San Antonio Express-News Editorial: Ethics panel renders itself next to useless

State law requires officials to report gifts and donations they receive in excess of $250. In the case of Bill Ceverha, a trustee of the state Employees Retirement System, the public doesn't know whether the check he received from Houston homebuilder and Republican mega-donor Bob Perry was in the amount of a few hundred dollars or a few hundred thousand dollars. Read the article at the San Antonio Express-News

Editorial: Ethics panel renders itself next to useless

San Antonio Express-News
3/28/06

In a decision that defies common sense, the Texas Ethics Commission determined it's enough for the public to know a state official received a donation. No one needs to know, according to the commission, the value of that donation.

State law requires officials to report gifts and donations they receive in excess of $250. In the case of Bill Ceverha, a trustee of the state Employees Retirement System, the public doesn't know whether the check he received from Houston homebuilder and Republican mega-donor Bob Perry was in the amount of a few hundred dollars or a few hundred thousand dollars.

That's no exaggeration. According to Texans for Public Justice, Perry gave $4.6 million to politicians and political committees during the 2004 election cycle.

And Ceverha is no ordinary state official. In 2002, he served on the transition team of House Speaker Tom Craddick, who appointed him to the retirement system board. He also served as treasurer for Rep. Tom DeLay's Texans for a Republican Majority.

A state district judge ruled in a civil case that Ceverha failed to disclose more than $600,000 in corporate money the group received. Fines and legal fees from that court battle led Ceverha to file for bankruptcy last October. The Perry gift, he says, was meant to help him cover those expenses.

"I just felt, why should this be anybody's business?" Ceverha told Express-News Austin bureau chief Peggy Fikac.

Perhaps because the board of the Employees Retirement System has nearly $20 billion in assets under its supervision. So the public has a clear right to know details about gifts to its members that might pose a conflict of interest or even the appearance thereof.

The Texas Ethics Commission certainly knows this. Nonetheless, Raymond "Tripp" Davenport III, Ross Fischer and Francisco Hernandez voted to keep the value of Perry's gift hidden from public view. Ceverha's disclosure that he had merely received a "check" from Perry was sufficient.

A public disclosure policy that doesn't require a value to be placed on gifts is next to worthless. So is an ethics commission that could render such a decision.

Statement of County Attorney David Escamilla re: Ralph Reed

In December of last year, representatives from three public watchdog organizations - Texans for Public Justice, Common Cause Texas, and Public Citizen - requested the Travis County Attorney’s Office to investigate allegations that Mr. Reed, without first registering as a lobbyist under Texas law, had lobbied members of Texas’ Executive and Legislative branches seeking to close certain casinos. Travis County Attorney David Escamilla announced today that his office has concluded its review of allegations presented to date concerning Ralph Reed and possible violations of Texas’ Lobby Registration laws.

Statement of County Attorney David Escamilla re: Ralph Reed

For Immediate Release:	For More Information Contact:
March 27, 2006	Craig McDonald, 512-472-9770

Austin, TX: Travis County Attorney David Escamilla announced today that his office has concluded its review of allegations presented to date concerning Ralph Reed and possible violations of Texas’ Lobby Registration laws, citing Texas’ two-year statute of limitations for misdemeanor violations as a bar to proceeding with a formal criminal investigation and possible prosecution.

In December of last year, representatives from three public watchdog organizations - Texans for Public Justice, Common Cause Texas, and Public Citizen - requested the Travis County Attorney’s Office to investigate allegations that Mr. Reed, without first registering as a lobbyist under Texas law, had lobbied members of Texas’ Executive and Legislative branches seeking to close certain casinos, operated by the Tigua Tribe of El Paso and the Alabama Coushatta Tribe in East Texas, on behalf of Jack Abramoff and casinos operated by the Coushatta Tribe of Louisiana.

The review was subsequently expanded to include an additional allegation that, in 2002, Mr. Reed had lobbied members of Texas’ State Board of Education on behalf of in-school television network Channel One.

David Escamilla said, “Although new information and revelations regarding Mr. Abramoff and his activities continue to flow as a result of his recent indictment and guilty plea, all information we have received, to date, concerning Mr. Reed’s activity in Texas relate to calendar years 2001 and 2002. Texas Code of Criminal Procedure provides that misdemeanor charges may not be presented beyond two years of the date of commission of the offense.”

Texas law provides an exception to the required registration as a lobbyist “if no more than 5.0% of the person's compensated time during a calendar quarter is time spent engaging in lobby activity.” The information presented by the complainants raise legitimate questions concerning Mr. Reed’s activities and possible violation of Texas law. The process of proving such violations would require a comprehensive criminal investigation delving into the financial arrangement between Mr. Abramoff and Mr. Reed as well as the actual compensation received by Mr. Reed for any time spent communicating with members of Texas’ government. According to Mr. Escamilla, “Without evidence involving lobbying activities within the last two years, I cannot justify initiating a formal criminal investigation given the statute of limitations bar to prosecution of Mr. Reed for any of his activities in 2001 and 2002.”

David Escamilla added, “We will continue to review any new information regarding Mr. Reed’s lobbying activities and move forward to enforce Texas’ lobby registration laws should any violations not barred by the statute of limitations come to our attention.”

Dallas Morning News: Lawmakers need not claim amount of gifts

The seven commission members, appointed by the governor, lieutenant governor and House speaker, wrestled with disclosure laws that compel public officials to report gifts over $250. The law calls for a description of the gift, and some commissioners said indicating simply "cash" – without an amount – satisfies the statute. But government watchdogs told the commissioners that they are failing to enforce the clear meaning of the law, rendering it useless. Read the article at the Dallas Morning News

Lawmakers need not claim amount of gifts

State ethics panel says legislators have to give descriptions -- not amounts

Friday, March 24, 2006
By CHRISTY HOPPE / The Dallas Morning News

AUSTIN – The Texas Ethics Commission decided Friday that public officials who receive cash or other gifts don't have to disclose the value, stunning open-government advocates.

"This is absurd, dangerous and completely undermines the reform legislation," said Rep. Lon Burnam, D-Fort Worth.

The seven commission members, appointed by the governor, lieutenant governor and House speaker, wrestled with disclosure laws that compel public officials to report gifts over $250. The law calls for a description of the gift, and some commissioners said indicating simply "cash" – without an amount – satisfies the statute.

But government watchdogs told the commissioners that they are failing to enforce the clear meaning of the law, rendering it useless.

"This ruling leaves a big enough loophole to drive an armored truck full of money through," said Craig McDonald, director of Texans for Public Justice, which advocates for public disclosure. "All you would have to say is 'a truck.' "

The commission's decision not to review the rule means that public officeholders can accept trips, jewelry or large amounts of cash from those who may benefit from their decisions and not have to disclose the value.

The case stems from a June 2005 disclosure filed by Dallas businessman Bill Ceverha, a close friend of House Speaker Tom Craddick, who appointed him to the State Employees Retirement System board. The system oversees a nearly $20 billion fund that provides benefits for 250,000 retired state workers.

Mr. Ceverha disclosed that he received a gift, described only as a "check," from Houston homebuilder Bob Perry, the largest Republican donor in the state. Mr. Ceverha has declined to say how much the check was for. Mr. Perry's spokesman has described it as charitable – not political – giving.

A commission staff ruling held that Mr. Ceverha's description of the gift as a "check" was sufficient. And in its decision Friday, the Ethics Commission refused to revisit the rule or its interpretation.

All the commissioners who spoke agreed this constitutes an egregious loophole. But three commissioners blocked the possibility of a different interpretation, saying it is up to the Legislature to clarify the law. Six of seven commissioners must agree before a rule can be reconsidered.

Commissioner Ross Fischer said other parts of open-government law specify that a value must be disclosed but the gifts section states only that a description be provided. He said it appears the Legislature didn't intend to compel disclosure of the value of gifts. But some commission members were upset by the decision.

"It is a ludicrous position, one that is contrary to the public's interest," said Commissioner Nicholas Taylor of Midland.

Mr. Taylor said a public official who reports receiving a check has only disclosed the method of conveyance, not the gift itself.

Other commissioners said this interpretation means public officials can report receiving 10 pieces of paper without mentioning that they were $100 bills.

Mr. Taylor has placed the same issue on the Ethics Commission agenda for next month, urging fellow commissioners to revisit their decision.

Afterward, Mr. McDonald said he was disappointed.

"Apparently there are not six votes for public disclosure from a commission charged with public disclosure," he said.

Gov. Rick Perry's press secretary, Kathy Walt, said the governor supports disclosure of the amount of gifts, whether that needs to be accomplished through the rules of the commission or by the Legislature next year.

While Mr. Ceverha and Bob Perry have declined to discuss the gift, a recent personal bankruptcy indicates that the check paid for lawyers who represented Mr. Ceverha in a civil suit over improper use of corporate contributions in GOP political races.

In that bankruptcy filing, Mr. Ceverha was asked about the Bob Perry gift and stated that it was all spent to pay his lawyers. He refused to disclose the amount.

Lobby Watch:Leininger Clan Injected $3.1 Million into Texas Politics in Last 5 years

Conservative activist James Leininger—Texas’ No. 2 individual donor—is making headlines again for trying to defeat moderate Republican Primary candidates who opposed his school-voucher agenda. From 2001 through 2005, Leininger’s family contributed more than $3.1 million to conservative PACs and Republican candidates in Texas, second only to Houston homebuilder Bob Perry, whose family spent $11 million in that period.
Read the Lobby Watch

Dallas Morning News: Legislators chafe over voucher backer's donations

Republican state Rep. Tommy Merritt is facing a more conservative challenger in next week's primary. But his real opponent is school voucher advocate James Leininger, who has spent more than half a million dollars to defeat the Longview lawmaker. Read the article at the Dallas Morning News

Legislators chafe over voucher backer's donations

5 recipients say they aren't swayed by PAC; critics call for reforms

Wednesday, March 1, 2006
By ROBERT T. GARRETT / The Dallas Morning News

AUSTIN – Republican state Rep. Tommy Merritt is facing a more conservative challenger in next week's primary. But his real opponent is school voucher advocate James Leininger, who has spent more than half a million dollars to defeat the Longview lawmaker.

Mr. Merritt, a well-to-do businessman who has spent a decade in the House, is staggering from daily attacks on TV and radio and in the mail paid for by Dr. Leininger, a San Antonio businessman.

"It's all about intimidation," Mr. Merritt said.

Through a political-action committee he dominates, Dr. Leininger is providing more than 90 percent of the money spent against three of five moderate Republicans who opposed vouchers in last year's regular legislative session. Almost alone, he has provided warchests to his favored candidates exceeding, in four instances, $375,000 apiece. His giving may propel them to break spending records for House races.

"We've never seen numbers like this, as far as percentage of support from one entity," said Craig McDonald, director of Texans for Public Justice, a nonpartisan group that tracks campaign money.

"The Leininger PAC has showed that the Texas campaign finance system is totally out of whack," Mr. McDonald said. "One person should not be able to bankroll a slate of candidates.

"These candidates will become private representatives, not public servants."

Dr. Leininger could not be reached for comment. But in a newspaper column last week, he wrote that he would "vigorously oppose" lawmakers who don't support his pet cause, private school vouchers for poor children.

Rep. Roy Blake Jr., R-Nacogdoches, another of the five targeted House moderates, says Dr. Leininger is laying down an unprecedented method of supporting a campaign. The Texas Republican Legislative Campaign Committee, created last fall, pays for polls, ads, mail, phones and research on the incumbent. It then donates them as "in kind" contributions to the challengers.

"He's always got control of these people," Mr. Blake said. "He's controlling the campaigns, he's controlling the message."

Former Rep. Wayne Christian, a Republican in Center, Texas, who lost a bid for Congress and is trying to get back in the Legislature by beating Mr. Blake, has denied he's beholden to Dr. Leininger, as have all of the Leininger-backed challengers.

Voucher opponents denounce Dr. Leininger's effort, and Mr. McDonald says it illustrates a need for limits on how much rich people may give in state elections. One political scientist, though, called it a refreshing example of unselfish patronage.

"You know, a lot of people who spend a lot of money on campaigns, they have something personal that might help their business interests," said Allan Saxe, associate professor at the University of Texas-Arlington.

"I don't see how the voucher system is going to help directly his business interests or anything like that," Dr. Saxe said. "He definitely feels this is so critical ... to the future of education that he's willing to put up a lot of money to change it. That's worthwhile."

The latest filings with the Texas Ethics Commission show that in the last month, Dr. Leininger has given $1.25 million to the Texas Republican Legislative Campaign Committee to try to defeat the five moderates. In addition, he has given nearly $500,000 through another committee that seeks to help pro-voucher incumbents stay in office. His total spending on House races in this campaign has hit about $2.3 million.

Experts say that if all five House moderates targeted by Dr. Leininger lose, it would improve chances for passage of a voucher bill next year – at least in the House.

Former Lt. Gov. Bill Ratliff, a longtime Republican state senator from East Texas and opponent of vouchers, said the Senate is still unlikely to approve vouchers, though.

"So I don't know that it's going to pass," Mr. Ratliff said. "But if [pro-voucher forces] win this time, the intimidation factor will accelerate significantly."

Also, such large contributions in the final weeks before the March 7 primary is important, he said, because money is especially precious in a campaign's final days – and awfully hard to counter if it's flowing to the other side.

"It sort of puts you in a panic mode because you're just being flooded with this stuff," he said.

The intra-party challenges hint at a deeper rift among Republicans over public education. And while House Speaker Tom Craddick has tried to support some of the lawmakers targeted by Dr. Leininger, at least one has suggested that the effort to purge House GOP moderates had the tacit approval of Republican leaders.

"Key people within the party and within elective offices should not hide behind folks like Jim Leininger, letting them do their dirty work, and call that staying out of it," said Rep. Delwin Jones of Lubbock.

Mr. Craddick has declined to say whether he tried to dissuade Dr. Leininger from trying to oust House GOP incumbents, though a spokeswoman has said Mr. Craddick opposes efforts to beat incumbents. He has campaigned for three of the lawmakers – Mr. Blake; Rep. Charlie Geren of Fort Worth; and Rep. Carter Casteel of New Braunfels. He has not done so for Mr. Merritt or Mr. Jones.

Also causing some within the party to grumble is work done by pollster Mike Baselice of Austin, who is Gov. Rick Perry's pollster, for four of the five challengers financed by Dr. Leininger. Also, expenditures outlined in the campaign finance reports of Mr. Merritt's opponent, Mark Williams, show that the daughter of the state GOP's executive director is working for Mr. Williams.

"This is simply an indication again of 'All right, if you do not toe the line, you're going to pay a price,' " said Jerry Polinard, a political scientist at UT-Pan American in Edinburg.

Houston homebuilder Bob Perry, the state's biggest political contributor, has pumped, all together, $115,000 into the candidacies of the Leininger-backed candidates in Fort Worth, Lubbock and Longview. A spokesman for Mr. Perry has said he looks to business-related issues, not vouchers, when judging candidates – and isn't acting in concert with Dr. Leininger.

Staff writer Karen Brooks contributed to this report.