Treasurer of DeLay Group Broke Texas Election Law

Documents revealed in the civil case spelled out how DeLay, who served on the committee's board, wrote a cover letter for its fundraising brochure, and called or met with donors at dinners and other events, where he sometimes solicited their views on pending federal legislation. DeLay's attorneys have claimed, however, that he was not involved in the group's day-to-day operations.

The donors included corporate giants such as Philip Morris USA, Bacardi USA, Sears Roebuck and Co., and AT&T Corp., many of which had more policy interests at stake in Washington than in Texas. In all, 17 state House members who received money from TRMPAC's coffers were elected. The Texas House approved a redistricting plan favorable to Republicans 13 months later.

In finding its treasurer, Bill Ceverha, responsible for the reporting violations, Hart did not accept the two principal defenses raised by the Texas committee in both the civil and criminal trials. He did not find the election law unconstitutional, and he rejected a claim that the corporate funds were used for "administrative" purposes and were legal and not covered by reporting requirements under Texas election law.

Ronnie Earle, the Texas district attorney overseeing the separate criminal case, said that his office's court pleadings contain "many of the same points as those contained in Judge Hart's opinion."

Hart's decision centered on his interpretation of an election law provision that requires disclosure to the Texas Ethics Commission of all campaign contributions and expenditures, and makes treasurers of political groups personally liable for damages if violations are found.

A separate provision -- which Earle has alleged the committee violated -- bars corporate financing of state legislative campaigns, while permitting corporate contributions toward purely administrative expenses by political action committees. Ceverha and his attorney said all of the corporate funds were used for such expenses, but the judge called their definition of the word "administrative" incorrect.

Hart said the law does not allow a treasurer to turn "a blind eye to obvious facts." He said TRMPAC's political fundraising, polling, staff salaries for political activity, political conferences and candidate meetings, political direct mail, political research and printing -- all financed by $532,333 in "corporate contributions" -- could not be considered "administrative" expenses of TRMPAC under ethics commission rulings.

The judge's decision awarded a total of $196,660 in damages to the five defeated Democratic candidates, in amounts ranging from $17,332 to $87,3323. The total award was considerably less than the $1.2 million their lawsuit sought, a difference based on the judge's reading of a provision in the statute related to damages that he described as "not a model of clarity."

Former state representative David F. Lengefeld, one of the plaintiffs, said the judge's decision "gives me renewed hope in the election code in the state of Texas."

"It shows the law was surely broken by those involved in Texans for a Republican Majority and their attempts to cover up their actions," he added in a telephone interview from his insurance office in Hamilton, Tex.

Lengefeld also called the ruling "an important first" that "sets the stage for the criminal investigations and trials to come."

Smith reported from Washington. Staff writer Mike Allen in Washington contributed to this report.