Senate committee reviews bill to steer state advertising to Vermont news outlets

The Senate Committee on Government Operations on Wednesday, March 12 reviewed S.84 (drafted as SA 4), a bill that would require the state to spend at least 80% of the annual value of its print and digital advertising contracts and 80% of its radio and television advertising contracts with Vermont-based news organizations and broadcast licensees.

Jonathan Gray, legal counsel involved in drafting the proposal, told the committee the measure is intended to "stand up local organizations" and to make transparent how state advertising dollars are spent. Gray said the bill routes contracting authority through the commissioner of the Department of Buildings and General Services (BGS), and would require the commissioner to maintain a list of eligible local news and broadcast organizations for procurement.

The bill would define local broadcast organizations as entities licensed by the Federal Communications Commission to broadcast in Vermont. Its definition of local news organizations is more detailed: among other conditions it would require a news employer to engage professionals producing original public-interest reporting, employ at least one full-time employee working 30 or more hours per week who lives within 50 miles of the coverage area, and demonstrate regular publication (for digital outlets, at least one piece per week on average over the previous 12 months) or, for print, at least one publication per month over the previous 12 months. The draft also includes financial and ownership checks (disclosure of beneficial ownership or board members for nonprofits) and excludes organizations that receive more than 50% of gross receipts from certain political actors.

Gray flagged a potential constitutional question under the dormant Commerce Clause but said he did not expect a major obstacle, pointing to the market-participant exception that allows a state acting as a buyer in the marketplace to favor in-state suppliers.

Supporters and witnesses urged adoption or study. Paul Heintz, a journalist working with the University of Vermont Center for Community News and the coalition of Vermont news organizations behind the proposal, told senators the initiative is driven by in-state outlets and aims to be inclusive of for-profit, nonprofit, and broadcast organizations. Heintz said partial research by coalition members identified at least $7.5 million in state advertising spending in fiscal 2024 and estimated about 39% of that went to out-of-state vendors, though he described the accounting as incomplete.

Wendy Mays, executive director of the Vermont Association of Broadcasters, offered an example of local impact: WTSA AM/FM in Brattleboro, which she said once supported two full-time news staff and is now down to a part-time reporter because of declining advertising revenue. Mays described a 2023 incident where an out-of-state advertising agency redirected a Vermont Lottery account away from local radio stations; she said the Lottery restored purchases after the agency became aware of the local-market consequences.

Committee members raised implementation questions. Senators asked how BGSs contracting role works in practice and whether agencies that operate under delegated contracting authority already manage advertising purchases. Senators also discussed narrow exemptions that would not count against the 80% target; the draft currently exempts tourism advertising and committee members discussed adding an explicit exemption for employment ads (job postings), or exempting them while requiring they also be posted in-state. Jonathan Gray said exemptions and the reporting provision could be adjusted in committee.

Several senators asked for a fiscal analysis. One senator suggested asking the Joint Fiscal Office for a fiscal note to estimate the bills practical effect, and others noted the importance of knowing current baseline spending so the committee can assess whether 80% is reachable or symbolic. Heintz said the House has a companion bill scheduled for markup, and committee members said they would take more testimony at the next hearing and invite BGS and other agencies to explain current procurement practices.

No formal committee vote was recorded on S.84 during the March 12 session. Committee members agreed to solicit additional testimony and to consider amendments addressing exemptions (tourism, jobs), administrative implementation (the BGS list), and possible integration with the state's e-procurement tools. The draft as presented included an effective date of July 1, 2025 for provisions in the bill.

The committee accepted offers to invite the commissioner of Buildings and General Services and publishers and smaller broadcasters back for further testimony, and several senators signaled support for continuing to move the bill forward with technical edits.

Ending: Committee leaders said they will take more testimony at the next meeting and will monitor action on the companion House bill; sponsors suggested the bill could be adjusted to exempt certain ad types while requiring in-state posting for job ads and to refine the eligibility definitions and the commissioners administrative role.