Untitled Texas Attorney General Opinion ( 1988 )


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  •                            September 28, 1988
    Mr. T. R. Fehrenbach          Opinion No.   JM-958
    Chairman
    Texas Antiquities Committee   Re: Jurisdiction of the State
    P. 0. BOX 12276               Antiquities   Committee  over
    Austin, Texas   78711         property held by an indepen-
    dent school district (RQ-1404)
    Dear Mr. Fehrenbach:
    On behalf of the Texas Antiquities Committee you
    request advice on the authority of the committee          to
    designate school district buildings as state archeological
    landmarks. Your questions arise because of legal challenges
    to the committee's attempts to exercise its statutory
    authority over    school district    property.   See   Texas
    AnticfuitiesCommittee      Dallas C untv Communitv Collese
    District, 
    554 S.W.2d 9
    ;; (Tex. 197;).    We will review the
    committee's statutory authority and relevant case law before
    turning to your specific questions.
    The committee is created by section 191.011 of the
    Natural Resources Code, and its powers and duties are set
    out in the Antiquities Code of Texas, sections 191.001
    through 191.174 of that code. &R Nat. Res. Code § 191.001.
    It "shall . . . determine the site of and designate land-
    marks . . . as provided in Subchapter D" of chapter 191 of
    the Natural Resources Code. Nat. Res. Code 5 191.051(b)(2).
    Subchapter D provides that:
    [slites,   objects,   buildings,   artifacts,
    implements, and locations of      historical,
    archeological, scientific, or     educational
    interest . . . that are located in, on, or
    under the surface of any land belonging to
    the State of Texas or to any county, city, or
    political subdivision of the state are state
    archeological landmarks and are eligible for
    designation.
    Nat. Res. Code § 191.092(a). A structure    or building   has
    P
    historical interest if it:
    p. 4855
    ,.
    Mr. T. R. Fehrenbach - Page 2    (JM-958)
    (1) was the site of an event that has
    significance in the history of the United
    States or the State of Texas:
    (2) was significantly associated with the
    life of a famous person:
    (3) was significantly associated with an
    eventthat symbolizes an important principle
    or ideal:
    (4) represents a distinctive architec-
    tural type and has value as an example of a
    period, style, or construction technique; or
    (5) is important as part of the heritage
    of a religious organization, ethnic group, or
    local society.
    Nat. Res. Code S 191.092(b).
    Before the committee may designate a structure or
    building as a state archeological landmark, it must be
    listed on the National Register of Historic Places.    Nat.
    Res. Code 5 191.092(c); see 16 U.S.C. 5 470(a).         The
    committee is required to adopt rules establishing criteria
    for such designations and must consider "any and all fiscal
    impact on local political subdivisions" before it may
    designate as a state archeological landmark a building or
    structure owned by a political subdivision. Nat. Res. Code
    f 191.092(d), (e).
    Landmarks designated under section 191.092 of the code
    "are the sole property of the State of Texas and may not be
    removed, altered, damaged, [or] destroyed . . . without a
    contract with or permit from the committee." &    s 191.093.
    This provision has been the focus of conflicts between the
    committee's role in preserving the historical value of state
    archeological landmarks owned by school districts, see
    Attorney General Opinion JM-104 (1983), and the school
    district's interest in using, altering, or replacing its
    buildings to carry out its educational purposes.. &8   Texas
    ittee v. Dallas County Communltv Collea
    District, sunrq   G    Hoard of R cents         lker Count:
    Historical Com~zssron   608 S.W.2de 252 (zex.W:iv. APP. -
    Houston [14th Dist.1'1980, no writ) (building located on
    land administered by Board of Regents of the Texas State
    University System).
    --.
    p. 4856
    Mr. T. R. Fehrenbach - Page 3    (JM-958)
    Texas Antiauitie
    Collece District is t:e leadinTc&e   on t:e authority 0: the
    Antiouities Committee and some of vour o-uestions are
    specifically based on it. In the palias Co&y      case, the
    Texas Supreme Court set aside an order of the Antiquities
    Committee denying the Dallas County Community        College
    Distr~icta permit to demolish three buildings. The court
    was divided on both the reasoning and result of this case.
    An opinion of~four judges Nled in favor of the community
    college district on the ground that a provision of the
    Antiquities Code was both unconstitutional and unconstitu-
    tionally applied, and that the permit denial was not
    supported by substantial evidence.      The chief    justice
    concurred on the basis of the substantial evidence rule and
    declined to reach any constitutional question. Four judges
    dissented.
    The prevailing opinion of four judges determined that
    former section 6 of article 6145-9, V.T.C.S., the prede-
    cessor to section 191.092(a) of the Natural Resources Code,
    was unconstitutionally vague and lacked sufficient standards
    governing the delegation of legislative authority.       The
    predecessor statute declared buildings and locations of
    historical, archeological,    scientific,        educational
    interest located on lands of political sub%visions to be
    State Archeological Landmarks. The Antiquities Committee
    contended only that the    Dallas buildings were "of his-
    torical interest." Neither the statute nor any rule gave
    this description more specificity or predictability, and the
    law did not include the explicit standards necessary to
    prevent arbitrary and discriminatory enforcement.        554
    S.W.Zd 924, at 928.
    The same opinion also found the Texas Antiquities Act,
    formerly article 6145-9, V.T.C.S., unconstitutional      as
    applied to the community college buildings because no sub-
    stantial evidence supported the action of the Antiquities
    Committee. 
    554 S.W.2d 924
    , at 928. The evidence was such
    that reasonable minds could not have reached the conclusion
    that the committee must have reached.    Restoration of the
    buildings would require the diversion of public funds held
    in trust to benefit people in the school district.       In
    addition, the buildings could not be restored except by
    spending an unreasonable amount of money, and even costly
    rebuilding would not make them usable for educational
    purposes. 
    554 S.W.2d 9
    24, at 929.
    In answer to the argument of the Antiquities Committee
    that a political subdivision has no contract or property
    rights protectable against the committee#s powers, the
    p. 4857
    ,,
    Mr. T. R. Fehrenbach - Page 4    (JM-958)
    opinion pointed out that a state agency could not divest
    property and contract rights in violation of specific
    constitutional provisions. Snr:&ove v. Citv of Dalla      40
    S.W.Zd 20 (Tex. 1931); &ilam Cq&ntv v. BatemaD, 54 Tex.' 163
    (1880).
    We turn to your seven questions.
    You first ask whether the committee's designation of a
    public school building as a state archeological landmark
    (SAL) would divert dedicated educational funds or property
    to non-educational purposes in violation of article VII,
    sections 3 and 6, of the Texas Constitution.
    you ask as your second question whether the committee's
    denial of a school district's request for a permit to
    demolish a designated building would divert educational
    funds or property to non-educational purposes in violation
    of article VII, sections 3 and 6, of the Texas Constitution.
    Article VII, section 3, of the constitution requires
    that certain tax revenues shall be used to support the
    llpublicfree schools." See Attorney General Opinion H-961
    (1977). Article VII, section 6, provides that lands granted
    to the counties for educational purposes are the property of
    the counties, with title thereto vested in the counties.
    The lands and proceeds generated by the sale thereof are to
    be held by the counties "as a trust for the benefit of
    public schools therein."     See Attorney General Opinion
    JM-729 (1987).
    The prevailing opinion in Texas Antiouities Committee
    V. Dallas Countv CommuDitv Collese District, in saying that
    constitutional prohibitions would restrain one state agency
    from divesting vested property and contract rights of
    another agency of the state, cited and discussed Love v.
    Citv of u,      a,     and Bilam Countv v. Bateman, szuEmr
    cases relying. on article VII, sections 3 and 6, respec-
    tively. In Wilam Countv v. BatemaD, the court stated that
    the state may not arbitrarily take school land from the
    county and give it to private parties.     Milam Countv, 
    54 Tex. 163
    , at 166.   In Love v. Citv of Dallas, the Supreme
    Court found violative of article VII, section 3, legislation
    which required a school district to use its funds to educate
    persons who. did not reside in the district.     The school
    funds and properties were held in trust by the city, school
    district, county, or other statutory agency to be used for
    the benefit of the school children of the community and the
    legislature could not devote them to any other purpose.
    &yg, 40 S.W.Zd 20, at 26. Seem also Citv of El Paso v. El
    p. 4858
    Mr.   T. R. Fehrenbach - Page 5    (JM-958)
    P
    tv Colleae District 
    729 S.W.2d 296
    (Tex. 1986)
    (providing that article VIII,' section l-g(b), of Texas
    Constitution creates exception from article VII, section 3
    prohibition against school tax      funds being used    for
    non-educational purposes).
    We turn to your first question. The designation of a
    school building as an SAL serves to retain the status guo
    and to subject the building to the committee's jurisdiction
    and to the permit requirement in section 191.093 of the
    Natural Resources Code. a      Hoard of Reaents v. Walker
    Countv Hiswcal     oassion    
    608 S.W.2d 252
    (Tex. Civ. App.
    - Houston 114th D:st.] 1986, no writ): Attorney General
    Opinion MW-378 (1981). Thus, it is certainly possible that
    the designation of a building would not change the dis-
    trict's use of dedicated educational funds or property.   We
    cannot, however, rule out the possibility that on the facts
    of some cases the SAL designation will have the effect of
    making such a diversion, for example, by requiring the
    school to maintain a building that can no longer be used for
    educational purposes.
    The answer to your second question will depend on
    the facts of the particular situation, and it cannot be
    answered in an    Attorney  General Opinion.   The court in
    Texas
    Colleae District;  indicated that a constitutional question
    would not have arisen if funds other than public school
    money had been available. 
    554 S.W.2d 9
    24, at 928. Moreover,
    on the facts of that case, the buildings could not have been
    made usable for educational purposes.        Different facts
    presumably could yield a different conclusion.
    your third question is as follows:
    Is the Committee's reading of the pBllas
    County case correct in that where funds not
    subject to the "public trust01are available,
    the SAL designation and ownership of the
    building's intrinsic    value may   not   be
    disturbed absent a showing of. unsuitability
    for educational purposes?
    The Antiquities Committee had not designated any of the
    three buildings at issue in the Dallas County case as state
    archeological landmarks. 554 S.W.Zd 924, at 926.      Before
    the Supreme Court issued its opinions in that case, this
    office read the statute      itself to designate     certain
    publicly-owned properties as state archeological landmarks.
    See Attorney General Opinions H-620 (1975); H-250 (1974).
    p. 4859
    Mr. T. R. Fehrenbach - Page 6     (JM-958)
    Since the mlas     County case concerned the denial of a
    demolition permit, we will answer your question in terms of
    the committee's denying a permit to demolish a building.
    We do not agree with your characterization of the
    supreme court's decision. Five judges agreed that "this
    particular determination of the Antiquities Committee is not
    supported by substantial evidence." 554 S.W.Zd 924, at 931
    (concurring opinion). This was the basis of the majority
    decision. The committee acted arbitrarily and without a
    sound basis with respect to the Dallas buildings, as shown
    by the reasons set out in the first opinion.        ;EBt In
    addition to evidence on the issues you mention, the court
    cited evidence that the buildings could be restored only by
    complete reconstruction from the foundation up at a cost
    greater than new construction and that the outside walls
    might collapse if reconstruction were undertaken.    Similar
    evidence, as well as facts not before the court in the
    Dalla C UntY        could be relevant to other exercises of
    the c&m~ttee~?s$mit      power over SAL-designated school
    district buildings.   As this office stated in Attorney
    General Opinion H-620 (1975), a site may be "of such slight
    historic interest and of such little utility" that denial of
    a permit would be an unreasonable and arbitrary exercise of
    the committee's power. Whether other actions with respect
    to school buildings are supported by substantial evidence
    must be determined on a case-by-case basis by an adjudicator
    with power to make fact-findings, and cannot be determined
    in an attorney general opinion.
    Your fourth gues~tionis as follows:
    If the answer to one, two and/or three is
    no, then to what extent, if any, may the
    Committee constitutionally and statutorily
    subject public school properties to      its
    jurisdiction?
    To the extent that this question can be answered in the
    abstract, it has been answered in the discussion preceding
    your questions and the discussion of your first three
    questions.
    your fifth question is as follows:
    If a public school district allows a SAL
    designation of one of its properties, has the
    school district waived its right to assert
    the diversion principle in future proceedings
    (A,    demolition permit proceedings)?
    p. 4860
    Mr. T. R. Fehrenbach - Page 7    (JM-958)
    The Antiquities Committee is subject to the Adminis-
    trative Procedure and Texas Register Act, article 6252-13a,
    V.T.C.S., and    the   Natural   Resources   Code,   section
    191.021(a). A %ontested    case" under that Act includes a
    proceeding in which an agency decides whether or not to
    issue-~apermit. m     V.T.C.S. 6252-13a, s 3(2), (3).   Your
    request letter in fact states that the committee deals with
    requests for demolition of SALs as contested cases under the
    Administrative Procedure and Texas Register Act. See also
    Attorney General Opinion MW-378 (1981) (committee's decision
    in permit application cases will be tested under the
    substantial evidence rule). The Administrative Procedure
    and Texas Register Act gives parties to a contested case
    notice and an opportunity for hearing as well are a right to
    judicial review after exhaustion of administrative remedies.
    V.T.C.S. art. 6252-13a, 55 13, 19.
    You next ask whether the committee's denial of a
    demolition permit to a public school district constitutes an
    unconstitutional taking of property without compensation.
    Article I, section    17,    of   the   Texas   Constitution
    provides in part:
    No person's property shall be taken, damaged
    or destroyed for     or applied to    public
    use without   adequate   compensation  being
    made . . . .
    In 2                                            Au t'n, 582
    ;.:.:d)2:9 (Tex. Civ? App. - Tylk '19795) writ ref'd,
    . . - , a case involving zoning of a privately-owned hotel
    as a historic landmark, the court held that the city imposed
    a servitude on property when it restricted the owners from
    reconstructing, altering, removing, or demolishing       the
    building without a permit. Since the city made no provision
    for any compensation to the owners, the court held that
    there had been a "damaging" of the property for public use
    without adequate compensation in violation of article I,
    section 17, of the constitution. ;EBLat 238. Thus, designa-
    tion of private property as a state archeological landmark
    or denial of a demolition permit for private property may
    invoke the requirement for adequate compensation in article
    I, section 17.
    Article I, section 17, has generally been         read,
    however, as applying to~the taking, damaging, or destruction
    of private property.   See. e.a,, State v. Steck Co      
    236 S.W.2d 866
    , 869 (Tex. Civ. App. - Austin 1951, writ r;f*d).
    Public property may be taken for another public use if there
    p. 4861
    ,
    Mr. T.~R. Fehrenbach - Page 8    (JM-958)
    is express or implied legislative authority to do so, if the
    additional public use will not materially interfere with the
    existing use, or if the subsequent taking is for a public
    purpose of greater importance which cannot be accomplished
    in any other practical way.        ustin Indeoendent School
    pistrict v. Sierra Cl&    495 S.W.td 878 (Tex. 1973); Sn llen
    224 S.W.Zd 305 (Tex. Civ. Ap;. -
    writ ref'd n.r.e.).      The committee has
    statutory auth&ity to designate school buildings as SALs
    and to grant or deny demolition permits to the school
    district. If it exercises these powers in compliance with
    all applicable.provisions of law, it will not damage or take
    property without compensation in violation of article I,
    section 17, of the Texas Constitution. Although it has been
    argued as a policy matter that governmental bodies should
    receive compensation when their property is taken, this view
    has not been adopted *in Texas.     &R J. M. Payne, Inter-
    o vernmental Condemn ion as a Problem in Pub1ic Finance, 61
    Tzx. Law Rev. 949 (1%3).
    Your last question is as follows:
    There being    no   regulatory   standards
    concerning the approval or denial of w
    are the penal provisions. of the Code uncon'
    stitutional on their face since the legisla-
    ture has delegated discretionary authority in
    this area without statutory standards?
    Section 191.171    of   the Natural   Resources   Code
    establishes a criminal penalty for violations of        the
    provisions of chapter 191 of the code. It states in part:
    (a) A person     violating any    of  the
    provisions of this chapter is guilty of a
    misdemeanor, and on conviction shall      be
    punished by a fine of not less than $50 and
    not more than $1,000, by confinement in jail
    for not more than 30 days, or by both.
    Nat. Res. Code § 191.171(a).
    The Natural Resources Code provides that landmarks
    established under section 191.091 of the code may not be
    removed, altered, damaged, destroyed, salvaged, or excavated
    without a contract with or permit from the committee. Nat.
    Res. Code 8 191..~093.See also Nat. Res. Code 5 191.095.
    The committee "shall . . . consider the requests for
    and issue the permits provided for" in section 191.054 of
    p. 4862
    Mr. T. R. Fehrenbach - Page 9     (JM-958)
    the Natural Resources Code. Nat. Res. Code 5 191.051(b)(4).
    Section 191.054 provides in part:
    (a) The committee may issue a permit to
    other state agencies     or political    sub-
    f:;A;ions or to qualified -private institu-
    companies, or individuals, for the
    surve; and discovery, excavation, demoli-
    tion, or restoration of or the conduct of
    scientific or educational studies at, in, or
    on landmarks, or     for the discovery     of
    eligible landmarks on public land fi it is
    (b) Restoration shall be defined as any
    rehabilitation of a landmark excepting normal
    maintenance or    alterations to    nonpublic
    interior spaces. (Emphasis added.)
    Nat. Res. Code 5 191.054.
    Violations of administrative rules and orders may be
    punishable by a legislatively-established penalty.   Dnited
    States v. Gordon, 
    580 F.2d 827
    (5th Cir. 1978); Harrincton
    v. Rgilroad Co~&jssion 375 S.W.Zd 892 (Tex. 1964); Tuttle
    V. Wood 
    35 S.W.2d 106i
    (Tex. Civ. App. - San Antonio 1931,
    writ rei*d). Section 191.171 of the Natural Resources Code
    establishes such a penalty.
    An invalid administrative order may not, however, be
    enforced by a criminal penalty. Your last question thus
    raises the issue of whether section 191.054 is invalid
    because it lacks     regulatory standards concerning  the
    approval or denial of permits.
    When the legislature delegates to an agency         the
    authority to adopt rules and orders, it must prescribe
    adequate standards to guide the discretion it confers.
    Antiouit;ies Couee      v. Dal1 8 Countv Comm nitv
    -District,        i4ul2.a:
    Ex                  561 S.W.2dU 503
    (Tex. Crim. App. 1978); Tex. Const. art. II: .q1; art. III,
    s 1. The Antiquities Committee has been delegated legisla-
    tive authority to grant permits, subject to the standard
    that, in the opinion of the committee, the permit is in "the
    best interest of the State of Texas."       Nat. Res. Code
    s 191.054. We must therefore determine whether the quoted
    language provides a sufficient legislative standard to
    control the committee's exercise of discretion and to guard
    p. 4863
    Mr. T. R. Fehrenbach - Page 10   (JM-958)
    against   arbitrary   and   unfair     decisions   on   permit
    applications.
    The standard, "in the best interest of the State of
    Texas," was included in the predecessor of section 191.054
    when the Antiquities Code was adopted in 1969. Acts 1969,
    61st Lag., 26 C.S., ch. 2, 5 10, at 101. As adopted, the
    permit provision read in part as follows:
    The  Antiquities    Committee    shall
    authorized to issue permits to other stat:
    agencies or institutions and to qualified
    private institutions, companies, or indivi-
    duals for the takina. salvaainc. excavation,
    restorina. or the conductinc of scientific or
    educational studies at, in, or on State Arche-
    ological Landmarks as in the opinion of the
    Antiquities Committee would be &) the b t
    kiterest of  the  State  of  Texas .   (Rmpha%
    added.)
    XL   5 10.
    This provision did not originally appear to contemplate
    the alteration or demolition of a public building which had
    been designated as a State Archeological Landmark. It was
    more relevant to activities such as salvaging or restoration
    that were consistent with the purpose of historical pre-
    servation set out in the code:
    It is the public policy and in the public
    interest of the State of Texas to locate,
    protect, and preserve all sites, objects,
    buildings, pre-twentieth century shipwrecks,
    and locations of historical, archeological,
    educational, or scientific interest . . . .
    Nat. Res. Code 5 191.002. Thus, in the context of the
    original Antiquities Code, the cited standard could be read
    together with the purpose clause to require the committee's
    permit decisions to serve the state's best interest relative
    to historical preservation.    See. e.a     S ate  D D
    z;zt;;,"',          
    409 So. 2d 53
    , 57 $a.    :pp. 19:2:* (::
    interest of the public" refers. to
    .   best
    interest of'taxpayers of state): -cation     of Pribil
    N.W.2d 356, 358 (Neb. 1966) ("best interest" in &at:::
    relating to land transfers between two school districts
    means best educative interest).
    p. 4864
    Mr. T. R. Fehrenbach - Page 11   (JM-958)
    Moreover, the adoption of the Antiquities Code was
    precipitated by the state's efforts to reclaim 16th century
    artifacts removed by a salvage company from a Spanish
    galleon which sank off the shore of Texas. Comment, !f&
    exas Ant     ties Code.. An
    *%&text,            24 SW. L.9
    Criteria for D``&D&&D   I 11 St. Mary's
    76   (1979). -See       Platoro. Ltd. v. Unidentified
    of a Vessel             Supp. 351 (S.D. Tex. 1970),~
    m.    371 F. Supp.               Tex. 1973), rev d on other
    m,        
    508 F.2d 1113
    (5th Cir. 1975) (PlatoLo I)       The
    emergency clause of the bill adopting the code stated in
    pa*:
    The fact that irreparable damage and harm is
    rapidly being done to the archeological and
    historical heritage of the State of Texas and
    its citizens,    and that    historical   and
    archeological sites, and treasures on public
    lands are without adequate legal protection
    and supervision and are being destroyed and
    damaged without lawful authority, create an
    emergency . . . .
    Acts 1969, 61st Leg. 2d C.S., ch. 2, 5 23, at 103.
    Thus, the nbest interest" standard was adopted by a
    legislature anxious to stop private interests from damaging
    the state's archeological and historical resources and
    imposed a duty on the committee to make permit decisions
    that would serve the state's interests in such resources.
    These circumstances also support the conclusion that the
    committees should make permit decisions that would serve the
    state's interests in such resources.
    The "best interest" language has not changed, while
    other provisions of the Antiquities Code have been amended
    to acknowledge that other important public interests exist
    in the governmental functions carried out by political
    subdivisions. .The committee must now consider "any and all
    fiscal impact" on a local political subdivision before
    designating a building or structure which it owns as a state
    archeological landmark. Nat. Res. Code 5 191.092(e).     See
    m    Nat. Res. Code 5 191.021(b) (procedure for considering
    educational purpose of higher education buildings in SAL
    designation). Moreover, now that section 191.054 expressly
    authorizes the committee to issue a demolition permit for a
    building previously designated as a state archeological
    landmark, the committee presumably has a duty to consider
    the applicantts reasons why such a building should be
    p. 4865
    Mr. T. R. Fehrenbach - Page 12    (JM-958)
    -,
    demolished and not preserved. The "best interest" standard,
    as originally understood, provides the committee little
    guidance when it has to reconcile the state's interest in
    historical preservation with a political      subdivision's
    competing interest in controlling the use of its real
    property to    carry out    its own   legislatively-imposed
    responsibilities.
    In Taxas Antwties     Coattee   v. Dallas Countv Com-
    mnltv Colleae District     the prevailing opinion of the
    supreme court included the following discussion of standards
    that should accompany the legislature's delegations of
    powers to state agencies:
    Depending upon the nature of the power, the
    agency, and the subject matter,       varying
    degrees of specific standards have       been
    required in testing the reasonable breadth of
    statutes. 1 Sutherland, Statutory Construc-
    tion, 5 4.05 (4th ed. 1975); &R&n   v. State
    Board f Insurance, 
    160 Tex. 506
    , 334 S.W.Zd
    278 $60).    Sound reasons support the rule
    that some reasonable standard is essential to
    the    constitutionality     of     statutory
    delegations of powers to state boards and
    commissions.
    [Quotation from EIgvned v. Citv of
    Roc;rf,      
    408 U.S. 104
    , 108-09    (1972)I
    deleted.]
    We adhere to the settled principle that
    statutory delegations of power may not be
    accomplished by language so broad and vague
    that persons *of common intelligence must
    necessarily guess at its meaning and differ
    as to its application.'
    554 S.W.Zd at 927-28.     The same opinion of the court
    considered the argument that administrative standards in the
    form of published rules could be substituted for statutory
    standards. 554 S.W.Zd at 928 [discussing Davis, Administra-
    tive Law Treatise, 5 2.16 (1st ed. 1970)].      The opinion
    stated that in the present case no standard or criteria by
    statute or rule provided safeguards for the         affected
    parties.
    As the Antiquities Code has been amended to deal with
    the legal questions that arose in the Dallas County case,
    the legislative intent underlying the code has changed to
    P. 4866
    Mr.   T. R. Fehrenbach   -   Page 13   (JM-958)
    acknowledge that public interests other than historical
    preservation may be relevant in particular permit applica-
    tion cases.   The "best interest" standard is stated in
    language broad enough to incorporate the modifications in
    the legislative intent brought about by amendments to the
    Antiquities Code. m    -tina        v. Texas State Board   f
    Medical EXB '   S 
    310 S.W.2d 557
    (Tex. 1958) (amendment a:d
    old law must be C&&Ned    as harmonious whole). Relying on
    the argument raised in the Uas      Countv case, we be;::;:
    the committee may adopt rules which amplify the
    interest" standard to give weight to the public interest of
    political subdivisions in controlling their resources as
    necessary to perform their constitutionally and legisla-
    tively imposed duties. The “best   interest of the State of
    Texas" in a particular case could reasonably be an interest
    arrived at by weighing the public interest in preserving
    archeological resources against other important       public
    interests seNed   by the governmental entities which have
    custody of archeological resources.
    Accordingly, we do not believe that section 191.054
    must fall for lack      of regulatory standards or      that
    prosecutions under section 191.174 for    violation of the
    permit requirements are impermissible. Whether any permit
    denial is a valid agency action and whether any individual
    is guilty of a violation under section 191.174 must be
    determined on a case-by-case basis in an appropriate forum.
    SUMMARY
    Designation by the State Antiquities Com-
    mittee of a school building as a state archeo-
    logical landmark    could   divert   dedicated
    education funds or property to non-educational
    purposes in violation of article VII, sections
    3 and 6, of the Texas Constitution, depending
    on the facts of the particular case.   Whether
    the committee's denial of a school district's
    request for a permit to demolish a designated
    building would cause such a diversion of
    educational resources would have to be decided
    on a case-by-case basis, considering the facts
    of each particular situation, and subject to
    review by the courts for substantial evidence
    to support the committee8s decision.       The
    committee's decisions in permit application
    cases are contested cases under the Adminis-
    tration Procedure and Texas Register Act and
    the applicants for permits have a right under
    p. 4867
    Mr. T. R. Fehrenbach - Page 14     (JM-958)
    that statute for judicial        review   of   the
    committee's decision.
    The committee's denial of a demolition
    permit to a school district does not consti-
    tute an unconstitutional taking of property
    without compensation in violation of article
    I, section 17, of the Texas Constitution.
    Section 191.054 of the Natural Resources
    Code, which authorizes the committee to issue
    a demolition permit for state archeological
    landmarks if "it is the opinion of the com-
    mittee #at the permit is in the best interest
    of the State of Texas," is not invalid for
    lack of standards to guide the committee's
    exercise of delegated legislative power.   The
    "best interest" standard may be made more
    specific by reading it in reference to other
    provisions of the Antiquities Code       which
    evidence the legislature's intent for exercise
    of the committee's permit power.
    JIM     MATTOX
    Attorney General of Texas
    MARYRELLER
    First Assistant Attorney General
    Lou MCCREARY
    Executive Assistant Attorney General
    JUDGE ZOLLIE STEARLRY
    Special Assistant Attorney General
    RICK GILPIN
    Chairman, Opinion Committee
    Prepared by Susan L. Garrison
    Assistant Attorney General
    p. 4868