Press Release May 6, 1999	Contact: Elisa Odabashian, Policy Analyst 415-431-6747 Consumers Union West Coast Regional Office

MILK BILL ALTERED TO REQUIRE PUBLIC REPORTING OF RETAIL PRICES
Consumers Union Supports SB 419, Urges Legislators to Take First Step to Help Consumers

SAN FRANCISCO, CA - Sen. Jackie Speier has altered her legislation dealing with high retail milk prices. As originally drafted, SB 419 would have repealed the state's current law barring stores from selling milk as a low-cost special. After the industry coordinated the bill's defeat last month in a Senate committee, Sen. Speier amended the bill to require a monthly milk price survey of retailers throughout the state. Consumers Union, sponsor of SB 419, continues to support the measure.

The Senate Agriculture and Water Resources Committee defeated SB 419 in a 7 to 4 vote on April 20. The committee is scheduled to re-hear SB 419 next week. No committee members who voted against the bill stepped forward to support an end to the current sales-below-cost prohibition.

In its amended form, SB 419 requires the California Department of Food and Agriculture (CDFA) to conduct a monthly milk price survey of retailers throughout the state. The information will be posted on the CDFA's web site, and will be available through a toll-free telephone number.

"We hope that by making this information readily available in one place, consumers will be able to find the cheapest milk in their region," said Elisa Odabashian, policy analyst with Consumers Union. "This may put pressure on the biggest and most expensive retailers to lower their milk prices."

"Last month's Legislative vote at the urging of the milk industry hurt California consumers, especially families with children who need milk regardless of its price," Odabashian said. "We had hoped to make the marketplace fairer for California consumers. In the face of industry's ability to defeat such a change, we hope now to give consumers a tool to better navigate the marketplace and find cheaper milk."

Consumers Union intends to continue its campaign to repeal the sales-below-cost prohibition through future legislation.

[NOTE: The Senate Agriculture & Water Committee will discuss and vote on SB 419 on Tuesday, May 11, 199 at 9:30 AM in the state Capitol, Room 112, Sacramento.]