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 the economic impact on all municipalities when developing new rules, expanding protections previously limited to small municipalities. It mandates that agencies use flexible compliance approaches, such as different reporting requirements for smaller communities, performance-based standards instead of strict design specifications, or exemptions where public safety is not at risk. Additionally, agencies must include a flexibility analysis in their rule proposals that estimates costs and compliance needs for local governments. The change applies to all municipalities regardless of size, ensuring broader consideration of local budget constraints when state regulations are proposed.