Hill Denies Guilt in Capitol Probe : Ethics: Taking the stand at his corruption trial, senator says he took no official action in exchange for the $2,500 he accepted in an FBI sting.

Describing himself as a law-and-order legislator, state Sen. Frank Hill testified Tuesday at his corruption trial that he did nothing illegal by accepting a $2,500 honorarium check from an undercover FBI agent posing as a Southern businessman.

Asked if he exchanged official action for the money, Hill said, “No, I did not.”

Hill, 40, said that in June, 1988, while he was an assemblyman, he walked to a hotel near the Capitol to meet the undercover agent to “develop a relationship.” The agent was posing as a businessman seeking special-interest legislation to help a bogus shrimp operation locate near Sacramento.

“I thought we were going to get to know each other,” said Hill, a Whittier Democrat, calmly testifying for the first time in his own defense. He is charged with three counts of extortion, conspiracy and money laundering.

Hill told the U.S. District Court jury that the $2,500 was “for upholding my end of the bargain . . . spending that time with him.” He said that in 1988 it was not uncommon to receive an honorarium merely for touring a business plant or attending a reception.

Hill noted that he did not know how much he was going to receive until he looked at the check. “My policy is never to ask about the amount of the honorariums. I think it’s inappropriate,” he said.

Unlike campaign contributions, honorariums went directly into legislators’ pockets. Although Hill testified that such honorariums were a common practice in 1988, they were outlawed by voters in 1990.

Federal prosecutors have maintained that Hill’s activities reflected an atmosphere of almost unbridled fund raising in the Capitol. But in contrast, Hill downplayed the time spent on fund raising. He described his life as a legislator in almost textbook, civics lesson terms, recounting how he learned of voters’ concerns at Little League games or the local carwash.

Hill’s testimony was the highlight of the day and appeared to bolster his lawyers’ efforts to impeach the credibility of Karin Watson, the prosecution’s star witness.

Watson is a former Assembly Republican “super consultant” who pleaded guilty to extortion in exchange for a recommendation of a light sentence. In her version of the events, Hill was trading his best efforts to persuade then-Gov. George Deukmejian to sign the shrimp legislation.

Recalling that he had known Watson since the early 1980s, Hill described her as “bold and brassy.” He testified that he never asked Watson to do fund raising on his behalf. Watson first enlisted his help on the shrimp bill in May, 1988, Hill said.

He contended that he did not know about the honorarium until a few days before he met with the undercover FBI agent.

Hill said he had not written a speech for the hotel meeting. Instead, he said, “I was prepared to follow the lead of the host and do whatever was necessary” during the hourlong meeting, which was seasoned with light banter about duck hunting and sports. Near the end, Hill received the $2,500 check from the FBI agent.

The next day, the undercover agent called Hill, offering to increase the honorarium. Hill turned him down, and testified that he was disturbed by the new offer.

“I was shocked. . . . It was a startling comment that came out of the blue,” Hill told the jury. As he was throughout most of his testimony, Hill’s demeanor was easygoing.

Questioned by his lawyer, Stephen D. Miller of Los Angeles, about why he did not give the agent the brushoff, Hill said that as a politician he was not in the business of “slamming down the phone.”

The FBI sting operation became public two months later when FBI agents raided the Capitol offices of legislators, including Hill and Assembly Republican Leader Pat Nolan.

Hill recalled being summoned from the Assembly chamber, believing the agents might be conducting a background check because he was considered a dark-horse candidate to be appointed state treasurer. To his surprise, Hill was questioned about the shrimp bill.

On Tuesday, Hill sought to distance himself from Nolan, who was originally indicted with him on corruption charges and later pleaded guilty. Nolan is serving a 33-month prison sentence.

Hill, who was part of Nolan’s inner circle, said the Glendale legislator could be gregarious and amiable or incredibly volatile.

“I would call him ‘Mt. St. Pat’ because he could erupt,” Hill said, adding they were often at loggerheads over the direction of the Assembly Republican caucus.

With his wife and other family members in the courtroom, Hill painted a storybook picture of his legislative career. He started as a high school volunteer in the San Gabriel Valley, helping then-Assemblyman Bill Campbell, whom he succeeded in the Senate 20 years later.

His political career got another boost through a relationship with S. I. Hayakawa, who served as president of San Francisco State. Hill testified that he began corresponding with Hayakawa and later helped formulate strategy for the academician’s underdog bid for U.S. Senate. When Hayakawa won, Hill joined his Washington staff.

Hill, a UCLA graduate, served as a congressional aide in the San Gabriel Valley before winning a seat in the Assembly in 1982. He was elected to the Senate in 1990. He said his ultimate goal is to earn a Ph.D and teach government at the college level.

Hill continues on the stand today.