S 3744 — Establishes advertising set-asides for eligible local news organizations.*

S3744 1R [First Reprint] SENATE, No.

Senators Wimberly, McKeon, Diegnan, Greenstein, JohnsonJohnson, Mukherji, Turner and MukherjiTimberlake         SYNOPSIS      Establishes advertisementadvertising set-asides for eligible local news organizations.

  CURRENT VERSION OF TEXT      As introduced.reported by the Senate State Government, Wagering, Tourism & Historic Preservation Committee on June 11, 2026, with amendments.

   An Act establishing advertisement1[advertisement] advertising1 set-asides for eligible local news organizations, amending P.L.2018, c.111, and supplementing Title 52 of the Revised Statutes.

            2.

          a.  “Advertising or marketing agency” means any agency that creates, plans, and manages advertising campaigns or marketing strategies, or both, for clients.

          b.  “Eligible1“Advertising” localmeans newsthe organization”discretionary meansuse anof entitymedia that:to promote products, programs, or services, regardless of the medium employed.

          (1) c.1  engages“Eligible professionalslocal ornews studentsorganization” tomeans create,an edit,entity produce,that: and distribute original content concerning matters of public interest through reporting activities including, but not limited to, conducting interviews, observing current events, or analyzing documents or other information;

          (2) (1)  hasengages atprofessionals leastor onestudents person,to whichcreate, canedit, includeproduce, aand soledistribute proprietor,original workingcontent atconcerning leastmatters 30 hours a week to provide coverage of thepublic localinterest communitythrough andreporting livingactivities withinincluding, thebut State,not wholimited gathers,to, prepares,conducting collects,interviews, photographs,observing writes,current edits,events, reports, or publishesanalyzing originaldocuments local or Stateother newsinformation; for dissemination to the local or State community;

          (3) (2)  inhas theat caseleast ofone aperson, localwhich newspapercan orinclude publication published solely as a printsole edition,proprietor, hasworking published at least onehours printa publicationweek perto monthprovide overcoverage of the previouslocal 12community months and eitherliving (1)within holdsthe aState, validwho Unitedgathers, Statesprepares, Postalcollects, Servicephotographs, periodicalwrites, permitedits, reports, or (2)publishes hasoriginal atlocal leastor 25State percentnews offor itsdissemination content dedicated to the local news;or State community;

          (4) (3)  in the case of a local,local digital-only newspaper or onlinepublication news publication, has published ansolely averageas ofa threeprint originaledition, newshas piecespublished aboutat theleast localone communityprint orpublication the State per weekmonth over the previous 12 months and,and withineither 1[(1)]1 holds a 12-monthvalid period,United States Postal Service periodical permit or 1[(2)]1 has at least 5025 percent of its digitalcontent audiencededicated into thelocal State;news;

          (5) (4)  in the case of a locallocal, digital-only newspaper or online news organizationpublication, thathas publishespublished bothan printaverage editionsof andthree onlineoriginal news publications,pieces meetsabout the requirementslocal community or the State per week over the previous 12 months and, within a 12-month period, has at least 50 percent of eitherits subsectiondigital c.audience in the State;

or      d.(5)  in the case of a local news organization that publishes both print editions and online news publications, meets the requirements of either 1[subsection c.

or d.] paragraph (3) or (4)1 of this section;1[section] subsection1;

          (6)(6)   hashas disclosed in its print publication or on its Internet website its beneficial ownership or, in the case of a not-for-profit entity, its board of directors;

          (7)  maintains and publicly displays an editorial policy for error correction and clarification that includes an accessible process for reporting errors or complaints to the eligible local news organization;

          (8)  has not received more than 50 percent of its gross receipts for the previous year from political action committees or other entities organized under section 527 of the federal Internal Revenue Code (26 U.S.C.

          (9)  has media liability insurance coverage of at least $1,000,000;

and           (10)  has been in operation, or its parent company has been in operation, for at least two years.

          c.  “State agency” means any of the principal departments in the Executive Branch of State Government, any division, board, bureau, office, commission, or other instrumentality created by a principal department, and any independent State authority.

            3.

          (2)  For State agencies that demonstrate the need to spend less than 30 percent of their advertising revenue1[revenue] budget1 in-State, at least 50 percent of that in-State spend shall be spent with eligible local news organizations.

          b.  A State agency may consult with third party organizations to ensure compliance with the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

          c.  Notwithstanding the provisions of subsection a.

of this section, a State agency may apply for an exemption from the provisions of P.L.   P.L.    , c.    (C.        ) , c.    (C.        ) (pending before the Legislature as this bill) upon showing to the Department of the Treasury that the purposes of the advertising are inconsistent with placement in an eligible local news organization publication.  If a State agency applies for an exemption pursuant to this subsection, the State Treasurer may grant an exemption, but shall reject the application for an exemption if the State Treasurer determines that the objectives of the advertising can be served as effectively or better through placement in an eligible local news organization publication.

 If      ad.  A State agency appliesshall fornot andiscriminate exemptionamong pursuanteligible tolocal thisnews subsection,organizations thebased Stateon Treasurereditorial maycontent, grantunless anthat exemption,content butis shallobjectively rejectrelevant theto application for an exemption if the Statearticulated Treasurerpurposes determines that the objectives of the advertisingadvertising. can be served as effectively or better through placement in an eligible local news organization publication.

     d.  A State agency shall not discriminate among eligible local news organizations based on editorial content, unless that content is objectively relevant to the articulated purposes of the advertising.

    STATEMENT        This bill establishes advertisement set-asides for eligible local news organizations.

     Under current law, State bid solicitations are required to be advertised unless the solicitation meets certain qualifications for exemption from advertisement.  This bill provides that every State agency required to advertise bid solicitations must allocate at least 30 percent of its total advertising spending for eligible local news organizations, except for State agencies that demonstrate the need to spend less than 30 percent of their advertising revenue in-State, in which case at least 50 percent of that in-State spend must be spent with eligible local news organizations.

     A State agency may apply for an exemption from the requirements of the bill upon showing to the Department of the Treasury that the purposes of the advertising are inconsistent with placement in an eligible local news organization publication.

     The New Jersey Civic Information Consortium will be required to create and maintain a list of eligible local news organizations.  The Department of the Treasury will be required to publish on its Internet website the criteria to qualify as an eligible local news organization no later than three months after the effective date of the bill.

     The bill provides that any advertising or marketing agency that contracts with the State will report to the contracting State agency the total amount of advertising spending on at least a quarterly basis.  Beginning one year after the fiscal year next following the effective date of the bill, every State agency will be required to report certain advertising spending information to the Department of the Treasury.  Within two years after the end of the fiscal year next following the effective date of the bill, the Department of the Treasury will be required to publish a cumulative report of certain advertising spending information for the State on its Internet website.