[Second Reprint]

SENATE, No. 777

STATE OF NEW JERSEY

220th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION

 


 

Sponsored by:

Senator  NELLIE POU

District 35 (Bergen and Passaic)

Senator  TROY SINGLETON

District 7 (Burlington)

 

Co-Sponsored by:

Senators Cunningham and Ruiz

 

 

 

 

SYNOPSIS

     Concerns discriminatory appraisals of property on basis of race, creed, color, national original, or certain other characteristics.

 

CURRENT VERSION OF TEXT

     As amended by the Senate on August 8, 2022.

  


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.  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 not discriminate in the appraisal of a 1[residential]1 property on the basis of the1actual or perceived1 race, creed, color, 1[or]1 national origin1, or other characteristic listed pursuant to the “Law Against Discrimination,” P.L.1945, c.169 (C.10:5-1 et seq.)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 board determines, after appropriate investigation, that the holder of a license, certification, or registration has 1[knowingly]1 engaged in the discriminatory appraisal of a 1[residential]1 property 1[on the basis of the property buyer’s or property seller’s race, creed, color, or national origin] pursuant to subsection a. of this section1, the board 1[may] shall void the discriminatory appraisal and:

      (a)1 suspend 1[or revoke]1 the license, certification or registration1[,];

      (b)1 levy a fine 1[or impose a civil penalty,] against the holder that shall recoup the cost of the discriminatory appraisal; and

      (c)  shall require the holder to attend an anti-bias seminar approved by the board 2that shall include information on existing anti-

discrimination laws and how they relate to housing and appraisals2.

      (2)  A suspended license, certification, or registration shall be restored if the holder pays the fine levied pursuant to paragraph (1) of this subsection and attends the anti-bias seminar approved by the board.

      (3)  The holder of a suspended license, certification, 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 and subsequent violation occurring within seven years of the second.  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, certification 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.).

 

      1[2.] 4.1    a.  Prior to the initiation of a 1[residential]1 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 1[seller] owner or agent of the property owner1 with a document, 1given free of charge and1 in a form and manner prescribed by the board, informing the property 1[seller] owner1 of the opportunity to report, through the Division 2[of Consumer Affairs’] on Civil Rights within the Department of Law and Public Safety2 1Internet1 website or telephone number, any suspicion of a discriminatory appraisal by the holder of a license, certification or registration 1[on the basis of a property buyer or seller race, creed, color, or national origin] pursuant to subsection a. of section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill). 

      b.   (1) When receiving a report of an alleged discriminatory appraisal, the Division 2[of Consumer Affairs] on Civil Rights2 shall ask the complainant if they believe that the value of the appraised property is below market value.  The division shall also collect demographic information regarding the complainant, which shall include, but not be 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 asked by the division on a voluntary basis. The information shall include a contact telephone number, email address, and home address of the complainant. 

      (2)  The division shall compile the demographic information of the complainants who believe that the value of the appraised property is below market value and shall report in the aggregate the demographic information collected 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 2[forwarded to] investigated by2 the Division on Civil Rights 2[within the Department of Law and Public Safety for further investigation]2.  If upon investigation a finding of discrimination is made, the 2[Division on Civil Rights] division2 shall forward its findings to the board1.

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

 

      1[3.] 5.      a.1  Upon first interaction with a property buyer1or agent of the property buyer1, a licensed real estate broker, broker-salesperson, or salesperson shall provide to the property buyer a document, 1given free of charge and1 prescribed by the New Jersey Real Estate Appraiser Board pursuant to section 1[2] 41 of P.L.    , c.    (C.        ) (pending before the legislature as this bill), informing the property buyer of the opportunity to report, through 2the Internet website or telephone number of2 the Division 2[of Consumer Affairs’ website or telephone number] on Civil Rights2, 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 1[a property buyer or seller’s] the actual or perceived1 race, creed, color, 1[or]1 national origin1, or other characteristic listed pursuant to the “Law Against Discrimination,” P.L.1945, c.169 (C.10:5-1 et seq.) 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 appraisal.

      b.   (1) When receiving a report of an alleged discriminatory appraisal, the Division 2[of Consumer Affairs] on Civil Rights2shall ask the complainant if they believe that the value of the appraised property is below market value.  The division shall also collect demographic information regarding the complainant, which shall include, but not be 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 asked by the division on a voluntary basis. The information shall include a contact telephone number, email address, and home address of the complainant. 

      (2)  The division shall compile the demographic information of the complainants who believe that the value of the appraised property is below market value and shall report in the aggregate the demographic information collected 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 this subsection shall be 2[forwarded to the Division on Civil Rights within the Department of Law and Public Safety for further investigation] investigated by the Division on Civil Rights2 .  If upon investigation a finding of discrimination is made, the 2[Division on Civil Rights] division2 shall forward its findings to the board1.

 

     1[4.] 6.1     This act shall take effect immediately.