TITLE 13.CULTURAL RESOURCES

Part 2. TEXAS HISTORICAL COMMISSION

Chapter 17. STATE ARCHITECTURAL PROGRAMS

13 TAC §17.1, §17.3

The Texas Historical Commission (THC) proposes new §§17.1 and 17.3 of Chapter 17 (Title 13, Part II of the Texas Administrative Code) concerning the Preservation Trust Fund Grants and the Texas Preservation Trust Fund.

F. Lawerence Oaks, Executive Director, has determined that for the first five-year period the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Mr. Oaks has also determined that for each year of the first five year period the rule amendments are in effect the public benefit anticipated as a result of the new rules will be an increase in the number, and scale of potentially important archeological projects that can apply for grants under the Texas Preservation Trust Fund. Additionally, Mr. Oaks as determined that there will be no effect on small businesses.

Comments on the proposal may be submitted to F. Lawerence Oaks, Executive Director, Texas Historical Commission, P.O. Box 12276, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register .

The new sections are proposed under §442.005(q), Title 13 Part II of the Texas Government Code, which provides the Texas Historical Commission with the authority to promulgate rules to reasonably effect the purposes of this chapter.

These new sections implement §§442.015 and 442.0155 of the Texas Government Code.

§17.1.Preservation Trust Fund Grants.

(a) Eligible property. To be considered eligible for grant assistance, a property must:

(1) be included in the National Register of Historic Places; or

(2) be designated as a recorded Texas historic landmark; or

(3) be designated as a State Archeological Landmark; or

(4) be determined by the commission to qualify as an eligible property under criteria for inclusion in the National Register of Historic Places or for designation as a recorded Texas historic landmark or a State Archeological Landmark; or

(5) have a permanent conservation easement.

(b) Eligible Applicants: Any public or private entity, including those whose purposes include historic preservation, and that is either the owner, manager, lessee, maintainer, or potential purchaser of an eligible historic property is eligible for fund assistance. If applicant is not the owner of the historic property, written approval must be submitted by the owner at time of application agreeing to follow all rules and conditions of the commission required for receipt of funds.

(1) Grants are awarded on a competitive basis to eligible properties judged by the Commission to provide the best use of limited grant funds.

(2) Meeting the eligibility criteria and submissions of a grant application does not guarantee award of a grant in any amount.

(c) Types of preservation grants. Preservation grants shall be awarded only for:

(1) development ("preservation," "restoration," "rehabilitation," and "reconstruction," as defined by the Secretary of the Interior's Standards for The Treatment of Historic Properties, 1992 or latest edition); the costs include professional fees to prepare an acceptable project proposal and supervise actual construction, the costs of construction, and related expenses approved by the commission; or

(2) acquisition of absolute ownership of an eligible property (that is what is defined in subsection (a) of this section of these rules) and related costs and professional fees approved by the commission; or

(3) planning costs necessary for the preparation of property specific historic structure reports, historic or cultural resource reports, preservation plans, maintenance studies, and/or feasibility studies as approved by the commission; or

(4) education costs necessary for training individuals and organizations about historic resources and historic preservation techniques.

(d) Eligible match for grant assistance. Applicants eligible to receive grant assistance shall provide a minimum of one dollar in cash match to each state dollar for approved project costs. The commission, by written policy, may approve up to 50 percent in-kind match for projects involving highly significant and endangered properties.

(e) Grant applications.

(1) Application deadline is 5:00 p.m. on June 1 of each year, or 5:00 p.m. of the last regular work day of May if June 1 should fall on a weekend or holiday, or at other times as announced by the Texas Historical Commission; application forms are to be received by the commission at its offices by this deadline.

(2) To remain eligible for potential funding, applicants must complete the grant application form and include all required attachments as stated in the grant application instruction booklet.

(3) Grant applications that are incomplete and/or received after the application deadline are ineligible for funding.

(4) Grant applications with budgets showing a high percentage of administrative costs will be considered to be less competitive than applications having little or no administrative costs.

(f) Initial grant allocations. Grants shall be allocated by vote of the commission at large upon the recommendation of the Trust Fund Committee at any duly noticed meeting of the commission. Reallocation of returned funds may be made by the executive committee of the commission upon the recommendation of the architecture and/or archeological committees of the commission. Grant allocations will generally be in the amount of $2,500 or more, but shall not exceed $100,000.

(g) Final grant approval.

(1) Submission of project proposal.

(A) For architectural projects to remain eligible for the grant allocation, an acceptable project proposal, consistent with the Secretary of the Interior's Standards for the Treatment of Historic Properties, 1992 or most recent edition, and consisting of plans/specifications, appraisal, unexecuted contract documents, and/or other material as required shall be submitted to the commission for review and approval.

(B) An acceptable project proposal must be submitted within three months of the allocation by the commission unless otherwise approved in writing by the commission.

(2) Review and approval of project proposal. Upon completion of the review of the project proposal, approved projects will be notified of the assigned project start date, as well as the project expenses eligible for grant funding (allowable expenses) and those expenses not eligible (unallowable expenses).

(A) For archeological projects to remain eligible for the grant allocation, modifications to the scope of work and research design as required by the commission shall be submitted to the commission for review and approval.

(B) Review and approval of scope of work and research design. Upon completion of the review of the scope of work and research design, approved projects will be notified of the assigned project start date, as well as the project expenses eligible for grant funding (allowable expenses) and those expenses not eligible (unallowable expenses).

(C) For educational projects to remain eligible for the grant allocation, an acceptable project proposal must be submitted within three months of the allocation by the commission unless otherwise approved in writing by the commission.

(D) Approved projects will be notified of the assigned project start date, as well as the project expenses eligible for grant funding (allowable expenses) and those expenses not eligible (unallowable expenses).

(E) For planning projects to remain eligible for the grant allocation, an acceptable project proposal must be submitted within three months of the allocation by the commission unless otherwise approved in writing by the commission.

(F) Approved projects will be notified of the assigned project start date, as well as the project expenses eligible for grant funding (allowable expenses) and those expenses not eligible (unallowable expenses).

(3) Commencement of project work. Project work as approved shall commence within 60 days of the assigned start date unless otherwise approved in writing by the commission.

(4) Forfeiture of grant allocation. Failure to comply with the deadline for submission of an acceptable project proposal, or to meet the deadline for starting the project work, or to perform any part of the project work as approved, or to receive permission from the commission before commencing additional work, shall result in forfeiture of the full grant amount.

(h) Award of contract.

(1) Architectural development grant projects. All project work as approved in the project proposal shall be awarded subsequent to formal advertising for bids.

(2) Architectural planning grant projects. Contract for work described in the approved project proposal shall be awarded subsequent to interview with at least three professional firms.

(3) Commencement of project work. Approved project work may not begin before the assigned project start date, except for planning work connected with development projects.

(i) Grant reimbursement procedures.

(1) Reimbursement of allowable project expenses. The only expenditures made before a start date that are reimbursable are for planning work done on development projects performed subsequent to initial project application submittal.

(2) All payment of grant funds shall be strictly on a reimbursement basis. Reimbursement may be made after the competitive award of contract and submission of proof of all incurred allowable expenses and corresponding payments totaling more than 50% but less than 75% of the total project cost, and/or at the completion of the project after an acceptable required completion report and/or planning documents have been received by the commission.

(3) Deadline for submission of requests for reimbursement. Allowable project expenses equal to two times the grant amount shall be incurred by the following July 15 unless otherwise announced by the commission. Proof of those incurred expenses and corresponding payments shall be submitted to the commission by the following August 1 unless otherwise announced by the commission.

(4) Forfeiture of grant. Failure to expend the full grant amount by the July 15 deadline or other deadline as announced by the commission or to submit to the commission all required material by the August 1 deadline or other deadline as announced by the commission shall result in forfeiture of the remaining grant amount unless otherwise approved in writing by the commission.

(j) Deed restrictions/designations/conservation easements. Acquisition and development projects shall be encumbered, prior to reimbursement of any project expenses, with a protective designation, deed restriction or conservation easement in a format acceptable to the commission requiring the owner and successors in interest, if any, to maintain the site in the condition or state of repair as at the time of completion of grant-assisted work, to secure the approval of the commission or its duly authorized representative for any proposed changes beyond normal maintenance to the site, and, in the case of political subdivisions of the state, to meet the requirements of the Uniform Grant and Contract Management Act, Texas Government Code Chapter 783. The deed restriction shall run with the land, be enforceable by the State of Texas, and its duration will be based upon the cumulative amount of grant assistance as follows:

(1) less than $10,000-10 years from start date of the deed restrictions set by the commission.

(2) $10,000-$50,000-30 years from start date of the deed restrictions set by the commission.

(3) greater than $50,000-50 years from start date of the deed restrictions set by the commission.

(k) Repayment penalty for resale of property within one year of acquisition. If a property acquired with a preservation grant is sold within one year of the purchase date, the project allocation agreement shall provide that the owner shall repay the State of Texas the amount of the grant allocation.

(l) Completion reports for acquisition and development projects. Projects assisted with acquisition or development grants will be required to submit a project completion report in triplicate, consisting of photo documentation and project summary prepared by the supervising project professional, to the commission no later than August 1, or as otherwise announced by the commission, of the current fiscal year. Final reimbursement of the grant allocation will be retained until receipt of an acceptable completion report by the commission.

(m) Professional standards.

(1) Project personnel for development and planning grants. Project proposal documents for development and planning grants shall be prepared by, and development work supervised by, appropriate personnel in compliance with the following criteria:

(A) History. The minimum professional qualifications in history are a graduate degree in history or closely related field; or a bachelor's degree in history or closely related field plus one of the following:

(i) at least two years of full-time experience in research, writing, teaching, interpretation, or other demonstrable professional activity with an academic institution, historical organization or agency, museum, or other professional institution; or

(ii) substantial contribution through research and publication to the body of scholarly knowledge in the field of history.

(B) Archeology. The minimum professional qualifications in archeology are a graduate degree in archeology, anthropology, or closely related field plus:

(i) at least one year of full-time professional experience or equivalent specialized training in archeological research, administration, or management;

(ii) at least four months of supervised field and analytic experience in general North American archeology; and

(iii) demonstrated ability to carry research to completion.

(iv) In addition to these minimum qualifications, a professional in prehistoric archeology shall have at least one year of full-time professional experience at a supervisory level in the study of archeological resources of the prehistoric period. A professional in historic archeology shall have at least one year of full-time professional experience at a supervisory level in the study of archeological resources of the historic period.

(C) Architectural history. The minimum professional qualifications in architectural history are a graduate degree in architectural history, art history, historic preservation, or closely related field plus one of the following:

(i) at least two years of full-time experience in research, writing, or teaching in American architectural history or restoration architecture with an academic institution, historical organization or agency, museum, or other professional institution; or

(ii) substantial contribution through research and publication to the body of scholarly knowledge in the field of American architectural history.

(D) Architecture. The minimum professional qualifications in architecture are a professional degree in architecture plus at least two years of full-time professional experience in architecture; or a state license to practice architecture.

(2) Project personnel for acquisition grants. The single appraisal required for acquisition grants shall be prepared by a professional appraiser.

(n) Performance standards. All development and planning projects must be in conformance with the Secretary of the Interior's Standards for the Treatment of Historic Properties, 1992 or latest edition. All archeological projects must be in conformance with the Secretary of the Interior's Standards for Preservation Planning and Standards for Archeological Documentation, 1983 or latest edition.

(o) Compliance with requirements for accessibility to facilities by persons with disabilities. All projects must be in compliance with or in receipt of appropriate variance from the regulations issued by the Texas Department of Licensing and Regulation, under the Architectural Barriers Act, Article 9102, Texas Civil Statutes.

(p) Compliance with Uniform Grant and Contract Management Act. All projects by political subdivisions of the state must be in compliance with the Uniform Grant and Contract Management Act, Texas Government Code Chapter 783.

§17.3.Texas Preservation Trust Fund.

(a) Definition. The Texas preservation trust fund (hereinafter referred to as trust fund or fund) is a fund in the state treasury, created by enactment of Senate Bill 294 by the 71st Texas Legislature (1989), which amended the Texas Government Code, Chapter 442, by adding §442.015. The trust fund shall consist of transfers made to the fund, including state and federal legislative appropriations, grants, donations, proceeds of sales, loan repayments, interest income earned by the fund, and any other monies received. Funds may be received from federal, state, or local government sources, organizations, charitable trusts and foundations, private individuals, business or corporate entities, estates, or any other source.

(b) Purpose. The purpose of the Texas preservation trust fund is to serve as a source of funding for the Texas Historical Commission (THC) to provide financial assistance to qualified applicants for the acquisition, restoration, or preservation of historic properties in the State of Texas.

(c) Property eligibility. Historic properties must either be listed on the National Register of Historic Places, designated as recorded Texas historic landmark, or be determined by the commission to qualify as an eligible property under criteria for inclusion in the National Register of Historic Places, or for designation as a recorded Texas historic landmark. Priority shall be given to those properties determined by THC to be endangered by impending demolition, neglect, under use, looting, or other threat.

(d) Fund recipient eligibility. Any public or private entity, including those whose purposes include historic preservation, and that is the owner, manager, lessee, maintainer, or potential purchaser of an eligible historic property is eligible for fund assistance. If applicant is not the owner of the historic property, written approval must be submitted by the owner at time of application agreeing to follow all rules and conditions of the commission required for receipt of funds.

(e) Types of assistance. THC shall provide financial assistance in the form of grants or loans. Grant recipients shall be required to follow the terms and conditions of the Preservation Trust Fund Grants and other terms and conditions imposed by THC at the time of the grant award. Loans shall have a term not to exceed five years at an interest rate at the prime interest rate at the time the loan is made.

(f) Preservation easements and covenant. The owner of record (and the mortgagee, if applicable) of any property benefiting from fund assistance shall encumber the title of the property with a State Archeological Landmark designation, or conservation easement and covenant in a form prescribed by THC prior to disbursement of any fund monies or conservation easement (as defined in Title 8, Natural Resources Code, Chapter 183).

(g) Allowable use of trust fund monies. In all cases when no specification is made or the specified amount is less than $5,000 the proceeds and/or interest on such gifts or monies shall be unencumbered and shall accrue to the benefit of the entire fund. Money deposited to the fund for specific projects shall only be used for the projects specified provided that the specific project has received approval of the THC, there is or will be a dedicated account within the Trust Fund for that project, and all other requirements herein are met. Money deposited to specified projects in amounts of $5,000 or greater shall retain all proceeds or interest earned for that specified project unless the donor stipulates that all proceeds or interest earned shall be unencumbered and accrue to the benefit of the entire fund.

(h) Organization. The Texas preservation trust fund shall be administered by THC through its trust fund committee. The trust fund advisory board, and THC staff shall provide support and input as needed.

(i) Texas Historical Commission Preservation Trust Fund Committee (hereinafter referred to as trust fund committee). The executive committee of the Texas Historical Commission shall serve as the trust fund committee. All actions of the Texas trust fund committee are subject to ratification by the full Texas Historical Commission. Duties of the trust fund committee are:

(1) to appoint the advisory board after considering the recommendations of the Texas governor, lieutenant governor, and the speaker of the house, and to fill vacancies on the advisory board, as needed;

(2) to approve all rules, policies, and guidelines for the administration of the fund or any of its associated boards and committees;

(3) to approve the acceptance of grants or other donations of money, property, and/or services from any source. Money received shall be deposited to the credit of the Texas preservation trust fund;

(4) to provide final approval of all trust fund allocations based on advisory board and THC staff recommendations.

(j) Texas Preservation Trust Fund Advisory Board (hereinafter referred to as advisory board).

(1) In accordance with Texas Government Code §442.015, which created the Texas preservation trust fund, the advisory board shall consist of:

(A) one representative of a bank or savings and loan association;

(B) one attorney with a recognized background in historic preservation;

(C) two architects with substantial experience in historic preservation;

(D) two archeologists with substantial experience in Texas archeology;

(E) one real estate professional with experience in historic preservation;

(F) two persons with a demonstrated commitment to historic preservation; and

(G) two directors of nonprofit historic preservation organizations.

(2) Members of the advisory board shall serve a two-year term expiring on February 1 of each odd-numbered year. Advisory board members may be reappointed. Advisory board members will continue to serve until a new appointment is made or until reappointed. A member of the advisory board is not entitled to compensation for his service, but is entitled to reimbursement for reasonable expenses incurred while attending advisory board meetings subject to any limit provided by the General Appropriations Act. The advisory board shall elect a chairman for a two-year term from among its membership at its first regularly scheduled meeting. Subsequent elections for chairman shall be held at the end of the existing chairman's term. The chairman shall not serve in that capacity for more than two consecutive two-year terms. The advisory board shall meet annually in conjunction with the THC quarterly meeting in the fall of each year and at other times as determined by their chairman. Duties of the advisory board are:

(A) to make recommendations to THC through the trust fund committee on all trust fund project allocations, as per the trust fund statute;

(B) to consult with and advise the THC trust fund committee and THC staff on matters relating to more efficient utilization or enhancement of the trust fund in order to further the cause of historic preservation throughout Texas; and

(C) to provide advice and guidance in their respective area of expertise.

(k) Texas preservation trust fund staff. The executive director of the Texas Historical Commission shall organize and administer the staff for the Texas preservation trust fund.

(l) General provisions.

(1) Code of conduct--The THC Code of Conduct shall apply to members of the advisory board.

(2) Gender--As used herein, the masculine pronoun shall include the feminine.

(3) Vacancies--Any vacancy on a trust fund committee or board may be filled at any time in the same manner as the incumbent member was elected or appointed.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on July 30, 2001.

TRD-200104395

F. Lawerence Oaks

Executive Director

Texas Historical Commission

Earliest possible date of adoption: September 9, 2001

For further information, please call: (512) 463-5711