AP: Texas

02/21/2005

By KELLEY SHANNON  / Associated Press

A 100-year-old ban on corporate and union money in Texas political campaigns would get a modern-day makeover under legislation proposed Monday.

The proposal would prevent union and corporate money from being used in attack ads launched within 60 days of a general election and require the disclosure of people who contribute to last-minute attacks.

Rep. Craig Eiland, D-Galveston, and Rep. Todd Smith, R-Bedford, said their bill would bring Texas law more in line with federal election laws.

"People vote; corporations don't," Eiland said, explaining the need for a new law.

Campaigns for People, Public Citizen, the AARP of Texas and other groups praised the lawmakers' proposal.

"Integrity in our election system is essential," said Suzii Paynter, a lobbyist for the Baptist General Convention of Texas. She said qualified Texans are choosing not to go into political life because they worry that they and their families will be hurt if they are slammed by attack ads.

The legislation would not eliminate issue ads that corporations buy, such as those by telephone companies seeking passage of a certain telecommunications bill in the Legislature. It also would not limit individual campaign donations to state campaigns, as some public interest organizations have sought. Limitation of Texas campaign contributions is a separate policy debate, Eiland said.

"We can't solve all the problems. We'll have a hard enough time trying to get this bill passed as it is," Eiland said.

Among the obstacles, he said, could be opposition from corporations that want to keep donating company money to politics instead of personal or political action committee money.

The ban on last-minute attack ads using the prohibited money would apply to electioneering that refers clearly to a candidate within 60 days of a general election or 30 days of a primary and that targets the candidate's electorate. It would cover broadcast ads, mass mailings and telephone banks.

Now, ads are permitted if they don't use so-called magic words asking citizens to vote expressly "for" or "against" a candidate.

Smith said the new legislation would cover the kind of ads waged in a special Texas Senate election last year against Republican Rep. Tommy Merritt of Longview, who lost. He was bombarded with radio ads before the election from undisclosed corporate funds, Smith said. The ads asked listeners to call Merritt's office, not to vote against him.

"The public is disgusted and turned off by these attack ads when they learn that they are paid for with unlimited, undisclosed union and corporate money," Smith said.

Twenty-six other states have a ban on corporate and union campaign spending, Eiland said.

Texas has one, but some politicians say it needs clarifying.

The lawmakers said they weren't trying to impact or comment on a Travis County grand jury investigation into campaign spending in 2002 state legislative races and that their proposed law would only affect future elections.

Prosecutors are examining whether $2.5 million in corporate money was illegally funneled to Republican state House candidates.

Under the legislation, non-administrative employees of companies could not be asked more than twice a year about donating to a corporation's political action committee.

Corporate money for PACs could be used only for specific administrative expenses, such as office space, computers and telephones. Disallowed expenses would include political consulting fees, telephone banks and political fundraising.

Republican House Speaker Tom Craddick, who has had records subpoenaed by the Travis County grand jury, said Monday he wasn't supporting or opposing the campaign finance bill. However, he said he believes there are problems with interpretations of the existing law.

Asked whether the bill would pass the House without Craddick's support, Eiland said, "I think we can pass it without his opposition."

Democratic Sen. Juan "Chuy" Hinojosa of McAllen and Republican Sen. Robert Duncan of Lubbock are backing the proposal in the Senate.

But Lt. Gov. David Dewhurst, who presides over the Senate, said he doesn't think a tightened ban on corporate and labor spending is needed.

"One of the things I've always felt very strongly about is open disclosure — open and timely disclosure. I think we've made great strides in getting to that point," he said.

The powerful Texas Association of Business has not taken a position on the proposal.

Even if the bill passes in the Legislature, Republican Gov. Rick Perry could veto it. His spokesman, Robert Black, said the governor will take a "wait-and-see approach," but that he has always favored increased campaign disclosure.

However, Black said, it's important to be cautious to avoid violating the First Amendment right to free speech.

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The campaign finance bill is HB1348.