AB 256

As I mentioned earlier this week, my associate Cliff Berg, representing AOL,
co-sponsored a meeting in our office today regarding AB 256 (Wayne). The
meeting was run by Kay Caldwell on behalf of the Internet Alliance. Kay was
the one who contacted Jeff Dodd in Houston who I believe contacted one or
both of you.

The bill is being opposed by AOL, Microsoft, Charles Schwab, CMTA, Chamber,
GTE/Verizon, AEA, Retailers, Financial Services Association and the Internet
Alliance. All of those parties are scheduled to meet with Assembly Member
Wayne at different times on Wednesday to try and get him to drop the bill
which is being sponsored by the Attorney General. In the event that fails,
the group is also trying to get the bill double-referred to the Senate
Banking Committee where they have a much better chance of stopping it versus
the Senate Judiciary Committee. The bill will be heard by the Judiciary
Committee on August 21.

With respect to Enron's participation in any opposition effort, there was
some concern that the Judiciary Committee may not be the best place because
Peace is on that committee and would likely do anything to get at Enron
(support?). Regardless of anyone's concerns we could submit a letter of
opposition so long as someone provides me with the general framework.

Please advise.

Scott