COURT UPHOLDS LIMITS ON LEGISLATIVE TERMS.

Byline: Paul Hefner Daily News Sacramento Bureau

In a ruling that would force more than two dozen of California's most senior lawmakers out of office next year, a federal appeals court panel Friday reinstated the state's term limit law.

A rare 11-member panel of the 9th U.S. Circuit Court of Appeals issued the 8-3 decision late Friday afternoon, reversing an earlier finding that the 1990 term-limit initiative was too vague to stand.

Though opponents said they would immediately appeal to the U.S. Supreme Court, Friday's ruling - coming just weeks before the election filing period begins - may well be the decision that affects the 1998 election season.

Reinstating Proposition 140's six-year limit for Assembly members and eight-year limit for senators would force out the current leaders of both houses of the Legislature, Assembly Speaker Cruz Bustamante, D-Fresno, and Senate President Pro Tem Bill Lockyer, D-Hayward.

In the San Fernando Valley, the limit also would bar state Sen. Herschel Rosenthal, D-Van Nuys, from seeking re-election. Rosenthal had said earlier he wanted another term in office.

Political maneuvering expected

Political insiders expected maneuvering to begin immediately among lawmakers eager for one of the leadership posts. Lockyer already acknowledged he was preparing to step aside as the Senate's leading Democrat.

``The decision means I will need to focus my attention somewhere other than the Senate in 1998,'' he said. ``I have been exploring a campaign for attorney general, and I now expect to intensify that effort.''

Bustamante, who has been checking into a run for lieutenant governor, said he would talk with his family before deciding on his next step. But he said he had

no plans to give up his leadership post soon.

``I have one more year in the Assembly, I'm here as speaker and I'm going to try to make it the most productive of my career,'' Bustamante said.

Rosenthal could not be reached for comment at his home Friday evening.

His departure would likely make the Democratic primary for his seat a two-way race between City Councilman Richard Alarcon and former Assemblyman Richard Katz.

Friday's ruling marked an ironic twist for Katz, who himself fell victim to term limits in the Assembly. He left office in 1996 after serving as minority leader, and would likely have been named Assembly speaker if he had been eligible to stay in office.

``The court upheld the will of the voters. As someone who has had to face term limits and comply with the law, it seems fair that they ought to stay in place,'' Katz said.

The ruling also means that labor, Jewish and other groups that in the past have supported both Rosenthal and Katz won't be forced to choose between them.

``Hanukkah came early this year,'' Katz said.

Withstood challenge

The term-limit initiative withstood a lengthy challenge in state court, but had fared much worse in federal court. At trial, a judge struck down the measure as unconstitutional.

In October, an initial, smaller appeals court panel also rejected the measure, finding that voters weren't properly notified of the initiative's effects, especially the lifetime ban from office it imposed on termed-out legislators.

In Friday's ruling, the judges found that the initiative was both clear enough and didn't go too far in crimping the right of voters to elect the candidate of their choice.

``Proposition 140's impact on these rights is not severe,'' Judge David Thompson wrote in his majority opinion in the case. On the contrary, the court ruled that the absence of term limits might be unfair.

``Long-term entrenched legislators may obtain excessive power which, in turn, may discourage other qualified candidates from running for office or may provide the incumbent with an unfair advantage in winning re-election,'' Thompson found.

Supporters of term limits praised the ruling, including Gov. Pete Wilson, who credited term limits for bringing fresh talent and new ideas to Sacramento.

``The court sent a clear message that the people's vote does count and upheld the ideal of the citizen Legislature,'' Wilson said.

Republican Secretary of State Bill Jones was equally upbeat, calling the decision a ``landmark day for California voters'' and predicting that the ruling would hold during the upcoming election cycle.

``Term limit supporters won their first victory in 1990 and another one today,'' he said. ``The will of the people will be in effect for 1998.''

Appeal planned

Opponents vowed to continue the fight, and planned a last-ditch appeal to the U.S. Supreme Court.

``We lost this baby, for now,'' conceded Joseph Remcho, an attorney who represented several former lawmakers in the case. ``We disagree with the decision, but it's their courtroom.''

He said that attorneys would soon seek a special order staying the decision for the '98 elections from Justice Sandra Day O'Connor. She could rule on the request herself or refer it to the full court, Remcho said.

Former Assemblyman Tom Bates, one of the plaintiffs in the case, said he, too, was disappointed in the decision.

``I believe the effect of term limits is to shift power from the legislative branch to the executive branch and the lobbyists,'' said Bates, D-Oakland.