This bill establishes a prohibition against displaying or flying flags of organizations designated as terrorist by the United States Department of State on State property in New Jersey. It mandates that any State entity that allows such a flag to be displayed will face penalties, specifically the immediate loss of State or other funding, with the amount determined by the Secretary of State and the Director of the Division of Budget and Accounting. The penalties collected will be directed to the Department of the Treasury and deposited into the General Fund for reallocation.

The bill defines "State property" to include land and improvements owned or leased by the State, encompassing various facilities such as State offices, hospitals, parks, and educational institutions. However, it clarifies that the prohibition does not extend to the display of such flags for purposes related to news, theater, history, or education. The Secretary of State is tasked with adopting necessary rules and regulations to implement this legislation.