Senate committee weighs bill to steer more state advertising to local outlets; Liquor and Lottery asks for exemption

Senate Government Operations Committee members on March 27 heard debate over S.84 — legislation to direct a larger share of state advertising dollars to Vermont-based news organizations — and heard that the Department of Liquor and Lottery and some agencies may need exemptions or implementation help.

For the record: Wendy Knight, commissioner of the Department of Liquor and Lottery, told the committee that her agency operates as "enterprise funds" and urged an exemption for those funds from S.84 because the department runs like a business. "The Department of Liquor and Lottery operates 2 enterprise funds," Knight said. "They're essentially businesses. The state gives the department the authority to operate businesses within the confines of state government." She added: "We don't promote consumption. Right? All I can do is let people know where they are, how much it is, and, you know, that."

The committee chair, Senator Brian Caldwell, and other senators pressed Knight and Buildings and General Services (BGS) staff on how the bill would affect existing advertising practices and contracting. Emily Kiesicki, deputy commissioner of BGS, said BGS supports the bill’s goal: "We strongly support local media and we support the underlying goal of the bill to support local media," but warned the committee that implementing a statutory percentage would add operational steps to procurement and reporting processes. Kiesicki told the panel BGS spent about $7,500 on advertising last year and that roughly 75% of that spending was local.

Why it matters: the bill aims to shift state advertising toward Vermont news outlets at a time many local publishers say they need consistent revenue. Committee members and agency witnesses debated trade-offs between supporting local media and preserving agencies’ ability to target audiences cost-effectively — for example, through streaming or social platforms — for public‑health and consumer‑protection messaging.

Key details from testimony

- Enterprise funds: Knight described the Department of Liquor and Lottery’s two enterprise funds as retail businesses that sell spirits through the 802 Spirits retail network and return net profits to the state. She said the liquor control division returned roughly $31,000,000 in net revenue last year and that marketing decisions are driven by business metrics and target audiences.

- Marketing channels and audience targeting: Knight and senators discussed how different messages require different channels. Knight said some campaigns (for example, a "just ask for ID" responsible‑service message) reach younger audiences most effectively on Instagram or Facebook, while other efforts use local TV, Vermont Public, or streaming audio. She illustrated a Department campaign called the "cocktail rack" program, which places featured distillers on racks in 15 stores and is promoted in the department’s 802 Spirits magazine and on social media.

- BGS operational concerns: Kiesicki (BGS) said the bill would require changes to contracting processes, including a likely certification form so vendors can demonstrate they meet the bill's definition of "local media." She noted Bulletin 3.5 already gives a resident bidder preference in procurement and urged the committee to first gather better data on how agencies currently place and spend advertising before embedding a statutory percentage.

- Data gaps and exemptions: Senators and witnesses acknowledged current statewide data on advertising placements is incomplete. Some senators indicated they are open to carving out targeted exemptions (the House companion had proposed exemptions for tourism and workforce recruitment), or using a spending threshold so the requirement would apply only to agencies above a certain annual ad spend.

Committee direction and next steps

Committee members asked the Department of Liquor and Lottery and BGS to provide more detail about current advertising spend breakdowns (local vs. out-of-state/digital) and to return with additional information. The committee also discussed seeking a count of how many state enterprise funds exist. Several senators said they would continue negotiations with advocates and BGS to find operational language that balances local‑media support with agency flexibility.

Ending note

Witnesses and senators agreed the underlying goal — supporting local news organizations — has broad sympathy. The discussion focused on how to design a workable, auditable requirement that does not unduly constrain agencies’ ability to reach target audiences for public‑health, tourism, or other time‑sensitive campaigns.