The new law also permits insurers to suggest a glass repair vendor, although the insurer must notify the policyholder of the right to choose any repair shop.

Additionally, the law, which takes effect June 30, prohibits glass dealers from offering rebates and give-away incentives.

In his veto message, Gov. Ventura, an Independent, talked about the adverse effect the legislation would have on 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," the governor said.

He added that if small operators were lost, "glass replacement choices will be limited to those large operators with high volumes that have a more direct relationship with insurers."

The Alliance of American Insurers, Downers Grove, Ill., welcomed the veto, noting that Minnesota has the highest glass-repair costs in the nation.

"This bill will bring some sanity to the pricing structure of glass repair in the state," declared Kirk Hansen, director of claims for the Alliance. He noted that the "runaway" glass-repair claims costs have been reflected in consumers automobile insurance rates.

"Amending the glass repair statute benefits consumers, insurers and glass shops," said Laura Kotelman, counsel for the National Association of Independent Insurers, Des Plaines, Ill.

"The practice of providing rebates increased the cost of repairs and ultimately affected the auto insurance rates for all consumers," she added.