BILL ANALYSIS

H.B. 266

By: Hilderbran

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

State agencies spend significant sums on various types of mailings.  Any savings in mailing costs reduces the cost of state operations to the taxpayer.  Incorrect or incomplete addresses in state agency databases can result in undelivered mail, extended delivery times, and lost revenue.  The United States Postal Service has adopted standards for address correction software to increase the accuracy of addressing.  Mail that is prepared in compliance with these standards typically qualifies for discounted postal rates from the postal service  While appraisal districts may use driver's license record information in granting homestead exemptions, the results of a recent test revealed that the driver's license address information could often not be matched to the correct postal service address.

H.B. 266 seeks to take advantage of United States Postal Service discounts that may be available and increase the accuracy of mailing addresses in state agency databases by requiring state agencies, if practicable, to use address-matching software that meets certification standards under the Coding Accuracy Support System (CASS) adopted by the United States Postal Service and requiring the Department of Public Safety to ensure that driver's license address records are CASS compliant.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Texas Department of Public Safety in SECTION 2 of this bill.

ANALYSIS

H.B. 266 amends the Government Code to require a state agency, if practicable, to use address-matching software that meets certification standards under the Coding Accuracy Support System adopted by the United States Postal Service, or that meets any subsequent standard adopted by the postal service to replace Coding Accuracy Support System standards, for preparation of bulk mailings.  The bill requires, if a state agency contracts with a provider for bulk mailing services, the contract to require that the provider use address-matching software that meets or exceeds certification standards under the Coding Accuracy Support System or subsequent standards adopted by the United States Postal Service.

H.B. 266 amends the Transportation Code to require the Department of Public Safety by rule to establish a system to ensure that addresses of driver's license holders are verified and matched to United States Postal Service delivery addresses by use of address-matching software.  The bill requires the software to meet certification standards under the Coding Accuracy Support System adopted by the United States Postal Service, or a subsequent standard adopted by the postal service to replace Coding Accuracy Support System standards, for preparation of bulk mailings. The bill requires, if the department contracts with a provider for bulk mailing services, the contract to require that the provider use address-matching software that meets or exceeds certification standards under the Coding Accuracy Support System or subsequent standards adopted by the United States Postal Service.

EFFECTIVE DATE

September 1, 2011.