Garamendi Hires Former Opponent as Key Deputy

Former California Common Cause Director Walter Zelman, who turned down a position as first director of the new Los Angeles Ethics Commission after the City Council reduced his proposed starting salary from $90,000 a year to $76,254, has secured a better-paying job from state Insurance Commissioner John Garamendi.

Garamendi announced Monday that he will pay Zelman $110,000 in salary and benefits to serve for one year as his special deputy for health insurance and consumer protection issues. Zelman was an unsuccessful opponent of Garamendi for the Democratic nomination for commissioner last year.

Zelman said that about $85,000 of the money will be salary and the other $25,000 will be cash payments in lieu of health, retirement and vacation benefits. Because benefits would have been added to his Ethics Commission salary, he said it was arguable whether he will make more now than he would have from the original ethics position offer.

While making the announcement, Garamendi released the summary of a 50-page report by Zelman that outlines how the California Insurance Department can become an outstanding consumer protection agency.

“While I am not committed to all the findings and suggestions by Mr. Zelman, some have already been implemented, several are being initiated and others are in the planning stages,” Garamendi said.

Among suggestions made by Zelman:

* Insurance regulators should focus less on activities for individual consumers and more on policy, regulations and political activities that will improve the treatment of all consumers.

* There ought to be special focus on low-income and minority consumers who are most in need of consumer protection.

* Garamendi should encourage or require insurers to standardize insurance policies in order to facilitate easier comparison shopping among companies.

* Special attention should be given to how AIDS victims are adversely affected by the crisis of health insurance availability and affordability.

* Garamendi should appoint a public adviser to help identify and prepare consumer intervenors to participate in rate proceedings and other parts of the regulatory process.