AUSTIN — A state district judge ruled today that a political committee founded by U.S. House Majority Leader Tom DeLay was legally required to report more than $500,000 in corporate cash to state authorities because the money was raised to influence Texas elections.
"I find that the contributions were used in connection with a campaign for elective office. Therefore, they were political contributions or campaign contributions within the meaning of ... the Election Code," visiting District Judge Joe Hart said in his ruling.
While Hart did not rule specifically on whether Texans for a Republican Majority raised and spent the money legally, he said TRMPAC violated state law by not reporting the money to the Texas Ethics Commission.
TRMPAC officials reported the money to the Internal Revenue Service under federal law.
DeLay and other TRMPAC officials have said the committee did not violate state law banning corporate contributions from being used to influence an election because the law has an exception for administrative expenses. Committee officials defined administrative expenses broadly to include polling and telephone banks.
Hart said there were different ways of calculating damages in the case and he could have awarded as much as $59.7 million. But he limited damages and attorney fees to $196,660 to be divided among five losing Democratic candidates who brought the lawsuit.
TRMPAC lawyer Terry Scarborough said he was unhappy with Hart's ruling.
"While we are disappointed that Judge Hart awarded any damages, we are pleased that he limited damages to their race," Scarborough said. "Obviously, this case will be appealed to the Third Court of Appeals and the Texas Supreme Court."
Hart's ruling in a civil lawsuit gives the first indication of how the judiciary will view TRMPAC's effort to influence Texas House elections in 2002.
Three of DeLay's political associates have been indicted by a Travis County grand jury on charges related to illegally raising the corporate money. They are TRMPAC Executive Director John Colyandro, fund-raiser Warren RoBold and Jim Ellis, the executive director of DeLay's Americans for a Republican Majority.
The three have cited similar defenses to those used in the civil lawsuit in asking to have their cases thrown out. District Judge Bob Perkins is scheduled to rule June 27 in that case.
