Hill Eludes Fallout in FBI Inquiry : Politics: No charges have been filed against the Whittier assemblyman. His Capitol clout is unchanged. And he’s raking in endorsements in his race for a state Senate seat.

Seventeen months ago, FBI agents raided the offices of Assemblyman Frank Hill, then one of the most promising Republicans in the state Legislature.

It appeared that the FBI investigation into alleged influence peddling in Sacramento put Hill’s career in jeopardy. But today, more than a year later, there are still no charges against Hill. And instead of waiting for investigators to resolve the cloud over his future, the 36-year-old legislator has decided to trust his fate to the voters in an election Tuesday to replace former state Sen. William Campbell.

The FBI probe “is something I can’t control, so I’ve just got to go on with my life,” Hill said in a recent interview. “I didn’t do anything wrong (and) I would like to keep trying to move up.”

Hill of Whittier was the first candidate to launch a bid for Campbell’s 31st District seat, announcing his candidacy just hours after the veteran legislator from Hacienda Heights resigned last October to take a job in the private sector.

He is facing seven contenders for the job, three of them from the San Gabriel Valley: Diamond Bar City Councilman Gary G. Miller, a Republican; West Covina Councilman Bradley J. McFadden, a Democrat; and Rowland Heights resident Robert W. Lewis, the American Independent Party candidate. The 31st senate district includes portions of Covina, Diamond Bar, Hacienda Heights, Industry, Rowland Heights, Valinda, Walnut, and West Covina.

If none of the candidates receives more than 50% of the vote Tuesday, the top vote-getters from each party will enter an April 10 runoff.

During the Senate campaign, the FBI investigation has kept Hill’s name in the newspapers, and his opponents in the race have made it a campaign issue.

But the investigation does not appear to have had a significant effect on Hill’s clout in the Capitol or, so far, on his bid for higher office.

Republicans don’t often choose sides in a contested primary, but in this race that includes four Republicans, Hill has been endorsed by at least 18 legislators. That’s more than either of the two Republican state senators running for lieutenant governor.

“For those of us who felt free to endorse him, we are embracing the idea that he’s innocent until proven guilty,” said Ken Maddy of Fresno, the Senate minority leader. “I think he has the respect of everyone up here. Putting aside this FBI thing, I don’t think there’s any doubt that if most of us had to pick the top five Assembly members, he’d be one of them.”

Hill has also proven to be a strong fund-raiser. In finance statements filed last week, Hill reported almost $300,000 raised since the Senate race started Dec. 24, almost seven times that of one of his three GOP opponents, Assemblyman Gil Ferguson (R-Newport Beach), who raised the second-highest amount with about $44,000.

The two other Republicans in the race, Ron Isles and Miller, are independently wealthy and have financed their races out of their own pockets. Isles, a Brea city councilman, reported a campaign funds of $189,000, but $175,000 of it was his own money. Miller, the city councilman from Diamond Bar, had $273,500, including a $270,000 loan to himself.

Legislators, lobbyists and Capitol staffers say the FBI probe has not diminished Hill’s influence and effectiveness. He is still a member of the elite inner circle of only four Republicans who meet regularly with the governor to plan strategy and legislation.

“I haven’t seen any change,” said Assemblyman Richard E. Floyd (D-Carson), chairman of the Government Operations Committee on which Hill is ranking Republican. “There’s a matter of respect and, my goodness, it’s just one of those things.”

The FBI investigation has reportedly focused on a payment Hill received in a meeting June 27, 1988, from officials representing Peachstate Capital West Ltd. The officials turned out to be undercover FBI agents and Peachstate was an FBI front.

In testimony during the trial of state Sen. Joseph B. Montoya (D-Whittier), the only legislator charged so far in the scandal, one prosecution witness said he arranged for a $5,000 payment to Hill in return for his support on a bill sponsored by Peachstate.

Two months after the June meeting, FBI agents searched the offices of four legislators, including Hill’s, capping a three-year undercover sting operation.

The FBI investigation has rocked Sacramento so much that polls now show most people believe legislators take bribes. And the scandal has become ammunition for anti-incumbency campaigns against some of those who weren’t even involved.

Some of Hill’s opponents in the Senate race are using the scandal as an issue against Hill, including one candidate, Lewis of Rowland Heights, who has formed a committee called “Throw the Rascals Out.” Nevertheless, some Capitol observers say they believe Hill is the front-runner in the race, based on his power base and fund-raising abilities.

The race, however, is difficult to handicap because voter turnout is expected to be extremely low. That means a strong showing by one faction of voters--pro-choice supporters, for example--could make a significant difference in the outcome. The race is also largely invisible because the candidates are relying mostly on direct mail campaign rather than media advertisements.

The 31st District is split almost in half by the border between Los Angeles and Orange counties. It stretches from West Covina and Whittier in the north to Laguna Beach in the south. It is also overwhelmingly Republican, by a 54% to 36% margin.

To some colleagues, Hill’s decision to run for Campbell’s seat was not a question of whether he should seek higher office, but whether he was going to continue in the Legislature.

“He had a choice of either running for what was a logical step up at a time when he would be expected to move up, or quit (politics) because he would face the same thing if he tried to run again for the Assembly,” Maddy said. “I think he did what he had to do.”

Those who know Hill were not surprised that he would run. A hunter and outdoorsman who was elected to the Legislature at 28, Hill has always been known for a brazen if not cocky attitude. Critics call it arrogance.

Critics and supporters, however, attribute Hill’s success to two dominant character traits: a sense of humor and a no-nonsense reputation for knowing how and when to play hardball.

“I’ve never been one to sugar-coat things,” Hill said. “So if you don’t go along, you shouldn’t be surprised if you don’t keep that committee assignment.”

City Council members in Diamond Bar, which is part of Hill’s Assembly district, recently learned the consequences of crossing swords with the assemblyman.

They wanted legislation last month to resolve a minor, but potentially expensive technical mistake in the charter for the new city. Hill told The Times, however, that he would only carry the measure if Miller, the Republican councilman, promised not to challenge him in the Senate race.

Outraged, Miller entered the race and the Diamond Bar city attorney referred the issue to the Los Angeles County district attorney’s office, where it is still being reviewed, according to Miller. Hill now denies making the remark.

Hill has also been involved in controversy for accepting sizable honorariums or contributions and then voting on issues that benefit the contributors.

Assemblyman Stan Statham (R-Oak Run), a Hill supporter, said one of the main reasons Hill is so effective at the Capitol is his sense of humor.

“In this world where we all take ourselves too seriously, an asset like Frank Hill is in short supply,” Statham said. “Politics often comes down to a personality contest. . . . When you choose between two good sides, you often go with your friend.”

Statham added, however, that the campaign for Campbell’s seat is being watched closely to see how voters will respond to the FBI investigation.

“This race will be a good example of how the investigation and negative campaigning will work,” he said. “Here it is a year later and it’s like it never happened. . . . Will another shoe drop? Only the FBI knows.”