SRC-JXG S.B. 728 76(R)BILL ANALYSIS


Senate Research CenterS.B. 728
By: Fraser
Finance
3/11/1999
Committee Report (Amended)


DIGEST 

Currently, Texas has more historic courthouses than any other state. In
June 1998, the National Trust for Historic Preservation included 225
historic Texas courthouses in the annual list of "America's 11 Most
Endangered Historic Places." Governor George W. Bush announced his Texas
Courthouse Preservation Initiative to develop recommendations for an
effective matching grant program to be used by communities to repair and
restore courthouses throughout Texas. S.B. 728 would create the Historic
Courthouse Preservation Program to be administered by the Texas Historical
Commission, and the commission would be authorized to award grants and
loans for a historic courthouse project. 

PURPOSE

As proposed, S.B. 728 creates the Historic Courthouse Preservation Program
to be administered by the Texas Historical Commission, and the commission
would be authorized to award grants and loans for a historic courthouse
project. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to Texas Historical Commission in SECTION 1
(Sections 442.0081(b), (c), (e), (g) and (h); 442.0082(a)-(c) and (e); and
442.0083(b) and (g), Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 442, Government Code, by adding Sections 442.0081
through 442.0083, as follows: 

Sec. 442.0081. HISTORIC COURTHOUSE PRESERVATION PROGRAM: GRANTS AND LOANS.
Requires the Texas Historical Commission (commission) to administer a
historic courthouse preservation program (program). Authorizes an owner of
a historic courthouse who is a county or nonprofit organization to apply to
the commission for a grant or loan for a historic courthouse project.
Authorizes the commission, by rule, to determine the timing of and
requirements for an application for funding under the program. Authorizes
the commission to grant or, subject to Section 442.0083, loan money to a
county or nonprofit organization that owns a historic courthouse, for the
purpose of preserving or restoring the courthouse, if the owner's
application meets the standards of the program. Authorizes the commission
to consider the preferences and factors listed in this section as well as
any other factors that it may provide, by rule, in considering whether to
grant an application. Authorizes the commission to give preference to
certain conditions, in considering whether to grant an application.
Requires the commission to adopt rules regarding the way in which it will
consider certain factors in analyzing an owner's contribution to project
costs under Subsection (d)(2). Authorizes the commission to adopt rules in
analyzing an owner's contribution to project costs under Subsection (d)(2),
and certain factors. Authorizes the commission, in considering whether to
grant an application, to also consider certain factors. Requires the
commission, after considering any recommendations from the governor,
lieutenant governor, or speaker of the house of representatives, to appoint
a Texas Courthouse Preservation Program Advisory Committee (committee).
Requires the committee to assist the commission on matters relating  to the
program, receive input from the public about the program, and perform
additional functions assigned to it by commission rule.  Authorizes the
commission to reimburse a committee member's travel expenses and provide a
per diem for other expenses from funds appropriated to the commission, but
not from funds in the historic courthouse preservation fund account created
by this chapter. Provides that Chapter 2110 applies to the committee.
Authorizes the commission, by rule, to determine the qualifications for
membership on the committee. Authorizes the committee to include certain
members. Authorizes the commission to adopt rules necessary to implement
the program.  

Sec. 442.0082. HISTORIC COURTHOUSE PROJECT; REQUIREMENTS. Requires an owner
to have a master preservation plan for its historic courthouse project,
before incurring any expenses payable from funds received from the
commission under the program. Authorizes the commission, by rule, to
establish guidelines that set minimum standards for an owner's master
preservation plan. Requires an owner that receives money under the program
to use recognized preservation standards for work on a historic courthouse
project. Authorizes the commission, by rule, to establish standards that
ensure the quality of work performed on a historic courthouse project.
Authorizes an owner 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, may prescribe.
Authorizes eligible expenses to include certain costs. Provides that an
owner's expenditure of money received under this chapter for a historic
courthouse project is subject to audit by the state auditor in accordance
with Chapter 321. Authorizes the commission, by rule, to provide for
oversight procedures on a project. Requires these rules to provide for
reasonable inspections by the commission as well as periodic reports by an
owner on a project's progress.  

Sec. 442.0083. FUNDING FOR HISTORIC COURTHOUSE PRESERVATION PROGRAM;
HISTORIC COURTHOUSE PRESERVATION FUND ACCOUNT. Provides that the historic
courthouse preservation fund account is a separate account in the general
revenue fund. Provides that the account consists of transfers made to the
account, payments on loans made under the program, grants and donations
made for the purposes of the program, and income earned on investments of
money in the account. Requires appropriations to the commission for the
program to be credited to the account. Requires payments on loans made
under the program and grants and donations to the commission for the
purpose of the program to 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. Authorizes  money
in the account to only be appropriated for the purpose of the program.
Authorizes the commission to use money in the historic courthouse
preservation fund account to provide a grant or loan to a county or
nonprofit organization that owns a historic courthouse for a historic
courthouse project, except as provided by Subsection (c). Authorizes the
commission, by rule, to determine the grant or loan to be in the amount and
according to the terms. Authorizes the commission to use money in the
historic courthouse preservation fund 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 to be used to make loans. Authorizes the commission to require
creation of a conservation easement in the property, as provided by Chapter
183, Natural Resources Code, in favor of the state, as a condition for
providing the money under this section. Authorizes a grant for a historic
courthouse project to not exceed the greater of four million dollars or two
percent of the amount appropriated for implementing the program during the
state fiscal biennium. Authorizes the commission to use an amount not to
exceed one percent of biennial appropriations for the historic courthouse
preservation program for administration, oversight, and implementation of
the program. Authorizes the commission, by rule, to set a limit on the loan
amount for a historic courthouse project. Authorizes the commission to
accept a gift, grant, or other donation for the program or a specific
historic courthouse project. 

SECTION 2. Amends Section 442.001, Government Code, as follows:

Sec. 442.001. New heading: DEFINITIONS. Defines "historic courthouse,"
"historic courthouse project," and "historic structure." Redesignates
Subdivisions (1)-(6) as Subdivisions (A)-(F). Makes a conforming change. 
 
 SECTION 3. Amends the section heading to Section 442.008, Government Code,
as follows: 

 Sec. 442.008. New heading: COUNTY COURTHOUSES.

SECTION 4. (a) Effective date: September 1, 1999.

(b) Requires the commission to adopt the rules required by Sections
442.0081, 442.0082, and 442.0083, Government Code, as added by this Act, no
later than November 1, 1999.  

SECTION 5. Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 442.0083, Government Code, by adding a new Subsection (f),
to authorize the commission to use an amount not to exceed one percent of
biennial appropriations for the historic courthouse preservation program
for administration, oversight, and implementation of the program, rather
than prohibiting biennial appropriations for the historic courthouse
preservation program from exceeding the greater of two million dollars or
one percent of the amount.