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How a Bill Really Becomes a Law - Rebate Bill Vetoed
Well, I spoke too soon.... The other day I sent you the story of HB 511, a "typical" bill moving through the legislative process. The last chapter of the story was that it was sent to Governor Perry to sign or veto. Yesterday Governor Perry vetoed the bill. In his veto message, he focused on a provision that he said required companies to honor rebates within 30 days, which he said was too short a time. Had he read the bill, or asked me about it, it would have been clear that the company offering the rebate could specify whatever processing period it wanted, as long as the company met its own deadline. The company was only required to pay within 30 days if it failed to specify a processing period, or after improperly denying a rebate to a customer who should have been paid. The "30-day or as specified" provision was specifically written to match a Federal Trade Commission rule that companies already should be following. The governor also expressed concerns about the use of the deceptive trade practices act to enforce this legislation. The Governor's staff asked us about this issue informally early in the process. We asked them to talk to persons in the Attorney General's office who are already using the DTPA when they bring a rebate case to court. I asked the Governor's legislative staff for any follow up several times after that, and was told they thought the issue had been resolved. It is clear to me, from the wording of the governor's arguments, that the electronics industry pursuaded the governor to veto this bill, as they have done on similar legislation in other states. The industry benefits greatly from having a system in place where the best prices require you to go through a rebate process that they control. And where they know that more than half the consumers who buy the product will either never apply for the rebate or be denied payment. Can you imagine how much more profit the fast food industry would make if, instead of making change when you bought a burger, they made you mail in a coupon to get back what you were owed, and required you to mail in part of the wrapper and your receipt? The deadline for vetoing bills is Sunday.
Scott Hochberg
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