This bill amends N.J.S.40A:9-138 and P.L.1981, c.465 to establish conditions under which a municipal administrator's salary may be withheld if they are removed from their position for "good cause." The bill specifies that if a municipal administrator is removed by a two-thirds vote of the governing body, any unpaid balance of the administrator's salary, as well as their salary for the next three calendar months, may be withheld if the removal is for good cause. "Good cause" is defined as an accusation of a crime or offense involving moral turpitude or a violation of any municipal code of ethics.

Additionally, the bill stipulates that in cases of removal for good cause, payment of the withheld salary will only be made if a court of competent jurisdiction finds that no crime or offense was committed. If the circumstances surrounding the removal do not warrant court intervention, payment will be contingent upon a finding of no wrongdoing from an independent investigation. This legislative change aims to clarify the conditions under which a municipal administrator can be removed and the implications for their compensation.