Democrats sue eight corporate donors

Candidates say ads broke law; firms say they were issue-oriented
07:29 PM CDT on Friday, August 19, 2005
Associated Press
AUSTIN – Several corporate donors, most of them insurance companies, are now defendants in a lawsuit filed by three Democrats who lost legislative races in 2002.
The suit alleges improper corporate funding of the candidates' opponents, allegations that a grand jury is also investigating.
The Democrats' lawyer, Buck Wood of Austin, added eight corporations this week to the suit against the Texas Association of Business, a trade group that spent about $1.7 million of corporate money on ads that touted Republicans and criticized Democrats.
The companies are AT&T Corp., Great-West Life & Annuity Insurance Co., Ace American Insurance Co., Aetna Inc., Connecticut General Life Insurance Co., United Healthcare of Texas, Cigna Healthcare of Texas Inc. and America's Health Insurance Plans. And more still might be added, Mr. Wood said.
Republicans won a majority of House seats in 2002, allowing them to elect the first Republican House speaker since Reconstruction. But the victories of several GOP candidates have been under scrutiny of a Travis County grand jury for contributions from the business association and Texans for a Republican Majority, a political action committee connected to U.S. House Majority Leader Tom DeLay. Mr. DeLay, of Sugar Land, has not been charged with any wrongdoing.
Travis County District Attorney Ronnie Earle is investigating whether the contributions violate state bans against corporate money being spent on campaign activities.
The association has said its ads did not violate the ban because they did not advocate the election or defeat of anyone, rather they educated voters about issues.
The contributions were made when the insurance industry was under fire from the public and state officials. Rates for homeowners insurance were climbing, insurers were threatening to leave the state, and doctors and hospital officials were complaining about the high costs of malpractice insurance.
The Legislature rewrote homeowners insurance rules the next year, though critics say the changes didn't go far enough in regulating the insurance industry.
Also, a Washington lobbyist is holding a golf tournament and luncheon Wednesday in Virginia to raise money for the three men indicted in the investigation of Texans for a Republican Majority, an attorney in the case said.
source: http://www.dallasnews.com/s/dws/news/texassouthwest/stories/082005texcampaignfinance.216ec36a.html