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07-21-2001

LOBBYING: K Street For July 21, 2001

DeLay Speaks, Auto Folks Listen

When House Majority Whip Tom DeLay, R-Texas, talks, his friends in corporate America usually listen. Case in point: This month, the Alliance of Automobile Manufacturers Inc. hired Tony Rudy, a former top aide to DeLay who is now a lobbyist at Greenberg Traurig. Rudy's mission is to help Detroit fend off bills that would hike the federal corporate average fuel economy (CAFE) standard. Rudy was hired just a few weeks after DeLay bluntly told auto lobbyists that if they want to stop congressional legislation mandating CAFE increases, they'd better get their lobbying act together.

Because Rudy left DeLay's staff late last year, he has to wait another six months before he can lobby the whip's office. But he's free to lobby old buddies in the House, and he's reportedly hard at work. Rudy and other auto industry advocates have a tough job. There's emerging bipartisan support in Congress for bills that would hike CAFE limits, and the Bush Administration has indicated it may act on its own this fall when the current ban expires on raising the CAFE standard. A study coming soon from the National Academy of Sciences, which Detroit was counting on to back up its position, is expected to say that auto companies could meet tougher CAFE standards over 10 years without hurting their bottom lines or eroding auto safety.

White House to Druggists: `Stop Calling'

At least one very vocal group is none too pleased with President Bush's recently announced plan to give all seniors a prescription drug discount card: the National Association of Chain Drug Stores Inc. The White House Office of Public Liaison has asked the group's lobbyists to get their members to stop phoning the White House with negative comments. The association represents 181 retail chains that operate 33,000 pharmacies. Craig L. Fuller, the president of the NACDS, says that "the White House has asked us to stop" because the calls are clogging up the voice-mail system. On July 17, Fuller's group and another big trade group, the National Community Pharmacists Association, filed lawsuits to block the Bush plan, alleging that it was created in "secret meetings" and that the Administration didn't follow normal procedures for issuing new regulations.

They're Betting on Swidler Berlin

Some card rooms and bingo halls in California are hoping that lawyer-lobbyists James Hamilton and Barry Direnfeld of Swidler Berlin Shereff Friedman can slip them an ace in their campaign against Indian casinos in the state. Direnfeld was chief legislative counsel to then-Sen. Howard M. Metzenbaum, D-Ohio; Hamilton is a longtime Washington hand, having served as an adviser to President Clinton and as the assistant chief counsel on the Senate Watergate Committee. Hamilton says that his clients "would lose a lot of business if full-blown casinos are allowed" in the state. To prove it, Swidler Berlin has hired William Eadington, the director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada (Reno), to testify on the negative economic impact. Eadington has already filed an affidavit in a federal lawsuit that the firm is handling. The suit seeks to block a voter-approved referendum question allowing California Indian tribes to become the sole operators of full-service casinos in the state.

Swidler Berlin's lobbying effort, however, focuses mostly on rescinding a congressional directive that allowed the Lytton Band of Pomo Indians to bypass the normal vetting process for Indian casinos and begin construction of a gambling facility near San Francisco. Rep. George Miller, D-Calif., had successfully attached the provision to an appropriations bill. But this year, Swidler Berlin worked with Sen. Harry Reid, D-Nev., who represents Las Vegas's casino industry, on a provision in the Interior Department appropriations bill that would rescind Miller's rider. Reid's provision has passed the Senate, but it has to be reconciled with a House version.

Bridge-Building, Manatt, Phelps-Style

Two and a half years after they began, lobbyists at Manatt, Phelps & Phillips are working to wrap up the complicated federal permitting process for a distinctive new pedestrian-only bridge between downtown Tijuana, Mexico, and a planned 66-acre retail-and-office complex on the San Diego side of the border. The International Gateway of the Americas, which is being built by LandGrant Development, requires a "presidential permit" that must be approved by about two dozen federal agencies. Backers say that the new bridge is needed because the nearby San Ysidro crossing is clogged with 86 million pedestrian and vehicular travelers annually. The proposed bridge would provide a direct link between Tijuana's main tourist street, Avenida Revolucion, and a snazzy, 655,000-square-foot shopping mall that features such retailers as Nike, Tommy Hilfiger, the Gap, Polo, and Levi's.

The team at Manatt, Phelps-a Los Angeles-based firm with strong ties to Mexico's government and business sector-is being led by Robert J. Kabel, a former special assistant to President Reagan and an aide to Sen. Richard G. Lugar, R-Ind. It includes Eric Farnsworth, who was policy director to Mack McLarty, President Clinton's special envoy to the Americas. Farnsworth was also a staff member for the Bureau of Western Hemisphere Affairs at the State Department from 1990-95. Historically, presidential permits have taken seven to 10 years to be finalized, Kabel says, but "our objective is to have it acted on before" Mexican President Vicente Fox is scheduled to meet President Bush at the White House in early September.

Peter H. Stone, Shawn Zeller, Louis Jacobson National Journal
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