Business group ordered to reveal donor information

State Supreme Court wants answers about 2002 election spending

10 Jun 2005 // The Texas Association of Business must turn over documents and answer questions about its use of $1.9 million in corporation money that Democrats claim was illegally spent in the 2002 elections, the Texas Supreme Court ruled Friday.

Bill Hammond is president of the Texas Association of Business, which says the $1.9 million the group spent in the 2002 elections went for issue advertising that is legally protected free speech.

The business group had fought for nearly two years to keep its donor information secret, saying the money went for issue advertising that is legally protected free speech.

In ruling against the state's largest business group, the high court Friday directed the association to turn over information about its corporate solicitations used for 4 million mail pieces sent to voters that generally berated Democrats and touted Republicans.

The information is also at the heart of a Travis County grand jury investigation. The grand jury already has indicted three associates of U.S. House Majority Leader Tom DeLay in connection with the use of corporate money by a separate political action committee to elect Republicans.

Attorney Buck Wood had sued the association on behalf of three Democratic legislative candidates who lost.

In his civil suit against the group and its president, Bill Hammond, Mr. Wood has sought information about the number of corporations giving money, how much they gave and how decisions were made within the organization.

Mr. Wood said the court decision would trigger the first in a series of "falling dominoes" in his bid to prove the business group broke the law by running a secretly funded political campaign.

"This activity of soliciting money to support or defeat candidates made them, under Texas law, a political action committee," he said. "Once you are a political action committee, it has to be reported."

Andy Taylor, an attorney representing the Texas Association of Business, said the group "is prepared to release the information."

He noted that under the ruling, the identity of the corporate donors would remain secret.

The civil suit did not specifically seek the names of the corporate donors, only how many there were. Mr. Wood said Friday he's confident he will be able to identify the contributors once he reviews the material.

Texas law prohibits the use of corporate money to elect candidates. Mr. Taylor has maintained the money was used for voter education, not the election of specific candidates.

A district judge ruled nearly 18 months ago that the business group must turn over documents and answer questions about its corporate donors. The case was appealed to the Texas Supreme Court, whose members are all Republicans.

"I would love to know why they took all this time," said Mr. Wood. "But frankly, it's not like the delay hurt anything as far as the case is concerned."