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