Naked City

Although state regulators say it's a done deal, last week at least two separate lawsuits were filed on behalf of policyholders against the Farmers Insurance Group settlement. "It's an awful agreement," Houston attorney David Burrow told the Houston Chronicle. "I can't believe any judge anywhere would approve it." On Nov. 30, the state reached an agreement with Farmers covering some $100 million in refunds and rate rollbacks, but a court date scheduled to approve the agreement has been postponed in response to the intervention lawsuits. Insurance Commissioner Jose Montemayor said that such lawsuits against the settlement covering some 700,000 Texas policyholders were anticipated, and he doesn't expect they'll derail the agreement. The lawsuits filed thus far (one in Austin and another in Houston) charge that the settlement favors the company over consumers, does nothing to restrict Farmers' continued use of "management fees" as a way to boost profits, and leave the state in the position of potentially having to defend the company against legal action. -- M.K.

You knew this was gonna happen: Discontent with Texas Democratic Party Chair Molly Beth Malcolm over the party's, uh, lackluster showing since she took over in 1998 has boiled over. The Dems' executive committee, meeting in Austin next month, is slated to consider resolutions (from members who have long chafed at Malcolm's leadership) urging her to resign. Malcolm's term ends in 2004 and she says she has no plans to run again, but also no plans to be forced out. -- M.C.M.

The Texas AFL-CIO is looking for workers who will lose their unemployment benefits come Dec. 28 and who are willing to share their stories with others, including the media. Since the U.S. Congress didn't extend the benefits before adjourning, thousands of Texans stand to lose their weekly payments. To volunteer, contact AFL-CIO Communications Director Ed Sills at [email protected]. -- L.A.

Following Austin's lead, local officials in San Antonio have executed an Early Action Compact committing to clean-air strategies designed to avoid the dreaded "nonattainment" designation under federal law. Like Austin, San Antonio is violating the Clean Air Act as measured by the new, stricter ozone standard now finally being enforced by federal regulators after years of legal wrangling. Austin was the first city in the country to negotiate an EAC with state and federal regulators, which it officially signed on Wednesday. -- M.C.M.

Bush insider Joe Allbaugh will leave his post as head of the Federal Emergency Management Agency in March, when FEMA becomes part of the Dept. of Homeland Security. Allbaugh, chief of staff to then-Gov. Bush and his 1994 campaign manager, hasn't decided what comes next, but he's expected to play a key role in Bush's re-election effort, along with compadres Karen Hughes (who left the White House in March) and Karl Rove (who remains Bush's political adviser). According to FEMA, Allbaugh has handled 89 major disasters (not counting the 1994, 1998, 2000, or 2002 elections). -- M.C.M.

Former Court of Criminal Appeals Judge Stephen Mansfield "may now be the most overqualified security guard in Houston history," reports Tim Fleck of the Houston Press. Although Fleck could not reach Mansfield directly, Houston Republicans told him Mansfield is complaining he's having to make ends meet as a uniformed security guard at the Texas Medical Center. According to Fleck, "A county source says he got a call from a dumbfounded security company official trying to verify that a guard applicant was indeed a former appeals judge." Mansfield won a seat on the CCA in 1994 despite admitting that he lied to reporters about his background and during his tenure was busted for scalping complimentary UT football tickets on university property. He did not seek re-election in 2000, and was defeated last year in the GOP primary. He had worked for a while as a visiting judge in Angleton, but told friends that since that program is up for renewal at the Lege, he was jettisoned as an embarrassment. -- M.K.

State Rep. Robert Puente, D-San Antonio, has filed a bill extending the current ban on campaign contributions during the Lege session for 20 days, until the governor's deadline to veto bills. Two years ago, Gov. Rick Perry accepted more than $1 million in contributions during that 20-day period -- then vetoed a record 82 bills. -- M.C.M.

As expected, four-term state Rep. Carl Isett, R-Lubbock, announced his candidacy to succeed nine-term U.S. Rep. Larry Combest, R-Lubbock, in a special election expected to be held May 3. Isett, who has been endorsed by Combest's predecessor Kent Hance, joins (at press time) four Midlanders and three other Lubbockers -- all Republicans except for one Libertarian -- vying to succeed Combest, the powerful chair of the House Agriculture Committee, who announced his resignation one week after being re-elected on Nov. 5. (Special elections in Texas are open-ballot races; this one is expected to cost about $1.5 million to hold.) Odessan Kay Gaddy expects to become the first Democrat to enter the Dist. 19 race later this month. -- M.C.M.

Retiring state Rep. Paul Sadler, D-Henderson, told the Longview News-Journal recently that he would consider another run for public office, but only for either a statewide position or perhaps the U.S. Senate, should U.S. Senator Kay Bailey Hutchison step down in 2006. Sadler had already been considering retiring last session when his 11-year-old son was critically injured in an auto accident, confirming his decision. Sadler, who just completed his work as co-chair of the Interim Joint Select Committee on Public School Finance, said, "You can't [fix school finance] without a tax bill, not without a surplus. I just don't believe the Republicans ... are going to pass a tax bill." -- M.K.