The "New Jersey Impact Fee Act" establishes a framework for municipalities to impose impact fees on developers to fund infrastructure improvements necessitated by new real property development. The bill allows municipalities to adopt ordinances that set these fees based on localized data, including population projections and construction costs, while ensuring that the fees are proportional to the impact of the development. It mandates that municipalities provide at least 90 days' notice before implementing a new or increased impact fee and prohibits changes to the fee amount after preliminary approval of a development. Additionally, the bill requires that contributions made towards infrastructure be credited against the impact fees and that proceeds from these fees be assignable between municipalities and school districts that share services.

The legislation also outlines the responsibilities of municipalities regarding the management and reporting of impact fee revenues. Municipalities must segregate funds for public school facilities and submit annual reports detailing the collection and expenditure of impact fees to the Commissioner of Community Affairs. The bill allows for developers to request exemptions or waivers from impact fees based on the public benefits provided by their projects. In any legal challenges regarding the fees, the burden of proof lies with the municipality to demonstrate compliance with the act. The Commissioner is tasked with adopting necessary rules and regulations to implement the act within five months of its enactment.