Prohibits flags of designated terrorist organizations from being displayed or flown on State property.

This bill prohibits the display or flying of flags belonging to U.S. Department of State-designated terrorist organizations on any New Jersey state property, including schools, hospitals, parks, and government offices. State entities violating this rule would face immediate loss of state funding, with penalties determined by the Secretary of State and budget officials. The law explicitly allows such flags for news, historical, educational, or theatrical purposes. It defines "state property" broadly to cover all land and buildings owned or leased by the state.