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Press Release Wednesday, October 11, 2000

Contact: Betsy Imholz or Michael McCauley 415-431-6747 Consumers Union's West Coast Regional Office

SAN FRANCISCO, CA -The 2000 California legislative session produced modest gains for consumers according to an analysis by Consumers Union. Highlights of the year include new laws that may help to expand access to health care for some low-income parents, a measure that will assist prospective homebuyers by giving them access to their credit scores, and a strengthened auto lemon law. But on a number of other important issues, consumers lost out to the politically powerful financial industry, which weakened or defeated measures ranging from financial privacy to payday loan reform to credit card disclosure.

"We are pleased that lawmakers in Sacramento have taken steps to expand California's Healthy Families program, which will extend coverage to an estimated 600,000 parents if federal funds become available," said Betsy Imholz, Director of Consumers Union's West Coast Regional Office. "We hope the legislature will continue to look for solutions to expand coverage to the seven million Californians who lack health insurance."

"But we are disappointed that little progress was made on several important financial issues affecting consumers," said Imholz. "Unfortunately, on a variety of credit and finance issues, monied special interests continue to dominate the legislative process to the detriment of consumers."

Other noteworthy measures benefiting consumers include a new law that increases the age and weight requirements for child car seats; a ban on lindane in head lice shampoos; a direct deposit option for welfare recipients; a measure that encourages alternatives to pesticides in schools; and an extension of the statute of limitations for Northridge earthquake insurance claims.

Meanwhile, business interests defeated several consumer protection proposals that enjoy widespread public support. The banking industry succeeded in winning a veto from Governor Davis of a landmark bill that would have required credit card companies to disclose to consumers how long it would take and how much it would cost to pay off their balance if they made only the minimum payment each month. For the second year in a row, the payday lenders fought off legislation that would have extended state oversight of the industry and helped consumers avoid the high costs of such loans. And the banking, insurance, and securities industries defeated a number of bills aimed at protecting the financial privacy of consumers.

"Next year, we hope to step up our work to expand access to health care, " said Imholz. "And we will re-double our efforts to rein in payday loan abuses and protect the interests of consumers on other important financial issues affecting their pocketbooks."

Note: Attached is a review of the outcome of Consumers Union's priority bills from the 2000 California legislative session.