[Senate Report 106-263]
[From the U.S. Government Publishing Office]





                                                       Calendar No. 493

106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-263

=======================================================================



 
                 PALACE OF THE GOVERNORS EXPANSION ACT

                                _______
                                

                 April 12, 2000.--Ordered to be printed

                                _______
                                

  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1727]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1727) to authorize funding for the 
expansion annex of the historic Palace of the Governors, a 
public history museum located, and relating to the history of 
Hispanic and Native American culture, in the Southwest and for 
other purposes, having consider the same, reports favorably 
thereon with amendments and recommends that the bill, as 
amended, do pass.
    The amendments are as follows:
    1. On page 2 line 14 strike the word ``the'' and insert in 
lieu thereof ``the contiguous''.
    2. On page 3 strike clause (iii) in its entirety and 
renumber the remaining clauses accordingly.

                         purpose of the measure

    The purpose of S. 1727 is to authorize a grant of $15 
million to the State of New Mexico for the construction of an 
annex to the historic Palace of the Governors in Santa Fe, New 
Mexico.

                          background and Need

    The Palace of Governors, anchoring the central plaza of 
Santa Fe, New Mexico, is the last remaining building of a large 
compound built in 1610 by the Spanish government. The compound 
was the military and administrative center of one of the 
northernmost outposts of Spanish colonial expansion. Now a 
National Historic Landmark, the Palace of the Governors served 
as the official residence of all who ruled New Mexico for over 
three hundred years, and is the oldest continuously occupied 
public building in the contiguous United States. It now serves 
as the Palace of the Governors History Museum, and is one of 
several units that make up the Museum of New Mexico.
    The mission of the History Museum is to increase 
understanding of the history and culture of New Mexico and the 
Southwest through interpretive exhibits and preservation of 
museum collections, as well as through research and 
publications. The Palace of the Governors' collection documents 
over four centuries of cultural heritage and change, and 
includes over 15,000 objects. Among these objects are the 
Segesser paintings, two large, early eighteenth century 
paintings on buffalo hide depicting historical events in New 
Mexico between 1706 and 1727. These objectives have been 
declared ``National Treasurers,'' along with the Palace itself, 
by the National Trust for Historic Preservation.
    The History Museum complex currently consists of three 
distinct structures and a portion of a fourth, totaling 40,730 
square feet, for exhibitions, public programs, offices, 
collections storage, and utility and shop space. The facilities 
for both storage and exhibition, however, are inadequate, 
unsuitable, and endanger the existence and preservation of the 
priceless museum collections.
    The Palace of the Governors has acquired property 
immediately behind the existing Palace. This legislation would 
authorize $15 million to be matched by the Museum on a 50-50 
cost-share basis for construction of an Expansion Annex for the 
Palace of the Governors. The entire project is estimated to 
cost $32 million.

                          legislative history

    S. 1727 was introduced by Senator Domenici on October 14, 
1999.Senator Bingaman was added as a co-sponsor on October 19, 
1999. The Subcommittee on National Parks, Historic Preservation and 
Recreation held a hearing on S. 1727 on March 8, 2000.
    At its business meeting on April 5, 2000, the Committee on 
Energy and Natural Resources ordered S. 1727 favorably 
reported, as amended.

                        committee recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on April 5, 2000, by a unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
1727, if amended as described herein.

                          committee amendments

    During its consideration of S. 1727, the Committee adopted 
an amendment clarifying that the Palace of the Governors' 
status as the oldest continuously occupied building applies 
only to the contiguous United States. The Committee also 
adopted an amendment that deleted the reference to the 
Columbus, New Mexico Railway Station Clock, which is part of 
the museum's collection of historic artifacts.

                      section-by-section analysis

    Section 1 designates the bill's short title as the ``Palace 
of the Governors Expansion Act''.
    Section 2(a) contains congressional findings about the 
Palace of the Governors, its extensive and priceless collection 
of artifacts, and the inadequate and unsuitable facilities for 
exhibiting and storing the museum's collection.
    Section (b) provides definitions, including that the term 
``Secretary'' means the Secretary of the Interior.
    Section (c) directs the Secretary, subject to the 
availability of appropriations, to award a grant to New Mexico 
to pay for the Federal share of the final design, construction, 
furnishing, and equipping of the new Palace of the Governors 
Expansion Annex.
    Section (d) establishes the requirements that New Mexico, 
acting through the state's Office of Cultural Affairs must 
satisfy in order to be awarded the grant, including: (1) 
submission to the Secretary, within 30 days of enactment, of a 
copy of the architectural blueprints for the expansion annex; 
(2) exercise of due diligence in obtaining an appropriation 
from the New Mexico State Legislature for at least $8 million; 
and (3) exercise of due diligence to expedite a memorandum of 
understanding that provides the date of completion of the 
expansion annex; and that the Office of Cultural Affairs award 
the contract for construction in accordance with the New Mexico 
Procurement Code pursuant to a competitive bidding process.
    Section (d) also provides that the Federal share of the 
costs for the expansion annex shall be fifty percent.
    Furthermore, it describes that the non-federal share may be 
in cash or in kind, including land, art and artifact 
collections, plant, equipment or services; and shall include 
any contribution received by New Mexico for the design, land 
acquisition, library renovation, Palace of the Governors 
conservation, and construction, furnishing, equipping of the 
annex, or donations of art collections to the Museum of New 
Mexico prior to the date of enactment of this section.
    Section (e) directs that the grant funds be used only for 
the final design, construction, management, inspection, 
furnishing and equipment of the new annex.
    Section (f) authorizes an appropriation to the Secretary 
totaling $15 million for fiscal year 2001 and succeeding fiscal 
years. The funds are to remain available until expended, subject to (1) 
the New Mexico State Legislature appropriating a least $8 million by 
2010; and (2) other non-federal sources are made available such that 
when combined with the New Mexico appropriation, the federal grant is 
based on a 50-50 match.

                   cost and budgetary considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 10, 2000.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1727, the Palace of 
the Governors Expansion Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah Reis.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 1727--Palace of the Governors Expansion Act

    Subject to appropriation, S. 1727 would direct the 
Secretary of the Interior to pay for one-half of the costs of 
designing, constructing, and furnishing the Palace of the 
Governors Expansion Annex, a New Mexico state museum. For this 
purpose, the bill would authorize the appropriation of $15 
million, provided that the state of New Mexico and local 
entities raise a similar amount by the year 2010.
    Assuming appropriation of the necessary amount. CBO 
estimates that implementing this legislation would cost the 
Federal Government $15 million over the next 10 fiscal years. 
The bill would not affect direct spending or receipts; 
therefore, pay-as-you-go procedures would not apply. S. 1727 
contains no private-sector or intergovernmental mandates as 
defined in the Unfunded Mandates Reform Act and would impose no 
costs On state, local, or tribal governments.
    The CBO staff contact is Deborah Reis. This estimate was 
approved by Peter H. Fontaine, Deputy Assistant Director for 
Budget Analysis.

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 1727. The bill is not a regulatory measure in 
the sense of imposing Government established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 1727.

                        executive communications

    The legislative report received by the Committee from the 
Department of the Interior setting forth Executive agency 
recommendations relating to S. 1727, is set forth below:

                        Department of the Interior,
                                   Office of the Secretary,
                                    Washington, DC, March 20, 2000.
Hon. Frank Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate, 
        Washington, DC.
    Dear Mr. Chairman: This letter presents the Department's 
views on S. 1727, a bill to authorize funding for the expansion 
annex of the historic Palace of the Governors in Santa Fe, New 
Mexico.
    The Department opposes the enactment of S. 1727.
    Our opposition does not detract from the significance of 
the Palace of the Governors as a structure and the collection 
it contains. We encourage New Mexico to continue to seek 
funding for the preservation and protection of the structure 
and collection, such as grants through the Millennium 
Initiative to Save America's Treasures, and we are happy to 
assist the staff of the State History Museum to apply for 
existing National Park Service preservation grant programs. We 
also are happy to provide any technical assistance, in 
coordination with the State Historic Preservation Office, to 
determine ways to protect these cultural resources. However, 
due to the financial implications of the bill on national parks 
and park programs, the Department must opposes S. 1727.
    We appreciate the interest of the Museum of New Mexico in 
providing the highest level of care to the objects contained in 
its collection. However, the use of limited NPS appropriations 
to fund grant programs for the design, construction, and 
operation of projects of this type at non-Park System locations 
is inappropriate. In essence, any funds used for this purpose 
would not be available to reduce the long list of necessary but 
deferred construction projects in our national parks. We are 
also concerned that authorizing the National Park Service 
construction funds for non-park purposes would undermine 
ongoing management reforms to rank funding needs in a five-year 
construction list.
    S. 1727 authorizes the Secretary of the Interior, subject 
to the availability of appropriations, to award a grant to the 
State of New Mexico to pay for a Federal share of the cost of 
the final design, construction, furnishing and equipping of the 
Palace of Governors Expansion Annex that will be located 
directly behind the historic Palace of Governors at 110 Lincoln 
Avenue, Santa Fe, New Mexico. The Federal share of the cost for 
this project is 50 percent and a total of $15 million is 
authorized to be appropriated for use as grants, with the 
condition that the New Mexico State Legislature appropriates at 
least $8 million and other non-federal sources provide enough 
funds to provide a 50 percent match. Funds are to be used for 
final design, construction, management, inspection, furnishing 
and equipment of the Annex.
    Listed on the National Register of Historic Places, the 
Palace of Governors was built in 1610 and is considered to be 
the oldest public building in continuous use in the United 
States. The adobe brick Palace was the first major structure in 
what became the city of Santa Fe. It served as the seat of 
government for nearly three centuries during Spanish, Mexican 
and American periods. Today the building and its grounds are 
part of the Museum of New Mexico and contain the State History 
Museum. The historical significance of the Palace of Governors 
is well established, and we realize that the State History 
Museum contains a valuable collection relating to New Mexico 
history and prehistory. Current exhibit and storage facilities 
are inadequate and place the collection in danger.
    The Office of Management and Budget advises that there is 
no objection to the presentation of this report from the 
standpoint of the Administration's program.
            Sincerely,
                                              Donald Barry,
               Assistant Secretary for Fish and Wildlife and Parks.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by bill S. 1727 as ordered 
reported.

                                

