Defeated Democrats suing group
Posted on 11/26/2002 3:14:12 AM PST by MeekOneGOP
Defeated Democrats suing group
Association denies using illegal donations to fund GOP rivals
11/26/2002
AUSTIN - Two lawsuits by defeated Democratic Texas House candidates accuse a prominent business group of laundering illegal corporate campaign contributions to fund the group's chosen Republican candidates.
"If what they did was legal, then we have no campaign finance law," said Rep. Ann Kitchen, D-Austin, who was defeated by Republican Todd Baxter, a candidate supported by the Texas Association of Business.
The association's president, Bill Hammond, called the legal action "sour grapes," "lawsuit abuse," a "travesty" and a "sore-loser" case that threatens the free-speech rights of businesses.
"The Texas Association of Business followed the letter of the law in our media campaign," said a statement released by Mr. Hammond, who was named as a defendant in both lawsuits. "We are confident that the First Amendment in the Bill of Rights will not be set aside."
The controversy arises from expenditures of roughly $1.9 million by the business association on direct mail and other publicity to influence votes in 22 state House races and two state Senate contests.
The group spent the money independent of its political action committee and says it is not required to report what - if any - contributions came from corporations. Ms. Kitchen said that allowing such a tactic effectively wipes out state laws requiring disclosure of donations and banning corporate contributions to election or political action committees.
After the elections, the association took credit for the results of 17 House races and one Senate contest in its newsletter, under the headline "TAB's Aggressive Election Effort Wins Seats for Pro-Business Candidates."
The association insists that the disputed advertisements were legal because they were "issue ads" and didn't explicitly urge a vote for one candidate or another, the so-called "magic words" standard. The plaintiffs' lawyers said those are federal election law concepts that have no relevance to the state's corporate donation ban.
"This magic language stuff is a bunch of hooey," said Austin lawyer Buck Wood, who filed a lawsuit on behalf of Democrat James Sylvester of Austin, who was defeated by Republican Jack Stick.
Other plaintiffs were Rep. Debra Danburg, D-Houston, and Democratic candidate Danny Duncan of Commerce.
Ms. Danburg was ousted by Republican Martha Wong. Mr. Duncan lost to Republican Dan Flynn.
State law also allows felony prosecution of contributors or candidates who knowingly make or accept illegal corporate contributions. One of the lawsuits alleges that when the association spent the ad money, it effectively established an unregistered political action committee - a legal violation in itself - and that such a committee is subject to laws against taking corporate money.
Lawyers for the defeated candidates said that state election law allows candidates to personally recover double the amount of illegal contributions to their opponents and that any corporate donors to the association might be liable.
Ms. Kitchen said her goal is not to win money but to prevent similar fund drives against future candidates.
E-mail pslover@dallasnews.com
"This magic language stuff is a bunch of hooey," said Austin lawyer Buck Wood, who filed a lawsuit on behalf of Democrat James Sylvester of Austin, who was defeated by Republican Jack Stick.
Other plaintiffs were Rep. Debra Danburg, D-Houston, and Democratic candidate Danny Duncan of Commerce.
Ms. Danburg was ousted by Republican Martha Wong. Mr. Duncan lost to Republican Dan Flynn.
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Let the games begin!
Another of the dim-0-crat ploys to win the hearts and souls of Texas voters!
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