fyi

-----Original Message-----
From: Hedy Govenar [mailto:hgovenar@govadv.com]
Sent: Monday, August 20, 2001 3:35 PM
To: Kaufman, Paul; Sue Mara; Rick Shaprio; Bev Hansen; Jeff Dasovich;
Karen Denne; Steffes, James D.; Scott Govenar; Ken Smith; Mike Day;
Mcdonald, Michael; Alan Comnes; Kean, Steven J.; Kingerski, Harry;
Lawner, Leslie; Robert Frank; Guerrero, Janel; Buster, Miyung; Thome,
Jennifer; Eric Letke; Schoen, Mary
Subject: Chamber update


I spoke to Allan Zaremberg, Pres. of the Cal. Chamber of Commerce.  He
met with the Governor's folks and spoke to Loretta Lynch last week to
discuss undercollection strategies, the MOU, and direct access.  He is
not optimistic that any of these issues will be resolved to the
Chamber's satisfaction.  The Gov's folks truly believe that the
successful bond issuance depends upon an end to direct access.  Even if
Bowen gets cooperation on her legislation,  Allan believes she doesn't
really want to do it and is not sure she can get a signature.  I told
him that Burton said he would sign off on a direct access bill if Bowen
agrees to it.  That gave him little encouragement because he doesn't see
much motivation for Bowen to press on the Governor and Angelides.
Allan's view corresponds with everyone we've spoken to whobelieve that
nothing major will happen legislatively.  A subsequent conversation with
Hertzberg's office confirms that they feel unable to move an energy
agenda at this time, although they have not given up.