DESIGNER OF THE YEAR'S FAKE FUR, GENUINE SHOCK.

Byline: Barbara De Witt Daily News Fashion Editor

When the fashion industry held its version of the Oscars this week at the swank Beverly Hilton Hotel, Los Angeles designer Janet Howard walked away as the California Designer of the Year.

``I'm totally shocked!'' said Howard, dressed in an all-black ensemble that included a luxurious fake-fur jacket. The designer, best-known for sexy suits and trendy loungewear sold at Neiman Marcus and Nordstrom stores, first wowed the fashion press at last year's CaliforniaMart previews with outrageous see-through garments modeled by former porn star turned legit actress Traci Lords, who vamped it up again on the runway at the Sunday night fashion gala, moments before Howard's name was called.

Howard was selected from a group of six nominees, including Mossimo Giannulli for Mossimo, Michele Bohbot for Bisou Bisou, Joel Fitzpatrick for Pleasure Swell, Janice Levin for Poleci and Max Azria for BCBG, who was the recipient of the 1995 award for best California designer.

The nominating committee, made up of 50 members of the press and fashion industry (including The Daily News), also selected Anna Huling as the 1996 Rising Star and honored Giannulli with the first Fashion Performance Award. Giannulli began his $150 million Mossimo sportswear line by selling $20 T-shirts from his garage. He has retained his reputation for edgy athletic clothing, but has recently created contemporary collections for both men and women. At 33, he is the youngest CEO on the New York Stock Exchange and considered the next Calvin Klein.

Mossimo clothing is manufactured in Irvine and sold at Macy's and other department stores, as well as the Mossimo Supply store in Pasadena. New projects include timepieces and a signature fragrance, which will be introduced in spring '97.

The creative black-tie event, sponsored by the CaliforniaMart and BMW, was attended by more than 700 members of the fashion industry and raised $25,000 for the Stop Cancer foundation, a nonprofit volunteer organization dedicated to finding a cure for cancer.