New Jersey § 52:27bbbb-4

§ 52:27bbbb-4.

a. The director may ascertain whether a municipality should be deemed a municipality

in need of stabilization and recovery. If the director ascertains that a municipality should be deemed a municipality in

need of stabilization and recovery, the director shall recommend that the commissioner

make that determination. Within 7 days of receipt of the director's recommendation, the commissioner shall

make the final determination of whether to deem the municipality a municipality in

need of stabilization and recovery and subject to the provisions of P.L.2016, c. 4 ( C.52:27BBBB-1 et al.). The commissioner shall notify the Governor, the State Treasurer, and the director

when a determination has been made and a municipality is subject to the provisions

of P.L.2016, c. 4 ( C.52:27BBBB-1 et al.). The director shall then notify the municipal clerk, or other appropriate municipal

official of the municipality, in writing, of the determination. A municipality in need of stabilization and recovery shall be subject to the provisions

of P.L.2016, c. 4 ( C.52:27BBBB-1 et al.) until the end of the recovery plan adopted pursuant to subsection b. of this

section and approved by the commissioner pursuant to subsection c. of this section,

or until the first day of the 109th month next following the date on which the municipality becomes subject to the requirements

and provisions of sections 5 through 11, 14, 16, and 17 of P.L.2016, c. 4 ( C.52:27BBBB-5 et al.), as applicable. b. Not later than 150 days next following the commissioner's final determination that

a municipality is in need of stabilization and recovery, the governing body of the

municipality in need of stabilization and recovery shall prepare and adopt a resolution

containing a nine-year recovery plan, commencing on the first day of the first fiscal year of the municipality

next following the enactment of P.L.2016, c. 4 ( C.52:27BBBB-1 et al.), that is sufficient to effectuate the financial stability of the municipality. The recovery plan shall establish processes and identify specific actions undertaken

by the municipality following the determination that it is a municipality in need

of stabilization and recovery pursuant to subsection a. of this section, and actions

to be undertaken by the municipality if the recovery plan is approved pursuant to

subsection c. of this section. The recovery plan shall include a proposed balanced budget for the first fiscal

year of the municipality next following the enactment of P.L.2016, c. 4 ( C.52:27BBBB-1 et al.), which shall be consistent with the “Local Budget Law,” N.J.S.40A:4-1 et seq. , except as otherwise stated in this subsection. There shall be no requirement for the proposed balanced budget to identify amounts

outstanding, including accrued interest, on any obligation to the State of New Jersey,

including any office, department, division, bureau, board, commission, or agency of

the State, for deferred pension and health benefit payments for the first fiscal year

of the municipality prior to the enactment of P.L.2016, c. 4 ( C.52:27BBBB-1 et al.). For the purposes of the proposed budget prepared pursuant to this subsection, the

municipality in need of stabilization and recovery is not required to appropriate

the total amount necessary for the extinguishment of all outstanding property tax

appeal debt. For the purposes of the proposed budget prepared pursuant to this subsection, the

municipality in need of stabilization and recovery shall identify and account for

the loss in revenue from any anticipated set-offs arising from all such property tax

appeal debt or identify and appropriate for any amounts owed in the first fiscal year

of the municipality next following the enactment of P.L.2016, c. 4 ( C.52:27BBBB-1 et al.) for the continued repayment of debts related to all property tax appeals

settled by the municipality. To effectuate financial stability, in addition to the proposed balanced budget,

the recovery plan shall include detailed processes to: (1) achieve sustainable net reductions in the municipality's general appropriations

to be commensurate with revenues anticipated in the proposed budget; (2) ensure that the municipality remits to the county in which it is located the full

amount of all property taxes or payments in lieu of property taxes owed by law to

the county on the dates on which the payments are due; (3) ensure that the municipality remits to the school district serving the municipality

the full amount of all property taxes or payments in lieu of property taxes owed by

law to the school district on the dates the payments are due; (4) schedule for the repayment of debts, including any accrued interest, as of the

date of the commissioner's determination pursuant to subsection a. of this section,

including, without limitation, any money owed to the State of New Jersey, including

any office, department, division, bureau, board, commission, or agency of the State,

for deferred pension and health benefits payments; (5) account for future payments on bonded debt and unbonded debt, including, without

limitation, any general obligation bonds, refunding bonds, pension refunding bonds,

tax appeal bonds, and unbonded tax appeal settlements, obligations, liens, or judgments

known to the municipality as of the date of the commissioner's determination pursuant

to subsection a. of this section; (6) account for future payments on any off balance sheet liabilities of the municipality

known to the municipality as of the date of the commissioner's determination pursuant

to subsection a. of this section; (7) ensure the repayment of the loan in accordance with section 18 of P.L.2016, c. 4 ( C.52:27BBBB-16 ), including accrued interest; and (8) increase the municipality's revenues, including, without limitation, through the

establishment of long-term economic and land use development strategies. c. The recovery plan shall be submitted by the governing body to the commissioner. The commissioner, within five business days next following the day of receipt of

the plan, shall determine, in the commissioner's sole and exclusive discretion, whether

the recovery plan is likely or is not likely to achieve financial stability for the

municipality. If the commissioner determines that the recovery plan is likely to achieve financial

stability for the municipality, the plan shall be effective and the provisions of

sections 5 through 11, 14, 16, and 17 of P.L.2016, c. 4 ( C.52:27BBBB-5 through C.52:27BBBB-9 , C.52:27BBBB-12 , C.52:27BBBB-14 , and C.52:27BBBB-15 ) shall not be applicable with respect to the municipality in need of stabilization

and recovery. If the commissioner determines that the recovery plan is likely to achieve financial

stability for the municipality, the plan shall be implemented beginning on the first

day of the first fiscal year of the municipality next following the enactment of P.L.2016, c. 4 ( C.52:27BBBB-1 et al.) and the municipality in need of stabilization and recovery shall strictly

comply with the recovery plan. If the commissioner determines that the plan is not likely to achieve financial

stability for the municipality, if the municipality fails to submit a plan, if the

commissioner determines that the municipality is not strictly complying with a recovery

plan approved by the commissioner pursuant to this subsection, or if the commissioner

determines that a recovery plan approved by the commissioner pursuant to this subsection

is no longer likely to achieve financial stability, the municipality shall be immediately

subject to the requirements and provisions of sections 5 through 11, 14, 16, and 17

of P.L.2016, c. 4 ( C.52:27BBBB-5 et al.) for as long as the municipality is deemed a municipality in need of stabilization

and recovery.