LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 24, 1997 TO: Honorable Steven Wolens, Chair IN RE: House Bill No. 3576 Committee on State Affairs By: Stiles House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB3576 ( Relating to state agencies use of special mail services.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB3576-As Introduced The bill could result in a significant savings to the state. The amount of savings would depend on the extent to which state agencies use alternative, lower cost mail services and the amount of the anticipated increase in postage rates charged by the United States Postal Service. Fiscal Analysis The bill would allow state agencies to utilize any form of mailing service available from the United States Postal Service (USPS), such as alternative special mailing services, for the purpose of lowering postage costs, provided such service is consistent with the level of accountability, timeliness, security, and quality of service with mailing services otherwise specified in state law. Methodology It is anticipated that postal rates for certified, return-receipt-requested mail will increase, thereby increasing postage costs for state agencies. The use by state agencies of alternative mailing methods could offset this increase. The amount of the cost offset would depend on the extent to which state agencies use alternative mail services and the actual rates adopted by the USPS. For example, if postage rates increase as anticipated and state agencies use priority delivery confirmation instead of certified/return receipt mail service, the expected cost increase could be reduced by an estimated $330,000 per year. This savings would accrue to various state funds. In addition, it is projected that the Department of Public Safety could save as much as $666,000 per year for the mailing of drivers licenses if the Department is allowed to use alternative address change methods. No fiscal implication to units of local government is anticipated. Source: Agencies: 303 General Services Commission LBB Staff: JK ,JD ,RN