Chafee's appointee spearheaded loan law

PROVIDENCE, R.I. (WPRI) While Governor Lincoln Chafee has ‘encouraged’ resignations from Economic Development Corporation board members who voted for the 38 Studios loan guarantee, one of his key appointees co-sponsored the bill that made the loan guarantee possible.

Steven Costantino is now the secretary of the Office of Health and Human Services but in 2010, he was one of three co-sponsors of House Bill 8158. Costantino's office referred Target 12 to the governor’s office when asked if he knew about the 38 Studios proposal before the law was passed.

Costantino was the chairman of the House Finance Committee when the measure was introduced. Governor Chafee told Target 12 he has talked with Costantino about his roll in the legislation.

“Of course,” Chafee said.  “And we will continue to talk and there's going to be a broad look over this whole decision making process.”

“We put a whole bunch of performance standards in there,” Costantino said on the floor of House when he introduced the law as part of the supplemental budget. “So, I'd like to move article seven.”

• PDF: EDC fact sheet on 38 Studios
• Timeline: How the 38 Studios deal unfolded

Several lawmakers, including one of the other two co-sponsors, tell Target 12 there was no explanation why the measure went from allowing $50 million in loan guarantees to $125 million. The $75 million difference matches the amount of the loan guarantee given to Curt Schilling’s 38 Studios, after the bill was passed in May of 2010.

After Costantino’s pitch, Rep. Joseph Trillo, (D) Warwick, asked why the bill was being rushed.

“Why are we slipping this into the supplemental budget?” Trillo said in April of 2010.

That bill passed the House but stalled in the Senate. It eventually came back as a separate bill and passed both chambers before Governor Don Carcieri signed it into law.

Co-sponsor, Rep. Jon Brien, (D) Woonsocket, told Target 12 he did not know about the 38 Studios deal when his name was added as one of the sponsors.

“I had no idea and looking back, I feel as if I was used,” Brien said.

Co-sponsor, Rep. Helio Melo, (D) East Providence, who was the third sponsor and is now the chairman of the House Finance Committee did not return our email or phone call.

Chafee said he wants to know if anyone in the General Assembly knew about the Schilling deal before the legislation was passed.

“That's going to be part of the look back. Why weren't legislators sharing with the rank and file members, the plan.”

Governor Chafee did not offer a time frame for how long what he called ‘the look back' will take.