Greetings:

Steve Kean and I met today with Jack Stewart, Pres. of the California 
Manufacturer's and Technology Ass. and Alan Zaremberg, CEO of the California 
Chamber of Commerce.

Jack Stewart was happy to hear about our efforts and is generally 
supportive--particularly regarding direct access--but wants more information 
regarding the core/noncore proposal.  We have a meeting set up for Thursday 
morning at 8 AM in the SF office to discuss it further.  Stewart will bring 
Keith McCrea, long-time lawyer for CMA to the meeting on Thursday.

Zaremberg was extremely happy to hear about our efforts and the overall 
package, and was much more receptive to the core/noncore proposal.  Though 
he, too, would like more details.  Turns out the he and Bill Hauck--former 
Wilson administration official and now head of the California Business 
Roundtable---have been walking the halls of the capital urging the same thing 
we've been urging, i.e., D's and R's need to get together (read "grow up") 
and do a comprehensive deal.

Steve and I had an impromptu meeting with Hauck, and then I followed up with 
him in the afternoon---he, too, is very supportive.

We stressed how important it is for business leaders to aggresively support 
and pitch:

1) the idea that both sides of the aisle, and the governor, need to resolve 
this now, and 
2) the framework for a comprehensive solution along the lines that we've 
described.   

They agree, and while we have a good bit of additional work to due before 
they are vociferous advocates for the core/noncore proposal, they certainly 
didn't reject the idea.

Will report back on the Thursday follow-up with CMTA.

Best,
Jeff