelli and Straus, they are enthusiastic that DeLeo named Smizik chair of the new House Committee on Global Warming. DiMasi chose not to go along with the idea of a new committee this past year, but DeLeo has done so now.
"I told Frank [Smizik] I wanted him to start it up," says DeLeo, "because he has so much experience with the issue." That decision has DeLeo on the Greens' good list — for the moment.
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To read the "Talking Politics" blog, go to thePhoenix.com/talkingpolitics. David S. Bernstein can be reached at dbernstein@phx.com.
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"Winds of change blow through a neighborhood: Four candidates vie to forge North End's new identity"
By John C. Drake, Boston Globe Staff, February 27, 2009
For 30 years, former House speaker Salvatore F. DiMasi represented the North End, not just as its legislative emissary on Beacon Hill, but as proud guardian of its Italian-American traditions.
Now that DiMasi is gone, having resigned last month under an ethical cloud, the diverse crop of four candidates vying to succeed him in a special election highlight how the North End and the rest of the House district has been transformed profoundly since DiMasi first won the seat in 1978.
The collection of brick buildings and narrow streets - still strongly identified by outsiders and tourists as Italian pastry shops and restaurants serving pasta and veal - has become, by the accounts of new and old neighborhood leaders alike, "less Italian."
"When Sal took over, it was a mainly Italian immigrant neighborhood," said Salvatore LaMattina, the city councilor who represents the neighborhood.
But that was before Boston's yuppie invasion, before the Big Dig project removed the forbidding elevated highway that separated the neigh borhood from the rest of the city, before cellphones and laptops.
Today, young professionals and college students surf the Internet from the couches and stools of Boston Common Coffee Co. on Salem Street. Residents stroll the aisles of Oh' Naturale, an organic grocery store on Parmenter Street, just off Hanover Street. On a recent afternoon, these businesses bustled while many of the North End staples, Italian coffee shops and bars, played host to only a few patrons.
Salvatore Tecce, owner of Joe Tecce's Ristorante, a North End landmark and site of countless power lunches in its 60 years in the shadow of the Central Artery, said that when DiMasi first was elected it would have been unimaginable for a non-Italian to win public office from the area.
"But it's a more diversified neighborhood now," he said. "You don't have to be Italian anymore to win the neighborhood."
The North End's dominance over the Third Suffolk House District also will be tested in the special election. New South End condos, combined with redistricting changes, have driven up the population in that portion of the district. Of the more than 31,000 registered voters in the district as of last fall, North Enders made up 28 percent while South End residents made up 35 percent, voting rolls show. The rest were spread out among Chinatown, Beacon Hill, and Roxbury.
The candidates vying to succeed DiMasi in the May 19 primary, which will be followed by the June 16 special election, directly reflect the changes.
Only one, a 30-year-old lifelong North End resident, lives in the neighborhood, and he is only partly of Italian heritage. Two of the candidates - one who is running as an openly gay candidate and one who is the only candidate in the race with an Italian last name - live in the South End, which now contains the lion's share of people in the legislative district. A fourth candidate is a Mexican immigrant who lives on Beacon Hill.
Aaron Michlewitz, DiMasi's former constituent services director and a lifelong North End resident, was the first to jump into the race. He's seen firsthand how the neighborhood has changed since - according to family lore - DiMasi sat at his mother's kitchen table to seek her vote when the former speaker won the seat in 1978.
"The one thing that hasn't changed is the strength of the North End, and that was in its people whether it was 100-percent Italian or what it is today," said Michlewitz, whose mother is part-Italian and whose father is of German, Polish, and Jewish ancestry. "The fact that it's such a close-knit community and you really get to know your neighbor."
Ryan Higginson, a 27-year-old South End resident who works at Suffolk University, said he supported DiMasi because of his work on same-sex marriage issues. Higginson is an organizer with Mayor Thomas M. Menino's ONEin3 initiative, which works to get young adults engaged in civic life.
Susan Passoni is a 47-year-old former research analyst for an investment banking firm. Passoni has run twice for a City Council seat that shares portions of the South End with the House seat, giving her name recognition in that section of the city.
"I embrace the fact that this is such a diverse district, and I think it's going to challenge anyone who is elected into this seat," said Passoni.
Lucy Rivera, a 37-year-old Beacon Hill resident and public defender who was born in Mexico City, called herself a progressive and said she was running to try to bring some relief to struggling low-income residents.
"Sal DiMasi left very big shoes to fill," Rivera said.
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John C. Drake can be reached at jdrake@globe.com.
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Robert A. DeLeo (right) succeeded Salvatore F. DiMasi as speaker, raising pay as he took office. (BILL GREENE/GLOBE STAFF/FILE)
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"On way out, DiMasi left pay raises, promotions: Staff salaries hiked $65,000"
By Andrea Estes, Boston Globe Staff, March 13, 2009
What was a bad week for Salvatore F. DiMasi when he resigned as House speaker turned out to be a great week for a dozen House staff members, who got raises and promotions on DiMasi's way out the door.
On his second to last day in office in January, DiMasi boosted the pay of 10 House employees, including his driver, Daniel Petrigno, whom he made a court officer, one of a cadre of uniformed men and women whose primary responsibility is keeping order in the House.
He gave thousands of dollars in raises to two other court officers and to staff members working for favored committee chairman. The pay increases ranged from 4 to 66 percent and cost $65,000.
That tally increased when his successor, Representative Robert A. DeLeo, assumed office the same week and immediately gave his entire staff raises, some as high as 56 percent. In the following weeks, he hiked the pay of several staff members working for his new leadership team.
It is not unprecedented for a new speaker to give raises to his staff members, to reflect their new responsibilities, nor is it routine. But some questioned whether it was appropriate for an outgoing speaker to be so generous, especially given the ethical cloud hanging over DiMasi when he left, or for any raises to be given at all, in such grim economic times.
"Now is clearly not the time for us in government to be seeking pay raises, " said Representative Karyn Polito, Republican of Shrewsbury. "I'm hearing daily from individuals and families who are suffering more than ever. It is incumbent upon government officials to demonstrate a connection to our constituents. We may need to consider salary freezes, hiring freezes, and furloughs as a way to balance our budget during this crisis."
DeLeo spokesman Seth Gitell defended the raises for aides of the new speaker and the new leadership team, saying in an e-mailed statement that they "reflect entirely new jobs and expanded responsibilities." He said the total amount paid to staff in the speaker's office and House Ways and Means Committee is less than that of their predecessors.
Combined with increases DiMasi gave out in spurts over the past year, the two House speakers bumped staff pay more than $900,000 over the past 11 months as the national economy began a precipitous decline and the state confronted an ever greater deficit.
DiMasi could not be reached for comment.
Many of the increases in staff salaries were made as lawmakers themselves were receiving an automatic 5 percent pay raise in January that added more than $500,000 to the House payroll. Just 17 out of 160 representatives, including Polito, declined the raises, citing the weak economy and the financial struggles of their constituents.
DeLeo was not among those 17.
In his last days in office, DiMasi gave raises to aides of Representative Joseph F. Wagner, Democrat of Chicopee, and Representative John J. Binienda, Democrat of Worcester, according to payroll records. They are chairmen of the transportation and revenue committees. He also increased the hours and pay of an aide to Representative Richard J.Ross, Republican of Wrentham, whose last-minute switch on Governor Deval Patrick's casino plan helped ensure its defeat in committee last year. DiMasi was the proposal's most ardent foe.
He also found a job for defeated Gloucester representative Anthony J. Verga, who started working as a $40,000-a-year senior administrative aide in the House clerk's office on Jan. 7. DiMasi attempted to add a carpenter to the House payroll, according to one legislative official, but was thwarted by DeLeo, who halted the hiring before the man's paperwork was complete.
DiMasi gave a promotion and 3.7 percent raise to his driver, Petrigno, making him a $38,500-a-year court officer.
The House speaker has absolute authority to hire, promote, or grant pay raises. In 2008 DiMasi used that power to reward some and ignore others, handing out more than $700,000 in raises and promotions. In July, DiMasi gave his 19-member staff 6 percent raises. Deputy communications director Victoria Bonney, whose duties expanded last summer, saw her pay jump 35 percent. DiMasi also gave 6 percent raises to the 24 employees of the House human resources department, the House clerk's office, and House counsel's office.
Those employees had last received raises in 2007.
In September, DiMasi gave 3 percent raises to all other lawmakers' staff members and the 17 House court officers. For about two dozen aides, that bump came on top of raises of varying amounts they received earlier in the year, according to payroll records.
In the last few months of his speakership, DiMasi gave out another batch of raises, mostly to aides of his committee chairmen. Conspicuously missing from the list are aides to legislators backing Representative John H. Rogers, then the majority leader, who was battling DeLeo to succeed DiMasi. DeLeo was thought to be DiMasi's choice.
Binienda and Wagner said their ties to DiMasi had nothing to do with the promotions or raises their aides received in DiMasi's final days in office.
Binienda, the former Revenue Committee chairman, said he lost an aide last year and was not permitted to replace him. Because other staff members had to take up the slack, they received increases, he said.
"The hardest thing about being a chairman is keeping your staff happy," said Binienda, who now chairs the Rules Committee.
Wagner said the small raises his aides received were more than offset by cuts he made in other parts of his office budget.
"I'm not sure how many legislators offered to cut staff in response to things happening here economically," Wagner said. "I made that offer. In view of all I did on that front, these [pay raises] were very reasonable."
But Representative Daniel E. Bosley, Democrat of North Adams and one of DiMasi's closest allies, said he specifically did not ask for staff raises, though his employees deserved them.
"We're in fiscal crisis," said Bosley, who chaired the Joint Committee on Economic Development and Emerging Technologies. "We were down two people and didn't ask for permission to hire because we were in a fiscal crisis. My kids were working 12 or 14 hours a day. I would have loved to have given them something, but I chose not to do that."
Since his resignation, DiMasi too has been collecting checks compliments of the Commonwealth. Last month he started receiving a state pension of just under $60,000 a year, according to the State Retirement Board. The benefit is based on 33 years and three months of service. He received credit for a full year of service in 2009, even though he resigned in January.
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http://people.boston.com/articles/cityandregion/?p=articlecomments&activityId=8206851787602067841
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"Beacon Hill bubble boys"
The Berkshire Eagle, Editorial, Saturday, March 14, 2009
In the weeks ahead, the Legislature will be asking residents to accept some painful budget cuts and/or tax increases. It will be difficult to sell these actions given the current economic climate, but what makes it even more difficult is the irresponsible behavior of leadership, which doesn't appear to know or care what the people of the state are confronting these days.
On his next to last day in office before abandoning ship in the face of ethics allegations, former House Speaker Salvatore DiMasi boosted the pay of 10 House employees, including his driver, who became a court officer, at a cost of $65,000. The Boston Globe also reported that Mr. DiMasi's successor, Robert DeLeo, gave raises to his entire staff, some as high as 56 percent, the same week, and went on to boost the pay of several staff members on his new leadership team. On top of the fat salaries earned by Governor Patrick's many communications staffers, as reported recently by The Eagle, it is apparent that when it comes to salaries, there are some on Beacon Hill operating as if they are enclosed in a bubble floating through a major economic crisis.
A spokesman for Mr. DeLeo asserted that the salary hikes reflect "new jobs and expanded responsibilities," but the speaker may not be aware that cutbacks and layoffs in the private sector are requiring workers to assume new jobs and expanded responsibilities without additional compensation. The reward for these employees is they get to keep their jobs, which they are glad to have, additional stress aside.
Mr. DiMasi also handed out raises to aides of his committee chairmen, which Representative Daniel Bosley of North Adams did not accept, even though he believed his aides deserved them. Mr. Bosley, who has since lost his chairmanship, told The Globe that he had not sought to fill two vacancies because of the fiscal crisis, and his remaining staffers were working long hours. In declining the raises, it is apparent Mr. Bosley knows that many people in his district are also working long hours for no additional pay. That knowledge apparently escaped consecutive speakers.
Shrewsbury Democrat Karyn Polito told the newspaper the House may need to institute salary and hiring freezes and furloughs to help balance the budget and demonstrate "a connection to our constituents." Without that connection, Beacon Hill can't expect voters to accept realities that elude House leadership.
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www.topix.net/forum/source/berkshire-eagle/TSF1CO4OOE4RQOOFA
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"Boston celebrates St. Patrick's Day" - 2009
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House Speaker Robert DeLeo showed off his green tie as he spoke. The St. Patrick's Day Breakfast, legendary for its fun and its ability to make light of nearly any hot button issue, dates back to the 1950s. (Bizuayehu Tesfaye/AP Photo)
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www.boston.com/news/local/massachusetts/articles/2009/03/15/St_Patricks_Day_Boston?pg=8
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"Former DiMasi aides still on House payroll: Employees given office, but duties are unclear"
By Andrea Estes, Boston Globe Staff, March 19, 2009
Eleven staff members of former House speaker Salvatore F. DiMasi have continued collecting state paychecks and health benefits even though DiMasi resigned under a cloud in January and they have no clearly defined responsibilities at the State House, state officials said.
The arrangement demonstrates how staff members of top lawmakers are sometimes treated more favorably than other state workers whose jobs are eliminated.
Several staff members for House Speaker Thomas M. Finneran, who also resigned amid allegations of ethics violations, were kept on the state payroll for up to four months after he stepped down as speaker, according to House personnel records.
Taxpayers have been paying more than $14,000 a week to keep DiMasi's former aides on the state payroll. The staff members include DiMasi's former chief of staff, deputy chief of staff, policy aides, his former press spokesman, and lower-level administrative secretaries.
DiMasi's successor, House Speaker Robert A. DeLeo, has given the staff members a fourth-floor office. DeLeo's spokesman, Seth Gitell, could not say whether they show up on a daily basis or what they do when they are there.
One of the staff members, who would only comment on the condition that she not be named, said she arrives every day and "does whatever is asked of her."
Another, also speaking on condition of anonymity, said the aides are helping DeLeo with the transition, but Gitell would not verify whether they had any such duties. Two of the staff members are community liaisons who will continue to perform their regular duties until a new representative is elected to succeed DiMasi in June, Gitell said.
"Some staff members of the former speaker are here during a traditional period of transition," Gitell said in an e-mailed statement. "Others remain to provide constituent services for the people of the Third Suffolk District."
He said the payments to the former staff members "will come to an end," but he would not give a specific date.
Yesterday the door to Room 436 was locked at 4 p.m. after two of the staff members, former communications director David Guarino and former deputy communications director Victoria Bonney, left the office. This week Guarino and Bonney announced they have taken new jobs. They will stop collecting checks from the state this week. They declined to comment, referring questions to Gitell.
Although aides of legislators who lose or vacate their seats often stay behind until the end of the term to work with constituents, the concept of paying people after their jobs are eliminated is virtually unheard of in the rest of state government. A spokesman for Governor Deval Patrick said it has never kept anyone on the payroll after jobs were eliminated.
Gitell said aides to other former House speakers remained on the payroll long after their bosses departed, providing termination letters for a handful of aides to Finneran. The letters indicated the staff members kept getting paid until January 2005, four months after their boss resigned as speaker in September of 2004. Finneran, whose former spokesman could not be reached for comment, did not resign his House seat until Dec. 31, 2004.
The state is paying the former DiMasi staff members when thousands of other Massachusetts residents have lost their jobs because of the national recession and skyrocketing unemployment rates.
"Nobody is doing anything to prolong the relationship with the building," said one of the former DiMasi aides. "We are available to do whatever they want us to do. We would still be there, except for the political circumstances. We're hard-working people, like everyone else. All we want is to be able to move on and not be in the news."
Several of the aides did not return phone calls seeking comment. Others had unlisted phone numbers and could not be reached for comment.
Other of DiMasi's former aides are already in new jobs, working either for DeLeo or the House Ways and Means Committee, including two executive secretaries, a researcher, a receptionist, and a policy adviser. One former DiMasi adviser, Christie Hager, who was chief counsel on healthcare, has taken a job at Harvard, Gitell said.
Aaron Michlewitz, who served as DiMasi's constituent services director for 4 1/2 years, quit in February and is running for DiMasi's North End seat.
"I chose to resign because I didn't feel it was appropriate for me to be running for the seat while on the state's payroll," said Michlewitz, one of several candidates in the June special election. He would not comment on the decision by other staff members to remain on the state payroll, saying, "I can only speak for myself."
Republicans and conservative watchdogs yesterday said paying former staff members who have no clear duties sends the wrong message to beleaguered taxpayers facing possible tax hikes, including a proposal to increase the gas tax, and service cuts.
"There should be no talk of tax increases until we eliminate obvious inefficiencies such as we are witnessing here," said David Tuerck, executive director of the Beacon Hill Institute. "This is just one of many instances in which the state is wasting money. It's our position that the state needs to address waste and excessive costs before there is any discussion of a tax increase."
Representative Lewis Evangelidis, a Republican from Holden, said lawmakers seem detached from real-world concerns of their constituents.
"People outside the building are really hurting right now,' he said. "I've never seen people so insecure about their situation and the country as a whole. When they see . . . these types of abuses, it frustrates people. They say, 'We're tightening our belts and saving every penny, and look at the way they're acting up there on Beacon Hill.' We're not living up to the standard that everyone else is."
But Representative Daniel Bosley, Democrat of North Adams, said that keeping a speaker's staff in place during a transition period is a longstanding tradition that makes sense.
"Sal kept Finneran's staff on, and Finneran kept [former speaker Charles] F. Flaherty's staff," said Bosley, a staunch DiMasi ally. "When there is a transition period, if you keep the staff on for a time certain, it gives you an opportunity to tap into the institutional knowledge of the group. If you were coming into a company, you would do the same thing. You would keep valuable staff on."
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Andrea Estes can be reached at estes@globe.com.
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"Who's still getting paid"
boston.com, March 19, 2009
Eleven staff members of former House speaker Salvatore F. DiMasi have continued receiving state paychecks, even though they no longer have clearly defined job responsibilities following DiMasi's resignation on Jan. 27. Here is a list of the staff members with their annual rate of pay.
Jason Aluia, deputy chief of staff: $79,500
Victoria Bonney, deputy communications director: $50,000
Maryann Calia, chief of staff: $110,558
Diane Dockery, executive secretary: $58,300
David Guarino, communications director: $97,538
Deborah Ho, community liaison: $39,750
Judy Laster, chief counsel: $89,888
Trecia Puopolo, community liaison: $37,100
Kathleen Quinn, special assistant: $68,900
Daniel Toscano, chief legal counsel: $103,350
Louis Cataldo, part-time aide: $20,092
SOURCE: House speaker's office.
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"DiMasi adviser trades testimony for immunity: Strikes deal to cooperate in federal corruption probe"
By Andrea Estes, Boston Globe Staff, April 1, 2009
A longtime aide and political operative who served as chief counsel in Salvatore F. DiMasi's State House office is cooperating under a grant of immunity with federal authorities investigating the former House speaker and several friends and associates, according to two people briefed on the development.
The immunity agreement means that the aide, lawyer Daniel Toscano, must answer questions, without fear of prosecution, before a grand jury about what he knew of alleged efforts by Richard Vitale, lobbyist Richard McDonough, and others to advance their business interests with the help of the speaker's office.
Toscano's cooperati