N.J. Stat. § App.A:9-51.9
The Commissioner of Conservation and Economic Development is hereby authorized to accept claims submitted to him by any municipality which has taken action pursuant to the provisions of this act for payment from the Special Beach Erosion Fund established by chapter 18, P.L. 1962, approved March 29, 1962, and to process such claims in accordance with the provisions of said chapter 18, P.L. 1962, but in no event shall the total amount of money paid out of such fund for such claims exceed the amount of $400,000.00. The commissioner may require as a condition of the approval of such claim that the municipality enter into an agreement with the commissioner on behalf of the State of New Jersey by which it will permit the beaches of the municipality to be used by the general public upon such reasonable terms and conditions as shall be established by the municipality and approved by the commissioner.
N.J.S. § App.A:9-51.9