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And he is now at the center of liquor wholesalers' efforts to block a bill allowing local wineries to sell directly to restaurants and retailers. He testified March 7 against the bill in a Senate committee hearing, has met with and written to key legislators, and has represented the wholesalers' interests in a task force meeting of legislators, winemakers and others.This time, Mandel has not registered, asserting in an interview that he is acting as a lawyer, not a lobbyist, for the Licensed Beverage Distributors of Maryland and that he is paid for representing the industry in that capacity.
"I represent a client I have represented for years," he said. "Nothing that I'm doing is in violation of anything. I am an attorney for the association. Whenever the association has a problem, I represent them, give them my opinion. I can give other people my opinion. I'm not getting paid any extra for it."
State law defines a lobbyist as someone who "for the purpose of influencing any legislative action" communicates "with an official or employee of the Legislative Branch or Executive Branch in the presence of that official or employee."
Anyone who "knowingly and willfully" violates the statute can be found guilty of a misdemeanor, jailed for up to a year and fined $10,000. In addition, a public official or employee found by the state Ethics Commission or a court to have violated the lobbying code can be removed from office or subjected to other disciplinary action.
D. Bruce Poole, a former delegate and former ethics commission member, said that, in general, the law requires anyone who receives compensation to influence legislation to register as a lobbyist. Whether a person also serves as an attorney for a group that is advocating a position on a bill doesn't matter, he said.
"The essence of it is, are you attempting to influence the outcome of the legislation or legislative action?" Poole said. "Even if you come down to speak or explain something, if it's affecting the legislative action and you were, in fact, being compensated, usually there is a requirement of registration."
The lobbying law requires anyone who earns at least $2,500 cumulatively from all employers for lobbying to register with the Ethics Commission within five days of beginning his efforts, said Suzanne S. Fox, the executive director of the commission.
Under scrutiny
Mandel is the second member of the Board of Regents to come under scrutiny for his dealings with legislators. Earlier this year, news reports mentioned meetings attended by board Chairman David H. Nevins, the senior vice president and chief marketing officer of Constellation Energy Group, that lawmakers and watchdog groups say amounted to a violation of the lobbying ban. The matter is being reviewed by the state Ethics Commission and a regents subcommittee.
Nevins attended meetings with legislative leaders and top executives from Constellation and FPL Group Inc., the Florida utility that is buying BGE's parent company. Discussions of the merger are a major focus of the current legislative session, but Nevins has said he does not think his involvement constituted lobbying.
Mandel, who was appointed to the Board of Regents in 2003, earned more than $26,000 in 2003 and 2004 as a registered lobbyist representing a group he identified as the Independent Insurance Agents Association. Previously, he registered as a liquor industry lobbyist in 2001 and 2002 when other legislation regulating wine sales was under consideration.
A 1999 law regulating regents' conduct carries a reprimand for lobbying, which it broadly defines: "A member of the Board of Regents shall not, for compensation, assist or represent any party in any matter before the General Assembly."
It was passed after a lobbying scandal involving the then-chairman of the Board of Regents, Lance W. Billingsley, who traded on his connections with Gov. Parris N. Glendening to build a lobbying practice.
Mandel, 85, became governor in 1969 after Spiro T. Agnew became vice president. Mandel was then elected to two terms but temporarily stepped down as governor in 1977 amid charges of mail fraud and racketeering that resulted in his conviction in federal court. He returned briefly to finish his term in 1979 after an appeals court panel vacated his conviction. Another appeals court panel subsequently reinstated it. He served 19 months of a three-year prison sentence until his sentence was commuted by President Ronald Reagan in late 1981. His conviction was overturned for good in 1988, and he was readmitted to the practice of law the next year.
In 2002, he once again entered the public arena as an adviser and ally of Gov. Robert L. Ehrlich Jr., who appointed him in 2003 to the Board of Regents, one of the most prestigious volunteer posts in state government.
He became involved in this year's General Assembly session after owners of small wineries pushed legislation that would allow them to sell directly to restaurants and retailers instead of going through a wholesaler in Maryland's long-standing, three-tier system of regulation.
Maryland wineries have traditionally been able to bypass wholesalers. But this year, Comptroller William Donald Schaefer's office decided that the exemption could no longer be allowed, based on a recent U.S. Supreme Court ruling. Most local winemakers say their volume is so low that they could never make a profit if they had to go through a wholesaler.
Winemakers, who requested anonymity for fear of jeopardizing their position in negotiations with wholesalers and legislators, said Mandel has identified himself as the key negotiator for the liquor wholesalers. They said he has told them that their legislation will fail and that they would have to allow him to broker a private compromise.
The dispute has led to hours-long hearings in the House of Delegates and state Senate, and has drawn the attention of Ehrlich, who has been a major backer of Maryland wineries.
"Each side has hired big gun lobbyists, and I mean the biggest names down here - multiple lobbyists as well," Ehrlich said in a March 4 appearance on WBAL-AM radio. "I have instructed everyone to get to compromise. I do not want this becoming a perpetual fight between various business interests who have legitimate points of view."
Ehrlich spokesman Henry Fawell said the governor has not held an officially scheduled meeting with Mandel since the wineries issue surfaced. Fawell said he did not know whether they had spoken informally about it.
Schaefer spokesman Michael Golden said the comptroller is aware that Mandel represents the wholesalers and has been involved in some of the discussions on the issue. But Golden said he does not believe Schaefer and Mandel have met to discuss it.
Mandel said he is paid an annual rate by the liquor distributors but did not say how much. Representatives of the wholesalers did not return phone messages late Friday afternoon.
On March 2, Mandel wrote a letter on his law firm stationery to Sen. Thomas M. "Mac" Middleton, the Southern Maryland Democrat who is the sponsor of the wineries legislation, in which he identified himself as writing "on behalf of the wholesalers' association (Licensed Beverage Distributors of Maryland) and its members."
In the letter, Mandel takes positions on the distributors' behalf about the pending bill.
"We, like you, are in favor of a thriving wine industry in the state of Maryland and the resulting benefits to Maryland's economy," he wrote. "We do not, however, believe that the way to achieve this is to dismantle the three-tier system by permitting out-of-state wineries to sell directly to retailers. Thus, with all due respect, we cannot compromise on the concept of direct to retail and cannot provide you with any `suggested amendments' to SB 812 that would be acceptable on this issue."
He also advocated in the letter for a "workable solution ... based on distributorship agreements negotiated by the individual wholesalers and the individual wineries."
Five days later, at a March 7 hearing in the Senate committee that oversees alcohol legislation, Mandel testified against the legislation alongside the heads of two liquor wholesalers that do business in Maryland.
"There should not be legislation on either side," Mandel said at the hearing, adding, "I can tell you I have been active in negotiations, and I will continue to be, and I think we're very close to a solution that will please everyone."
Mandel was a registered lobbyist for the Licensed Beverage Distributors from Nov. 1, 2001, through Oct. 31, 2002, according to filings with the state ethics commission. During that time, the association paid him $10,000 for lobbying on several pieces of liquor-related legislation, including a bill authorizing direct sales of wine to consumers.
In 2004 - a year after his appointment to the Board of Regents - Mandel reported lobbying on behalf of the insurance agents association on "all insurance bills affecting insurance agents" during that year's legislative session. He reported earning $11,125 from the association.
In 2005, Mandel reported earning $15,000 for lobbying for the association on the same subject.
Kevin Atticks, executive director of the Maryland wineries association, said any question about the propriety of Mandel's involvement in the debate would be "troubling news," but he declined to comment further.
"We don't want to be sidetracked from enacting legislation to save the Maryland wine industry," Atticks said.
According to Atticks, the legislation sought by the wineries passed the alcohol subcommittee of the Senate Education, Health & Environmental Affairs Committee on Friday by a 4-1 vote. He said it would come before the full committee tomorrow.
Winemakers said they worry that Mandel has used his influence with Ehrlich to keep his administration from supporting the proposed legislation.
Governor's support
Since taking office in 2003, Ehrlich has been a major supporter of the Maryland winemaking industry - going so far as to have a vine of cabernet sauvignon grapes planted at the governor's mansion to symbolize his commitment to helping viticulturists. Although he does not drink, the governor serves Maryland wines at the mansion and at state events. He also created the Commission on the Wine and Grape Industry.
But winemakers said a promised statement of support for the legislation never materialized.
"Now, the industry needs your vocal support," Atticks wrote in a March 2 letter to the governor. "Failure to enact a statutory safeguard for Maryland wineries, in our view, would be so detrimental that it could forever cripple the Maryland wine industry."
Five days later, two Ehrlich Cabinet secretaries testified before the Senate committee that handles liquor bills. Neither Agriculture Secretary Lewis R. Riley nor Business and Economic Development Secretary Aris Melissaratos directly endorsed the legislation.
andy.green@baltsun.com
Sun reporters David Nitkin and Michael Dresser contributed to this article.
