The Municipal and School Board Voting Options Act allows municipalities and school boards in New Jersey to adopt ranked-choice voting for their local elections under specific conditions. This voting method enables voters to rank candidates in order of preference, with ballots counted in rounds. The bill outlines two methods for counting votes: the instant runoff method for single-winner elections, such as mayoral races, and the single transferable vote method for multi-winner elections, like council or school board positions. The act defines key terms related to ranked-choice voting, including "continuing candidate," "exhausted ballot," and "election threshold," to facilitate the implementation of this voting system.

To adopt ranked-choice voting, municipal governing bodies and school boards can pass an ordinance or resolution, which must then be approved by voters through a referendum. Additionally, voters can initiate a petition to place ranked-choice voting on the ballot, requiring signatures from at least 10% of the total votes cast in the last General Assembly election. If approved, all elections for mayor, municipal governing body members, or school board members (excluding primary elections) will utilize ranked-choice voting. The bill also mandates the Division of Elections to create rules and regulations to assist local election officials in implementing this new voting method.