5/09/00 12:45 p.m.
Don't Back the Quack
A Californian blows his stack about Quack.

By Arnold Steinberg, author and political strategist

t is increasingly clear that California Republicans would be better off by eating one of their own, State Insurance Commissioner Chuck Quackenbush. "Quack" is one of only two Republicans left holding statewide office after the Gray Davis sweep in 1998. The other is Secretary of State Bill Jones, an early George W. supporter who switched to John McCain shortly before that campaign went into a tailspin. No wonder newly named Republican State Senate leader Jim Brulte, who effectively heads George W.'s California campaign, looks increasingly attractive for Governor in 2002.

First, background. The Insurance Commissioner was an appointive position until liberals crusaded to make it elective, supposedly to lower auto-insurance rates. Enter Quack, a "moderate" Republican, who graduated to the job from the State Assembly where he seemed (in looks and policy) like a latter-day version of New York's silk-stocking U.S. Congressman (and later mayor) John Lindsay.

Quack, presumably acting on the amateurish advice of his (and Pete Wilson's) political consultants, has blundered repeatedly. He even asked insurance companies that he regulates to pay off his home mortgage. Not blatantly, of course. The mortgage was part of his wife's campaign debt for her unsuccessful run for office. Worse, after he initially threatened to fine insurance companies $3 billion for mishandling (a euphemism) earthquake claims, he settled for about $12 million in "donations" to suddenly-created foundations. Quack's deputy, George Grays, who reportedly ran the Quack's "independent" foundations from his government office, has since resigned as the proverbial sacrificial lamb.

"Either the insurers violated the law and should have been fined," observed watchdog conservative Republican State Assemblyman Tom McClintock (who happens to represent the epicenter area), "or they were innocent and should have been left alone." Strikingly, none of the foundation money went to benefit earthquake victims, directly or even indirectly. About $3 million paid for blatantly self-serving television ads that promoted Quack.

The rest of the money advanced his personal agenda, such as $263,000 to a football camp attended by his sons, and his political agenda, such as $500,000 to help get him on the board of the Urban League. Indeed, grants generally went to politically correct if not esoteric causes ("Black Filmmakers Hall of Fame") unrelated to earthquake victims but possibly helpful for a future Quack run for governor.

The dean of California political reporters, the Los Angeles Times's George Skelton, called the consultant budget ($1.4 million) a "feeding frenzy for GOP political and PR consultants." Quack's chief political consultant, already compensated routinely by the insurance companies, received another $275,000 from the foundation. Did this consultant then forgive Quack's campaign debt to him? Why is it that this conflicted consultant reportedly still advises Quack?.

Quack cannot be indicted for stupidity. He cannot be impeached for hubris. But he will twist slowly in the wind, facing legislative inquiries and other investigations. A Superior Court judge just froze assets of one foundation, in response to a suit filed by the California Attorney General charging it with fraud and self-dealing.

In response to newspaper demands for his resignation, Quack may hang tough. Even if his former deputy predictably cuts a deal implicating Quack, why should Quack forfeit a bargaining chip by an early resignation? Meanwhile, conservatives, following McClintock's lead, should disown Quack. The non-conservative Quack is more than an embarrassment. He provides California Republicans with a rare opportunity to combine expedience with principle. Follow Tom McClintock's lead: Throw Quack overboard. Then, you can attack not just the trial lawyers, but the insurance companies as well. Become true reformers. John McCain: where are you when we need you?