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

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