HB 5408 — AN ACT CONCERNING THE PURCHASE OF PRINT AND DIGITAL ADVERTISING BY THE STATE.

House of Representatives General Assembly File No.

450633 General Assembly February Session, 20242024Reprint Houseof BillFile No.

5408450) House ofBill Representatives,No. April 11, 2024 The Committee on Government Administration and Elections reported through REP.

BLUMENTHAL5408 ofAs theAmended 147thby Dist.,House ChairpersonAmendment ofSchedule the"A" CommitteeApproved onby the partLegislative ofCommissioner theMay House,1, that2024 theAN billACT oughtCONCERNING toTHE pass.PURCHASE OF PRINT AND DIGITAL ADVERTISING BY THE STATE.

AN ACT CONCERNING THE PURCHASE OF PRINT AND DIGITAL ADVERTISING BY THE STATE.

(NEW) (Effective July 1, 2024) (a) As used in this section, (1) "publisher of news" means an entity that (1)(A) disseminates original news content to the public, whether by print, broadcast, photographic, mechanical, electronic or any other means or medium, and (2)(B) has been producing such original news content for a period of at least twelve months.months;

(b) Except as provided in subsections (c) and (e)(2) of"state thisagency" section,means onany anddepartment, afterboard, Januarycouncil, 1,commission 2025,or eachother state agency of the executive branch agency of the state governmentgovernment, procuringbut printexcludes oreach digitalconstituent advertisingunit shallof contractthe withstate asystem commercial or nonprofit publisher of newshigher whoseeducation, principalas placedescribed of business is in thissection state10a-1 for not less than fifty per cent of the totalgeneral annualstatutes. value of such agency's contracts for such advertising.

In(b) theExcept caseas provided in subsections (c) and (e) of this section, on and after July 1, 2025, each state agency procuring print or digital advertising shall, within available appropriations, contract with a commercial or nonprofit publisher of news thatwhose isprincipal ownedplace of HB5408 / File No.

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450633 bybusiness a parent company that is locatedin outsidethis ofstate thisfor state,not theless principalthan placefifteen ofper businesscent of suchthe publishertotal shallannual bevalue deemedof tosuch beagency's thecontracts locationfor of such parentadvertising. company.

NotIn laterthe thancase Decemberof 1,a 2024,commercial or nonprofit publisher of news that is owned by a parent company that is located outside of this state, the Commissionerprincipal place of Administrativebusiness Servicesof such publisher shall establishbe guidelinesdeemed forto anybe contractsthe enteredlocation intoof undersuch thisparent section.company.

TheNot commissionerlater maythan acceptJune volunteer1, assistance2025, fromthe institutionsCommissioner of higherAdministrative educationServicesshall,withinavailable inappropriations,establish theguidelines statefor orany otherneutralthirdpartieswithrelevantcontracts expertiseentered inestablishinginto suchunder guidelines.this section.

(c)The Ifcommissioner amay stateaccept agencyvolunteer determinesassistance thatfrom aninstitutions award in accordance with subsection (b) of thishigher sectioneducation wouldin interfere with the purpose of the advertising, such state agencyor mayother requestneutral athird waiverparties ofwith suchrelevant requirementexpertise from the Commissioner of Administrative Services, in aestablishing mannersuch andguidelines. form prescribed by the commissioner.

(c) If a state agency determines that an award in accordance with subsection (b) of this section would interfere with the purpose of the advertising, the state agency may request a waiver of such requirement from the Commissioner of Administrative Services, in a manner and form prescribed by the commissioner.

(d) Not later than December 1, 2025, and annually thereafter, each such state agency shall provide a summary of all print or digital advertising purchased by such state agency during the preceding fiscal year, including the amounts spent, to the Commissioner of Administrative Services, in a form and manner prescribed by the commissioner.

(e) The provisions of this section shall not apply to state agency contracts for print or digital advertising that is primarily directed at an out-of-state audience, including, but not limited to, for out-of-state tourism, economic development or employee recruitment.

(f) Not later than February 1, 2026, and annually thereafter, the Commissioner of Administrative Services shallshall, within available appropriations, submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to government administration.

The report shall summarize any advertisingHB5408 purchased/ byFile executiveNo. branch state agencies during the preceding fiscal year, the amounts spent by such agencies on such advertising, any waiver requests received by the commissioner, whether such waivers were granted or denied and the reasons for such granting or denial.

HB5408633 /HB5408 File No.

450633 2advertising HB5408purchased Fileby No.state agencies during the preceding fiscal year, the amounts spent by such agencies on such advertising, any waiver requests received by the commissioner, whether such waivers were granted or denied and the reasons for such granting or denial.

450 This act shall take effect as follows and shall amend the following sections:

Section 1 July 1, 2024 New section GAE Joint Favorable HB5408 / File No.

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450633 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

Agency Affected Fund-Effect FY 25 $ FY 26 $ State Comptroller - Fringe GF - Cost 40,000None 40,000 Benefits1 Department of Administrative GF - Cost 100,000None 100,000 Services Various State Agencies App Fund - SeePotential BelowPotential See Below Potential Cost ConstituentMinimal UnitsMinimal of Higher Various - See Below See Below Education Potential Cost Note:

App Fund=All Appropriated Funds;Funds Municipal Impact:

Various=VariousNone MunicipalExplanation Impact:The bill results in a cost of up to $140,000 per year for the Department of Administrative Services (DAS) to administer the process and fulfill the reporting requirements established in the bill beginning in FY 26.

NoneDAS Explanationwill Thehave billto resultshire in a cost of up to $140,000one peradditional yearemployee forwith thea Departmentsalary ofand Administrativeother Servicesexpenses (DAS)cost toof administer$100,000, thealong processwith andassociated fulfillfringe thebenefits reportingcosts requirementsof established$40,000 beginning in theFY bill.26.

DASThe willbill haveresults toin hire up to one additional employee with a salarypotential andminimal othercost expensesto costvarious ofstate $100,000,agencies alongto withthe associatedextent fringethey benefitsconform coststo ofthe $40,000advertising beginningrequirements established in FYthe 25.bill.

The bill resultsrequires in15% a potential cost to various state agencies, including the constituent units of higheran education,agencies’ toannual theprint extentor theydigital conformadvertising to thebe advertisingwith requirementsin-state establishednews inpublishers. the bill.

The bill provides various exemptions and a waiver process for agencies which would eliminate any potential cost Theassociated fringewith benefitthose costsrequirements. for most state employees are budgeted centrally in accounts administered by the Comptroller.

The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

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450633 associatedHouse with“A” thosestrikes requirements.the underlying bill and results in the impact described above.

The billOut resultsYears inThe costsannualized toongoing thefiscal constituentimpact unitsidentified ofabove higherwould educationcontinue annuallyinto beginningthe infuture FYsubject 25to (withinflation. half-year costs in FY 25).

The constituentunitsconductout-of-stateanddigitaladvertisingforstudent recruitment that cannot easily be supplanted by in-state news advertising.

As a result, unless the constituent units apply for and receive waivers from DAS, it is expected that the University of Connecticut (including the UConn Health Center) and the Connecticut State Colleges and Universities would have to increase in-state news advertising in order to comply.

Costs would depend on the amount of advertising each constituent unit currently conducts, and how much of that advertising occurs in in-state news publications.

The impact to UConn, in particular, could be significant.

In FY 23, UConn spent $3.9 million on advertising, of which $57,776 was spent on in-state news publications.2 The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.