SRC-PNG H.B. 1341 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1341
By: Gallego (Fraser)
Finance
5/2/1999
Engrossed


DIGEST 

Out of the 254 counties in Texas, 225 still have historic county
courthouses, all of which have, as a group, been named to the National
Trust for Historic Places' list of the 11 Most Endangered Places in the
United States.  These courthouses are in need of repair due to outdated
electric wiring, roof leaks, and inadequate climate control.  Some have
become unusable.  This bill would require the Texas Historical Commission
(commission) to establish a historic courthouse preservation program
(program) to award loans and grants for restoring or preserving historic
courthouses.  This bill would authorize the commission to establish
requirements for awarding a loan or grant to a county and establish a
historic courthouse preservation fund account as a separate account in the
general revenue fund. 

PURPOSE

As proposed, H.B. 1341 requires the Texas Historical Commission
(commission) to establish a historic courthouse preservation program
(program) to award loans and grants for restoring or preserving historic
courthouses.  This bill authorizes the commission to establish requirements
for awarding a loan or grant to a county and establishes a historic
courthouse preservation fund account as a separate account in the general
revenue fund. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Historical Commission in
SECTION 2 (Sections 442.0081, 442.0082, and 442.083, Government Code) of
this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 442.001, Government Code, as follows:

Sec.  442.001.  New heading: DEFINITIONS.  Defines "historic courthouse"
and "historic courthouse project."  Makes conforming changes. 

SECTION 2. Amends Chapter 442, Government Code, by adding Sections
442.0081, 442.0082, and 442.0083, as follows: 

Sec.  442.0081.  HISTORIC COURTHOUSE PRESERVATION PROGRAM; GRANTS AND
LOANS.  (a) Requires the Texas Historical Commission (commission) to
administer a historic courthouse preservation program (program).   

(b) Authorizes a county that owns a historic courthouse to apply to the
commission for a grant or loan for a historic courthouse project.  Sets
forth required provisions for the application. 

(c) Authorizes the commission to grant or loan money to a county that owns
a historic courthouse, for the purpose of preserving or restoring the
courthouse, provided that the county's application meets the standards of
the program.  Requires the commission, when considering whether to grant
the county's application, to consider the preferences and factors listed in
this section as well as any other factors that the commission is authorized
to provide by rule.   
 
(d) Sets forth the conditions under which the commission is required to
give preference to certain projects or counties when considering whether to
grant an application.   

(e) Sets forth additional factors the commission is required to consider in
granting an application. 

(f) Requires the commission to adopt rules regarding the way it will
consider certain factors when analyzing a county's contribution to project
costs under Subsection (d)(2). 

(g) Requires the commission to appoint a Texas Courthouse Preservation
Program Advisory Committee (committee), after considering any
recommendations from the governor, lieutenant governor, or speaker of the
house of representatives.  Requires the committee to assist the commission
on matters relating to the program.  Authorizes the commission to reimburse
a committee member's travel expenses and provide a per diem for other
expenses from funds that are appropriated to the commission, but not from
the funds in the historic courthouse preservation fund account (account)
created by this chapter.  Provides that Chapter 2110, Local Government
Code, applies to the committee, and sets forth the composition of the
committee. 

(h) Requires the commission to adopt rules necessary to implement the
program. 

Sec.  442.0082.  HISTORIC COURTHOUSE PROJECT; REQUIREMENTS.  (a) Provides
that before incurring any expenses payable from funds received from the
commission under the program, a county must have a master preservation plan
for its historic courthouse project.  Requires the commission, by rule, to
prescribe the elements of a master preservation plan. 

(b) Requires that a county that receives money under the program to use
recognized preservation standards for work on a historic courthouse
project.  Authorizes the commission to adopt standards, by rule, that
ensure the quality of the work performed on a historic courthouse project.

(c) Authorizes a county that receives money under the program for a
historic courthouse project to use the money only for eligible preservation
and restoration expenses, that the commission, by rule, is required to
prescribe.  Authorizes certain costs to be included in eligible expenses.   

(d) Provides that a county's expenditure of money received under this
chapter for a historic courthouse project is subject to an audit by the
state auditor in accordance with Chapter 321, Government Code. 

(e) Requires the commission, by rule, to provide for oversight procedures
on a project, to provide for reasonable inspections by the commission as
well as periodic reports by a county on a project's progress. 

Sec.  442.0083.  FUNDING FOR HISTORIC COURTHOUSE PRESERVATION PROGRAM;
HISTORIC COURTHOUSE PRESERVATION FUND ACCOUNT.  (a) Provides that the
account is a separate account in the general revenue fund consisting of
transfers made to the account, payments on loans made under the program,
grants and donations for the program, and income earned on investments of
money in the account. Requires that appropriations to the commission for
the program be deposited to the credit of the account.  Requires income
earned on money in the account to be deposited to the credit of the
account, notwithstanding Section 404.071, Government Code. 

(b) Authorizes the commission to use money in the account to provide a
grant or loan to a county that owns a historic courthouse for a historic
courthouse project.  Authorizes the loan or grant to be in the amount and
according to the terms that the commission, by rule, is required to
determine.   

 (c) Authorizes the commission to use money in the account to provide a
loan under the program only to the extent that the legislature provides in
the General Appropriations Act that money appropriated to the commission
for the program may be used to make loans. 

(d) Authorizes the commission, as a condition for providing the money under
this section, to require creation of a conservation easement in the
property, as provided by Chapter 183, Natural Resources Code, in favor of
the state and to require creation of other appropriate covenants in favor
of the state.  Authorizes the commission to take any necessary action to
enforce repayment of a loan or any other agreements made under this section
and Sections 442.0081 and 442.0082. 

(e) Prohibits a grant for a historic courthouse project from exceeding four
million dollars or two percent of the amount appropriated for implementing
the program during the state fiscal biennium, whichever is greater.   

(f) Authorizes the commission to use an amount not to exceed one percent of
biennial appropriations for administering the program. 

(g) Authorizes the commission, by rule, to set a limit on the loan amount
for a historic courthouse project, which may be expressed as a dollar
amount or as a percentage of the total amount appropriated for implementing
the program during the state fiscal biennium. 

(h) Authorizes the commission to accept a gift, grant, or other donation
for the program or a specific historic courthouse project. 

SECTION 3. Effective date: September 1, 1999.
Requires the commission to adopt the rules required by Sections 442.0081,
442.0082, and 442.0083, Government Code, by November 1, 1999. 

SECTION 4. Emergency clause.