[Texgreen] Tx House speaker Craddick is hyper-corrupt

[Roger Baker]

 =46rom San Antonio Express-News, Jan 7, 2007:
Speakership key to clout

Web Posted: 01/06/2007 11:42 PM CST

R.G. Ratcliffe
Express-News Austin Bureau

AUSTIN =97 Far more is at stake in the race for Texas House speaker =20
than just whose hand will wield the oversized pecan gavel used to =20
bring the unruly chamber to order.

There also is influence. And there's the ability to implement laws =20
that could affect billions of dollars in business profits or state =20
spending.

Lobbying firms whose members vacation with Speaker Tom Craddick or =20
help him get an appointment with the pope stand to lose influence if =20
he is ousted. So do tort reformers and businessmen James Leininger of =20=

San Antonio and Bob Perry of Houston.

If Appropriations Committee Chairman Jim Pitts prevails in his =20
challenge, Democratic legislators and personal injury trial lawyers =20
could gain a seat at the legislative negotiating table.
Proponents of more state spending on public education or children's =20
health programs may gain clout as well.

Winners and losers in the legislative balance of power will be =20
determined Tuesday as House members choose between the two =20
Republicans to lead them.

"The decision on who is going to be speaker of the House will have =20
enormous pocketbook impact on all Texans," said Tom Smith of Public =20
Citizen. "The decisions the next speaker makes on who to appoint as =20
committee chairs and what legislation comes to the floor and what is =20
in tax and appropriations bills is going to affect each and every one =20=

of us."

Aligned with Craddick are a pair of powerful lobbying firms =97 Hillco =20=

Partners and the Texas Capitol Group =97 that collect more than $1 =20
million a year each in fees to represent a who's who of business =20
clients before the Legislature.

Texas Capitol Group lobbyist Bill Messer vacations with Craddick and =20
his family. Messer's brother, Joe Cox, is a key researcher on =20
Craddick's speaker staff. Mike Toomey, another lobbyist at the firm, =20
helped Craddick win the speakership in 2003.

Hillco partner Bill Miller often serves as Craddick's political =20
spokesman.

He also arranged for the devout Catholic politician to have an =20
audience with Pope John Paul II at the Vatican in 2004.

Democratic political consultant Glenn Smith said the biggest loser in =20=

a Craddick defeat would be Gov. Rick Perry. Smith said Perry has been =20=

dependent on Craddick to push his agenda through the Legislature.

William Lutz, managing editor of the conservative Lone Star Report, =20
said the governor also could find opposition from Pitts to the =20
centerpiece of his administration: expanding the state's highways and =20=

building the Trans-Texas Corridor.

"Jim Pitts is not a friend of TxDOT (Texas Department of =20
Transportation)," Lutz said. "If Jim Pitts is speaker, the governor =20
might get a few bills sent to his desk that he doesn't like."
Smith said other major losers would be Hillco and the Texas Capitol =20
Group.

He said the lobbyists relied on Perry to serve as a veto block on =20
legislation they opposed and relied on Craddick to push what they =20
wanted through the House.

"Their empire has been dependent on this speaker and the financial =20
backing of Bob Perry," Smith said.

Bob Perry, a Houston homebuilder, in the past five years has donated =20
$915,000 to the Hillco political action committee, about 43 percent =20
of all the PAC's fundraising. The money was then donated to legislators.

Ethics advocate Fred Lewis said he believes the money wasn't just =20
meant to sway legislators but also to keep Craddick in power by =20
financing lawmakers who support him. (Since Craddick was elected =20
speaker in 2003, he has received $25,000 from Hillco and $35,000 from =20=

Perry.)
Lewis said he also believes a state law prohibiting lobbyists from =20
influencing a speaker's race may have been violated when Hillco's =20
Miller served as Craddick's spokesman in the early stages of the =20
campaign last month.

He said Craddick also should have reported Miller's services as an =20
expense on his speaker's race financial disclosure statements.

"It is clear Bill Miller is providing professional services to =20
Speaker Craddick, and they are not reported," Lewis said.

Miller said his activities as a friend of Craddick's have nothing to =20
do with his work as a Hillco partner. He said he was a friend with =20
Craddick years ago, at a time when the legislator had no power in the =20=

House because Craddick had gotten crossways with former Speaker Pete =20
Laney.
"My relationship with Craddick preceded Hillco. It goes back to when =20
he was poison," Miller said. "We have a lot of clients. Do you think =20
we'd subvert our clients for one member of the Legislature?"
Miller said he only took reporters' phone calls over the Christmas =20
holidays because official spokeswoman Alexis DeLee was on vacation. =20
He said he did it as a favor to the reporters and to Craddick.

Other potential losers in a Craddick defeat include Bob Perry and San =20=

Antonio investor Leininger, both of whom are major Republican donors.

The House under Craddick approved the creation of the Texas =20
Residential Construction Commission, which protects homebuilders from =20=

lawsuits.

And Craddick pushed for a floor vote in 2005 on doomed private school =20=

voucher legislation, Leininger's top legislative goal. Leininger's =20
mostly unsuccessful funding of efforts to unseat Republican =20
incumbents who voted against that bill is partly responsible for the =20
current rebellion of House members against Craddick.

Perry spokesman Anthony Holm said the homebuilder makes political =20
donations to both Democrats and Republicans who support a business-=20
friendly agenda. That will not change if there is a new speaker, he =20
said.

Perry was Pitts' largest donor last year, giving him $15,000.
Leininger spokesman Ken Hoagland said the businessman accepts that =20
trying to create a majority for vouchers by funding legislative =20
campaigns was a mistake. He said Leininger has "apologized for =20
excesses" and is working to convince lawmakers he once opposed that =20
vouchers would be good for Texas' schoolchildren.

On Pitts' side, the Waxahachie lawmaker comes to the speaker's race =20
with his own set of encumbrances.

Though he was the 10th-largest fundraiser among House members in =20
2006, his donations came from a broad array of interests. His =20
brother, John, and nephew, John Jr., are lobbyists whose clients =20
mostly include charter schools and businesses associated with the low-=20=

income housing industry.

What worries some conservatives is Pitts' past legislative history =20
and the alliances he is making in the speaker's race.

Pitts in 2004 carried legislation supported by Gov. Perry at the time =20=

to legalize video slot machines at racetracks in Texas. Pitts' =20
contributions last year included $7,500 from the political committee =20
of Houston-based Maxxam Inc., a company interested in passage of such =20=

legislation.

To win the speakership, Pitts also is putting together a coalition of =20=

Democratic legislators and Republicans. He has promised to be more =20
open as speaker than Craddick and to give all sides of an issue a =20
seat at negotiations on bills.

To conservatives, that means Pitts could be more willing to give in =20
to Democratic demands on state spending as well as social issues and =20
be more open to personal injury trial lawyers on legislation =20
involving lawsuit reform.

"That means our conservative agenda would be endangered if not DOA," =20
said Cathie Adams, president of the conservative group Texas Eagle =20
Forum.

Jim Cardle, president of the conservative Texas Citizens Action =20
Network, said state government spending grew 19 percent with Pitts as =20=

appropriations chairman during times when state revenue was tight. =20
Cardle said he is worried about what will happen if Pitts is speaker =20
and has to satisfy Democrats who helped elect him.

"Democrats would win. If Pitts wins, you've got the tail wagging the =20
dog," Cardle said.
There also are political risks involved for House members in how they =20=

decide to vote. Democrats who back Craddick could face retribution =20
from their party in next year's primaries. A Democratic blog, the =20
Burnt Orange Report, already is referring to them as "Craddickheads."

Republicans who bolt to Pitts face the similar possibility of payback =20=

in their primaries next year.
Smith, the Democratic political consultant, said he does not believe =20
the Republican members need to worry. He said three of the five =20
Republican incumbents targeted for defeat by Leininger last year =20
survived.

"At this point, the Republican rebellion is far too large to worry =20
about primary retribution," Smith said.

Cardle agreed. He said the Craddick Democrats have more to worry =20
about, noting state Sen. Frank Madla of San Antonio and state Reps. =20
Ron Wilson and Al Edwards of Houston were defeated in the Democratic =20
primary last year based on party loyalty votes.

"The Democrats have a better enforcement mechanism than the =20
Republicans do," Cardle said.
Hillco and the Texas Capitol Group may be the most high-profile =20
lobbying firms with a vested interest in a Craddick speakership, but =20
they are not alone.

Through June 30, Craddick had raised $1.2 million from lobbyists and =20
business interests for his campaign account, even though he faced no =20
re-election challenge. He had $3 million of political cash in the bank.

Pitts raised $812,000 last year, but he faced challenges in the =20
Republican primary and the general election. His reports cover all =20
but the last two months of 2006. He had $484,334 in political cash in =20=

his bank account.

Craddick's report for the second half of 2006 and a final tally on =20
Pitts will not be available until after the speaker's race is decided.

Because state law prohibits fundraising during a regular legislative =20
session, if Pitts wins, lobby interests will be unable to make so-=20
called "late train" donations to him until 20 days after the session =20
ends.

r.g.ratcliffe@chron.com

                 ********************************************

Players to watch:

The Newcomers

Sen. Dan Patrick, R-Houston
The rabble-rousing Republican of talk radio fame might not be a =20
typical first-term freshman.  Believed to have an eye on the =20
Governor's Mansion himself, will Patrick continue on-air attacks of =20
colleagues or learn the art of compromise?

Rep.  Juan Garcia, D-Corpus Christi

This Coastal Bend Democrat pulled off an upset victory over House =20
District 32 Republican incumbent Gene Seaman.  Some are already =20
calling Garcia the future of the Texas Democratic Party as the first =20
Democrat to carry the district since former Comptroller John Sharp =20
did it against Rick Perry in the 1998 leiutenant governor race.

(my note:  I heard someone from Democrat Exec Committee in SA say =20
that Juan Garcia was the next John F. Kennedy and that she felt he =20
would rise to the top.  People like everything he says.)

Sen. Kirk Watson, D-Austin

The former Austin mayor is much quieter than the freshman Republican =20
senator from Houston but is capable of making his own mark for the =20
Democrats.

Rep Diane Patrick, Republican-Arlington

This college professor and former member of the State Board of =20
Education shook the political establishment last March with her =20
defeat of former House Public Education Chairman Kent Grusendorf in =20
the Republican primary.  She is a fiscal conservative who opposes =20
school vouchers.
 =20=