Message-ID: <2499601.1075854434830.JavaMail.evans@thyme> Date: Fri, 6 Oct 2000 01:30:00 -0700 (PDT) From: david.delainey@enron.com To: steven.kean@enron.com, richard.shapiro@enron.com, james.steffes@enron.com Subject: Support for key TN lawmakers Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: David W Delainey X-To: Steven J Kean, Richard Shapiro, James D Steffes X-cc: X-bcc: X-Folder: \David_Delainey_Dec2000\Notes Folders\All documents X-Origin: Delainey-D X-FileName: ddelain.nsf Guys, it will be very difficult to get money out of the power group - is the expectation that I come up with the dollars - just curious. Are we not circumventing the spirit of the political contribution rules? Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 10/06/2000 08:24 AM --------------------------- Barbara A Hueter@EES 09/29/2000 02:32 PM To: ddelain2@enron.com cc: Subject: Support for key TN lawmakers ---------------------- Forwarded by Barbara A Hueter/DUB/EES on 09/29/2000 03:32 PM --------------------------- Barbara A Hueter 09/29/2000 03:27 PM To: Dave Delainey, John J Lavorato/Corp/Enron cc: Subject: Support for key TN lawmakers ---------------------- Forwarded by Barbara A Hueter/DUB/EES on 09/29/2000 03:27 PM --------------------------- Barbara A Hueter 09/29/2000 03:24 PM To: Dave Delaney, John Lavorado, Mitch Robinson/Corp/Enron, Ben Jacoby/HOU/ECT cc: Richard Shapiro/HOU/EES@EES Subject: Support for key TN lawmakers Gentelmen, Following is an email detailing requests for personal contributions to legislators who have been instrumental to Enron regarding our power plants in Tennessee. I produced this list based on recommendations from our lobbying firm, Stokes Bartholomew, in Nashville. In 1999, Stokes Bartholomew, working with Jordan Mintz in Enron's tax department, convinced the state legislature to pass legislation clarifying that Enron's power plants would be exempt from the gross receipts tax. Had we not succeeded in the effort, we would have had to pay gross receipts taxes of approximately $1.5 million per year. In 2000, Tennessee is one of the only states in the union that has been running a deficit in the general revenue fund. Rather than going home for the summer, the legislature stayed in session and debated among themselves and with the Governor on how to solve the revenue shortfall issue. Eventually, they adopted unreasonably optimistic revenue projections to produce a balanced budget (on paper). This has not solved the problem because the state is already $100 million below revenue projections in the first quarter of the fiscal year. The legislature will look for a long term solution when it returns in January. Stokes Bartholomew informs me that all sources of revenue will be considered - this means our exemption from the gross receipts tax could possibly be repealed. At this time, no one is singling this exemption out, but Stokes Bartholomew is cautious and is monitoring the issue closely. Numerous legislators supported the gross receipts legislation for Enron. If our gross receipts tax exemption is threatened next legislative session, we would have to return to these same legislators (if they are reelected) for support. As long as Enron pays taxes in Tennessee, it behooves us to take an active interest in supporting those legislators who will defend our interests in the capitol. Since you are the key contacts at Enron for Tennessee, I ask you to assess this matter and decide whether ongoing legislative support is important to Enron's interests in TN and make contributions accordingly. I have recommended $9,500 in contributions. While this seems like a large amount, it is miniscule in comparison to the taxes we are not paying. Moreover, it will go a long way to helping us protect our interests against those who would fight to have "big corporations", particularly out-of-state corporations, get stuck with additional tax burdens to solve the state's fiscal woes. You are probably asking why we are not using Enron PAC funds or coroporate funds to make these donations. Tennessee law prohibits us from using corporate funds and limits the use of PAC funds to those PACs that do not receive any source of support from the corporation. Because Enron Corp. pays the expenses for the Enron PAC, we are not permitted to contribute Enron PAC funds to candidates in Tennessee. This is one of the most onerous political contribution laws in the country. If you have any questions I can be reached for the next week at 614.306.4359. Or you can leave a message for me at 614.760.7472. ---------------------- Forwarded by Barbara A Hueter/DUB/EES on 09/29/2000 12:56 PM --------------------------- Barbara A Hueter 09/14/2000 03:28 PM To: Ben Jacoby cc: Rick Shapiro, Janine Migden/DUB/EES@EES Subject: Support for key TN lawmakers Per our phone conversation, following is a list of key legislative leaders deserving of Enron's support. This list has been developed by our counsel/legislative agents in Nashville: Bill Bruce, Gif Thornton and Robert Gowan. Please feel free to call me to discuss further. You can reach me on my cell phone this afternoon and all day tomorrow. I will be in the office on Monday. Lieutenant Governor: Senator John Wilder (Democrat) $2,500 Represents Brownsville in the Senate. Sponsor of 1999 gross receipts tax exemption legislation for Brownsville. Has a serious opponent this November. The Senate elects the Lieutenant Governor who also serves as the head of the Senate. It is in Enron's best interst that John Wilder win the election and be re-elected Lieutenant Governor. Rep. Jimmy Naifey $1,000 Speaker of the House Represents Brownsvile. Senate Candidate Larry Trail (Democrat) $2,000 John Wilder's personal mission, besides his own election, is to get Larry elected to the Senate (it is an open seat that is being vacated by a Democrat). If the Democrats lose this seat there is a very good chance that Senator Wilder will not be re-elected Lieutenant Governor because the Democrats will have lost the majority in the Senate. Rep. Matt Kisber (Democrat) $1,500 Represents the Jackson area. Very pro-business Democrat. Is in a very tough race because the district was redrawn and it now majority Republican. Matt is the chair of the House Finance, Ways and Means Committee - which hears all gross receipts tax matters. Was very helpful to Enron on the gross receipts legislation. Senator Jerry Cooper $1,000 Chair of the Senate Commerce Committee His committee hears all legislation relating to energy and power plants. Rep. Shelby Rinehart $500 Chair of Commerce Committe (all energy and power plant issues) and powerful member of the House Finance and Ways and Means Committee. He is extremely powerful. Bill, Gif and Robert have a very good relationship and rely on him for assistance for their clients regularly. Unless otherwise noted, checks should be make payable to "Friends of _______________". Please forward to Bill Bruce fo personal delivery. (or if you want to get them to me I can pass them along) Bill Bruce Stokes, Bartholomew, Evans and Petree P.A. Sun Trust Financial Center 424 Church Street, Suite 2800 Nashville, TN 37219-2386