IMF H.B. 3576 75(R)BILL ANALYSIS


STATE AFFAIRS
H.B. 3576
By: Stiles
5-2-97
Committee Report (Unamended)



BACKGROUND 

On July 1, 1997, the United States Postal Service (USPS) will implement
changes in certain postal regulations regarding special mail services and
address change updates. After this date, the cost of certified and return
receipt requested mail will rise by 36%. For example, the cost
implications of rate increases based on an estimated 600,000 pieces of
certified, return receipt requested mail generated by Travis County will
rise $480,00, from $1,650,000 to $2,130,000. However, if other special
services are used, the rate increase will only rise $150,000. (General
Service Commission, Special Mail Service Issues, March 26, 1997) To
qualify for discounted postal rates, mailers will be required under the
new regulations to use one of four approved address change update methods.
Failure to use one of these methods will result in full rate postage. 

As part of an ongoing mail reengineering study, it has been found that a
number of agencies are subject to statutory requirements that specifically
require the use of certified, registered or return receipt requested mail
service. This precludes the use of other special service options that can
provide similar service levels at lower cost. Current statues also
effectively prohibit the use of USPS approved address change update
services.   

PURPOSE

As proposed, H.B. 3576 would allow state agencies to use any form of
mailing service available from the United States Postal Service or any
change of address service approved by the United States Postal Service as
long as it does not cost more or lessen quality of service. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 10 Subtitle D, Chapter 2176 of the Government
Code by adding Subchapter E as follows: 

Section 2176.175 allows a state agency to utilize any form of mailing
service available from the United States Postal Service provided it is
consistent with the cost and quality standards set forth in state law. 

Section 2176.176 allows a state agency to use any change of address
service approved by the United States Postal Service for the purpose of
receiving a reduce rate. 

Section 2176.177 requires the General Services Commission to provide
information to state agencies concerning special mailing services offered
by the United States Postal Service and assist state agencies in
determining which service is consistent with agency needs. 

SECTION 2(a).  Effective date of Section 2176.175:  July 1, 1997.
 
SECTION 2(b).  Effective date of Section 2176.176:  immediate.

SECTION 2(c).  Effective date of Section 2176.177:  September 1, 1997.

SECTION 3.  Emergency clause.