Fatcat Lobbyist Rusty Areias Now Trying to Get Confirmed as UC Regent

Back in June, the Globe reported on Rusty Areias attempting to get a state highway named after him. Both Democrats and Republicans on the California Assembly Transportation Committee blocked the attempt by Areias and his powerful lobbyist colleagues.

“Bizarre backroom shenanigans and negotiations have been taking place for five months now deep inside of the California State Capitol… not over sneaky last minute tax increases, or new CARB regulations… the extraordinary negotiations are over naming a stretch of Highway 152 the ‘Rusty Areias Highway,’” the Globe reported.

“But it’s feeling more like the Highway to Hell right now,” we opined.

Senate Constitutional Resolution 129 by Senator Dave Cortese (D-San Jose) would have designated a specified portion of State Highway Route 152 in Santa Clara County as the Rusty Areias Highway, and erected signage identifying the highway naming.

Generally, when a highway is named after someone it’s because that person was an extraordinary leader, their legacy legendary, and they are deceased.

Specifically and notably, the Assembly Transportation Committee has a policy establishing criteria for highway naming resolutions.  One of these criteria states: “The person being honored must be deceased.”

Former notorious playboy Assemblyman Rusty Areias was not an extraordinary leader, he is still very much alive, and is now a bigwig lobbyist at a firm representing over 100 clients, many seeking to do business with the state, including the University of California.

On Mar 23, 2026, Governor Gavin Newsom appointed John “Rusty” Areias, of Walnut Grove, to the University of California Board of Regents, pending Senate confirmation.

Conflict of interest anyone? Look at Rusty Areias’s Statement of Economic Interest, and the client list of Areias’ firm, California Strategies as registered on the Secretary of State website.

Areias and his Democrat fundraiser wife Julie Sardino, are big players in the world of California Democrat politics. They are very well-off and well connected, whose support of legislators and candidates have in turn enriched them greatly over the years.

The bill analyses by the Assembly and Senate Republicans speak volumes.

The Senate Republican Analysis of SCR 129 says:

“While it makes sense to honor people like legendary Speaker Willie Brown, it takes a pretty significant leap of faith to suggest that Mr. Areias provided extraordinary service to the state, or the people of Santa Clara County in any way comparable to the inimitable former Speaker.

Mr. Areias claims to fame in Sacramento were typically attached to his personal life, rather than significant policy victories. Whether as Cosmopolitan Magazine’s Most Eligible Bachelor, or for attempts to sell his farm’s water to Los Angeles, something that still rankles farmers in the Los Banos area where his family’s farm was located, Areias’ reputation was far from unblemished.

While extraordinary may be in the eye of the beholder, some might wish to consider whether naming resolutions should be extended to every former member of the Legislature, or reserved for truly effective leaders whose exemplary service should be commemorated.

Not for nothing, the policy used to be reserved for deceased community leaders, to avoid the naming resolutions being a final victory lap for people addicted to self-aggrandizement.”

The Assembly Republican analysis of SCR 129 is as incriminating, and gets right to the heart of the matter:

“Rusty Areias’s firm represents more than 100 clients with business before the Legislature.

Granting special favors to lobbyists could reinforce public perceptions about corruption and backroom deals with power brokers in Sacramento.  It can also easily cross into actual impropriety.  It is completely permissible for elected officials to grant favors to lobbyists using their own resources (such as taking them to the French Laundry).  A resolution, however, is an official legislative act that commits state resources.

In February 2016, former Senator Leland Yee was convicted in a pay-to-play scheme that involved exchanging campaign contributions for the performance of official legislative acts.  Notably, one of these acts was a Senate resolution.  Discussing this resolution with any of the firm’s lobbyists or clients in any context that involves receiving something of value, such as at a fundraiser or any event funded by a client, could be interpreted as a bribe.”

Rusty Areias has some powerful people working to get a highway named after him, and now they are also pushing to get his confirmation to the UC Board of Regents – nominated by the Governor and confirmed by the State Senate for 12-year terms.

Regents approve compensation for UC executives, such as the President and chancellors.

Former Republican legislative leaders Jim Brulte and Kristen Olsen (both partners of Areias at California Strategies) have been lobbying heavily to get the highway named for Rusty, and get him on the powerful UC Board.

Notably, Jim Brulte, the former California State Senate Republican Leader and former chair of the California Republican Party, has worked in government relations and consulting roles but is not listed as a registered lobbyist under California’s formal lobbyist registration system administered by the Fair Political Practices Commission.

It is notable that Brulte isn’t legally registered as a lobbyist and like Rusty before him, could Brulte also be violating the law?

Areias and two other employees of California Strategies were fined in 2013 for seeking to influence state government decisions without registering as lobbyists, the Sacramento Bee reported in 2013. “Jason Kinney, Rusty Areias and Winston Hickox violated state law when they ‘crossed over the line which separates policy consultants from lobbyists,’ says a proposed settlement the Fair Political Practices Commission released today.”

On the Democrat side, powerful lobbyist Terry McHale is hammering Democrats legislators for both “Areias Highway” and to get “good old Rusty” confirmed to the UC Board of Regents. McHale was the press flak for Areias back in the 1990s when Areias and Gary Condit were part of “The Gang of Five” in the California Legislature, as well as running buddies.

In fact, when a young woman staffer named Deborah Simpson complained to Areias about his Chief of Staff sexually assaulting her, Areias basically told her to suck it up.

McHale publicly claimed nothing ever happened to Simpson yet the Assembly Rules Committee later “settled” the lawsuit Simpson filed for $59,500.  In today’s dollars, that’s about $135,000 – a lot of money for “nothing ever happened.”

Deborah Simpson was mysteriously “reassigned” by the Assembly Rules Committee to the Assembly’s “typing pool” known as political Siberia, and despite trying to get a job back in the Capitol, Simpson was blackballed and after a few years simply disappeared from California politics.

Her alleged assaulter Chief of Staff John Wyatt, received a private reprimand for “poor judgment” and a one-week suspension without pay; he continued working in Democratic political circles afterward, SF Gate reported.

Did the then-Assemblyman ever try to stand up for her, or did he simply consign her to the collateral damage file?

When the UC Regents claim that the University of California has a “zero tolerance policy for sexual harassment” do you think they gave an exemption to Areias because he’s one of their own?

Governor Newsom and both houses of the California Legislature piously claim zero tolerance for sexual harassment, as well. Yet somehow Rusty Areias got his appointment by Newsom to the UC Regents, and is on the verge of getting confirmed by the State Senate. And the Globe has learned that Rusty Areias’ friends and colleagues are still hoping to get a highway named after him.

Gary Condit’s personal conduct was finally exposed because one of his exploits, 24-year-old Chandra Levy, went missing. Condit had a secret extramarital affair with Chandra Levy that became public because of the investigation into her 2001 disappearance; he was never charged in connection with her death, and no evidence established him as responsible for it. But he had an affair with the 24-year-old. Other women, including flight attendant Anne Marie Smith, publicly alleged affairs with Condit around the same time.

Predator Condit refused to help police and her family find Chandra Levy, and she later was found brutally murdered.

Predator Eric Swalwell eventually got exposed because of his arrogance and “I’m above the law” attitude, and some of his victims were finally able to come forward.

In addition, Areias career is tainted:

• 2013 unregistered lobbying fine as noted above;
• California State Parks fund underreporting scandal: the State Parks and Recreation agency: for at least 12 years the state parks department underreported tens of millions of dollars to the state Department of Finance, under Gov. Gray Davis’ former parks director, Rusty Areias, the Mercury News reported.
• Lobbying for Applied Underwriters: In 2022, the California Department of Insurance and Commissioner Ricardo Lara, former Assembly Speaker Fabian Nunez and Rusty Areias were involved in a Workers’ Compensation Insurer of Pay-to-Play Scandal, PRNewswire reported. The department “previously hid the fact that the former lawmakers-turned-lobbyists represented the company in the proceedings and refused to search for or produce records of meetings and communications with them.
• SacBee.com covered this as well: “Fabian Núñez and Rusty Areias had a job to do. The former lawmakers who left public service for private consulting were hired by a workers compensation company to convince the Department of Insurance to allow an acquisition deal to proceed. If they succeeded, they say they were promised a $2 million bounty fee.”

Will the Senate confirm Rusty Areias to the University of California Board of Regents?