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For the first time in state politics, large amounts of corporate contributions made their way into political races during 2002, helping cement a GOP takeover of the Texas House, state and federal records show.
U.S. House Majority Leader Tom DeLay, R-Sugar Land, and the state's largest business group led behind-the-scenes efforts that have prompted lawsuits and investigations into whether the infusion of money was legal – which they vigorously contend it was.
"That was a sea change. The soft money game that played in Washington for years – no one had done that to any appreciable degree before this in state races," said Fred Lewis, director of the watchdog group Campaigns for People.
It is illegal for corporations or unions to donate directly to candidates in Texas, and the extensive ways corporate money became involved in the low-ballot legislative races raised the legal questions.
The expenditures have led to a grand jury inquiry into the Texas Association of Business; a citizen's criminal complaint against Texans for a Republican Majority political action committee – an offshoot of Mr. DeLay's Americans for a Republican Majority; and a series of civil lawsuits.
Directors of the committees that used corporate money said their actions represented a smart use of available resources, but were not illegal or improper.
The emergence of corporate money – whether used to produce advertisements, pay administrators or hire consultants – in 22 key House races last year helped the GOP overrun the last Democratic bastion in Texas government, campaign experts said.