Media Credit: Dean Sagun University Democrats secretary Ali Puente and president Marcus Ceniceros protest at State Representative Todd Baxter´s campaign headquarters off Mopac. They are calling on Baxter to return $35,000 of allegedly illegal corporate donation money.

A small group of University Democrats gathered outside the campaign headquarters of state Rep. Todd Baxter, R-Austin, Tuesday to persuade him to return money he accepted from the Republican National State Elections Committee.

Baxter's campaign received $35,000 that allegedly came from $190,000 in illegal corporate donations to Texans for a Republican Majority, a fund-raising group for U.S. House Majority Leader Tom DeLay, R-Sugar Land.

The group held signs of protest and hung fake money from a clothesline as passing cars honked.

"This is more of an issue of ethics and leadership," said Marcus Ceniceros, government sophomore and president of University Democrats. "We want to see our public officials held accountable, and if these funds are deemed illegal, then he should give it back."

The protesters presented Baxter's office with a letter asking him to donate the money to either a local children's hospital or college scholarship fund.

The allegations stem from a Travis County grand jury investigation of Texans for a Republican Majority Political Action Committee.

DeLay was integral in creating the political action committee and served as chairman of its advisory board, though he denies any wrongdoing. Three of DeLay's associates were indicted on felony charges of violating state campaign finance laws. All three have been released on bail, and their lawyers have said their clients have done nothing illegal.

"Campaign finance law is fraught with gray areas," said James Henson, a government lecturer at the University.

In Texas corporate contributions to legislative candidates are illegal, and state law generally prohibits spending corporate money to directly aid a campaign. But the same money can be used for administrative costs.

John Colyandro, the TRMPAC's executive director, faces charges of money laundering for sending $190,000 in corporate donations to the Republican National Committee, according to the indictment. That money was later distributed to seven candidates, including Baxter.

"There is no allegation that Todd Baxter did anything wrong ..." said Fred Lewis, president of Campaigns for People, a watchdog group. Lewis said Baxter is not implicated because he did not know the funds he accepted were allegedly laundered. "From a legal perspective what he did is not illegal. Now whether he should give the money back; that's a decision for him and the voters to make." Baxter's office declined requests for comment Tuesday. Some Republicans have said Democrats are using the issue to advance partisan goals.

"The University Democrats are exploiting partisan politics to benefit themselves, and making a non-issue an issue," said Sachiv Mehta, chairman of the College Republicans. "It seems like they could focus their time on doing more positive things like helping their own candidates."

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