This bill amends current law to grant courts the discretion to adjust, reduce, or waive mandatory legal financial obligations (LFOs) imposed on criminal defendants based on their ability to pay. Specifically, it allows courts to consider a defendant's inability to pay, the interests of justice, and the potential impact on rehabilitation when determining the appropriateness of these financial obligations. The bill applies to all criminal proceedings, including non-indictable offenses, and mandates that courts document the factors influencing their decisions regarding any adjustments or waivers.

Additionally, the bill incorporates a recommendation from the New Jersey Criminal Sentencing and Disposition Commission's third report, dated March 2023. A key requirement of the bill is that courts must state, on the record, the reasons for any adjustments, reductions, or waivers of mandatory LFOs, ensuring transparency and accountability in the judicial process. The act is set to take effect immediately upon passage.