Bill Text: NJ A5438 | 2026-2027 | Regular Session | Introduced
Bill Title: Establishes "Social Media Settlement Fund"; requires moneys in fund to be used to address youth mental health concerning social media.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Failed) 2026-09-24 - Withdrawn from Consideration [A5438 Detail]
Download: New_Jersey-2026-A5438-Introduced.html
Sponsored by:
Assemblywoman ANDREA KATZ
District 8 (Atlantic and Burlington)
SYNOPSIS
Establishes "Social Media Settlement Fund"; requires moneys in fund to be used to address youth mental health concerning social media.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning youth online safety, establishing a "Social Media Settlement Fund," and supplementing Title 30 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. There is created in the Department of the Treasury a dedicated, non-lapsing fund to be known as the "Social Media Settlement Fund."
b. To the extent consistent with the terms of the Settlement Agreement of August 2026 in the matter of In re: Social Media Adolescent Addiction/Personal Injury Products Liability Litigation, case number 4:22-md-03047-YGR, in the U.S. District Court for the Northern District of California, the State Treasurer shall deposit into the fund the State's share of moneys received as a result of such settlement. Any interest and other income earned on moneys in the fund, and any other moneys that may be appropriated or otherwise become available for purposes of the fund, shall be credited to and deposited in the fund. Any moneys received by any State department pursuant to the settlement subject to this section shall be transferred into the fund.
c. (1) Moneys in the fund are hereby appropriated, in accordance with the purposes of the Settlement Agreement, and shall be dedicated and used only for:
(a) the purposes described in subsection d. of this section; and
(b) the payment of attorneys' fees, costs, and litigation expenses related to the Settlement Agreement.
(2) The Department of Human Services shall be designated the lead agency for the State for purposes of directing the disbursement and allocation of the State's share of any moneys that are allocated to or otherwise received by the State as a result of the Settlement Agreement, monitoring the use of moneys disbursed, and, in coordination with the State Comptroller and the Attorney General, ensuring that the use of such moneys complies with the purposes set forth in this section and is consistent with the terms of the Settlement Agreement. The department shall allocate funds with an emphasis on supporting programs and strategies that are evidence-based or evidence-informed and, in making such allocations, shall consider equitable access for underserviced communities Statewide.
(3) (a) The Department of Human Services shall be authorized to adopt, amend, or repeal regulations as necessary to carry out the intent and provisions of this section.
(b) Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the Department of Human Services may, immediately upon filing proper notice with the Office of Administrative Law, adopt rules and regulations as shall be necessary to enable it to carry out the department's duties, functions, and powers with respect to this section. Rules and regulations adopted pursuant to this subparagraph shall be effective immediately upon filing with the Office of Administrative Law and shall be in effect for a period not to exceed 18 months, and shall, thereafter, be amended, adopted, or readopted by the department in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
(4) Moneys from the fund may be transferred to other State departments as directed by the Commissioner of Human Services in support of the purposes provided for in this section, subject to the approval of the Director of the Division of Budget and Accounting.
d. Moneys, other than attorneys' fees, costs, and expenses related to litigation, that are allocated to or otherwise received by the State pursuant to the Settlement Agreement, shall be dedicated and used, consistent with the terms of the Settlement Agreement, for the purpose of addressing the harms of social media and Internet addiction, the harms of cyber-bullying and cyber-harassment, and the harms of adolescent and youth mental health disorders or conditions, through evidence-based or evidence-informed practices or strategies including, but not be limited to:
(1) mental health awareness programs and treatment services targeted at adolescents and youth;
(2) education on the safe use of social media and the Internet targeted at adolescents, youth, parents, educators, and caregivers, including, but not limited to, the use of appropriate age restrictions, time limitations, and privacy and content filtering tools;
(3) education on preventing, mitigating, and resolving cyber-bullying and cyber-harassment among adolescents and youth;
(4) peer and family support programs to assist adolescents and youth who are seeking or receiving mental health treatment;
(5) research into social media and Internet addiction, social media and Internet usage among adolescents and youth, and policy reforms for the governance and regulation of social media and Internet platforms, applications, and websites;
(6) supporting such other strategies as may be developed or identified by the commissioner in furtherance of the purposes of the fund, subject to the terms of the Settlement Agreement; and
(7) administrative expenses to support the purposes and operation of the fund, subject to the terms of the Settlement Agreement.
2. This act shall take
effect immediately, and shall be retroactive to August 25, 2026.
STATEMENT
This bill establishes a "Social Media Settlement Fund" in the Department of the Treasury. Under the bill, the State Treasurer is required to deposit into the fund the State's share of moneys received as a result of the Settlement Agreement of August 2026 in the matter of In re: Social Media Adolescent Addiction/Personal Injury Products Liability Litigation (Settlement Agreement). The bill also designates the Department of Human Services as the lead agency for the State for purposes of directing the disbursement and allocation of moneys received pursuant to the Settlement Agreement.
Under the bill, moneys that are allocated to or otherwise received by the State pursuant to the Settlement Agreement, other than attorneys' fees, costs, and expenses related to litigation, are to be dedicated and used, consistent with the terms of the Settlement Agreement, for the purpose of addressing the harms of social media and Internet addiction, the harms of cyber-bullying and cyber-harassment, and the harms of adolescent and youth mental health disorders or conditions, through evidence-based or evidence-informed practices or strategies.
