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.