Deddeh Says He May Resign State Senate Seat : Legislature: Special election would be held in 40th District. Assemblyman Steve Peace has expressed interest.

State Sen. Wadie P. Deddeh (D-Bonita) has privately told political leaders in Sacramento and San Diego that he may soon resign, which would lead to a special election this fall to fill the final year of his term.

Deddeh, a member of the Legislature since 1966, declined comment Friday but said he would make a statement about his future Monday or Tuesday.

Assemblyman Steve Peace (D-Chula Vista), a longtime Deddeh ally, has been talking to Democratic leaders for several days about his probable candidacy in a special election. Word of Deddeh’s impending resignation has also been circulating on the electronic mail system that ties all Senate offices in Sacramento.

In recent years, Deddeh has weathered controversies about his political and personal finances. Last month he filed for Chapter 11 bankruptcy to prevent foreclosure on several properties.

A friend of Deddeh, who said he had spoken to the senator about his decision to resign, said Deddeh is “simply tired” of the political grind. Deddeh, 72, has a history of heart problems.

“The congressional campaign took a lot out of him,” said the friend, referring to Deddeh’s attempt to win the Democratic nomination in the 50th Congressional District last year. Deddeh’s wife, Mary-Lynn, had a cancer operation a year ago but is said by friends to have recovered fully.

A teacher of political science and history at Southwestern Community College in Chula Vista at the time, Deddeh was elected to the Assembly in 1966, the same year that service in the Legislature became a full-time job. He was elected to the Senate in 1981 after reapportionment fashioned a district in the heavily Democratic southern part of San Diego County.

Deddeh was born and educated in Baghdad and has made no secret of his desire to be named U.S. ambassador to Iraq. During Operation Desert Storm, he received death threats and was given law enforcement protection.

After the 1992 congressional primary--won by now-Rep. Bob Filner--Deddeh was criticized for owning a part interest in a market in downtown San Diego that police said sold fortified wine to vagrants and drug paraphernalia to crack users. Deddeh, who had received contributions from the liquor industry, said he knew nothing about the market’s activities.

Deddeh’s tangled real estate dealings have come under scrutiny from critics who suggested that he improperly used influence and inside information. Deddeh has complained that San Diego had unfairly prevented development of his property and this year he filed suit against the city for refusing to grant building permits.

Deddeh represents the 40th Senate District, which stretches from the Mexican border to the southern portion of San Diego and includes Chula Vista, National City, Imperial Beach, Lemon Grove, La Mesa and El Cajon.