Sept. 28 (Bloomberg) -- U.S. Representative Tom DeLay, the second-highest-ranking Republican in the House of Representatives, was indicted by a Texas grand jury on a single count of criminal conspiracy, according to the grand jury clerk.

DeLay, 58, who faces up to two years in prison, will temporarily step aside as House majority leader, he said in a statement. House Speaker Dennis Hastert said he will recommend that Representative David Dreier of California to replace DeLay, the Associated Press reported.

Two former campaign aides, John Colyandro and Jim Ellis, were also charged with conspiracy by the grand jury in Austin, Texas, said Linda Estrada, the court clerk.

The indictment stems from a grand jury investigation into alleged use of illegal corporate contributions by DeLay's political action committee, Texans for a Republican Majority, in the 2002 races for the state House of Representatives.

DeLay, who was admonished three times last year by the House ethics committee, said he'll step down from his majority leader post until the criminal case is resolved. House Republican caucus rules require party leaders to leave their posts if indicted on a felony charge that carries a prison sentence of two or more years.

``I have notified the speaker that I will temporarily step aside from my position as majority leader pursuant to rules of the House Republican Conference and the actions of the Travis County District Attorney today,'' DeLay said in his statement.

Funds raised by DeLay's group helped the Republican Party take control of the Texas Legislature in the 2002 elections. At DeLay's urging, the new Republican majority then redrew the state's congressional district lines without waiting for the new Census, helping the party to pick up six U.S. House seats in Texas in the November 2004 elections.

The redistricting gave Republicans a 21-11 edge in the Texas delegation, reversing a 17-15 Democratic edge, and helped Republicans extend their decade-long control over the U.S. House of Representatives.

To contact the reporters on this story: Darrell Preston in Dallas at dpreston@bloomberg.net. Laura Litvan in Washington at llitvan@bloomberg.net.

Last Updated: September 28, 2005 13:01 EDT