To: JeffA who wrote (35116 ) 5/26/2005 12:06:27 PM From: American Spirit Respond to of 90947 Texas Judge Rules Against DeLay Group By KELLEY SHANNON, Associated Press Writer The treasurer of a political committee formed by U.S. House Majority Leader Tom DeLay violated Texas election code by not reporting hundreds of thousands of dollars in campaign contributions, a judge ruled Thursday in a civil case brought by Democratic candidates. State District Judge Joe Hart, in a letter outlining his ruling to attorneys in the case, said the money, much of it corporate contributions, should have been reported to the Texas Ethics Commission. The ruling means Bill Ceverha, treasurer of the group, called the Texans for a Republican Majority political action committee, will have to pay nearly $200,000. It will be divided among those who brought the suit against Ceverha, five Democratic candidates who lost legislative races in 2002. The Democrats who sued TRMPAC claimed Ceverha violated the state election law, designed to keep elections free from "the taint of corporate cash." The Democrats alleged that some $600,000 in corporate money was illegally used to influence Texas House races in 2002, the year Republicans won control of the House for the first time in 130 years. Ceverha's lawyers argued in court that the group operated legally despite the confusion of state campaign funding laws. Corporate money can be used by political action committees for administrative purposes in Texas, but it's illegal to use it for direct campaign expenses. But Hart's ruling dealt with the election code reporting requirements, rather than the law governing how the money was spent. Terry Scarborough, a defense lawyer for the committee, said the case was more about Democrats' anger over losing than about the actions of DeLay or of Texas House Speaker Tom Craddick. The plaintiffs in the lawsuit had sought to tie both men to the activities of the political committee, run by DeLay associates. The civil case is separate from a separate criminal investigation into 2002 election spending being conducted by a Travis County grand jury. Three of DeLay's top fund-raisers and eight corporations were indicted in September. DeLay has not been charged with any crime and had congressional immunity from being forced to testify in the civil lawsuit. Ceverha also has not been charged in the criminal case. Corporate money was spent on such expenses as political research, polling, mailing, fund-raising and conferences, the plaintiffs alleged. The defendants contended all corporate money was legally spent on administrative purposes. Hart, in his letter, said the expenditures were made "in connection with a campaign for an elective office" and fit within the statutory definition of "campaign expenditure." The 2002 legislative victories propelled Craddick, the longest-serving House member, to the speaker's post. Later, Craddick and DeLay pushed a redistricting bill through the Legislature that ultimately gave the GOP a commanding advantage in the state's congressional delegation and therefore a wider lead in the House as a whole.