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August 16. 2012 1:07AM
Use of lobbyist to kill bill seen as threat to state liquor monopoly alarms lawmakers
CONCORD - Several lawmakers, lobbyists and state employees believe the state Liquor Commission illegally used a lobbyist to fight a bill that would have allowed liquor sales in grocery and convenience stores.
State agencies are prohibited by law from paying lobbyists to influence lawmakers. A recent preliminary investigation by the Attorney General's Office cleared the commission of any wrongdoing, saying Beer Distributors of NH lobbyist Clark Corson did not lobby for the commission.
Two liquor commissioners claim — and the Attorney General's Office agreed — that Corson was acting on his own or lobbying for the beer wholesalers in working to defeat House Bill 1251 this session. They claim Corson was hired by the commission's advertising firm Rumbletree to do an independent study of the feasibility of selling beer in state liquor stores. But others, including the commission's chief enforcement officer, say the study was a cover for Corson's lobbying efforts to defeat the bill.
“In no uncertain terms Clark (Corson) was lobbying for the Liquor Commission,” said House Commerce Committee Chairmen John Hunt, R-Rindge. “He was carrying the flag saying 'This is a bad idea.'”
The committee held public hearings on the bill and eventually recommended the issue be studied.
Right-to-know request
Information released by the commission through a right-to-know request includes two reports filed by Liquor Commission Enforcement Bureau Chief Eddie Edwards detailing his concern about Corson's efforts to defeat HB 1251.
In that report, Edwards said he told the Liquor Commissioners on at least three occasions of concerns raised by “at least two individuals and I believe one legislator” about Corson's involvement on behalf of the commission at hearings on the bill.
“The commissioners' comments ranged from complete denial of knowledge of any involvement between the commission and Corson at any level to a belief he was hired to lobby,” Edwards wrote in a report to the attorney general.
Edwards also notes he was advised that Corson was working illegally by individuals “wishing to remain anonymous for fear of retaliation.”
Corson denies he was lobbying for the Liquor Commission; he said he was representing the beer wholesalers in trying to defeat the bill.
“The beverage distributors of New Hampshire along with five or six other groups were vehemently opposed to HB 1251. The bill concerned me and my client a great deal,” Corson said Wednesday.
He said he and representatives of the other groups — which included alcohol and substance abuse prevention groups, law enforcement, various wine and spirits groups and the liquor commissioners — did attend four meetings at the commission's headquarters on Storrs Street to discuss strategy on how to defeat the bill.
He said he did not take a leadership position in the group, but noted with his personality “I'm going to weigh in and say what I feel.”
The right-to-know request information contains several emails from Corson to the commission concerning the strategy meetings, including an email to the representatives saying it was sent at Chairman Joseph Mollica's request setting the meeting time and date.
The two liquor commissioners, Mollica and Michael Milligan, could not be reached for comment, although Milligan sent the Attorney General's Office a four-page letter describing the incidents with Edwards and his concerns about Corson working as a lobbyist for the commission.
'Bootleg transactions'
House Speaker William O'Brien, R-Mont Vernon, and District 5 Executive Councilor David Wheeler, R-Milford, have sent additional right-to-know requests to the commission seeking information about what have been called “bootleg transactions,” the use of warehouse space by state spirit manufacturers and various other issues.
Wheeler said the attorney general's report generated more questions, as did the information released at O'Brien's request.
O'Brien said the information he has received shows an agency in non-compliance with its own regulations and an apparent effort to hide hiring a person for lobbying through a contract for a study.
“We're look at an agency that never should have been taken out of legislative and Governor and Council oversight,” O'Brien said, referring to changes made in 2009 that allowed the Liquor Commission to operate more like a business, without the legislative and Governor and Council oversight required of other state agencies.
He said there should be an independent investigation of the Liquor Commission and its involvement with Corson. O'Brien noted Deputy Attorney General Ann Rice never talked to former commissioner Mark Bodi or Hunt, who was chair of the committee holding hearings on HB 1251.
O'Brien suggested the attorney general's report was rushed through so it could be dated before his right-to-know request was sent to him.
“I'm discouraged to see a branch of New Hampshire government conduct itself in this way, the Liquor Commission and the Attorney General's Office,” O'Brien said.
Corson's lobbying
In Milligan's letter to the attorney general, he said Edwards first raised the issue of Corson's lobbying after an April 17 meeting.
“I responded to the chief that I was aware Mr. Corson was working on a product survey concerning the possibility of stocking beer in our stores and his services, as I understand it, were secured through our contracted advertising agency. I was also as was the chief, involved with Mr. Corson in an eclectic group that stood together in opposition to House Bill 1251 pressing the expanded distribution of spirits into grocery stores,” Milligan writes.
He states he and Mollica met with Edwards the next day and explained the beer study and Corson's involvement in the group opposing HB 1251.
“The only person I'm aware of to have voiced concerns is Chief Edwards. At no time has anyone at the NSLC, from the advertising folks, our CFO and his staff along with my two colleague commissioners, pressed any concerns to me about the beer study process or the individual the advertising agency hired (Mr. Corson). As listed in appendix 1, the group members met several times and made appearances in front of senatorial and legislative committees. No one brought any concerns to me or anyone else at the NHSLC, that I am aware of, other than Chief Edwards,” Milligan wrote.
In Edwards report, he notes he was approached by a lobbyist in February inquiring if Corson was working for the commission.
“I met with Mollica in his office and informed him that I was told Corson was working for the commission. Mollica asked me what would be the problem with Corson working for the commission. I informed him that Corson is a lobbyist and paying him to lobby would be illegal.”
In his report to the attorney general, Edwards writes: “I struggled with my decision on how to handle this situation. I vacillated between reporting this incident directly to officials outside the commission and reporting the incident to the Attorney General's Office. I was apprehensive about reporting information about the commission to the Attorney General's Office because of prior experiences I had had in doing this.”
Edwards met with Attorney General Michael Delaney April 27 to give him an overview of the situation.
“He informed me he would need something in writing to move forward. I acknowledged his request and agreed to provide a written complaint,” Edwards writes and notes he made the written complaint May 7.
Garry Rayno may be reached at grayno@unionleader.com.grayno@unionleader.com
State agencies are prohibited by law from paying lobbyists to influence lawmakers. A recent preliminary investigation by the Attorney General's Office cleared the commission of any wrongdoing, saying Beer Distributors of NH lobbyist Clark Corson did not lobby for the commission.
Two liquor commissioners claim — and the Attorney General's Office agreed — that Corson was acting on his own or lobbying for the beer wholesalers in working to defeat House Bill 1251 this session. They claim Corson was hired by the commission's advertising firm Rumbletree to do an independent study of the feasibility of selling beer in state liquor stores. But others, including the commission's chief enforcement officer, say the study was a cover for Corson's lobbying efforts to defeat the bill.
“In no uncertain terms Clark (Corson) was lobbying for the Liquor Commission,” said House Commerce Committee Chairmen John Hunt, R-Rindge. “He was carrying the flag saying 'This is a bad idea.'”
The committee held public hearings on the bill and eventually recommended the issue be studied.
Right-to-know request
Information released by the commission through a right-to-know request includes two reports filed by Liquor Commission Enforcement Bureau Chief Eddie Edwards detailing his concern about Corson's efforts to defeat HB 1251.
In that report, Edwards said he told the Liquor Commissioners on at least three occasions of concerns raised by “at least two individuals and I believe one legislator” about Corson's involvement on behalf of the commission at hearings on the bill.
“The commissioners' comments ranged from complete denial of knowledge of any involvement between the commission and Corson at any level to a belief he was hired to lobby,” Edwards wrote in a report to the attorney general.
Edwards also notes he was advised that Corson was working illegally by individuals “wishing to remain anonymous for fear of retaliation.”
Corson denies he was lobbying for the Liquor Commission; he said he was representing the beer wholesalers in trying to defeat the bill.
“The beverage distributors of New Hampshire along with five or six other groups were vehemently opposed to HB 1251. The bill concerned me and my client a great deal,” Corson said Wednesday.
He said he and representatives of the other groups — which included alcohol and substance abuse prevention groups, law enforcement, various wine and spirits groups and the liquor commissioners — did attend four meetings at the commission's headquarters on Storrs Street to discuss strategy on how to defeat the bill.
He said he did not take a leadership position in the group, but noted with his personality “I'm going to weigh in and say what I feel.”
The right-to-know request information contains several emails from Corson to the commission concerning the strategy meetings, including an email to the representatives saying it was sent at Chairman Joseph Mollica's request setting the meeting time and date.
The two liquor commissioners, Mollica and Michael Milligan, could not be reached for comment, although Milligan sent the Attorney General's Office a four-page letter describing the incidents with Edwards and his concerns about Corson working as a lobbyist for the commission.
'Bootleg transactions'
House Speaker William O'Brien, R-Mont Vernon, and District 5 Executive Councilor David Wheeler, R-Milford, have sent additional right-to-know requests to the commission seeking information about what have been called “bootleg transactions,” the use of warehouse space by state spirit manufacturers and various other issues.
Wheeler said the attorney general's report generated more questions, as did the information released at O'Brien's request.
O'Brien said the information he has received shows an agency in non-compliance with its own regulations and an apparent effort to hide hiring a person for lobbying through a contract for a study.
“We're look at an agency that never should have been taken out of legislative and Governor and Council oversight,” O'Brien said, referring to changes made in 2009 that allowed the Liquor Commission to operate more like a business, without the legislative and Governor and Council oversight required of other state agencies.
He said there should be an independent investigation of the Liquor Commission and its involvement with Corson. O'Brien noted Deputy Attorney General Ann Rice never talked to former commissioner Mark Bodi or Hunt, who was chair of the committee holding hearings on HB 1251.
O'Brien suggested the attorney general's report was rushed through so it could be dated before his right-to-know request was sent to him.
“I'm discouraged to see a branch of New Hampshire government conduct itself in this way, the Liquor Commission and the Attorney General's Office,” O'Brien said.
Corson's lobbying
In Milligan's letter to the attorney general, he said Edwards first raised the issue of Corson's lobbying after an April 17 meeting.
“I responded to the chief that I was aware Mr. Corson was working on a product survey concerning the possibility of stocking beer in our stores and his services, as I understand it, were secured through our contracted advertising agency. I was also as was the chief, involved with Mr. Corson in an eclectic group that stood together in opposition to House Bill 1251 pressing the expanded distribution of spirits into grocery stores,” Milligan writes.
He states he and Mollica met with Edwards the next day and explained the beer study and Corson's involvement in the group opposing HB 1251.
“The only person I'm aware of to have voiced concerns is Chief Edwards. At no time has anyone at the NSLC, from the advertising folks, our CFO and his staff along with my two colleague commissioners, pressed any concerns to me about the beer study process or the individual the advertising agency hired (Mr. Corson). As listed in appendix 1, the group members met several times and made appearances in front of senatorial and legislative committees. No one brought any concerns to me or anyone else at the NHSLC, that I am aware of, other than Chief Edwards,” Milligan wrote.
In Edwards report, he notes he was approached by a lobbyist in February inquiring if Corson was working for the commission.
“I met with Mollica in his office and informed him that I was told Corson was working for the commission. Mollica asked me what would be the problem with Corson working for the commission. I informed him that Corson is a lobbyist and paying him to lobby would be illegal.”
In his report to the attorney general, Edwards writes: “I struggled with my decision on how to handle this situation. I vacillated between reporting this incident directly to officials outside the commission and reporting the incident to the Attorney General's Office. I was apprehensive about reporting information about the commission to the Attorney General's Office because of prior experiences I had had in doing this.”
Edwards met with Attorney General Michael Delaney April 27 to give him an overview of the situation.
“He informed me he would need something in writing to move forward. I acknowledged his request and agreed to provide a written complaint,” Edwards writes and notes he made the written complaint May 7.
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Garry Rayno may be reached at grayno@unionleader.com.grayno@unionleader.com