BILL ANALYSIS C.S.S.B. 365 By: Moncrief (Gray) 4-5-95 Committee Report (Substituted) BACKGROUND Texas Historical Commission Originally known as the Texas Historical Survey Committee, the Texas Historical Commission (THC) was created in 1953. The Legislature revised the committee's title, duties, powers, and organizational structure in 1971. THC serves as the state agency for historic preservation by providing leadership, coordination, and special services needed for historical activities within the state. The commission administers the National Historic Preservation Act on the state level and serves as the official liaison with federal agencies for various historical preservation programs. Responsibilities of the commission include awarding official Texas historic markers and designating recorded Texas historic landmarks. Other activities include on-site consulting services to museums, work on archeological sites, and providing preservation information and publications to other interested parties. Eighteen public members serve on the commission, which supervises the agency's activities. THC carries out its programs and functions through nine departments: National Register programs office, department of antiquities protection, office of the state archeologist, division of architecture, Main Street program office, local history programs office, Los Caminos del Rio heritage project office, publications services, and administration. Antiquities Committee In response to public controversy over treasure hunting in Texas coastal waters, the Legislature passed the Antiquities Code of Texas and created the Antiquities Committee in 1969. Duties of the committee include designating state archeological landmarks and issuing permits for excavation of them. The committee also oversees research and salvage of state archeological landmarks and treasures as well as disposition of objects and artifacts recovered by salvage and research operations. The committee is composed of nine members. Three are citizen members appointed by the Governor, with the advice and consent of the Senate. Of the citizen members, one must be a professional historian, one a professional archeologist, and one a professional museum director. The remaining six members serve in an ex officio capacity: the chairman of the Texas Historical Commission, director of the Texas Parks and Wildlife Department, Commissioner of the General Land Office, director of the Texas Natural Resource Conservation Commission, state engineer-director of the Texas Department of Public Transportation, and state archeologist, who is an employee of THC. The Historical Commission and the Antiquities Committee function as one agency, have the same executive director, share staff resources, and receive funding through a single appropriation to THC. To carry out its programs, THC had an appropriation of $3,693,651 and 74 employees for fiscal year 1994. The Historical Commission and the Antiquities Committee are subject to the Texas Sunset Act and will automatically be abolished unless statutorily continued by the 74th legislature in 1995. As a result of its review of the commission, the Sunset Advisory Commission has recommended transferring responsibility for administering the Antiquities Code of Texas to THC, merging the Antiquities Committee with THC, and modifying several statutory provisions. PURPOSE The purpose of the bill is to continue the Texas Historical Commission for a 12-year period and make statutory modifications recommended by the Sunset Advisory Commission. The modifications proposed by this bill: - transfer responsibility for administering the Antiquities Code of Texas to THC and merge the Antiquities Committee with THC; - change the commission's make up to provide expertise in archeology, architecture, and history; - require rural representation on the commission; - allow the Texas Preservation Trust Fund to remain a separate account in the general revenue fund and to retain the interest earned on its principal; - improve oversight and protection of archeological resources under the antiquities code by adding specific notification requirements for projects that could impact archeological sites on state and local public property; - require THC to develop a state register of historic places to simplify the designation of historic properties, minimize staff efforts, and provide a basis for developing a more uniform approach to the state's preservation of historic sites; - authorize local property tax exemptions for state archeological landmarks similar to those allowed for historic structures; - simplify provisions requiring THC to compile lists of suitable historical structures available for state lease or purchase; and - provide for other changes. RULEMAKING AUTHORITY In the committee's opinion, this bill grants rulemaking authority to the Texas Historical Commission in the following sections: SECTION 1 - Section 442.002, Government Code, SECTION 2 - Section 442.0021, SECTION 4 - Section 442.004, SECTION 5 - Section 442.005, SECTION 6 - Section 442.0085, SECTION 7 - Section 442.009, SECTION 8 - Section 442.0095, SECTION 18 - Section 191.0525, Natural Resources Code, SECTION 25. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 442.002, Government Code. (b) Changes the composition of the Texas Historical Commission by requiring the 18-member commission to have at least one professional archeologist, one professional historian, and one licensed architect with expertise in historical preservation and architectural history. Modifies standard language developed by the Sunset Commission. Requires 15 of the 18 members of the commission to be public members. Adds standard language developed by the Sunset Commission. Prohibits appointment as a public member if the person or the person's spouse conducts business with the agency or otherwise has financial ties to businesses that receive funds, other than grant funds, from the commission. (e) Adds an interest in archeology as an optional qualification for appointment to the commission. Requires at least two of the 18 members of the commission to be from rural counties with a population of less than 50,000. (f) Updates standard language developed by the Sunset Commission. Prohibits lobbyists from serving on the commission or as general counsel to the commission. (g) Deletes obsolete language regarding removal of commission members. This language is updated and reinstated in SECTION 2. (h) Adds standard language developed by the Sunset Commission. Requires the governor to designate the presiding officer of the commission to serve at the pleasure of the governor. (j) Updates standard language developed by the Sunset Commission. Requires the agency to comply with the state's open meetings law and administrative procedure law. Requires the commission to provide the public with a reasonable opportunity to testify before it regarding issues under its jurisdiction. (k) Updates THC's Sunset review date to 2007, which provides the usual 12-year review period. (l) Adds standard language developed by the Sunset Commission. Requires appointments to the commission to be made without regard to race, color, disability, sex, religion, age or national origin. Reletters subsections. SECTION 2. Amends Subtitle D, Title 4, by adding Sections 442.0021, 442.0022, and 442.0023. 442.0021 Adds standard language developed by the Sunset Commission. Requires the commission members to be provided with adequate information and training to perform their duties prior to assuming their duties or being confirmed by the senate. 442.0022 Adds standard language developed by the Sunset Commission. Prohibits officers, employees, and paid consultants of trade associations in the field of archeology or historic preservation or their spouses from serving on the commission or working for the agency in an exempt position or a position paid at or above salary group 17. Defines Texas trade association. 442.0023 Updates standard language developed by the Sunset Commission. Defines grounds for removing a commission member and requires notification of the commission's presiding officer, the governor, and the attorney general if knowledge that a potential ground for removal exists. Affirms that an action of commission is valid even if it is taken when a ground for removal exists for one of the members. SECTION 3. Amends Section 442.003. Adds a requirement that the commission provide leadership and coordination of services in the field of archeology as well as in that of historic preservation. SECTION 4. Amends Section 442.004. (d) Updates standard language developed by the Sunset Commission. Requires the executive director or a designee to provide information to commission members and employees of the qualifications for office or employment and each person's responsibilities under the law. (e) Updates standard language developed by the Sunset Commission. Requires the director or a designee to develop an intra-agency career ladder program and intra-agency posting of job openings concurrently with any public posting. (f) Updates standard language developed by the Sunset Commission. Requires the executive director or a designee to develop an annual job performance evaluation system upon which merit salary increases must be based. (g)-(j) Updates standard language developed by the Sunset Commission. Requires the executive director or a designee to prepare and maintain an equal employment opportunity policy and to report findings to the Texas Commission on Human Rights and the governor's office. (k) Makes a technical change redesignating the director as the "state historic preservation officer" for matters regarding relations with the federal government or other states. (l) Adds standard language developed by the Sunset Commission. Requires the commission to develop and implement policies that separate its policymaking responsibilities from the management responsibilities of the director and staff of THC. Reletters subsections. SECTION 5. Amends Section 442.005. (a) Requires the commission to furnish leadership, coordination, and services to organizations and individuals interested in Texas's archeological heritage in addition to the state's historical heritage. (b) Makes the commission responsible for administering the Antiquities Code of Texas and directs the commission to establish effective working relationships between persons interested in history, architecture, and archeology. (c) Requires the commission to provide consultant services to agencies, individuals, and organizations interested in preserving archeological sites. Deletes the requirement that the commission provide the General Services Commission (GSC) with a list of owners of historic suitable structures available for state purchase. (d) Deletes the requirement that the commission provide GSC with a list of owners of suitable historic structures available for state lease. (j) Requires the commission to stimulate the development and protection of archeological or historical resources in the state. (r) Authorizes the commission to set up advisory committees to advise the commission on historical and archeological matters. SECTION 6. Adds Section 442.0085. Requires the commission to develop a state register of official historical and archeological designations and grants the commission rulemaking authority to implement the register. SECTION 7. Amends Section 442.009. (a) and (b) Updates standard language developed by the Sunset Commission. Requires the commission to distribute information to the public concerning the agency's functions and complaint procedures. (c) Updates standard language developed by the Sunset Commission. Requires the commission to collect and maintain information about all complaints filed with the commission. (d) Updates standard language developed by the Sunset Commission. Requires the commission to maintain files on written complaints that the commission has the authority to resolve and to notify the parties regarding the status of the complaint quarterly until disposition. Reletters subsections. SECTION 8. Adds Section 442.0095. Adds standard language developed by the Sunset Commission. Requires the commission to comply with state and federal program and facility accessibility laws and to develop a plan that describes how non-English speaking persons can be provided reasonable access to the commission's programs. SECTION 9. Amends Section 442.010. Adds standard language developed by the Sunset Commission. Requires the commission to file an annual report with the governor and the legislature detailing the agency's financial transactions. SECTION 10. Amends Section 442.015 (a), (b), and (g). Dedicates all money deposited to the credit of the Texas preservation trust fund to the fund. Redesignates the fund as a separate account within the general revenue fund. SECTION 11. Adds Section 442.0155. Adds standard language developed by the Sunset Commission. Requires that all agency funds be placed in the state treasury. SECTION 12. Amends Section 442.016 (e). Redesignates the Texas preservation trust fund as a separate account within the general revenue fund. SECTION 13. Amends Section 443.008(a). Deletes the chairman of the Antiquities Committee as an ex officio member of the permanent advisory committee of the State Preservation Board. SECTION 14. Amends the heading of Section 31.160, Natural Resources Code. Reflects updated references to the content of the section. SECTION 15. Amends Section 31.160(c). Substitutes the Texas Historical Commission for the Antiquities Committee as the recipient of information and photographs regarding state owned historic buildings from the assets management division of the General Land Office. SECTION 16. Amends the heading of Chapter 191, Natural Resources Code. Reflects updated references to the content of the chapter. SECTION 17. Amends Section 191.003(l), Natural Resources Code. Makes references to the Antiquities Committee applicable to THC by redefining "Committee" to mean the "Texas Historical Commission." SECTION 18. Amends Subchapter C, Chapter 191, Natural Resources Code, by adding Section 191.0525. Requires THC to be notified prior to the start of projects that could impact significant archeological sites on state or local public land. Provides categorical exclusions and threshold exemptions for projects unlikely to affect archeological sites. Imposes deadlines for agency responses to project notifications and discoveries of archeological sites. Requires the commission to adopt rules implementing this section. SECTION 19. Amends Section 11.24, Tax Code. Adds privately owned archaeological sites to the existing authority for local taxing units to grant property tax exemptions if they have been voluntarily designated as state archeological landmarks. SECTION 20. Amends Section 315.006(k), Local Government Code. Redesignates the Texas preservation trust fund as a separate account within the general revenue fund. SECTION 21. Amends Section 5.01A, State Purchasing and General Services Act (Article 601b, Vernon's Texas Civil Statutes). (a) Requires historic structures to have been designated as such by a federal, state, or local agency before the General Services Commission (GSC) may give them priority in acquiring buildings for use by the state. (b) Deletes the requirement that GSC request from THC a list of suitable historic buildings available for state purchase before constructing a new building for state use. Deletes the requirement that the state agency for which new construction is approved report to GSC information regarding contact with THC and reasons for rejecting historical structures listed by THC. Adds acquisition to the requirement that a state agency compare the cost of constructing or acquiring a building with the cost of purchasing and rehabilitating a historic structure rejected because of its cost. (c)-(e) Reletters subsections and makes conforming changes. SECTION 22. Amends Section 6.05(j). Requires historic structures to have been designated as such by a federal, state, or local agency before GSC may give them priority in leasing buildings for state use. SECTION 23. Requires THC to report to the 75th legislature not later than February 1, 1997, on the development of a state register of historic places. SECTION 24. (a) Requires the governor as soon as possible to fill vacancies occurring on the commission after September 1, 1995, with appointees who have the newly mandated professional expertise and with those who come from rural counties. (b) Makes certain provisions applicable only to commission members appointed after September 1, 1995, including the changes made to Sections 442.002(b) and (e), Government Code, regarding eligibility and qualifications for membership on the commission and the additions of Sections 442.0021 and 442.0022 regarding training of commission members and prohibitions on conflicts of interest. SECTION 25. (a) Abolishes the Antiquities Committee and transfers all powers and duties of the committee to the Historical Commission. Defines any reference in law to the Antiquities Committee to mean the Texas Historical Commission. (b) Replaces the Antiquities Committee with the Texas Historical Commission in all the committee's obligations, agreements, and contracts. (c) Transfers all records, property, and appropriations of the Antiquities Committee to the Texas Historical Commission. Continues personnel of the Antiquities Committee as employees of the commission. (d) Makes any rule adopted by the Antiquities Committee before September 1, 1995, a rule of the historical commission. SECTION 26. Repeals sections of Subchapter B, Chapter 191, Natural Resources Code, regarding the composition and administration of the Antiquities Committee but leaves intact Section 191.021 (b), (c), and (d) dealing with the designation of buildings under the control of institutions of higher education as state archeological landmarks. SECTION 27. Specifies the effective date of the Act as August 30, 1995. SECTION 28. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE Major points of difference between SB 365, as engrossed, and the House committee substitute are as follows: 1. The original bill contains a notification provision that requires projects on public land to notify the Antiquities Committee before breaking ground. The provision requires the Antiquities Committee to respond within 15 days to notice from oil and gas projects. The substitute retains this requirement but conforms this subsection to a separate one that sets a 30-day deadline for all other projects by adding two sentences. The first sentence added by the substitute allows the project to proceed without further notice if the Antiquities Committee does not respond within 15 days of the notification. If the committee determines an archeological survey is necessary, the second added sentence prevents a project from beginning until the survey is completed. 2. The substitute also clarifies the intent of the section to require notice from a city or county if the project affects either 5 acres or 5,000 cubic yards--the project does not have to exceed both measures for it to give notice. The original bill was unclear as to whether one or both of these criteria must be met. 3. The substitute changes the effective date of the act from September 1, 1995, to August 30, 1995. Because of the funds consolidation process, the principal and interest balance existing in the Preservation Trust Fund account will be "swept" into General Revenue on August 31. The engrossed version would have rededicated the trust fund's revenues and balances to the fund, but not until September 1, when there would be nothing left in the fund to rededicate. SUMMARY OF COMMITTEE ACTION SB 365 was considered by the House Committee on State, Federal, and International Relations in a public hearing on 5 April 1995. The committee considered a complete substitute for the bill. The following persons testified in favor of the bill: Ms. Jill Souter Preservation Texas Mr. David A. Williams Executive Director, Texas African American Heritage Org. The following person testified against the bill: Ms. Lila Knight Chairwoman, Hays Co. Historical Commission The following person testified neutrally on the bill: Mr. Robert D. Kiker Permian Basin Petroleum Association One amendment was offered to the substitute and was adopted without objection. The substitute as amended was adopted without objection. The chairman directed the clerk to incorporate the amendment into the substitute. The bill was reported favorably as substituted with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv, and 2 absent.