HBA-DMD H.B. 2757 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2757 By: Dukes State, Federal, & International Relations 4/5/1999 Introduced BACKGROUND AND PURPOSE As a result of the destruction of some historical properties during the course of economic development, H.B. 2757 provides safeguards for protecting historical property by requiring development contracts to contain specific disclosures and title companies to confirm the property's status prior to the conveyance of that property in order to identify whether or not it has been designated as historic. The bill also specifies how the damages recovered as a result of destruction of historical properties are to be used and provides safeguards. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 315.006, Local Government Code, by amending Subsection (k) and by adding Subsections (l) and (m), as follows: (k) Specifies the uses, in a manner determined by the Texas Historical Commission (commission), for which the damages recovered under this section are authorized to be expended. (l) Provides that any development contract between the state or a political subdivision of the state and another party must contain a prominent disclosure of any potential liability incurred under this section. (m) Requires the person or the title company issuing a policy on the property, before a person may convey any real property or a real property interest, to execute a statement that the person or company has determined whether the property has been designated as a historic structure or property. Requires the determination of whether the property has been designated as a historic structure or property to appear on the face of the instrument of conveyance. Specifies the conditions by which a person or title company complies with the requirements of this section. SECTION 2. Amends Section 442.016, Government Code, by amending Subsections (a), (b), (e), (f), (h), and (i) and adding Subsections (j), (k), and (l), as follows: (a) Defines "commission" and "historic structure or property." (b) Sets forth that a person is liable to the commission for damages if the person does not provide notice or obtain the required written permission from the commission before beginning to demolish, causing the demolition of, or otherwise adversely affecting the structural, physical, or visual integrity of the structure or property. (e) Specifies the uses for which the recovered damages may be expended, in a manner determined by the municipality in which the structure or property is located. (f) Makes a conforming change. (h) Requires the commission to notify the public, in the manner prescribed by Subsection (j), of each historic structure or property located in each county and sets forth what information the notification must contain. Deletes the requirement that the commission file a record of historical properties with the county clerk's office in each county in which a historic structure or property is located. (i) Sets forth that Subsections (a) through (g) of this section apply only to a historic structure or property on or after the date the instrument has been filed under Subsection (j), rather than Subsection (h), and indexed, or notice has been published in the Texas Register under Subsection (j). (j) Requires the commission, in order to notify the public of each historic structure or property that is located in a county, to file, in the real property records of the county in which any portion of the historic property or structure is located, a verified written instrument of each historic property or structure in the county, and to periodically publish notice of the historic properties and structures in the county in the Texas Register. (k) Requires the person or the title company issuing a policy on the property, before any person may convey real property or a real property interest, to execute a statement that the person or company has determined whether the property has been designated as a historic structure or property. Requires the determination of whether the property has been designated as a historic structure or property to appear on the face of the instrument of conveyance. Specifies the conditions under which a person or title company complies with the requirements of this section. (l) Provides that any development contract between the state or a political subdivision of the state and another party must contain a prominent disclosure of any potential liability incurred and the amount of any penalties that may be assessed under this chapter. SECTION 3. Amends Section 442.011, Government Code, to provide that a person who violates this chapter is subject to a civil penalty of not less than $100, rather than $50, nor more than $2,000, rather than $1,000, for each day of violation. SECTION 4.Effective date: January 1, 2000. Makes application of this Act prospective. SECTION 5.Emergency clause.