This bill mandates that all counties and municipalities in New Jersey adopt an anti-sexual harassment policy to protect their officers, employees, and third parties conducting business with them. The Director of the Division of Local Government Services, in collaboration with the Director of the Division on Civil Rights, is required to establish regulations for this policy within six months of the bill's enactment. The policy must include definitions of sexual harassment, procedures for filing and investigating complaints, confidentiality provisions, and protections against retaliation, among other requirements.

Local governing bodies must adopt the established policy within 90 days of its promulgation or submit their own proposed policy for approval. If a proposed policy is found inconsistent with the established one, the Director may require amendments or reject it altogether. The bill also clarifies that individuals retain the right to report sexual harassment directly to courts or external agencies, regardless of the internal policy procedures. This legislation aims to ensure comprehensive protections against sexual harassment across all local units in the state.