TITLE 13.CULTURAL RESOURCES

Part 2. TEXAS HISTORICAL COMMISSION

Chapter 17. STATE ARCHITECTURAL PROGRAMS

The Texas Historical Commission (THC) adopts the repeal of §17.1 and §17.3, concerning the Preservation Trust Fund Grants and the Texas Preservation Trust Fund without changes, and adopts new §17.1, concerning the Texas Preservation Trust Fund, with changes to the proposed text as published in the June 23, 2006, issue of the Texas Register (31 TexReg 4993).

The repeal and new rule eliminate the duplication that occurred in the previous rules and the Texas Government Code §442.015. The new rule continues to establish requirements and procedures of the Texas Preservation Trust Fund and further clarifies grant awards, types of preservation grants, eligible property or project types while providing general clarification of the duties of the Texas Historical Commission's Executive Committee and Executive Director. The new rule will be republished with the revisions described below.

The THC received comments regarding the proposed new rule during the comment period. A summary of the comments and THC responses follows.

Comment:

THC received a comment from B.F. Hicks, Attorney at Law, expressing concerns regarding the organization of subsection (g) Texas Preservation Trust Fund Advisory Board, subsection (h) Texas Preservation Trust Fund staff, and subsection (i) general provisions for the advisory board. Mr. Hicks recommended that subsection (i) be incorporated under subsection (g) and subsequent relettering of following subsections.

Response:

THC acknowledges the comment and agrees with the re-organization of the subsections. The rule has been amended to reflect this change.

Comment:

THC received a comment from B.F. Hicks, Attorney at Law, recommending that curation management projects be added to subsection (m) Types of preservation grants.

Response:

THC acknowledges the comment and agrees. The rule has been amended to reflect this change.

Comment:

THC received a comment from B.F. Hicks, Attorney at Law, recommending that subsection (m)(4) education costs be more clearly defined.

Response:

THC acknowledges the comment. It is the THC's intent, however, to define these costs in procedures rather than in the rules. No change was made to the rule in response to this comment.

Comment:

THC received a comment from Lawrence Gill, Grants Administrator, Dodge Jones Foundation, regarding the organization of subsection (c) Types of Assistance and subsection (d) Allowable use of trust fund monies in relation to each other.

Response:

THC acknowledges the comment. The THC examined the organization of subsections (c) and (d) and determined that this is the best placement of these subsections within the framework of the rules. No change was made to the rule in response to this comment.

Comment:

THC receive a comment from Lawrence Gill, Grants Administrator, Dodge Jones Foundation regarding subsection (m)(6) emergency cost and recommended that limits on the funds be identified within the section.

Response:

THC acknowledges the comment. It is the THC's intent, however, to define these limits within procedures rather than in the rules. No change was made to the rule in response to this comment.

13 TAC §17.1, §17.3

The repeals are adopted under Texas Government Code, §442.005(q), which authorizes the Texas Historical Commission to promulgate rules to carry out the intent of this chapter and associated legislative mandates.

Texas Government Code §442.015 is affected by the adopted repeals.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 4, 2006.

TRD-200604033

F. Lawerence Oaks

Executive Director

Texas Historical Commission

Effective date: August 24, 2006

Proposal publication date: June 23, 2006

For further information, please call: (512) 936-4323


13 TAC §17.1

The new rule is adopted under Texas Government Code, §442.005(q), which authorizes the Texas Historical Commission to promulgate rules to carry out the intent of this chapter and associated legislative mandates. Texas Government Code §442.015 is affected by the adopted new rule.

§17.1.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 (Commission) to provide financial assistance to qualified applicants for the acquisition, survey, restoration, preservation, or for planning and educational activities leading to the preservation, of historic properties and associated collections in the State of Texas.

(c) Types of assistance. Commission 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 Commission 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.

(d) 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 Commission, 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.

(e) Organization. The Texas preservation trust fund shall be administered by the Commission through its Executive Committee. The trust fund advisory board, and commission staff shall provide support and input as needed.

(f) All actions of the Executive Committee are subject to ratification by the full Texas Historical Commission with the exception of emergency grants. Duties of the Executive Committee are:

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

(2) 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;

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

(g) Texas Preservation Trust Fund Advisory Board (hereinafter referred to as advisory board) as established per Texas Government Code §442.015, which created the Texas preservation trust fund. 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 meet annually in the fall of each year or at other times as determined by the commission or Executive Director. Duties of the advisory board are:

(1) to make recommendations to the Commission through the Executive Committee on all trust fund project allocations with the exception of emergency grants, as per the trust fund statute;

(2) to consult with and advise the Executive Committee and Commission 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

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

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

(5) Vacancies--Any vacancy on the advisory board may be filled at any time in the same manner as the incumbent member was appointed.

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

(i) Eligible property or projects. To be considered eligible for grant assistance, a property or project 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;

(5) be determined by the commission to qualify as an education grant per subsection (m)(4) of this section; or

(6) be determined by the commission to qualify as an eligible curation management project per subsection (m)(5) of this section; or

(7) be determined by the commission to qualify as an emergency grant project per subsection (m)(6) of this section; or

(8) be determined by the commission to qualify as a planning grant project per subsection (m)(3) of this section.

(j) Eligible Applicants: Any public or private entity that is the owner, manager, lessee, maintainer, potential purchaser of an eligible property, or any public or private entity whose purpose includes historic preservation is eligible for fund assistance. If applicant is not the owner of the eligible 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.

(k) Grant applications.

(1) Application schedules and deadlines will be set by the commission. Application forms are to be received by the commission at its offices by these deadlines.

(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.

(l) Grant awards.

(1) Grants are awarded on a competitive basis to eligible properties or projects judged by the Commission to provide the best use of limited grant funds or on an emergency basis for properties or collections deemed highly significant and/or endangered by the Commission. The Executive Director, with the approval of the Executive Committee or Commission, will have the authority to award grants on an emergency basis in accordance with subsection (m)(6) of this section.

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

(3) The commission may consider an appropriate distribution of funds across geographic area, discipline, or type of preservation grant when making awards.

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

(1) architectural or archeological development ("preservation," "restoration," "rehabilitation," and "reconstruction," as defined by the Secretary of the Interior's Standards for The Treatment of Historic Properties, latest edition or Secretary of the Interior's Standards for Preservation Planning and Standards for Archeological Documentation, 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) architectural or archeological acquisition of absolute ownership of an eligible property (that is what is defined in subsection (i) of this section) and related costs and professional fees approved by the commission; or

(3) planning costs necessary for the preparation of a historic structure reports, historic or cultural resource reports, preservation plans, maintenance studies, resource surveys, local and regional preservation plans or surveys, 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; or

(5) curation management cost necessary for a professional inventory and/or rehabilitation of state associated held-in-trust archeological collections (such as processing, cataloging and collections housing improvements). Held-in-trust collections refer to those State associated collections under the authority of the Texas Historical Commission that are placed in a curatorial facility for the care and management; or

(6) emergency costs necessary for the acquisition, evaluation, planning or repair of eligible property or projects as defined in subsection (i) of this section, to reduce or eliminate an immediate threat, resulting from a natural or man-made disaster. In consideration of the emergency nature, the commission may develop and adopt policy and procedures to implement this type of preservation grant with requirements separate from those in this rule.

(n) 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 or the Executive Director upon designation by the Commission, by written policy, may approve in-kind match for projects involving highly significant and endangered properties. In exceptional circumstances and upon recommendation by the Executive Director of the Commission, the Commission may also waive the one to one cash match requirement completely, and/or approve any combination of matching cash or in-kind contribution percentages that the Commission deems appropriate.

(o) Initial grant allocations. Grants shall be allocated by vote of the Commission at large upon the recommendation of the Executive 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 Executive Director of the commission.

(p) Final grant approval.

(1) Submission of project proposal, scope of work, or research design.

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

(B) 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.

(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) 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.

(2) Review and approval of project proposal, scope of work, or research design. Upon completion of the review, 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 90 days of the assigned start date unless otherwise approved in writing by the commission. Approved project work may not begin before the assigned project start date, except for planning work required by the project proposal.

(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 may result in forfeiture of the full grant amount.

(q) 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 or other method approved in writing by the commission.

(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, or other method approved in writing by the commission.

(r) Grant reimbursement procedures.

(1) Reimbursement of allowable project expenses. The only expenditures made before a start date that are reimbursable are for planning work required by the project proposal after the initial grant allocation notification.

(2) All payment of grant funds shall be strictly on a reimbursement basis with the exception of emergency grants in accordance with subsection (n)(5) of this section for which the Executive Committee or Commission may determine other payment methods. Reimbursement may be made after the competitive award of contract and submission of proof of all incurred allowable expenses in increments of at least $2,500 or at least 10% of the total project cost, whichever is lesser; or according to a schedule as determined by the Executive Director of the Commission; 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 deadlines announced by the commission. Proof of those incurred expenses and corresponding payments shall be submitted to the commission by the deadlines announced by the commission.

(4) Forfeiture of grant. Failure to expend the full grant amount by the deadlines as announced by the commission or to submit to the commission all required material by the deadline as announced by the commission may result in forfeiture of the remaining grant amount unless otherwise approved in writing by the commission.

(s) 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, conservation easement (as defined in Title 8, Natural Resources Code, Chapter 183), or other appropriate covenants in favor of the state in a format acceptable to the commission. 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. The terms of the deed restrictions/designations/conservation easements shall be set by the commission.

(t) 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 owner may be required to repay the State of Texas the amount of the grant allocation.

(u) Completion reports. Projects assisted with acquisition or development grants will be required to submit a project completion report with copies as determined by the commission, consisting of photo documentation and project summary prepared by the supervising project professional, to the commission no later than deadlines announced by the commission. The commission may require completion reports with appropriate documentation for planning, education, curation, or emergency grants. Final reimbursement, in the amount of 10% of the grant allocation may be retained until receipt of an acceptable completion report by the commission.

(v) Professional standards.

(1) Project personnel for development, curation, 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 except as otherwise approved by the Executive Director:

(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 of archeological collections;

(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.

(3) Project personnel for education and emergency projects shall be approved by the Executive Director.

(w) 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, 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, latest edition.

(x) 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 Texas Government Code Chapter 469, Elimination of Architectural Barriers.

(y) 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.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 4, 2006.

TRD-200604031

F. Lawerence Oaks

Executive Director

Texas Historical Commission

Effective date: August 24, 2006

Proposal publication date: June 23, 2006

For further information, please call: (512) 936-4323