A1126 1R

An Act allowing certain State agencies to sell Internet advertisements on the agencies’ websites as a pilot program and supplementing chapter 32 of Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The Legislature finds ¹and declares¹ that¹:

a.¹ State agency websites provide timely and useful information to the public about State agency programs and services.

¹b.¹ These websites are informative in nature and do not serve as a public forum or a limited public forum for the discussion or exchange of ideas.¹[ The Legislature further finds that allowing]

c. Allowing¹ State agencies to sell Internet advertisements for display on their web pages could provide new sources of revenue for the State, particularly for those State agencies that maintain high-traffic web pages.

¹d. It is the express intention of the Legislature that the space allocated for advertising be a non-public forum and that acceptance of advertising on a State agency website will not provide or create a general or designated public forum for expressive activities.

e. The State maintains an interest in preserving a degree of political neutrality on websites designed to address matters of public significance and in avoiding a misperceived promotion of certain products that can be detrimental to the public health, and therefore, finds it proper to prohibit certain subject matter, such as tobacco, alcohol, and political advocacy, from appearing on State agency websites.

f. Other restrictions may be important for or otherwise consistent with preserving a website for the purpose to which it is dedicated, including, but not limited to, the avoidance of advertising that reduces the competitiveness or is otherwise antithetical to the mission of the agency.

g.¹ Therefore, the Legislature intends to allow a limited number of State agencies to establish a pilot program to sell Internet advertisements for display on their websites, provided that the advertisements are consistent with the business mission of the agency as well as any Internet advertisement guidelines adopted by the agency.

2. ¹a.¹ Beginning ¹[90] 180¹ days following the enactment of P.L. , c. , (C. ) (pending before the Legislature as this bill), ¹[the Economic Development Authority and] a State agency, other than¹the New Jersey Lottery, on behalf of the State of New Jersey, ¹[each shall] may, subject to approval by the Department of the

Treasury,¹ establish a three-year pilot program to begin selling Internet advertisements for display on ¹[those agencies websites] the agency’s website. The department shall approve at least one agency applicant to establish a pilot program.

b. Advertisements for tobacco or alcohol products, for political advocacy, or that reduce the competitiveness or are otherwise antithetical to the mission of the agency shall be prohibited, in addition to any other advertisements for products or services, or by sponsors, that the head of such agency deems inappropriate¹. In locations where Internet advertisements are offered on a State agency web page, the web page shall also include a disclaimer, indicating that the inclusion of Internet advertisements does not imply endorsement by the State.

¹c. The Department of the Treasury shall, within 90 days following enactment of this act, P.L. , c. (pending before the Legislature as this bill), establish rules and regulations to carry out the purposes of this act, including rules providing for the application and approval of an agency to establish a pilot program. The rules established by the department pursuant to this section shall be effective immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 42 months and may, thereafter, be amended, adopted or readopted in accordance with the provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).

d.¹ Not later than three months after the conclusion of the pilot program by ¹[the] a¹ State agency, the agency shall submit a report to the Governor and the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1) that evaluates the effectiveness of the pilot program. The report shall include a detailed summary of both the expenditures made and the revenues produced under the program, as well as recommendations concerning whether to continue the program.

¹e.¹ For the purposes of ¹this act,¹ P.L. , c. (C. ) (pending before the Legislature as this bill) ¹[,] :¹

“Internet advertisement” means specific advertising methods on the ¹[internet] Internet¹, including display or banner advertisements, sponsorships, and business listings where goods or services may be purchased online.

¹“State agency” means any of the following that has “.com,” “.org,” or “.net” as its top-level domain in its website domain name: any of the principal departments in the Executive Branch of the State Government, and any division, board, bureau, office, or commission within or created by such department, and, to the extent consistent with law, any interstate agency to which New Jersey is a party and any independent State authority, commission, or agency.¹

3. Prior to selling Internet advertisements, a State agency shall ¹, with the approval of the Department of the Treasury in consultation with the Attorney General,¹ develop policy, style, and content guidelines for Internet advertisements that ensure that the subject matter of any Internet advertisement displayed by the agency directly relates to the business mission and purpose of the agency. The head of the agency, to the maximum extent practicable, shall enter into contracts for Internet advertisements with businesses based in this State, unless the head of the agency determines it to be inconsistent with the public interest.

4. Revenue generated from the sale of Internet advertisements under P.L. , c. (C. ) (pending before the Legislature as this bill) shall be deposited into the State General Fund by ¹[the] a¹ State ¹[agencies named in section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill)] agency¹ for which expenditures are authorized through the State annual appropriations act. There shall be appropriated annually such funds as are determined to be necessary to each such agency for the incremental cost of offering Internet advertisements and an additional ¹[ten] 10¹ percent of such revenue generated by that agency for the purpose of innovation in operations, programs¹,¹ or services.

For ¹[the agencies] an agency¹ not funded through the State annual appropriations act, the agency shall remit to the State Treasurer such revenue generated from the sale of Internet advertisements as shall remain after deductions by the agency for the incremental cost of offering Internet advertisements and of an additional ¹[ten] 10¹ percent for the purpose of innovation in operations, programs¹,¹ or services.

5. This act shall take effect immediately and shall expire upon the submission ¹by the last agency approved to establish a pilot program¹ of the report required pursuant to section 2 of this act.