ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 6118

with committee amendments

STATE OF NEW JERSEY

DATED:  JANUARY 8, 2026

      The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 6118.

      As amended, this bill extends oversight of a municipality in need of stabilization and recovery, pursuant to the Municipal Stabilization and Recovery Act, P.L.2016, c.4 (C.52:27BBBB-1 et al.), (the act) for an additional six years.  The bill also revises, expands, and establishes certain Local Finance Board related oversight powers under the act.

      The bill is to take effect immediately and be retroactive to December 1, 2025.  A municipality in need of stabilization is to be subject to the provisions of the bill until December 1, 2031.

      As amended and reported by the committee, Assembly Bill No. 6118 is identical to Senate Bill No. 4845 (1R), which was also reported by the committee on this date.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  extend the oversight period an additional year until December 1, 2031;

      (2)  revise, expand, and establish certain Local Finance Board related oversight powers under the act;

      (3)  provide the provisions of the bill are retroactive to December 1, 2025;

      (4)  specify certain review and approval requirements for municipal actions taken during the period between December 1, 2025 and enactment of the bill; and

      (5)  amend the title and synopsis.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that the State will incur additional indeterminate costs over a multi-year period related to its oversight functions under the Municipal Stabilization and Recovery Act because the bill extends the monitoring period to 15 years from nine years.  The only municipality subject to such oversight under the act is Atlantic City.