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They are Democrats, yet their votes in the Capitol have helped big business continue fracking in California and defeat a bill dictating pay and benefit levels for Wal-Mart workers.

As Californias Republican Party shrinks, the influence of moderate Democrats in the Capitol is growing. But pinning down exactly who belongs to the group is not easy.

Unlike caucuses organized around political parties or ethnic identity, the so-called moderate caucus has no government-paid staff, and the group is not officially recognized by the Legislature.

The question I always get when I go give speeches about the mods is, Who are you guys? Is there a website? A roster? said Assemblyman Henry Perea, the Fresno Democrat who leads the loosely defined caucus. The answer is no.

Instead, the center of operations is an art-filled office in midtown Sacramento, where two political entrepreneurs have created a hub that fosters ties among major corporations including energy companies, drugmakers and insurers and lawmakers who cast swing votes affecting the industries bottom lines. These business-friendly Democrats can serve as a balancing influence against the liberal wing of their party and its historic ties to environmentalists, trial lawyers and unions.

The two consultants David Townsend and Chris Tapio have created a multifaceted operation in their I Street office to build the moderate caucus. They work behind the scenes to raise money from corporate interests, pour it into political campaigns and run an industry-funded nonprofit group that pays for policy retreats on business issues. Together, they serve as the fundraising and policy arms of the Legislatures moderate caucus.

The setup has never been challenged by Californias political watchdog. Few lawmakers or lobbyists are willing to discuss it publicly. Yet the operation has triggered hushed complaints from those left out of the loop that outside interests have found an influential path around the traditional legislative system.

What you dont want to have is a situation where private interests are underwriting de facto staff or the political operation of elected officials. The whole idea for elected officials is that they are beholden to taxpayers, not special interests, said Meredith McGehee, policy director at the Campaign Legal Center in Washington, D.C.

When you have these caucuses and special groups, the problem crops up that the lines become very murky.

Townsend and Tapio are not registered as lobbyists. They say they dont urge any action on specific bills. But they have used money from businesses that do lobby the Legislature to build a political infrastructure that puts the two consultants close to key decision-makers. Through campaign donations and gifts of meals and travel, their operation has touched about half the Democrats in the state Assembly and about one-fifth of Senate Democrats.

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The Public Eye: Big business channels money to Californias moderate Democrats