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Austin's Oldest Profession: Texas' Top Lobby Clients & Those Who Service Them
2004 Edition
II. Lobby Clients

A. Texas’ Escalating Lobby Spending
Over the past ten years, special interests have spent between $874 million and $2 billion on 56,858 Texas lobby contracts. As the accompanying table shows, total lobby spending has increased far more than the number of lobbyists, clients and contracts.

Texas’ lobby spending peaks in odd-numbered years when the biennial Texas Legislature is in its regular session. With the exception of 1999, lobby spending has increased over time, regardless of whether you compare odd-numbered legislative years (solid bars) or even-numbered years when there is no regular legislative session (striped bars).1 Lobby spending for a given year peaks at the end of the year--after the last lobby reports are filed. The data in the accompanying charts show year-end data for every year except 2004 (which is based on June 2004 data).

This report reveals the industries and clients that spent the most to influence public officials in 2003, as well as Texas’ top hired guns that year. As the accompanying graph shows, lobbying is a growth industry. Special interests spent up to $276 million on Texas lobbyists in 2003, up 60 percent from the $172 million maximum that lobby clients spent in 1995. (Exact contract values are unknown because Texas lobbyists report them in ranges (such as “$50,000 to $99,999”). By convening the legislature for three special redistricting sessions, Governor Rick Perry made 2003 a banner lobbying year.
 

Texas' Escalating Lobby Spending, (1995-June 2004) 
Year Min. Value
of Contracts
Max. Value
of Contracts
Contracts Lobbyists Clients
1995 $72,198,759 $172,408,772 5,730 1,599 1,851
1996 $53,085,881 $128,190,898 4,491 1,229 1,430
1997 $90,559,499 $209,514,514 6,526 1,557 1,988
1998 $68,300,300 $164,285,312 5,495 1,297 1,599
1999 $82,930,600 $194,295,620 6,280 1,510 1,870
2000 $80,250,300 $185,135,319 5,834 1,280 1,658
2001 $104,490,030 $229,715,049 6,391 1,484 2,018
2002 $90,175,079 $188,305,115 4,737 1,256 1,827
2003 $132,485,543 $275,585,578 6,593 1,578 2,283
2004 $99,985,043 $206,340,075 4,781 1,303 2,015
Total: $874,461,034 $1,953,776,252 56,858 * *
                               Note: Data only include contracts with minimal values greater than zero.
                         *Totals for these categories would mislead since many lobbyists and clients reappeared
                               throughout the years shown.
                         † Incomplete 2004 data only include contracts reported as of June of that year.

 
B. The Nation’s No. 2 State Lobby
The adage “Everything’s bigger in Texas” is difficult to prove or disprove where lobby expenditures are concerned. A kaleidoscope of different state lobby reporting requirements subjects any state lobby ranking to numerous caveats. Under Pressure, a recent study by the Washington, D.C.-based Center for Public Integrity, found that Texas had the nation’s second-highest lobby expenditures in 2003 after California. Yet the $191 million figure that Under Pressure uses for California is based on the actual value of lobby contracts. In contrast, the $137 million figure that the same study uses for the Lone Star State is based on the minimum value of Texas’ lobby contracts. Texas braggarts will note that the $276 million maximum value of Texas lobby contracts far exceeds the $191 million in California lobby expenditures.
 

C. Million-Dollar Clients
The remainder of this report analyzes the 6,593 paid Texas lobby contracts reported by the end of 2003. The 1,578 lobbyists who reported these contracts said that they were worth a total of between $132 million and $276 million (Texas lobbyists report contract values in ranges: e.g. “$50,000 - $99,999”).
 

By the end of 2003, 17 mega-clients had maximum lobby expenditures of more than $1 million apiece (the appendix lists Texas’ top 100 lobby clients). These 17 mega-clients collectively spent up to $30.4 million, accounting for 11 percent of Texas’ total reported lobby expenditures. As usual, SBC (Southwestern Bell) was far and away Texas’ top lobby client, spending up to $7.6 million on 110 staff and freelance lobbyists in 2003.
 

Million-Dollar Clients
2003 Lobby Client Contract
Value (Max.)
Contract
Value (Min.)
No. of
Contracts
SBC (Southwestern Bell) $7,570,000 $3,935,000 110
TX Utilities Co. (TXU) $1,920,000 $870,000 55
EDS (Electronic Data Systems) $1,860,000 $1,300,000 16
TX Medical Association $1,725,000 $935,000 24
City of Houston $1,705,002 $1,010,000 32
Assn. of Electric Companies of TX $1,675,000 $785,000 30
Verizon $1,665,000 $735,000 45
City of Austin $1,510,000 $750,000 22
AT&T Corp. $1,475,000 $720,000 29
CenterPoint Energy $1,395,000 $700,000 21
ExxonMobil Corp. $1,250,000 $735,000 19
TX Hospital Assn. $1,225,000 $610,000 19
Metro. Transit Authority of Harris County $1,165,000 $560,000 20
McGinnis Lochridge & Kilgore $1,075,004 $960,000 7
TX Assn. of Realtors $1,075,001 $685,000 10
Affiliated Computer Services (ACS) $1,060,000 $520,000 19
TX Assn. of School Boards $1,050,000 $525,000 12

D. Clients By Interest Category
This report categorizes Texas’ 2003 lobby contracts by their underlying interests. Energy & Natural Resources is the leading category, accounting for 16 percent of all lobby money. The next largest categories are: Ideological & Single-Issue clients; Health; and Miscellaneous Business.
 

Lobby Contracts By Interest Category

 
Interest Category Max. Value
of Contracts
Min. Value
of Contracts
No. of
Contracts
Percent
(of Max. Value)
Agriculture $6,815,001 $3,130,000 174 2%
Communications $18,095,500 $8,935,500 367 7%
Construction $12,180,002 $6,130,000 249 4%
Electronics $10,055,000 $5,015,000 217 4%
Energy & Natural Resources $42,800,004 $21,230,000 908 16%
Finance $13,595,001 $6,095,000 342 5%
Health $32,720,001 $15,245,000 822 12%
Ideological & Single Issue $35,850,047 $16,980,043 917 13%
Insurance $16,485,000 $6,795,000 548 6%
Labor $4,775,000 $2,175,000 117 2%
Lawyers & Lobbyists $16,590,018 $10,145,000 286 6%
Miscellaneous Business $29,045,002 $13,900,000 694 11%
Other $6,305,000 $2,880,000 156 2%
Real Estate  $10,825,002 $5,520,000 219 4%
Transportation $12,585,000 $5,805,000 289 5%
Unknown $6,865,000 $2,505,000 288
2%
Totals: 
$275,585,578 $132,485,543 6,593 100%

 

Energy & Natural Resources Contracts
The oil, gas and utility interests that have long ruled Texas dominate the Energy and Natural Resources sector, which is led by TXU (see “TXU’s Bad Breaks"). With its heavy use of joint ventures and contractors, this industry stands to benefit from 2003 restrictions on proportional liability, in which more than one defendant is responsible for an injury (see “Damages Control”). Energy-industry pollution has created business opportunities for three other major lobby clients in this sector: Fuel Cells Texas, Environmental Systems Products Holdings and Waste Control Specialists.

Fuel Cells Texas represents companies developing technology that chemically converts fuel to electricity without burning fuel. Members of this new-age trade group include such old-age energy and chemical companies as CenterPoint, Hunt Power, ChevronTexaco, Siemens Westinghouse, Shell and DuPont. These companies know how to jump-start politicians. Fuel Cells Texas formed in 2001, when the legislature ordered the State Energy Conservation Office to find ways to promote this technology. Shortly after President Bush plugged fuel cells in his 2003 State of the Union address, energy interests announced that they were seeking government aid to establish an alternative-energy research complex. They then built their Texas Energy Center at the University of Houston’s new Sugar Land campus--in the backyard of House Majority Leader Tom DeLay. Governor Perry announced a $3.6 million grant to the Texas Energy Center in 2004, in one of the first handouts of his new Texas Enterprise Fund.

The nation’s largest contractor for vehicle emissions testing, Environmental Systems Products Holdings (ESP) won a $3.5 million contract in 2001 to supply the Texas Department of Public Safety with remote-sensing devices, which measure pollution from passing vehicles. ESP also produces half of the emissions-testing equipment used around Houston and Dallas-Fort Worth. This testing requirement is expanding as other Texas cities struggle to comply with federal air-quality laws. The Texas Commission on Environmental Quality announced in 2004 that ESP was fixing a software glitch that improperly flunked some vehicles.
 
 
Top Energy & Natural Resources Clients
Lobby Client Max Value
Of Contracts
No. of
Contracts
Texas Utilities Co (TXU) $1,920,000 55
Assn. of Electric Companies of TX $1,675,000 30
CenterPoint Energy $1,395,000 21
ExxonMobil Corp $1,250,000 19
Fuel Cells TX $950,000 07
Waste Control Specialists, Inc $950,000 21
Sentinel Resources Corp. $900,000 08
Reliant Resources $815,000 15
Environmental Systems Products Holdings $760,000 12
Exelon Power TX $750,000 08
Valero Energy Corp. $735,000 15
Sempra Energy $670,000 12
Entergy Corp. $655,000 20
American Electric Power $645,000 12
Texas Electric Co-op, Inc $625,001 08

Controlled by Dallas corporate-takeover billionaire Harold Simmons, Waste Control Specialists (WCS) lobbied for eight years for permission to dump nuclear waste in West Texas. After the Simmons family and its Contran holding company gave $435,000 to state politicians in 2002, the 2003 legislature agreed to let the nation’s nuclear power plants and federal nuclear weapons sites ship low-level radioactive waste to the company’s dumps. WCS stands to make billions of dollars off this law, which saddles taxpayers with long-term liability for this nuclear waste.

Against citizen opposition, Sentinel Resources has spent five years seeking a permit for a traditional landfill south of Houston. Two administrative law judges recommended in June 2004 that the Texas Commission on Environmental Quality reject Sentinel’s application, which the judges said failed to satisfy water-quality and other concerns.

Ideological and Single-Issue Contracts
Local governments dominated lobby contracts in the Ideological and Single-Issue sector. This sector’s top clients were the state’s largest city and the state capital. Austin clashes with the legislature more than any other city due to its modest efforts to protect its local environment.

The public transportation authorities of Houston, Dallas and Austin also ranked among this sector’s top lobby clients. All of these entities have hustled dollars and votes for rail systems in recent years. Austin’s metro authority is revamping its rail proposal, which voters narrowly derailed in 2000—the same year that Dallas voters snubbed a bond initiative for their rail system. Houston-area voters narrowly approved expanding their system in late 2003.

The Texas Civil Justice League and Texans for Lawsuit Reform lobbied in 2003 for lawsuit limits, led by H.B. 4 (see “Damages Control”). A similar-sounding attorney group, Texans for Civil Justice, opposed that legislation. The Tigua Indians’ Ysleta Del Sur Pueblo had a big stake in recent proposals to legalize slot machines (see “Gambling on Slot Machines”).

The Texas Municipal League (TML) did not claim much bang for its lobby bucks. TML bemoaned a 2003 ethics law that requires big-city officials to disclose personal financial information (as state officials do) and applauded passage of three under-whelming “priorities.”2

Two public entities are involved in the state’s burgeoning water wars (private water companies are classified under “Energy and Natural Resources”). The Lower Colorado River Authority and San Antonio Water System agreed in 2002 to pursue a complex deal in which the city would fund reservoirs and rural water-conservation projects along the Colorado River in exchange for a cut of the captured water.

This sector’s leading public-interest client was the American Cancer Society, which promoted tobacco taxes, the Children’s Health Insurance Program and an anti-obesity drive for kids.
 

Top Ideological & Single-Issue Clients
Lobby Client Max. Value
Of Contracts
No. of
Contracts
City of Houston $1,705,002 32
City of Austin $1,510,000 22
Metropolitan Transit Authority of Harris County $1,165,000 20
Texas Civil Justice League $990,000 23
Texas Municipal League $960,000 13
Ysleta Del Sur Pueblo Tribal Council $900,000 7
Lower Colorado River Authority $815,000 23
Dallas Area Rapid Transit $750,000 5
Capital Metropolitan Transportation Authority $750,000 5
Texans for Lawsuit Reform $675,000 13
Port of Houston Authority $640,000 13
American Cancer Society $625,000 11
San Antonio Water System $610,000 8
City of Laredo $560,001 6
Texans for Civil Justice $550,001 4

Health Contracts
The two trade associations with the greatest interest in capping damages paid to medical malpractice victims—the Texas Medical Association and the Texas Hospital Association—led the health industry lobby. Other doctor and hospital interests that made heavy lobby expenditures include the Texas Opthalmological Association, the Trinity Mother Frances Health System3 and Save Our ER’s, which seeks more Houston-area trauma services. Formed specifically to cap malpractice damages (see “Doctored Malpractice Claims”), the Texas Alliance for Patient Access allied medical with health insurance interests.

The top health insurance lobby forces were PacifiCare, Blue Cross, AMERIGROUP and the Texas Association of Health Plans trade group. This industry pushed two 2003 bills that now allow insurers to charge consumers more co-payments and deductibles for fewer covered benefits.4 The Texas Attorney General also sued PacifiCare in 2001 for failing to pay medical bills promptly; the parties partially settled these claims in 2003. Lawmakers passed SB 418 in 2003 in yet another effort to make insurers pay medical bills promptly.

Other major health lobby clients have stakes in other H.B. 4 lawsuit limits, including nursing home interests (Mariner) and drug makers. Drug interests (GlaxoSmithKline and the Pharmaceutical Research & Manufacturers of America) also swarmed a 2003 bill that established a preferred drug list for Texas Medicaid patients.5  Failing to kill the list outright, drug makers sought exceptions for some drugs and then lobbied to get their products listed. In 2004 drug makers GlaxoSmithKline and Bayer agreed to pay $9 million to settle Texas' share of federal Medicaid fraud charges.
 

Top Health Clients
Lobby Client Max. Value
Of Contracts
No. of
Contracts
TX Medical Assn. $1,725,000 24
TX Hospital Assn. $1,225,000 19
GlaxoSmithKline $800,000 7
TX Alliance for Patient Access $650,000 9
PacifiCare $560,000 11
TX Ophthalmological Assn. $535,000 7
McKesson Corp. $500,000 5
Blue Cross & Blue Shield of TX $450,001 5
Trinity Mother Frances Health System $450,000 7
TX Dental Assn. $435,000 8
Pharmaceutical Research & Manufacturers of America $425,000 7
AMERIGROUP Corp. $420,000 11
TX Assn. of Health Plans $405,000 8
Mariner Post Acute Network, Inc. $400,000 7
Save Our ER's $400,000 8

Miscellaneous Business Contracts
The Miscellaneous Business sector’s gambling, alcohol and pornography industries have major stakes in the “sin-tax” debate. Forecasts of massive state budget shortfalls overshadowed Texas’ 2003 legislative session. Lawmakers largely addressed the fiscal crunch in 2003 through spending cuts—postponing the dicey issue of how to increase revenues for the special session that Governor Perry called in early 2004. With most lawmakers unwilling to consider a state income tax or closing corporate tax loopholes, “sin taxes” emerged as the most painless way to boost revenues. One exception was a failed House proposal to increase the state sales tax and apply it to previously exempt services (thereby offending the refined tastes of the Texas Association of Interior Design).

Governor Perry kicked off the 2004 special session with a proposal to raise $7 billion in new revenues, led by the following sin-taxes:

  • $2.6 billion from cigarettes;6
  • $2 billion from legalizing slot machines; and
  • $90 million from fees on topless bars.7 
The governor’s sin-tax list hit tobacco but sidestepped the nation’s next two leading causes of preventable deaths: diet and exercise problems (No. 2); and alcohol (No. 3). This was a coup for the alcohol lobby, led by Miller Brewing, Wholesale Beer Distributors and Anheuser-Busch. Similarly, the obesity epidemic is feeding liability and sin-tax concerns within the junk-food industry (see Kraft and Texas Soft Drink Association).

Unlike these purveyors of legal sins, the gambling industry actually lobbied for passage of a new sin tax—if the state would legalize slot machines at race tracks and Indian reservations (see “Gambling on Slot Machines”).
 

Top Miscellaneous Business Clients
Lobby Client Max. Value
Of Contracts
No. of
Contracts
MEC Lone Star $750,000 5
Miller Brewing Co. $705,000 13
TX Assn. for Interior Design $600,000 6
Wholesale Beer Distributors of TX $585,000 9
Silverleaf Resorts, Inc. $560,000 8
Rio Grande Valley Partnership $500,000 5
Amusement & Music Operators of TX $480,000 10
Kraft Foods North America $480,000 10
GTECH Corp. $450,000 4
Oberthur Gaming Technologies $410,000 6
Crown Cork & Seal $400,000 8
Anheuser-Busch Co's $365,000 9
TX Petroleum Marketers & Convenience Store Assn. $355,000 9
Greater Fort Bend Economic Development Council $325,000 4
Gulf Greyhound Partners $310,000 3
TX Soft Drink Assn. $310,000 9

Dallas-based Silverleaf Resorts has generated class-action lawsuits and hundreds of complaints with the Better Business Bureau and the state Attorney General and Real Estate Commission. Customers have complained that Silverleaf used high-pressure and deceptive tactics to sell time shares in low-end resorts that reportedly are poorly maintained.

Top Lobby States in 2003
State Value of 2003
Lobby Contracts
California $191,041,807
Texas *$137,402,500
New York $120,000,000
Massachusetts $58,936,454
Minnesota $43,925,842
Washington $33,277,396
Maryland $30,500,000
Connecticut $30,127,231
New Jersey $26,672,823
Michigan $26,571,893
*This figure exceeds the $132 million minimal value
of 2003 lobby contracts used in this reportbecaus the
Center's study  also includes lobbyists' wining-and-
dining expenditures.


    Damages Control: The Lawsuit-
    Protection Lobby
    Spores of the biggest business lobby coup of 2003—a new crop of lawsuit limits—may have germinated in 2001, when Rep. Joe Nixon filed mold claims on his $369,500 home. Farmers Insurance, which initially paid $300,000 on the lawmaker’s mold claims, paid Nixon another $13,000 more during the 2003 legislative session for damage that contractors did to Nixon’s yard. A whistle-blowing Farmer’s mold manager complained that her superiors “strong armed” this extra payment to curry favor with a powerful lawmaker, a complaint that Travis County prosecutors rejected. Nonetheless, “Moldy Joe” Nixon emerged as the insurance industry’s best friend in the 2003 legislature.

    During that session, Nixon ostracized “frivolous” mold claims on his legislative web site and used a perk only available to lawmaker attorneys to delay the trial of an insurer that denied a Baptist church’s mold claims. Most importantly, Nixon authored H.B. 4, a grab bag of lawsuit-limits to benefit every major industry. This law imposes numerous new hurdles on plaintiffs who seek to recover damages involving: Medical-malpractice; Nursing homes; Product liability; Asbestos; Class actions; and Multiple defendants who share responsibility for an injury.

    Apart from the four local-government clients in the million-dollar club, the industry of every other million-dollar client urged lawmakers to pass H.B. 4. Four million-dollar clients testified directly in favor of this legislation: the Texas Medical Association, the Texas Hospital Association, the Association of Electric Companies and ExxonMobil.

    Plaintiff attorneys and consumer organization led opposition to this legislation. Trial lawyer interests spent up to $2.6 million on 2003 lobbyists, led by Asbestos Free Texas (up to $985,000). The second largest plaintiff client was Linebarger Heard Goggan ($915,000), a firm that specializes in landing municipal tax-collection contracts--and fending off related ethics scandals. The Texas Trial Lawyers Association, the chief opponent of H.B. 4 as a whole, was the next largest plaintiff client ($650,001).



     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

    TXU’s Bad Breaks


    TXU was one of four power companies that agreed to pay $10.5 million in 2002 to settle Texas Public Utility Commission charges that they improperly made $29 million by manipulating Texas’ deregulated market. TXU became Texas’ largest electric and gas utility in 1997, when it acquired Lone Star Gas. The merger saddled TXU with a defective gas pipeline that has caused eight explosions and five deaths since its installation in the early 1970s. Arguing that replacing these pipes would cost $130 million, TXU sought Texas Railroad Commission approval in May 2003 to hit North Texas gas customers with a huge rate increase. The City of Dallas and other opponents of the rate hike argued that TXU should eat these costs because it should have foreseen this problem when it bought the moldering pipeline. Opponents also said repair costs escalated because the utility failed to tackle the problem sooner. Apart from its stable of lobbyists, TXU also retained Public Strategies to conduct a public-relations campaign to counter “fear-mongering” by critics of the defective pipe. “It was never our intention to prosecute this in the media,” a TXU spokesperson told the Fort Worth Star-Telegram. “But we’ve been backed into the corner.”

    TXU’s rate-hike request bitterly divided the three Railroad Commissioners, forcing them to choose between a large bloc of voters and a big campaign donor. The only commissioner facing voters in 2004, Victor Carrillo held out until the end of a May 2004 hearing before casting the deciding vote to deny most of the rate increases that TXU sought. Commissioner Michael Williams blasted the decision as “capricious, contrary to the law and an act of sheer cowardice.” By voting against the utility, which he said “did not operate in a prudent manner,” Commissioner Charles Matthews sidestepped a firestorm. Matthews earlier ignited a 2000 ethics scandal by declining to recuse himself from a rate-hike request by TXU—the longtime employer of his son.
     



     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

    Doctored Malpractice Claims


    A key part of H.B. 4 (see “Damages Control”) capped the damages that Texas courts can award to medical malpractice victims. The law caps non-economic medical malpractice damages (for pain, suffering, disfigurement and impairment) at a maximum of $250,000. Fearing constitutional challenges, lawmakers also floated a constitutional amendment to allow such caps. The amendment passed in September 2003—with 51 percent of the vote.

    This battle pitted the medical and insurance lobbies against plaintiff attorneys. As the battle raged, media stories contained troubling reminders that the state was limiting malpractice damages--without limiting malpractice itself:

    • Baylor Medical Center doctors had good and bad news for Nelda Jordan Miles of Grapevine after her February 2003 cancer surgery. The bad news was that they removed the wrong kidney. The good news was that kidney that they meant to remove was not cancerous, after all.
    • The Arandas family of East Texas filed a lawsuit in March 2003 against Baylor Medical Center and Dallas’ Children's Medical Center after an organ-donor blood mismatch killed their baby girl, Jeanella.
    • Shortly before Texans voted on the damage-cap amendment, mechanic Hurshell Ralls settled a lawsuit against the Clinics of North Texas and the two doctors who amputated his penis after a diagnosis of penile cancer. Post-operative pathology revealed that Ralls did not have cancer, after all.


    Two leading champions of caps on malpractice damages were the Texas Medical Association and the Texas Hospital Association, which had maximum lobby expenditures of more than $1 million apiece in 2003. The pro-caps lobby argued that skyrocketing malpractice awards triggered skyrocketing malpractice insurance rates that were putting doctors out of business. If this were true, then capping malpractice damages would rollback insurance rates and save the medical profession from extinction. Governor Rick Perry’s Insurance Commissioner, Jose Montemayor, wrote lawmakers in March 2003 that the proposed caps “would translate to a 17 percent to 19 percent reduction in rates.” Yet lawmakers quietly stripped out Rep. Patrick Rose’s amendment to mandate rate reductions.

    Lacking such accountability, just one medical malpractice insurer lowered its rates in early 2004. Montemayor then told lawmakers in April 2004 that the highly specific numbers that he cited a year earlier were theoretical figures that were not intended to suggest that malpractice insurance rates would actually decrease by any specific amount. In fact, a couple insurers applied to regulators to increase their malpractice rates by at least as much as Montemayor had said that rates would fall. When regulators balked at a 19 percent rate-hike request by GE Medical Protective, this malpractice insurer announced in 2004 that it would dodge regulation altogether.


    Gambling On Slot Machines


    Gambling and Indian interests carefully laid the groundwork for Governor Rick Perry’s 2004 proposal to raise $2 billion over three years by legalizing video-lottery slot machines at Texas race tracks and Indian reservations. These two interests collectively spent up to $4.8 million on 90 lobby contracts in 2003 (Indian tribes are classified in the Ideological and Single-Issue sector). The race track industry hired former Perry Press Secretary Ray Sullivan and paid more than $200,000 to former Texas Secretary of State Elton Bomer. Gambling interests also dropped $572,175 into Perry’s war chest in the four years preceding the governor’s slots proposal (2000-2003).

     The top race-track lobby clients were Magna Entertainment Corp.’s MEC Lone Star, which owns Lone Star Park in Grand Prairie, and Gulf Greyhound Partners, which owns Gulf Greyhound Park south of Houston. While lottery contractors such as GTECH and Oberthur Gaming must compete with slot machines for gambling dollars, GTECH bet on both ponies by buying a company that makes video lottery terminals. Finally, the Amusement and Music Operators of Texas (AMOT) represents owners of “eight-liner” gambling machines. After the Attorney General’s Office seized more than 2,000 of these illegal machines in recent years, AMOT urged lawmakers in late 2003 to legalize slot machines and give its members a piece of the action. But slots and other revenue-raising proposals crapped out with lawmakers in the 2004 special session.
     



1 The 1999 session was a sleeper compared to its two predecessors. Newly elected Governor George Bush pushed through a radical package of lawsuit limits in 1995. Governor Bush’s failed 1997 demands to overhaul the tax system to cut property taxes made the lobby scramble again.
2 These laws: Exempt some security matters from public disclosure; Let local courts keep charging “technology fees;” and Grant city-manager cities authority to appoint personnel.
3 Joined by Trinity Mother CEO Lindsey Bradley, Governor Perry used this Tyler hospital for one of his photo-ops promoting malpractice caps.
4 SB 541 and SB 10.
5 A provision of HB 2292--the massive Health and Human Services reorganization bill.
6 The tobacco industry (classified in the Agriculture sector) reported 28 Texas lobby contracts in 2003 worth up to $1.7 million.
7 The porn industry’s First Amendment Coalition spent up to $300,000 on three lobbyists in 2003.