| Saying it does not
support consumer choice, Minnesota Gov. Jesse Ventura vetoed an
auto-glass bill (No. HF2570 see text below.)
But, the Minnesota Legislature immediately began the process to
override him.
The bill would outlaw free boxes
of steaks and other incentives in the windshield-replacement
business, change the rules by which insurance companies must pay
auto glass claims and further restrict insurers from
"steering" customers to particular glass shops.
Ventura said the measure could
force small glass shops out of business, a contention that was
hotly disputed by the bill's sponsors. Glass shops could still
include advertising and service costs in the prices they bill to
insurers, as long the prices are competitive in the market, said
Rep. Ken Wolf, R-Burnsville.
Although he didn't mention it in
his veto message, Ventura said on his radio show Friday that
"one of my best friends happens to be in that business, and
he told me I should veto it. . . . It brings government in line of
setting prices."
Rep. Gregory Davids, R-Preston,
said the bill was endorsed by Ventura's commerce commissioner,
James Bernstein, because under current law he could do nothing to
stop glass shops from collecting insurance claims as high as
$4,300 for a $300 windshield.
Ventura said there is no evidence
that the bill would force down premium rates. Although
the bill was strongly supported in the legislature, Gov. Ventura
vetoed the legislation. In his veto message Gov. Ventura expressed
his concern that the legislation would adversely affect small
glass dealers.
"If factors such as
advertising and service costs are ignored (in developing the cost
of auto glass replacement), we will lose the small glass
replacement operators. If the small operators are lost, glass
replacement choices will be limited to those large operators with
high volumes that have a more direct relationship with insurers.
This will hurt the consumer by limiting flexibility and
choice," said Ventura.
But Rep. Matt Entenza, DFL-St.
Paul, said it is "a pro-consumer bill that will get some
sanity back in the glass industry."
Veto Letter
from Gov. Ventura:
|
March 26, 2002
The Honorable Steve Sviggum
Speaker of the House
463 State Office Building
Saint Paul, Minnesota 55155
Dear Speaker Sviggum:
The purpose of this letter is
to inform you that I am returning Chapter 283, HF 2570.
I am vetoing the bill because it does not support consumers
and consumer choice.
If the cost of auto glass
replacement is the only consideration used to determine the
local market price, several other cost factors that heavily
impact small volume glass replacement operations will be
ignored. If factors such as advertising and service
costs are ignored, we will lose the small glass replacement
operators. If the small operators are lost, glass
replacement choices will be limited to those large operators
with high volumes that have a more direct relationship with
insurers. This will hurt the consumer by limiting
flexibility and choice.
HF 2570 also fails to make a
major improvement in the methods available to resolve
disputed claims. Many small glass replacement
operators have a significant number of disputed claims with
insurers. HF 2570 does not remedy this situation.
Finally, no evidence exists
that insurance premiums will decline if this bill is enacted
into law.
Jesse Ventura
Governor
cc: Senator Roger Moe, Majority
Leader
Senator Dick Day, Minority Leader
Representative Steve Sviggum, Speaker
of the House
Representative Tom Pugh, Minority
Leader
Senator James Metzen
Representative Ken Wolf
Mr. Patrick E. Flahaven, Secretary of
the Senate
Mr. Edward A. Burdick, Chief Clerk of
the House
Ms. Mary Kiffmeyer, Secretary of
State
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