ASSEMBLY STATE AND LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4641

STATE OF NEW JERSEY

DATED:  JUNE 23, 2026

      The Assembly State and Local Government Committee reports favorably Assembly Bill No. 4641.

      As reported, this bill authorizes the governing body of a municipality to enact an ordinance establishing criteria under which the municipality is authorized to notify an insurance company which insures a rental property if there is activity at the rental property that is reasonably observable without entering and inspecting the premises which is suspected to violate the general terms of the rental property insurance policy.  Under the bill, the criteria may include, but is not limited to, activity including:

· excessive, ongoing noise violations;

· visible, dangerous overcrowding;

·  underage drinking or illegal drug use;

· property destruction or vandalism;

· fighting or violence; and

· reckless behavior endangering neighbors or neighborhood property.

      The bill provides that the governing body of a municipality is to designate an official to be responsible for notifying an insurance company, in a time and manner as determined by the governing body, of any reasonably observable behavior which is suspected to violate the general terms of the rental property insurance policy. 

      The bill also specifies that a municipality is authorized to request from an owner of a rental property a copy of the terms of the rental property insurance policy.