Leaders in GOP Fear That Sting May Undermine Party Objectives

Republican Party members, concerned about the prospect of a long FBI investigation into charges of corruption in the Legislature, say the inquiry could impair GOP fund-raising efforts and sidetrack plans to wrest control of the Assembly from Democrats.

While the FBI has targeted legislators from both parties in its three-year investigation, Republicans gathered here for their state convention said they may have more to lose because Assembly GOP Leader Pat Nolan is the more prominent figure so far named in the probe.

“People say this is a bipartisan scandal but it really isn’t, when you measure the depth of the impact on each side,” said one party activist who asked to remain anonymous.

Nevertheless, Republicans agreed that the probe could only affect the Nov. 8 elections--or Nolan’s position in the party--if the federal government hands down indictments before election day.

“I think the voters are going to be fair,” Gov. George Deukmejian told reporters. “I don’t think they’re going to vote somebody out of office based on the fact that there are some allegations and there is an investigation.”

In addition to Nolan, those named in the FBI’s undercover investigation are Assemblyman Frank Hill (R-Whittier), one of Nolan’s top lieutenants; Assemblywoman Gwen Moore (D-Los Angeles); Sen. Joseph B. Montoya (D-Whittier); and Board of Equalization member Paul Carpenter, a former Democratic senator.

In the elaborate sting set up by the FBI, undercover operatives created phony companies, sponsored legislation and gave thousands of dollars to these elected officials in an attempt to uncover bribery and extortion in the Capitol.

Nolan, who has ambitions of someday becoming Speaker of the Assembly, Sunday downplayed the significance of the probe, saying, “Our candidates realize this is political gamesmanship coming just before the election.”

The Glendale Republican--who until now has declined to discuss the investigation--refused to elaborate on his remark or say whether he believed it was the FBI that had engaged in this “gamesmanship.”

Republican Party Chairman Bob Naylor, while agreeing that the sting is unlikely to affect the fall elections, acknowledged the investigation could pose grave problems later for the targets of the sting.

“This is by far the most serious investigation I’m aware of in the history of the Legislature,” said Naylor, who preceded Nolan as Assembly Republican leader.

Since the sting came to light in late August, Nolan has come under increasing fire from dissidents in the Assembly Republican Caucus who have long sought to oust him.

The entire affair, one assemblyman said, has distracted the Republicans from their goal of seizing power in the Legislature.

“It’s taking away our energy, just like a short in a battery or a hole in a bucket,” said Assemblyman Gil Ferguson (R-Newport Beach), a Nolan supporter. “It’s interrupting our drive when we’re very close to the finish line.” The sting also is making it harder for the party to raise contributions for the fall elections, several Republicans said. “People are a little nervous about where to put their money,” said Assemblyman Trice Harvey (R-Bakersfield).

Assemblyman Hill, who had played a key role in raising money for Assembly Republicans, has kept a low profile since the FBI searched his Capitol office--and the offices of three other legislators--almost a month ago.

Hill has canceled two fund-raising events he was scheduled to sponsor, including one featuring former White House aide Oliver North, Naylor said. Both events have been moved to other Assembly districts, Naylor said, adding he does not expect the party to suffer a net loss in contributions.

“They’re still going to give,” he said. “It may be different people asking.”

Some Republicans also are questioning Nolan’s plan to use money from his Friends of Nolan campaign fund to pay legal fees arising from the sting operation. Since January, 1987, Nolan has given more than $150,000 from that fund to GOP campaigns.

“Do you hang on to your money for a defense fund or do you give it to the candidates who need it?” Assemblywoman Doris Allen (R-Cypress) asked pointedly in an interview last week.

One Republican, however, was optimistic that the sting could lead to improvements in the way the Legislature conducts its business.

Dianne Jacob, a San Diego-area school board member who fought the building industry last year in a legislative battle over funding for school construction, said the FBI sting would benefit the state if it reduces the influence of campaign contributions on the legislative process.

“Money seems to influence public policy far more than it should,” Jacob said. “It is a government by and of special interests, not a government by and for the people. Somehow, that needs to be corrected.”