During the summer of 2004, DeLay was under investigation for ethical violations, stemming from complaints filed by Representative Chris Bell of Texas. Some of the complaints involve illegal campaign financing.
On September 30, 2004, the House Committee on Standards of Official Conduct (the "Ethics Committee") found that DeLay had violated House rules in 2003 in his efforts to pass a bill concerning health care. The committee admonished DeLay for having made an offer to Representative Nick Smith, who was retiring, that DeLay would endorse Smith's son for the seat if Smith would vote in favor of the bill. This admonishment caused the conservative-leaning Judicial Watch to issue an unusual call for DeLay to resign as Majority Leader.
On October 6, 2004, the Ethics Committee admonished DeLay again, this time for violations stemming from the Bell complaint. Specifically, it stated that he should not have asked the Federal Aviation Administration to track a small plane that he believed to be carrying Democratic Texas state legislators, who were fleeing Texas to prevent a quorum, thus stopping a redistricting plan they did not approve of.
The panel also admonished DeLay for his dealings with Westar Energy, a Kansas-based firm; it cited memos from Westar stating that they believed $56,000 in donations to DeLay's PAC and others would get them "a seat at the table". Subsequently, DeLay appeared at a Westar-hosted golf fundraiser, "just as the House-Senate conference on major energy legislation...was about to get underway". This, the conference stated, violated the requirement that lawmakers may not solicit political donations "that may create even the appearance" that they will lead to special access or special treatment.
However, the committee decided to delay action on Bell's third charge, dealing with improper fundraising by the DeLay-headed Texans for a Republican Majority PAC; Bell charged that it improperly raised funds from corporations to channel to local Texas legislative races. The matter is currently being investigated by a grand jury in Travis County, Texas. On September 21, 2004, the grand jury indicted three members of Texans for a Republican Majority, including its executive director, on charges of money laundering and accepting illegal campaign contributions. DeLay and his supporters contend that this investigation and the indictments are politically motivated. Fearing a possible indictment of DeLay, which they feel is politically motivated on November 17, 2004, House Republicans changed an early 1990s rule that would force House Leaders to step down if indicted; the new rules will allow a committee to review any indictment to determine if it is politically motivated and if it is not politically motivated the House Leader would be required to step down.
