Requires State agencies, when developing and proposing rules, to utilize approaches that will accomplish objectives of statutory law while minimizing adverse economic impact on municipalities.

This bill requires New Jersey state agencies to minimize adverse economic impacts on **all municipalities** - not just "small" ones - when developing and proposing new rules. It mandates agencies to use flexible approaches like adjusted compliance timelines, performance-based standards, or exemptions where feasible, without compromising statutory goals. Agencies must also provide a detailed "State mandate flexibility analysis" estimating annual costs, required services, and how the rule reduces financial burdens for affected municipalities. This change extends existing requirements (currently limited to small municipalities) to address budget pressures from recent property tax cap restrictions.