The Optional Municipal Charter Law or Faulkner Act (N.J.S.A. § 40:69A-1, et seq.) provides New Jersey municipalities with a variety of models of local government. This legislation is called the Faulkner Act in honor of the late Bayard H. Faulkner, former mayor of Montclair, New Jersey and chairman of the Commission on Municipal Government.
The Faulkner Act offers four basic plans (mayor–council, council–manager, small municipality, and mayor–council–administrator) and two procedures by which the voters of a municipality can adopt one of these plans. The Act provides many choices for communities with a preference for a strong executive and professional management of municipal affairs. Twenty-one percent of the municipalities in New Jersey, including the six most populous cities (Newark, Jersey City, Camden, Trenton, Paterson and Elizabeth) all govern under the provisions of the Faulkner Act. More than half of all New Jersey residents reside in municipalities with Faulkner Act charters.
In all Faulkner Act municipalities, regardless of the particular form, citizens enjoy the right of initiative and referendum, meaning that proposed ordinances can be introduced directly by the people without action by the local governing body. This right is exercised by preparing a conforming petition signed by 10% of the registered voters who turned out in the last general election in an odd-numbered year (i. the most recent General Assembly election). Once the petition is submitted, the local governing body can vote to pass the requested ordinance, and if they refuse, it is then submitted directly to the voters.