New Jersey § 52:27d-118

§ 52:27d-118.

a. Upon a finding by the director that an eligible municipality possesses conditions

that create extreme difficulty in adopting a budget in compliance with the “Local

Budget Law,” N.J.S.40A:4-1 et seq. , in issuing indebtedness as permitted by law, or in funding capital improvements

essential to the protection of the public health, safety, and welfare, the board may

create, by resolution, a financial review board for that municipality. b. A financial review board shall be authorized to approve, implement and enforce

a financial plan for any municipality in which it has been created. A financial review board so created shall consist of five members, one of whom shall

be the mayor of the municipality or the mayor's designee; one of whom shall be appointed

by the Governor and shall be a resident of the municipality who is not an elected

official or employee of the municipality; one of whom shall be the Commissioner of

the Department of Community Affairs or the commissioner's designee; one of whom shall

be the State Treasurer or the Treasurer's designee; and one of whom shall be appointed

by the Governor and shall be an officer of the Executive Branch of State government. The financial review board shall exercise its powers and duties under rules and

regulations adopted by the board. A municipality subject to a financial review board shall establish a financial plan,

subject to the financial review board's approval, to address the budgetary, operational,

capital and economic development needs of the municipality. The financial review board shall also have the power to approve: the annual budget

of the municipality, the issuance of debt, all contracts entered into during the time

of supervision of the financial review board, and municipal expenditures, if so directed

by the board, to the extent that the financial review board shall specify. The financial review board may delegate to the municipality such of its powers,

under such circumstances and subject to such conditions, as it may determine. A financial review board shall operate until such time that the board finds that

the conditions that led to the creation of the financial review board have been substantially

abated. c. At the end of each year of its operation the financial review board shall report

to the board on its activities. The report shall include: a review of the financial review board's activities generally;

the status of the municipality's finances; recommendations concerning the municipality's

fiscal condition; the criteria for municipal performance which will lead the financial

review board to recommend to the board that the financial review board be dissolved;

a review of the municipality's economic development needs, and policy recommendations

that would achieve those goals; comment on the municipality's compliance with the

financial review board's directives; and any other information the financial review

board deems necessary. After review, a copy of the financial review board's report and any comments of

the board shall be forwarded to Governor, the Senate President, the Senate Minority

Leader, the Speaker of the General Assembly, and the Assembly Minority Leader. d. The board shall review the status of each municipality in which a financial review

board has been created at least each two years, at which time the municipality shall

be given the opportunity to demonstrate why the financial review board should be ended

or its role modified. The board shall determine whether the municipality shall continue to be subject

to the oversight of the financial review board and if the conditions that led to the

creation of the financial review board have been substantially abated, and shall take

such other actions as the board deems appropriate in light of the municipality's financial

condition.