Research Memo: State Capitol - History, Management, and Considerations 04 RM 002 Date: January 21, 2004

From: Don C. Richards, Senior Research Analyst

ISSUE On the second point of inquiry, the Capitol Provide a history of the occupants and control of Historic Preservation Foundation was initiated as different areas within the capitol building. a tax-exempt organization under I.R.C. 501(c)(3) Evaluate what changes, if any, would be needed in in 1999. This organization does appear to be a the structure of the Capitol Historic Preservation viable conduit for private contributions, perhaps Foundation to accommodate opportunities for even raising matching funds for federal grants. matching funds for historic preservation grants. However, a strict reading of the Foundation's 501(c)(3) application to the Internal Revenue RESULTS IN BRIEF Service may limit the scope and purpose of the Dating back to the late 1800s, the capitol building Foundation. Even so, it appears the application was the primary facility for Wyoming state can be easily amended if necessary.

government, housing executive branch agencies 1 (other than institutions), the Legislature, and the BRIEF HISTORY OF THE CAPITOL BUILDING Supreme Court. As late as the 1960s, several The original capitol building was erected in 1888, executive branch agencies, in addition to the with additions completed in 1890 and 1917. present occupants - which include the offices of According to historical documents, the capitol four elected officials and the Attorney General - housed all executive branch agencies as well as were located within the capitol. Today, statutes space for the Legislature and Judiciary prior to delegate the authority to manage the state capitol 1937. In that year, the Supreme Court building to the State Building Commission, but exempt the was completed, which housed the Court, state Legislature from the rules and regulations of the library, and some executive branch offices. As State Building Commission. In addition, statutes recently as 1970, state documents indicate that the delegate authority to both the Senate President following departments could be found in the and Speaker of the House for portions of the capitol: Governor, Secretary of State, State capitol space and require sufficient space be Treasurer, State Auditor, Attorney General, provided for the Legislative Service Office and Department of Education, State Land Office, Management Council. Agriculture Department, Labor Department, Charities and Reform, Budget, Personnel, Merit In modern practice, the executive branch has System, Real Estate, Buildings and Grounds, generally been recognized as having primary Central Duplicating, Office of Economic authority over the basement and the first floor Opportunity, and the Legislature. (with exceptions) while the Legislature has generally been recognized as having primary

authority over the second and third floors (with exceptions). In addition, various statutes continue 1 This memo distinguishes between "capital" meaning to refer to the capitol as the location for certain the seat of state government () and "capitol" executive offices currently located outside of the meaning the specific building, or statehouse, presently capitol. occupied by the Legislature and four statewide elected officials.

WYOMING LEGISLATIVE SERVICE OFFICE • 213 State Capitol • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX (307) 777-5466 • EMAIL • [email protected] • WEBSITE http://legisweb.state.wy.us PAGE 2 OF 3

REVIEW OF THE AUTHORITY AND REQUIRED President and Speaker "shall have the regulation RESIDENCE OF THE CAPITOL BUILDING of such parts of the capitol and its passages as are There is no direct language in the Wyoming or may be set apart for the use of the" Senate or Constitution regarding the management or control House and their officers. (See W.S. 28-3-101(c) of the state capitol. However, authority for the and 28-4-102(c) for the Senate and House management and preservation of the capitol authority, respectively.) building might be inferred from Article 7, Section 22 stating, "The construction, care and Statutorily Reserved Space Within the Capitol. preservation of all public buildings of the state not Three entities (or individuals) currently have, at under the control of the board or officers of public minimum, a statutory reservation of space within institutions by authority of law shall be entrusted the capitol, or further, may even have a statutory to such officers or boards, and under such requirement to keep an office or space in the state regulations as shall be prescribed by law." capitol. Identified agencies include the LSO, the Without controlling language in the Constitution, Attorney General, and the Public Service the Legislature appears to have full authority to Commission. adopt the appropriate structure for capitol building First, W.S. 28-8-112 states, "Adequate space maintenance, control, and occupancy. in the state capitol building shall be provided for the conduct of activities of the legislative Statutory Authority. The Legislature granted service office, the management council and its broad statutory authority to the State Building staff." Commission (SBC), comprised of the five statewide elected officials, for the management of Second, W.S. 9-1-604 indicates, "The attorney the capitol building. Nonetheless, the Legislature general shall keep an office in the state capitol is explicitly exempted from such oversight. (The building…" Supreme Court is likewise exempted for its Third, although presently not adhered to, W.S. facilities.) 37-2-105 states that "The principal office of the commission [Public Service Commission] W.S. 9-5-101(b) provides "The state building shall be at the state capitol, and the commission shall promulgate rules under which commission shall be provided by the state the general services division has charge and with such offices, equipment and facilities as control of the capitol building with respect to its may be necessary for the performance of its occupancy, repair and maintenance and shall duties." (It appears this provision may be the collect all rents arising from the occupancy of the result of an historic statute or perhaps capitol building." Subsequently, W.S. 9-5- inadvertent confusion between the terms 106(d)(i) states that no rule promulgated under the "capitol" and "capital.") above section "shall apply to facilities occupied by the legislature or the members thereof unless Beyond these relatively direct statutory provisions the legislative management council has for office space in the capitol, three additional specifically concurred therein…" Pertinent SBC provisions indirectly refer to the State Engineer rules require the administrator of the Department having an office in the capitol, the office of state of Administration and Information's General lands and investments being located in the capitol, Services Division approve the use of the state and the Board of Chiropractic Examiners holding capitol by the public or other state governmental its annual meeting at the capitol: entities. Further, the State Historic Preservation Office and the General Services Division must W.S. 41-3-723(a) requires the clerk of court review all renovation and maintenance projects, to forward a copy of the notice of hearing according to SBC rules. for the establishment of a water conservancy district "to the state engineer, at his office in In addition to the above outline of authority over the capitol building in Cheyenne, the capitol building, the President of the Senate Wyoming…" and Speaker of the House are delegated authority for portions of the capitol. Individually, the

WYOMING LEGISLATIVE SERVICE OFFICE • 213 State Capitol • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX (307) 777-5466 • EMAIL • [email protected] • WEBSITE http://legisweb.state.wy.us PAGE 3 OF 3

W.S. 36-7-322 requires specified materials funding, although no other specific grants have relating to certain contracts for construction been immediately identified. of irrigation works to "the office of state lands and investments in the capitol at THE CAPITOL HISTORIC PRESERVATION Cheyenne." FOUNDATION The articles of incorporation for the Wyoming Finally, W.S. 33-10-104(a) requires the State Capitol Historic Preservation Foundation, Board of Chiropractic Examiners "shall hold Inc. were adopted on April 10, 1995. The IRS a regular meeting once each year at the granted tax-exempt status as a 501(c)(3) capitol of the state,…" organization under the Internal Revenue Code on October 18, 1999. As of December 31, 2003, the NATIONAL HISTORIC RECOGNITION FOR THE Foundation's total account balance amounted to STATE CAPITOL BUILDING – WHAT THIS MEANS $1,628.01. The Wyoming state capitol was added to the National Register of Historic Places on January Both the articles of incorporation and bylaws 29, 1973. Subsequently, the capitol was demonstrate the purpose of the organization is to designated as a National Historic Landmark on raise contributions to support, preserve, and May 4, 1987, thus giving it the highest national enhance the unique and special historic aspects of historic designations. (The capitol has not been the Wyoming state capitol and, in particular, the designated in Wyoming statute as a state historic legislative chambers and related facilities. This site, but this designation would reportedly offer charge clearly emphasizes the legislative facilities, little historic value since the capitol already has but may not preclude broader historic aspects of achieved the highest national recognition.) the capitol, given a liberal interpretation. By SBC rule, the State Historic Preservation On the other hand, the draft application to the Office must be consulted on renovation or repair Internal Revenue Service to obtain 501(c)(3) issues. In the event the federal government status states that the activities of the "Foundation becomes involved in a renovation project (e.g., will be carried on for the purpose of obtaining through the expenditure of federal funds), the contributions from the general public to refurbish, project would also require federal review. recreate, and maintain the furnishings in the Further, municipal building codes and the House and Senate Chambers and related meeting Americans with Disabilities Act (ADA) rooms and facilities…" (emphasis added) A requirements allow certain variances for historic strict reading of the IRS application language may buildings, generally. For example, the primary raise questions as to the purposes for which the entrance to a historic building does not necessarily Foundation may raise and expend tax-exempt need to be universally accessible if an alternate contributions. To the extent the Foundation arrangement can be configured to maintain the wishes to expand the purpose for which funds are historical significance of the building. raised or expended beyond "furnishings" or to encompass the entire capitol, an amendment to the Due to its status as a National Landmark, the IRS application, its bylaws, or both may be capitol is eligible for the "Save Americas worthy of further investigation by qualified Treasurers" federal grant program. Over the past counsel. five years, Congress has appropriated approximately $30 million annually to be disbursed in the form of grants. These grants must be matched with an equal amount of non- federal funds and are generally less than $500,000 each. For example, a $500,000 grant was provided to Nebraska in 2002 to reconstruct the south entrance to the Nebraska capitol needed as a result of water migration. Other federal programs may also be available to the state for partial

WYOMING LEGISLATIVE SERVICE OFFICE • 213 State Capitol • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX (307) 777-5466 • EMAIL • [email protected] • WEBSITE http://legisweb.state.wy.us