[First Reprint]

ASSEMBLY, No. 1519

STATE OF NEW JERSEY

220th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION

 


 

Sponsored by:

Assemblywoman  ANGELA V. MCKNIGHT

District 31 (Hudson)

Assemblyman  BENJIE E. WIMBERLY

District 35 (Bergen and Passaic)

Assemblywoman  BRITNEE N. TIMBERLAKE

District 34 (Essex and Passaic)

 

Co-Sponsored by:

Assemblywomen Reynolds-Jackson, Haider, Lopez, Jasey, Assemblyman Atkins, Assemblywoman Jaffer, Assemblymen Conaway and Sampson

 

 

 

 

SYNOPSIS

     Concerns discriminatory appraisals of residential property on basis of race or national origin.

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Regulated Professions Committee on October 20, 2022, with amendments.

  


An Act concerning real estate appraisals and supplementing P.L.1991, c.68 (C.45:14F-1 et seq.) and chapter 15 of Title 45 of the Revised Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     11.   This act shall be known and may be cited as the “Fair Appraisals Act.”1

 

     12.   As used in this act:

     “Property” or “real estate” means an identified parcel or tract of land, for residential or commercial use, with improvements and including easements, rights of way, undivided or future interests, or similar rights in a tract of land, but does not include mineral rights, timber rights, growing crops, water rights, or similar interests severable from the land when the transaction does not involve the associated parcel or tract of land.

     “Appraisal” means a valuation of property as defined pursuant to P.L.1991, c.68 (C.45:14F-2).1

 

      1[1.] 3.1     a.  1[A] Consistent with the provisions of section 8 of P.L.1978, c.73 (C.45:1-21), a1 holder of a license or 1[certification] certificate1 under P.L.1991, c.68 (C.45:14F-1 et seq.) or registration under P.L.2017, c.72 (C.45:14F-27 et al.) shall not discriminate in the appraisal of 1[a residential property] real estate1 on the basis of the1actual or perceived1 race, creed, color, 1[or]1 national origin1, affectional or sexual orientation, sex, gender identity or expression, disability, creed, or other characteristic protected under subsection g. or h. of section 11 of the “Law Against Discrimination,” P.L.1945, c.169 (C.10:5-12)1 of the property buyer 1[or],1 property 1[seller] owner, agents of the property buyer or owner, or present owners or occupants of the properties within the neighborhood of the property subject to appraisal1.

     b.    1(1)1  If the 1[board determines, after appropriate investigation, that the]1 holder of a license, 1[certification] certificate1, or registration 1[has knowingly engaged in the discriminatory appraisal of a residential property on the basis of the property buyer’s or property seller’s race, creed, color, or national origin] is found, for a first violation, to have discriminated in the appraisal of real estate in violation of subsection a. of this section1, the 1discriminatory appraisal shall be void and of no effect and the1board 1[may] shall:

     (a)   levy a fine to be determined by the board;

     (b)   order the holder to make restitution of the cost of the discriminatory appraisal; and

     (c)   require the holder to attend an anti-bias seminar approved by the board that shall include information on existing anti-discrimination laws and how they relate to housing and appraisals.

     (2)   If the holder of a license, certificate, or registration is found to have committed a second violation of subsection a. of this section, the board shall:

     (a)1 suspend 1[or revoke]1 the license, 1[certification] certificate1 or registration1[, levy a fine or impose a civil penalty] and order the holder to make restitution of the cost of the discriminatory appraisal; and

     (b)   require the holder to attend an anti-bias seminar approved by the board that shall include information on existing anti-discrimination laws and how they relate to housing and appraisals.

     (3)   The board may restore the license, certificate, or registration of a holder found to have committed a second violation of subsection a. of this section upon proof that the holder made restitution required pursuant to paragraph (2) of this subsection and attended the anti-bias seminar approved by the board after a period of suspension of no less than 30 days.

     (4)   If the holder of a license, certificate, or registration is found to have committed a third violation of subsection a. of this section, the board shall, after appropriate notice and hearing, revoke the license, certificate, or registration.

     (5)   The holder of a suspended or revoked license, certificate, or registration shall also be subject to a civil penalty not exceeding $10,000 for a first violation, $25,000 for a second violation occurring within five years of the first, and $50,000 for a third violation.  A civil penalty imposed pursuant to this paragraph shall be collected by the board pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.)1

     c.     Whenever the board finds cause to 1[fine or]1 suspend 1[or revoke]1 the license, 1[certification] certificate1 or registration of a holder1pursuant to this section1, the board shall notify the holder of the reasons therefor, in writing, and provide opportunity for a hearing in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).  1The board shall also provide the notification to the Division on Civil Rights for review and appropriate action.

     d.    The board shall notify a complainant under this section of the option to file a complaint with the Division on Civil Rights pursuant to the “Law Against Discrimination,” P.L.1945, c.169 (C.10:5-1 et seq.).

     e.     Nothing in this section shall be construed to limit in any way the board’s authority to take any action against a licensee based on discriminatory conduct or for any other reason or to limit any rights protected by or powers afforded to the Division on Civil Rights pursuant to the “Law Against Discrimination,” P.L.1945, c.169 (C.10:5-1 et seq.).1

 

     1[2.] 4.1     a. 1[Prior to the initiation of a residential property appraisal, a holder of a license or certification under P.L.1991, c.68 (C.45:14F-1 et seq.) or registration under P.L.2017, c.72 (C.45:14F-27 et al.) shall provide a property seller with a document, in a form and manner prescribed by the board, informing the property seller of the opportunity to report, through the Division of Consumer Affairs’ website or telephone number, any suspicion of a discriminatory appraisal by the holder of a license, certification or registration on the basis of a property buyer or seller’s race, creed, color, or national origin] Upon a licensed real estate broker, broker-salesperson, or salesperson providing lending information to a property buyer or agent of the property buyer, a licensed real estate broker, broker-salesperson, or salesperson shall provide to the property buyer a document, given free of charge and prescribed in a form and manner by the New Jersey Real Estate Appraiser Board, informing the property buyer of the opportunity to report, through the Internet website or telephone number of the Division on Civil Rights, any suspicion of a discriminatory appraisal by the holder of a license or certificate under P.L.1991, c.68 (C.45:14F-1 et seq.) or registration under P.L.2017, c.72 (C.45:14F-27 et al.) on the basis of the actual or perceived race, creed, color, national origin, affectional or sexual orientation, sex, gender identity or expression, disability, creed or other characteristic protected under subsection g. or h. of section 11 of the “Law Against Discrimination,” P.L.1945, c.169 (C.10:5-12) of the property buyer, property owner, agents of the property buyer or owner, or present owners or occupants of the properties within the neighborhood of the property subject to appraisal1

     b.    (1)  When receiving a report of an alleged discriminatory appraisal, the Division on Civil Rights shall ascertain the basis for the allegation and solicit from the complainant relevant demographic information, including but not limited to, the identity of the complainant within the characteristics listed pursuant to subsection a. of section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).  The complainant may provide the demographic information solicited by the division on a voluntary basis.

     (2)   The division shall compile the demographic information of the complainants provided pursuant to paragraph (1) of this subsection and shall report in the aggregate the demographic information collected to the Governor and to the Legislature in accordance with section 2 of P.L.1991, c.164 (C.52:14-19.1) on or before July 1, 2024.

     c.     Any reports of alleged discrimination pursuant to subsection a. of this section shall be investigated by the Division on Civil Rights.  If upon investigation a finding of discrimination is made, the division shall forward its findings to the board1.

     1[b.] d.1     Information concerning the prohibition of 1a1 discriminatory 1[appraisals] appraisal1 of 1[residential property] real estate1, including the statutory basis for prohibition, shall be published on the Division of Consumer Affairs website. 

 

     1[3.  Upon first interaction with a property buyer, a licensed real estate broker, broker-salesperson, or salesperson shall provide to the property buyer a document, prescribed by the New Jersey Real Estate Appraiser Board pursuant to section 2 of P.L.   ,c. (C.    )(pending before the legislature as this bill), informing the property buyer of the opportunity to report, through the Division of Consumer Affairs’ website or telephone number, any suspicion of a discriminatory appraisal by the holder of a license or certification under P.L.1991, c.68 (C.45:14F-1 et seq.) or registration under P.L.2017, c.72 (C.45:14F-27 et al.) on the basis of a property buyer or seller’s race, creed, color, or national origin.]1

 

     1[4.] 5.1     This act shall take effect immediately.