This bill establishes the Bureau of Short-Term Local Government Note Investments within the Division of Investment in the New Jersey Department of the Treasury. The bureau is tasked with managing investments from the State of New Jersey Cash Management Fund and pension or annuity funds in short-term local unit obligations. It will be supervised by a chief, who is required to be qualified by training and experience, and will operate under the direction of the Director of the Division of Investment. The bureau is also responsible for monitoring the sale of short-term local government notes and is authorized to submit bids or offers to purchase these obligations, provided they yield a return at least one percent higher than comparable United States Treasury Obligations.

Additionally, the bill allows the bureau to purchase short-term notes from local units that may not meet the established minimum credit rating requirements if the financial regulations of the issuing entity are deemed comparable to those of New Jersey. This provision aims to enhance the state's investment returns while fostering competition in the market for short-term local government debt, ultimately reducing borrowing costs for underserved local governments. The bill mandates that the State Investment Council adopt necessary rules and regulations to implement these changes, and it is set to take effect immediately upon passage.