HB 1896

HOUSE BILL REPORT
HB 1896

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by House Committee On:
State Government & Tribal Affairs
Appropriations

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 9 members: Representatives Hunt, Chair; Appleton, Vice Chair; Chandler, Ranking Minority Member; Armstrong, Assistant Ranking Minority Member; Green, Kretz, McDermott, Miloscia and Ormsby.

Background:

Several states have legislative or capitol gift shops, including Arizona, Nevada, New Hampshire, Oregon, South Carolina, Texas, and Vermont. These gift shops allow states to address the demand for souvenirs by visitors to the state capitol. They also provide an opportunity for states to highlight merchandise specific to the state's culture and history. Many states use this to showcase unique, locally made items.

In Washington, the Secretary of State has a small store in the office reception area that sells items bearing the State Seal, including glassware, men's ties, wine bags, and office items. The proceeds from the sale of the items bearing the State Seal are deposited into the Capitol Building Construction Account for use in the historical restoration and completion of the legislative building.

Summary of Substitute Bill:

A gift center for the sale of products bearing the State Seal, Washington souvenirs, other Washington products, and other products as approved, is created in the Legislature. The Chief Clerk of the House (Chief Clerk) and the Secretary of the Senate (Secretary) or their designee will have governance over the gift center and will work in consultation with the Department of General Administration for planning, siting, and maintenance of the facility. The sale of products bearing the State Seal must have prior approval from the Secretary of State pursuant to an agreement between the Chief Clerk, the Secretary, and the Secretary of State.

Proceeds from the gift center will be deposited as follows: 25 percent to the Legislative Oral History Account; 25 percent to the Oral History, State Library, and Archives Account; and, 50 percent to the Capitol Furnishings Preservation Committee (Committee). All proceeds from the sale of items bearing the State Seal will be deposited in the Capitol Furnishings Preservation Committee Account. The gift center may also designate special sales, the proceeds from which will be deposited in an account specified at the time of designation.

Substitute Bill Compared to Original Bill:

The substitute bill removes the Committee and gives governance of the gift center to the Chief Clerk and the Secretary. The Chief Clerk and the Secretary will work in consultation with the Department of General Administration on planning, siting, and maintenance of the facility.

The substitute bill also clarifies that before items bearing the State Seal are sold by the gift center there must be prior approval from the Secretary of State pursuant to an agreement between the Secretary, the Chief Clerk, and the Secretary of State.

The proceeds of the gift shop will go to support both the Legislative Oral History Program (not yet created), and the existing Oral History, State Library, and Archives Account; the statute regarding proceeds from the sale of items bearing the State Seal is amended so that all proceeds will be deposited in the Capitol Furnishings Preservation Committee Account. The gift center will also be able to designate special sales, the proceeds from which will be deposited into an account specified at the time of designation.

Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony:

(In support) Other states have excellent gift shops that are money making ventures and promotional tools for the state. In order to accomplish this in Washington, it requires legislation. This bill is just a starting place. There will be a substitute bill that will strike the Committee and clarifies that the sale of items bearing the State Seal will be done in consultation with the Secretary of State. It will also add a provision for special sales, like the forthcoming book on the First Ladies of Washington. The Secretary of State's office should be incorporated as a partner in this venture, but should not have overall management. For this to be a successful venture, with opportunities for artists and others around the state to showcase Washington-made goods, it needs to have professional management. This will present the state in the best possible way and be an asset to the state's tourism efforts.

(In support with concerns) Article XVIII, Section 1 of the State Constitution gives control over the State Seal to the Secretary of State. Traditionally, State Seal items were sold by Talcott's Jewelers, who designed the State Seal. Since Talcott's has gone out of business, the Secretary of State's office has sold some items in its reception area and is slowly increasing the number of items for sale. The Secretary of State has requested amendments regarding the sale of items bearing the State Seal and for clarification of where proceeds will go from the sale of such items.

(Opposed) None.

Persons Testifying: (In support) Representative Hunt, prime sponsor; and Susan Parish.

(In support with concerns) Shane Hamlin, Office of the Secretary of State.

Majority Report: The second substitute bill be substituted therefor and the second substitute bill do pass and do not pass the substitute bill by Committee on State Government & Tribal Affairs. Signed by 34 members: Representatives Sommers, Chair; Dunshee, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Haler, Assistant Ranking Minority Member; Anderson, Buri, Chandler, Cody, Conway, Darneille, Dunn, Ericks, Fromhold, Grant, Haigh, Hinkle, Hunt, Hunter, Kagi, Kenney, Kessler, Kretz, Linville, McDermott, McDonald, McIntire, Morrell, Pettigrew, Priest, Schual-Berke, Seaquist, P. Sullivan and Walsh.

Summary of Recommendation of Committee On Appropriations Compared to Recommendation of Committee On State Government & Tribal Affairs:

The Legislative gift center must purchase items bearing the State Seal from the Secretary of State.

Effective Date of Second Substitute Bill: The bill takes effect 90 days after adjournment of session in which bill is passed.