Enlarge Bob Daemmrich

Republican State Reps. Byron Cook (l), R-Corsicana, Burt Solomons (c), R-Carrollton, and Dennis Bonnen, R-Angleton, listen to a point of order on HB12 sanctuary cities bill on May 6, 2011.

For House State Affairs Chairman Byron Cook, the bottom line is pretty clear on whether the identity of political donors should be disclosed. It’s a transparency issue, the Corsicana Republican explained in an interview Thursday afternoon with the Tribune. The public has a right to know when money is going toward affecting political campaigns.

The Legislature last year took a stab at requiring disclosure from nonprofit groups, which have grown in importance with the rise of direct independent expenditures in political campaigns, of their big-dollar political donors.

The legislation passed both chambers but fell victim to the veto pen.

Cook’s committee will study the issue anew in an interim hearing on May 1 with invited testimony that Cook said would include experts with different perspectives on the First Amendment and constitutional law. The goal, he added, is to give the committee the information it will need to have solid recommendations on possible legislation next session.

“This issue deserves further comprehensive study and review so we can establish good policy in this area,” he said.

The issue of donor disclosure is also front and center in an ongoing investigation by the ethics commission into the conservative advocacy group Empower Texans and the group’s president, Michael Quinn Sullivan.

The group is battling in federal court subpoenas issued by the state agency seeking its communications detailing its political activity. Empower Texans claims that complying with the subpoenas would expose its donors to political intimidation. On Thursday, the ethics commission voted to withdraw those subpoenas and substitute what commissioners felt were more narrowly tailored requests. Their action was in response to U.S. District Judge Sam Sparks' description last month of the original subpoenas as “absurd” for how broadly they were drawn.

Empower Texans' attorney Joe Nixon's reaction at the hearing was that the new subpoenas didn't represent much of an improvement. Objections to the new subpoenas — which are surely expected — must be made before the ethics commission's next meeting in late May.

The ethics commission has also taken some initial steps toward establishing rules that would do what last year’s legislation intended — requiring nonprofits to disclose the identity of donors who are giving to support political activities.

Cook said he thought the ethics commission’s attention to the issue was “appropriate” because office seekers should know what the rules of engagement are.

Notification of the State Affairs meeting was made on Wednesday, the same day the U.S. Supreme Court handed down a decision in McCutcheon v. FEC that knocked down another limit on campaign spending — this time a restriction on the total amount of money that can be spent on federal candidates and parties in a single election cycle.

The decision doesn’t have an immediate effect on Texas, which doesn’t limit how much anyone can spend on a campaign. But independent observers have pointed to this week’s decision as another example of a court that is highly skeptical of limits on campaign spending.

For Cook, the issue of the public’s confidence in the transparency of the political system is “incredibly important.”

“If we don’t address this, you’re likely to see a lot more 501(c)(4)’s set up for the specific purpose of hiding donors,” he said.

Enlarge Tesla Motors

A Tesla Model S. The California-based electric automaker had considered Texas for its $5 billion lithium-ion battery factory. The company is also hoping to sell cars in Texas but does not have required franchise dealerships, as state law requires.

Responding to increased scrutiny of the state’s motor vehicle franchise laws instigated by Tesla Motors, the Texas Automobile Dealers Association has let lawmakers know it would not look favorably on carving out an exemption for the electric carmaker.

"We believe this sets a bad precedent for future economic development efforts by linking them to special interest changes in law," TADA Chairman Rick Cavender wrote in a letter to lawmakers last week.

The issue cropped up with renewed urgency last week after Gov. Rick Perry tied efforts to land Tesla’s $5 billion battery plant to enhanced economic development in the state. Perry also suggested that the franchise law should be looked at again, although his office later said he wouldn’t call a special session on the topic.

Cavender counters that Tesla doesn’t need any further exemptions from the law to do business in Texas as it currently does. Tesla, though, is chafing at restrictions on giving test drives or quoting prices for customers who visit the company’s gallery stores.

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A long-running suit filed by the conservative advocacy group Texans for Fiscal Responsibility against a now defunct political consulting firm was wrapped up late last week with an apology and the payment of an undisclosed sum.

TFR took legal action over campaign mailings created by Murphy Turner & Associates for a PAC called Texans for Fiscal Accountability during the 2012 elections.

The PAC was created in late 2011 by the wife of Murphy Turner principal Chris Turner and her brother.

In a letter that accompanied the settlement of the suit, the owners of Murphy Turner acknowledged the name of the PAC was “confusingly similar” to TFR.

Murphy Turner effectively split up at the end of 2012. With this litigation now finalized, the firm will close for good.

*****

Candidates in the upcoming party runoffs continue to tout support from foes vanquished in the first round of elections:

•    Becky Berger, who finished third in the GOP contest for railroad commissioner, has endorsed Ryan Sitton in his race against Wayne Christian.

•    Joe Cotten, who finished fourth in the GOP contest for agriculture commissioner, has endorsed Tommy Merritt, who squares off against Sid Miller in next month’s runoff.

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This week in the Newsreel: The U.S. Supreme Court strikes down a campaign finance cap, enrollment in public schools is up and we remember Ray Hutchison.

You can view the video at: https://trib.it/1pYG9gz

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We lucked out this week with a set of questions that seemed to anticipate a U.S. Supreme Court decision on campaign finance and transparency. Sometimes you’re smart, and sometimes you’re lucky.

A large majority said all contributions to all groups should be disclosed, and two-thirds of the insiders said the same people would contribute if disclosures were always required.

About two in five said political groups are less influential when their financial sources are disclosed, but 12 percent said disclosure makes them more effective and 36 percent said it’s a wash.

Does full financial disclosure to voters change election outcomes? Yes, according to 45 percent of the insiders, followed closely by the 40 percent who said no.

We’ve included a full set of verbatim comments on the questions in the attachment. A sampling: 

Enlarge Todd Wiseman

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Should people and interests donating to campaigns and to third-party political groups be required to identify themselves and the details of their contributions?

• "I don't know about 'the details' but identities and dollar amounts should be required. This, from a supporter of the back-room deal..."

• "Let's go back to the days of chicken magnates handing out thick envelopes around the Capitol - it's fair for everyone when there are no rules, right?"

• "I have never seen an argument that outweighs the right of voters to know who is supporting candidates who want to represent the citizens of Texas."

• "Contributors to political campaigns and third-party political groups should be required to identify themselves to the campaign or group to which they donate. The campaign or group should be required to disclose the contribution."

• "No. The only reason they were required to identify themselves in the first place was: 1) so incumbents could punish all those that went against their re-election efforts; and 2) so incumbents could charge the appropriate amount for the late-trainers."

• "It is ridiculous to report all the details on a $50 donation and be able to hide a $100,000 one with a third-party group that is as political as any campaign."

Enlarge Todd Wiseman

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If the actual sources of campaign financing were revealed in a full and timely way, would the same people and interests take part in Texas elections?

• "Probably not to the same extent they do under the cloak of darkness. It all feels so rigged, bought and paid for now. Not very encouraging for efforts to increase voter turnout."

• "This is a 'yes, but ... ' question. Yes, but in a much different manner."

• "Some of the hot money would not be given if it were to be disclosed"

• "Let’s try it and see"

• "Maybe. Some would, others would be more hesitant. The bigger issue would be that people might figure out how few people are actually financing the campaigns and why they have such significant influence."

• "Some people are obviously interested in anonymity, or else it would not be offered."

Enlarge Todd Wiseman

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Are third-party political groups more or less influential in elections when they are required to reveal their financial sources?

• "That depends on who the third party group is, what the scheme behind the dark giving is and how much the voters care about the scheme."

• "This question assumes all 3rd party groups are created equal, but they aren't. Revealing sources probably makes no real difference to a legitimate group. But a sham group acting as a front for a single contributor would be much less influential after being forced to reveal its sole source."

• "Paid media -- particularly slate mailers -- are probably the most influential factor in Texas elections -- and much of that has disclaimers on it."

• "When the public is made aware of the source of funding, it tempers influence of that funding."

• "Less effective when Lunch Pail Guy finds out that 'Taxpayers for the Working Man' is really a rich guy or two that just flat out don't want to pay any taxes to do things like support the public schools Lunch Pail Guy's kids attend"

• "No difference in the campaign, but the real problem happens during the session. Disclosure is a lobbying problem, not a campaign one."

Enlarge Todd Wiseman

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Would election outcomes in Texas be any different if voters were aware of the actual sources of all of the money spent by and on behalf of the various campaigns, bond issues and other initiatives?

• "Another 'Yes, but...' Insiders kid themselves. Voters don't care. For the 5% of the population that actually gives a crap, it would depend on the group who's spending, their relevance to the issue, and the amount and source of money...”

• "A vast number of Americans can't even name a sitting US Senator, much less cite the sources of how campaigns are financed."

• "People who want to know can almost always find out who is funding something."

• "It’s an interesting question to ponder. I would like to believe that once Texans 'figure it out,' they will realize the need to participate to get everything back on track."

• "Would hope so, but our abysmal turnout makes me wonder. Don't think you will convince any of the crazies that their anointed are tainted."

• "Unless there's actual bribery, the public doesn't care."

Our thanks to this week’s participants: Gene Acuna, Jenny Aghamalian, Victor Alcorta, Brandon Alderete, Clyde Alexander, George Allen, Jay Arnold, Charles Bailey, Dave Beckwith, Andrew Biar, Allen Blakemore, Tom Blanton, Chris Britton, David Cabrales, Lydia Camarillo, Kerry Cammack, Thure Cannon, Snapper Carr, Janis Carter, Corbin Casteel, William Chapman, Elna Christopher, Kevin Cooper, Beth Cubriel, Randy Cubriel, Denise Davis, June Deadrick, Nora Del Bosque, Glenn Deshields, Holly DeShields, Tom Duffy, David Dunn, Richard Dyer, Jeff Eller, Jack Erskine, Jon Fisher, Norman Garza, Dominic Giarratani, Bruce Gibson, Stephanie Gibson, Daniel Gonzalez, John Greytok, Clint Hackney, Wayne Hamilton, Bill Hammond, John Heasley, Ken Hodges, Steve Holzheauser, Billy Howe, Laura Huffman, Deborah Ingersoll, Richie Jackson, Cal Jillson, Mark Jones, Robert Jones, Richard Khouri, Tom Kleinworth, Ramey Ko, Nick Lampson, Pete Laney, Dick Lavine, James LeBas, Luke Legate, Mark Lehman, Leslie Lemon, Ruben Longoria, Vilma Luna, Matt Mackowiak, Luke Marchant, Steve Minick, Bee Moorhead, Mike Moses, Steve Murdock, Keir Murray, Nelson Nease, Keats Norfleet, Pat Nugent, Todd Olsen, Nef Partida, Gardner Pate, Robert Peeler, Bill Pewitt, Tom Phillips, Wayne Pierce, Allen Place, Royce Poinsett, Gary Polland, Jay Pritchard, Jay Propes, Ted Melina Raab, Tim Reeves, Patrick Reinhart, David Reynolds, Grant Ruckel, Jason Sabo, Andy Sansom, Jim Sartwelle, Barbara Schlief, Stan Schlueter, Bruce Scott, Robert Scott, Steve Scurlock, Ben Sebree, Christopher Shields, Julie Shields, Nancy Sims, Jason Skaggs, Ed Small, Larry Soward, Leonard Spearman, Dennis Speight, Tom Spilman, Jason Stanford, Bill Stevens, Bob Strauser, Colin Strother, Sherry Sylvester, Gerard Torres, Trey Trainor, Vicki Truitt, Ken Whalen, David White, Darren Whitehurst, Christopher Williston, Seth Winick, Peck Young, Angelo Zottarelli.

Enlarge Todd Wiseman

Monday, April 7

• Texas Business Roundtable Runoff Candidate Forum; Texas Medical Association, 401 W. 15th St., Austin (1:30-4:30 p.m.)
• Fundraiser for attorney general candidate Ken Paxton; La Griglia, Houston (noon)
• Fundraiser for Justice Ken Wise of the 14th Court of Appeals; La Griglia, Houston (5:30-7 p.m.)

GOP gubernatorial candidate Greg Abbott called for upping the quality of pre-K programs before funding a universal, all-day pre-K like what his Democratic rival, Wendy Davis, has advocated. The Davis campaign attacked Abbott for saying that expanding pre-K without keeping the program accountable would be a "waste."

Gov. Rick Perry is encouraging state transportation commissioners to tap Joe Weber, Texas A&M's vice president of student affairs, to be the next executive director of the Texas Department of Transportation. Transportation commissioners last month interviewed four candidates in executive session.

Two of Lt. Gov. David Dewhurst's top political aides left his campaign amid internal conflict about the direction of his re-election bid. The shake-up comes two months before Dewhurst, a 12-year incumbent who received 28 percent of the vote in March's Republican primary, will face challenger Dan Patrick in a May runoff.

The first shots in the November contest for comptroller have been fired with Democrat Mike Collier taking his Republican rival, Glenn Hegar, to task for advocating the replacement of the property tax with a consumption tax. Collier said the result would be a huge increase in sales tax.

Congress again failed to pass a permanent fix to a Medicare formula that perennially threatens to cut reimbursement rates to physician. Lawmakers passed another temporary, 12-month patch, but Texas' congressional delegation said afterward they are closer than ever to a lasting solution on this perennial issue.

Surpassing the 5 million mark, student enrollment in Texas public schools has hit a new record, according to the Texas Education Agency. And Hispanic enrollment continues to mark the majority.

Disclosure: At the time of publication, Texas A&M University was a corporate sponsor of The Texas Tribune. (You can also review the full list of Tribune donors and sponsors below $1,000.) 

Deputy Comptroller Martin Hubert has been named to the State Water Implementation Fund for Texas advisory committee, which will oversee the distribution of $2 billion from the Rainy Day Fund to help implement the state's water plan.

State Rep. Drew Darby, R-San Angelo, has a new gig. The attorney and title company owner is now of counsel in the Real Estate and Energy practice groups of Jackson Walker LLP. A member of the Legislature since 2007, Darby chairs the Texas House energy caucus and he chairs the Appropriations subcommittee on natural resources, business and economic development and regulatory agencies.

David Craig Pearson hired on as the Railroad Commission's new seismologist. A former team leader at the Los Alamos National Laboratory's seismic field team, Pearson will investigate a recent spate of earthquakes in North Texas to determine if they are being caused by oil and gas extraction activity in the area. 

Richard Alpert of North Richland Hills, Jeffrey Barnard of Dallas, Vincent Di Maio of San Antonio, Harvey Kessler of Southlake, Ashraf Mozayani of Houston and Nizam Peerwani of Fort Worth have been appointed to the Forensic Science Commission by Gov. Rick Perry. Kessler and Mozayani's terms expire Sept. 1, 2014, while the rest received terms that expire Sept. 1, 2015.

Tom Rugg Sr. of Beaumont has been appointed as judge of the 58th Judicial District by Perry for a term to expire at the next general election.

Deaths: Elton "Ray" Hutchison, who was a GOP state representative from Dallas and chairman of the Republican Party of Texas before running for governor in 1978. He later carved out a specialty in government bond financing and was a close advisor to his wife, Kay Bailey Hutchison, who served in the U.S. Senate for 20 years. He was 81.

Beryl Milburn, who was a former vice chairwoman of the Republican Party of Texas, the first president of the Austin Republican Women's Club and a founder of Texas Federation of Republican Women. She also ran for the Legislature in 1958. She was 93.