ASSEMBLY REGULATED PROFESSIONS COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 1519

 

with committee amendments

 

STATE OF NEW JERSEY

 

DATED:  OCTOBER 20, 2022

 

      The Assembly Regulated Professions Committee reports favorably Assembly Bill No. 1519 with committee amendments.

      This bill concerns discriminatory appraisals of residential property on the basis of race or national origin.

     As amended, this bill is titled the “Fair Appraisal Act.” Under the bill, holders of appraisal licenses or certificates, or appraisal management company registrations, may have their licenses, certificates or registrations revoked or suspended, or be subject to fines, if the board determines, after an appropriate investigation, that the holder of the credential has engaged in a discriminatory appraisal of a residential property on the basis of the property buyer or property seller’s actual or perceived race, creed, color, national origin, affectional or sexual orientation, sex, gender identity or expression, disability, or other characteristic protected under the “Law Against Discrimination.” “Appraisal” is defined to mean a valuation of property as defined pursuant to current law. “Property” or “real estate” is defined to mean 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.

     If the board finds a holder of a credential discriminated in the appraisal of real estate, the appraisal is deemed void and the board is to fine the holder, order the holder to make restitution of the cost of the discriminatory appraisal, and require the holder to attend an anti-bias seminar approved by the board. A second violation requires the board to suspend the credential of the holder, order the holder to make restitution by covering the cost of the appraisal, and require the holder to attend an anti-bias seminar approved by the board. A credential may be restored after a second violation if the individual demonstrates restitution of the discriminatory appraisal and completion of the required anti-bias seminar. If a third violation is committed, the board, after appropriate notice and a hearing, is to revoke the credential of the holder. The holder is also subject to civil penalties of varying amounts depending on the violation - $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.        

     Additionally, the board is to notify 1) the Division on Civil Rights of an allegation of discrimination on an appraisal and 2) the complainant of the option to file a complaint with the Division on Civil Rights pursuant to the “Law Against Discrimination.” The bill reaffirms the board’s authority to take any action against a license based on discriminatory conduct or for any other reason and to not limit any rights protected by or powers afforded to the Division on Civil Rights pursuant to the “Law Against Discrimination.”        

     Upon a licensed real estate broker, broker-salesperson, or salesperson providing lending information to a property buyer or agent of the property buyer, the licensee is to also provide the buyer with a document, free of charge, with information, in a form and manner as prescribed by the board, informing the buyer of the opportunity to report, through the Internet website or telephone number of the Division on Civil Rights, any suspicion of discriminatory appraisal by the holder of an appraising credential. The division is to ascertain the basis for the allegation and solicit from the complainant relevant demographic information. The demographic information is to be compiled in a report to the Governor and Legislature.

     Any reports of alleged discrimination in appraisals are to be investigated by the Division on Civil Rights. If a finding of discrimination is made, the report is forwarded by the division to the board.      Finally, information concerning the prohibition of discriminatory appraisals of residential property, including the statutory basis for the prohibition, is to be published on the Division of Consumer Affairs’ website.

      This bill was prefiled for introduction in the 2022-2023 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.

 

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  name the bill the “Fair Appraisals Act;”

      (2)  define “property” and “appraisal;”

      (3)  add characteristics for which an individual cannot be discriminated against by an appraiser and add the individuals who may be involved in an appraisal for whom this shall apply;

      (4)  remove the requirement that the board find an appraiser “knowingly” engaged in the discriminatory appraisal of a property;

      (5)  include assessments of fines and penalties, and suspensions of credentials, if an appraiser is determined by the board to have discriminated against an individual or individuals during the performance of an appraisal of real estate, including restitution of the cost of the discriminatory appraisal;

      (6)  require appraisers who discriminated in the appraisal of real estate to attend an anti-bias seminar approved by the board;

      (7)  authorize the board to restore a credential if the original holder of the credential demonstrates completion of an anti-bias seminar and makes restitution pursuant to the bill’s requirements;

      (8)  clarify the board’s existing statutory authority to impose disciplinary action on appraisers who discriminate in the appraisal of real estate;

      (9)  require the board to notify the Division on Civil Rights of any violation under the bill and require the board to notify a complainant of their option to file a complaint with the Division on Civil Rights under the “Law Against Discrimination;”

      (10)  remove the requirement that a licensed, certified, or registered appraiser provide a property owner with information on reporting to the Division of Consumer Affairs if the property owner suspects a discriminatory appraisal was performed and clarify that it is the contact information of the Division of Civil Rights that is to be included in the information handed out to individuals by licensed real estate brokers, broker-salespersons, or salespersons;

      (11)  require the Division on Civil Rights to solicit demographic information from a complainant filing a report of an alleged discriminatory appraisal;

      (12)  require the submission of a report on the demographic information collected by the Division of Civil Rights to the Governor and the Legislature;

      (13)  have the Division of Civil Rights investigate allegations of discrimination and report findings of discrimination to the State Real Estate Appraisers Board; and

      (14)  make certain technical changes.