1. (a) Cooperation between states and federal government in historic preservation. By passing the National Historic Preservation Act, in 1966, Congress established a formal partnership between the federal government, represented by the Department of the Interior, and each state, represented by its designated state historic preservation office. This legislation outlines three major areas of responsibility, which are "survey," the identification of the historic cultural resources; "nomination," the evaluation and documentation of appropriate resources for inclusion in the National Register of Historic Places; and "protection," the encouragement of the preservation and enhancement of appropriate resources. The executive director of the Texas Historical Commission, as the designated state historic preservation officer, acts as the state's liaison with the federal government in all matters of historic preservation.
2. (b) Cooperation extended to certified local governments. Congress amended the National Historic Preservation Act, in 1980, to provide for the participation of local governments. As amended, the Act (16 United States Code 470, et seq.) contains the legal basis for a new preservation partnership expanded to include certified local governments as well as state historic preservation offices and the Department of the Interior. The Act, §101(e)(1), directs the state historic preservation officer and the secretary of the interior to participate in this partnership, and 36 Code of Federal Regulations Part 61 lists requirements that the local governments are to meet.
3. (c) Funds for certified local governments. The Act provides that at least 10% of the state's annual historic preservation fund allocation from the Department of the Interior shall be designated for transfer to certified local government programs. Although all certified local governments shall be eligible to receive funds from this allocation, there is no requirement that funds be awarded to all local governments that are eligible.
4. (d) The need for rules. The following rules provide the procedures by which local governments may become certified local governments and by which application may be made for federal funds. The rules are also intended to assure that the performance of a certified local government is consistent with the identification, evaluation, and preservation priorities of the Texas Historical Commission's statewide, comprehensive, historic preservation planning process.
5. (e) County participation. Counties shall participate in the certified local government process through compliance with the Texas Local Government Code, Chapter 318, which empowers the commissioners court of each county to appoint a county historical commission, and specifies the duties of such a commission.

6. (f) Minimum requirements for certification of local governments.

   1. (1) Cities and towns shall enforce appropriate state and local legislation for the designation and protection of historic properties. Ordinances of these municipal governments shall provide for the following:

      1. (A) authorization for historic preservation under the Local Government Code, Chapter 211, Municipal Zoning Authority, as amended;
      2. (B) statement of purpose and evidence of substantial achievement in carrying out same;
      3. (C) designation of a city official, staff person, or other appropriate resident of the municipal entity as local preservation officer;
      4. (D) establishment by ordinance of a review commission, board, or committee for historic preservation and the granting of specified powers to it;
      5. (E) definition of the process and criteria for the designation of historic districts or individual historic properties with clear delineation of the legal boundaries of such designated resources;
      6. (F) establishment of standards and criteria for the review of alterations, demolition, or new construction in designated historic districts or to individual historic landmarks, with the adoption of the secretary of the interior's standards for historic preservation projects and/or the standards for rehabilitation;
      7. (G) provision for delaying the demolition of an individual property or property in a designated district for a period of no less than 60 days; and
      8. (H) provision for penalties for noncompliance, and right to due process.

   2. (2) Counties shall enforce appropriate state legislation for the protection of historic properties. Bylaws adopted by an appointed county historical commission shall provide for the following:

      1. (A) designation of a county official, staff person, or other appropriate resident of the county as local preservation officer;
      2. (B) statement of purpose;
      3. (C) establishment of a review board or committee for historic preservation and the granting of specified responsibilities to it;
      4. (D) definition of a process of surveying (identifying), evaluating, registering, documenting, and protecting (treatment) of individual historic properties and districts;
      5. (E) provision for developing and maintaining an inventory of surveyed (identified) individual historic properties and districts;
      6. (F) establishment of a system for the period review of recorded Texas historic landmarks, state archeological landmarks, or individual historic properties or districts listed in the National Register of Historic Places located in the county;
      7. (G) adoption of the secretary of the interior's standards and guidelines for archeology and historic preservation as the standards for all county historical commission activities.

   3. (3) The local government shall establish an adequate and qualified review commission, board, or committee for historic preservation composed of professional and lay members. The commission, board, or committee shall fulfill the following requirements.

      1. (A) The review commission, board, or committee shall have no fewer than five members and no more than 15.
      2. (B) Members of the review commission, board, or committee shall be residents of the county or municipal entity for which they serve, and shall represent the general ethnic makeup of that community.
      3. (C) All review commission, board, or committee members shall have a demonstrated interest, competence, or knowledge in historic preservation. To the extent available in the community, the local government is to appoint professional members from the disciplines of architecture, history, architectural history, planning, archeology, or other disciplines related to historic preservation such as urban planning, American studies, American civilization, cultural geography, or cultural anthropology.
      4. (D) When a professional in the fields of history, architecture, architectural history, planning, or archeology is not represented in the membership of the review commission, board, or committee, the commission, board, or committee shall seek outside expertise in the appropriate discipline when considering National Register nominations and actions that will affect historic properties which are normally evaluated by a professional in such disciplines. This expertise may be obtained through using a consultant, provided that the Texas Historical Commission has approved the consultant in advance on each occasion he or she is required. A government may be certified without the minimum number or types of disciplines noted in subparagraph (C) of this paragraph, provided it can demonstrate to the commission's satisfaction that a reasonable effort was made to fill those positions, and that such expertise was not available in the community.
      5. (E) Terms of office shall be staggered, with initial terms of one, two, and three years to prevent a simultaneous turnover of all review commission, board, or committee members. Subsequent terms shall be for a period of at least two years.
      6. (F) Meetings of the review commission, board, or committee shall be held monthly unless no applications for work have been received, or unless no commission action is required.
      7. (G) A handbook, approved by the Texas Historical Commission, shall be provided each commission, board, or committee member.
      8. (H) The review commission, board, or committee shall be represented each year at a minimum of one informational or educational meeting which is sponsored by the Texas Historical Commission, and which pertains to the current work and functions of the review commission, board, or committee or to other related historic preservation topics. The Texas Historical Commission shall make available orientation materials and training to all local commissions, boards, or committees.
      9. (I) Written minutes shall be maintained which record all actions of the review commission, board, or committee and the reasons for taking such actions. These minutes shall be the responsibility of the secretary of the commission, board, or committee and copies shall be distributed to the members of the review commission, board, or committee and to the Texas Historical Commission within 60 days of the date of a commission, board, or committee meeting.
      10. (J) The review commission, board, or committee shall monitor and report to the Texas Historical Commission any actions affecting any county courthouse, recorded Texas historic landmark, state archeological landmark, National Register property, and any locally designated landmark.

   4. (4) The local government shall implement and maintain a system for the survey and inventory of historic properties which shall be coordinated with, and be complementary to, the historic sites inventory of the Texas Historical Commission, and which shall be subject to the following provisions.

      1. (A) The program of survey and inventory instituted by the local government for properties within its jurisdiction shall be approved by the Texas Historical Commission; it shall be consistent with statewide, comprehensive, historic preservation planning and other appropriate planning processes.
      2. (B) All inventory material shall be maintained securely and shall be accessible to the public, except that the location of archeological sites shall be withheld to discourage looting.
      3. (C) The survey shall be integrated into the Texas Historical Commission's planning process, shall be used as part of the process of designating local landmarks, and shall be involved in the review of National Register nominations.
      4. (D) Inventory information shall be made current periodically to reflect changes, alterations, and demolitions.
      5. (E) A building-by-building survey and inventory shall be made for each historic district.

   5. (5) The local government shall provide for public participation in the local historic preservation program, including the process of nominating properties to the National Register of Historic Places.

      1. (A) All meetings shall be held in conformance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
      2. (B) Careful minutes shall be kept of all meetings of the review commission. The reasons for commission, board, or committee decisions are to be fully stated in the minutes, which are to be kept on file and available for review by the public.
   6. (6) The local government shall satisfactorily perform the responsibilities mandated in paragraphs (1)-(5) of this subsection, and those specifically delegated to it by the state historic preservation officer. The state historic preservation officer does not delegate to any certified local government the authority to nominate properties directly to the National Register of Historic Places.
   7. (7) The local government may assume additional responsibilities agreed to by the state historic preservation officer.
   8. (8) The state historic preservation officer, or his designee, shall have a reasonable opportunity to review all records and materials pertinent to the implementation of these regulations.

7. (g) Participation by certified local governments in the process of nominating properties to the National Register.

   1. (1) All documentation and materials necessary for the nomination of properties to the National Register of Historic Places shall be received by the National Register programs office of the Texas Historical Commission. The department shall notify the certified local government of proposed nominations if there is a reasonable certainty that the proposal will result in the implementation of the nomination process.
   2. (2) If the properties to be nominated lie within the jurisdiction of a certified local government, the National Register programs office shall transmit the nomination materials to the historic preservation review commission, board, or committee within 30 days after the department has determined that the nomination materials are complete and correct. This will be accompanied by a preliminary National Register programs office staff recommendation in regard to the form, content, and merit of the proposed nomination.
   3. (3) The historic preservation review commission, board, or committee and the chief elected official of the certified local government shall separately notify the National Register programs office, the owner of the property, and the applicant as to their opinions in regard to the proposed nomination within 60 days of the receipt of the nomination materials. In the 60-day period, the certified local government shall provide a reasonable opportunity for public comment.
   4. (4) In the event that the historic preservation review commission, board, or committee and the chief elected official agree that the proposed nomination meets the criteria for listing properties, the National Register programs office will place the proposed nomination before the state board of review at the earliest possible quarterly meeting for its consideration.
   5. (5) In the event the historic preservation review commission, board, or committee and the chief elected official disagree that the proposed nomination meets the criteria for listing on the National Register of Historic Places, the National Register programs office will place the proposed nomination before the state board of review at the earliest possible quarterly meeting.
   6. (6) In the event the historic preservation review commission, board, or committee and the chief elected official agree that the proposed nomination does not meet the criteria for listing on the National Register of Historic Places, the historic preservation review commission, board, or committee will return the nomination materials to the National Register programs office who shall take no further action unless, within 30 days of the receipt of such nomination materials by the National Register programs office, an appeal is filed with the National Register programs office. If such an appeal is filed, the National Register programs office shall place the nomination before the state board of review at the earliest possible quarterly meeting.

   7. (7) In the case of proposed nominations to the National Register of Historic Places, the certified local government shall be responsible for:

      1. (A) verification of the accuracy of the nomination, including the names of all owners of properties included in the nomination; and
      2. (B) holding public information meetings concerning the proposed nomination.

8. (h) Process for certification of local governments.

   1. (1) The chief elected official of a city or town shall request certification from the state historic preservation officer. The request for certification shall include the following:

      1. (A) a written assurance by the local chief elected official that the local government is fulfilling the standards for certification outlined in subsection (f)(1)-(5) of this section;
      2. (B) a copy of the local historic preservation ordinance;
      3. (C) a list, with appropriate location maps, of areas currently designated as historic properties under the local ordinance, along with statements about the historical significance of the properties;
      4. (D) resumes for each member of the local review commission for historic preservation including, where appropriate, data documenting the expertise of members in the professional fields related to historic preservation; and
      5. (E) a copy of the local historic preservation plan, if available, or a statement describing the local preservation program including the activities of survey, designation, and protection.

   2. (2) The chief elected official of a county shall request certification from the state historic preservation officer. The request for certification shall include the following:

      1. (A) a written assurance by the local chief elected official that the local government is fulfilling the appropriate standards for certification outlined in subsection (f)(1)-(5) of this section;
      2. (B) a copy of the county historical commission's bylaws including designation of a review board or committee with specific responsibilities as outlined in subsection (f)(1)-(5) of this section;
      3. (C) a list, with appropriate location maps, of recorded Texas historic landmarks, state archeological landmarks, and any individual properties or districts surveyed (identified) and/or listed on the National Register of Historic Places with statements about the historical significance of the property;
      4. (D) resumes or completed standard forms outlining the experience of each member of the local review board for the committee for historic preservation including, where appropriate, data documenting the expertise of members in the professional fields related to historic preservation; and
      5. (E) a copy of the local historic preservation plan, if available, or a statement of goals and objectives for the local preservation program including the activities of survey (identification), evaluation, registration, documentation, and protection (treatment).
   3. (3) The state historic preservation office shall respond to the chief elected local official within 60 days of receipt of an adequately documented written request for such certification.
   4. (4) The local government shall be certified to participate in the national historic preservation program when certified by the state historic preservation officer and the secretary of the interior, as follows. When the state historic preservation officer determines that the local government fulfills the requirements for certification, that officer will forward the decision to the United States secretary of the interior, or his designee. If the secretary does not take exception to the request within 15 working days of receipt of such notice from the state historic preservation officer, the local government shall be regarded as certified.

   5. (5) Upon approval of a request for certification, according to the approved certification process, the state historic preservation officer shall prepare a written certification agreement that lists the specific responsibilities of the local governments when certified. The following shall be contained within the written certification agreement:

      1. (A) the four minimum responsibilities required of all certified local governments as outlined in subsection (f)(1)-(5) of this section;
      2. (B) any additional responsibilities delegated to all certified local governments in the state;
      3. (C) any other delegated responsibilities.
   6. (6) The state historic preservation officer shall forward to the secretary of the interior a copy of the approved request and a copy of the certification agreement.

9. (i) Process for monitoring certified local governments.

   1. (1) The state historic preservation officer shall conduct at least once every three years, a review of certified local governments to assure that each government fulfills its responsibilities as provided for in this section. The state historic preservation officer or the certified local government may request a review on an annual or biannual basis with consent from the other party.
   2. (2) The state historic preservation officer shall review the annual review reports submitted by the local governments and other documents as necessary.
   3. (3) The state historic preservation officer shall review reports and documents pertaining to the fiscal management of historic preservation fund monies. Auditing will be carried out by state auditors.
   4. (4) The certified local government shall make all relevant records and materials available to the state historic preservation officer, including copies of all documentation of expenses.
   5. (5) The performance of the certified local government shall be reviewed by the state historic preservation officer on the basis of recognized standards for historic preservation activities. These standards shall include, but not be limited to, the secretary of the interior's Standards and Guidelines for Archeology and Historic Preservation; National Register criteria for evaluation in reviewing the local government's role in the National Register program; state survey grant requirements in assessing the local government's execution of the survey requirement of the certified local government regulations; and the secretary of the interior's Standards for Historic Preservation Projects and/or Standards for Rehabilitation in considering the city's and town's role in overseeing work to locally designated landmarks and districts.

10. (j) Process for revoking certification.

    1. (1) If the state historic preservation officer determines that a certified local government is inadequately fulfilling its responsibilities, the state historic preservation officer shall document such determination and recommend to the certified local government steps which may be taken to remove the inadequacy.
    2. (2) The certified local government shall have between 30 and 120 days, the exact number to be set at the discretion of the state historic preservation officer, in which to implement improvements and corrections acceptable to the state historic preservation officer.
    3. (3) If, after the number of days set in paragraph (2) of this subsection, the state historic preservation officer determines that sufficient improvement has not occurred, that officer shall recommend to the secretary of the interior the revocation of certification of the certified local government, citing specific reasons for the recommendation.
    4. (4) Upon the revocation of certification by the secretary of the interior, the state historic preservation officer shall begin procedures for the suspension and termination of financial assistance to that local government entity in accordance with the National Register Programs Manual.

11. (k) Eligibility for receipt of historic preservation funds.

    1. (1) Any certified local government shall be eligible to apply for, and to receive, grants from the local share of the state's historic preservation fund which is allocated annually. Any year in which the total appropriation for state grants from the historic preservation fund exceeds $65 million, one-half of the excess shall also be transferred to certified local governments according to procedures to be provided by the secretary.

       1. (A) Certified local governments receiving historic preservation fund monies shall be considered subgrantees of the State of Texas.
       2. (B) Historic preservation fund monies allocated to certified local governments may not be applied as matching shares for any other federal grant.
    2. (2) Historic preservation fund monies allocated to certified local governments are to be used only for activities that are eligible for historic preservation fund assistance and that are consistent with a statewide comprehensive historic preservation planning process.

12. (l) Federal requirements for state and local financial responsibility.

    1. (1) Local financial management systems of a certified local government shall be run in accordance with the federal Office of Management and Budget Circular A-102, Attachment G, Standards for Grantee Financial Management Systems.
    2. (2) Local financial management systems shall be auditable in accordance with the General Accounting Office's Standards for Audit of Governmental Organizations, Programs, Activities, and Functions.
    3. (3) The state acknowledges its responsibility, through financial audit, for the proper accounting of the historic preservation fund share monies for certified local governments in accordance with Office of Management and Budget Circular A-102, Attachment P, Audit Requirements.

    4. (4) Certified local governments shall adhere to all requirements of the National Park Service's National Register Programs Manual.

       1. (A) Indirect costs may be charged as part of a grant to a certified local government only if that government's subgrantee meets the requirements of the National Register Programs Manual.
       2. (B) Unless the certified local government has a current indirect cost rate approved by the cognizant federal agency, only direct costs may be claimed.
    5. (5) The state and the certified local government shall adhere to all requirements mandated by the United States Congress regarding the use of allocated federal and matching funds for this program.
    6. (6) The Texas Historical Commission shall ensure that the funds awarded to any applicant are sufficient to produce a specific impact on the certified local government historic preservation program. The funds must be sufficient to generate effects directly as a result of the grant to the local government. The requirement for producing measurable results may not be waived even if there are many otherwise eligible applicants.
    7. (7) The Texas Historical Commission shall make a reasonable effort to distribute these monies among the maximum number of eligible local jurisdictions to the extent that such distribution is consistent with 36 Code of Federal Regulations §61.7(f)(1). The state shall make a reasonable effort to ensure that there is a reasonable distribution of monies between urban and rural areas, and that no certified local government receives a disproportionment share of the allocation.

13. (m) Application procedures for grants.

    1. (1) The preapplication form.

       1. (A) Certified local governments seeking grant assistance must file a signed preapplication form with the Texas Historical Commission, from which blank forms can be obtained, in order to be eligible.
       2. (B) A preapplication form should briefly describe the need, the proposed work, probable professionals to be involved, expected costs with matching capabilities, anticipated project duration, and any deadlines and specific schedules the applicant will adhere to. If a grant is awarded, a project proposal for specific work based upon a set time schedule will be required for review and approval prior to project commencement.
       3. (C) The deadline for receipt of these completed preapplication forms at the office of the Texas Historical Commission is normally June 1 of each year.
       4. (D) As with other grants allocated through the Texas Historical Commission, these grants must be matched on a 50-50 basis. Since the funding is federal in origin, only nonfederal monies may be used as a match, with the exception of general revenue sharing and community development block grant monies.
       5. (E) Funding decisions for the allocation of certified local government monies shall be based upon consideration by the Texas Historical Commission of popular support for the community's support for the local historic preservation program, the level of historic preservation activity on the part of the local commission, including the designation of local landmarks and the survey of the community's historic resources; as well as other factors deemed appropriate by the Texas Historical Commission.
       6. (F) Funds will be allocated to certified local governments on a competitive basis based upon priorities of the state historic preservation officer and the state historic preservation plan. Such priorities may be subject to change based upon changes in federal historic preservation program priorities. Review of applications will focus on, but will not be limited to, the administration of the local historic preservation program with respect to continued survey activity, evaluation of National Register nominations, and implementation of a local historic preservation plan and landmark designation authority.
       7. (G) Announcement of the allocation and award of certified local government grants will be made by the Texas Historical Commission as early as possible in each fiscal year, but because the actual date of this award is dependent upon federal funding, the date of announcement may vary from year to year. A rigid time schedule for completing projects should, therefore, not be proposed.
       8. (H) The criteria for evaluation and the final ranking of all preapplications with their respective allocations from the commission will be available upon request.

    2. (2) The project proposal.

       1. (A) Each grant award is contingent upon submittal of an acceptable project proposal within two months of the date of announcement. Grant awards for projects failing to submit an acceptable project proposal by this deadline will automatically revert to the Texas Historical Commission.

       2. (B) The project proposal shall describe in detail what is to be accomplished with the grant award, and shall be submitted for the approval of the Texas Historical Commission prior to project implementation. This proposal is to include:

          1. (i) a description of the existing circumstances prompting the need for this grant;
          2. (ii) a description of the scope of the proposed work that can be expected to be accomplished;
          3. (iii) a listing of project personnel and their professional qualifications; and
          4. (iv) a budget summary and a detailed budget breakdown and narrative. A budget narrative is to accompany the proposed budget and explain expenditures by item. Calculations justifying all entries shall be shown, and all sources of matching funds identified. Applicants are to match the amount requested with nonfederal cash funds on a 50-50 basis.
       3. (C) Project proposals are to be submitted to the Texas Historical Commission for review and approval as soon as feasible in order to expedite the project and to avoid delays caused by backlogs at the deadline.

    3. (3) Meeting with recipients.

       1. (A) A meeting at the offices of the Texas Historical Commission will be required for all grant recipients, and will be attended by the local project supervisor and the grant recipient's fiscal officer. The purpose of the meeting is to establish priorities and a timetable for completion, formalize a budget, and draw up reimbursement procedures.
       2. (B) A time and a date for the meeting will be arranged following submittal of the project proposal.
       3. (C) No project proposals will be reviewed by the Texas Historical Commission after the review deadline. No work should begin prior to receiving, from the Texas Historical Commission, a written approval of the project proposal. No expenses incurred before such approval date are reimbursable.
    4. (4) The project contract. A contractual agreement, approved by the Office of the Texas Attorney General, specifying the approximate scope of work, a timetable for completion, and a list of budgetary concerns will be prepared by the Texas Historical Commission on the basis of the project proposal and consultations with the grant recipient. This contract shall also contain the minimum requirements for certified local governments as outlined in subsection (f)(1)-(5) of this section. The agreement shall be signed by the the parties involved, including the appropriate legal representatives.

    5. (5) Reimbursement procedures. As the grantee chooses, reimbursement may be made as a single lump sum at the completion of the project, or periodically upon receipt of verification of accrued expenditures. In either case the request for reimbursement submitted to the Texas Historical Commission is to contain:

       1. (A) a written request for reimbursement listing:

          1. (i) the number of the request (first, second, etc.);
          2. (ii) the project period covered;
          3. (iii) costs previously reported;
          4. (iv) costs presently listed; and
       2. (B) verification of the claimed expenses and proof of payment in accordance with Federal Management Circular A-87 and Office of Management and Budget Circular A-102, revised.
    6. (6) Project review. A periodic review will be made by staff of the Texas Historical Commission to monitor project progress and to assist with difficulties encountered. Additional reviews may be requested by the Texas Historical Commission or the local grantee at any time. Following a review, the contract may be amended by mutual agreement if necessary. Amendments may become necessary if the project is proceeding more rapidly or slowly than anticipated; work may be added to, or deleted from, the contract.
    7. (7) Project certification and final report. Twenty-five percent of the money amount of the grant awards will be retained by the Texas Historical Commission and paid to the grantee upon certification of the completed project and receipt of a detailed and documented final report. All material will be reviewed within 21 days of submission to the Texas Historical Commission.
    8. (8) Fiscal records. The grant recipient is responsible for maintaining all financial records (receipts, invoices, and timetables) in accordance with Federal Management Circular A-87 and Office of Management and Budget Circular A-102, revised, for a period of three years beyond the project end date.

Source Note:The provisions of this §15.6 adopted to be effective December 4, 1985, 10 TexReg 4524; amended to be effective November 19, 1986, 11 TexReg 4622; amended to be effective June 6, 1988, 13 TexReg 2551; amended to be effective March 5, 1992, 17 TexReg 1459; amended to be effective July 9, 1996, 21 TexReg 5972.