[Third 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, Ruiz and Turner

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 October 17, 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.  ³[A] Consistent with the provisions of section 8 of P.L.1978, c.73 (C.45:1-21), a³ holder of a license or ³[certification] certificate³ 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 ³[a¹[residential]¹ property] real estate³ on the basis of the¹actual or perceived¹ race, creed, color, ¹[or]¹ national origin ³, affectional or sexual orientation, sex, gender identity or expression, disability, creed^{3 1}, or other characteristic ³[listed pursuant to] protected under subsection g. or h. of section 11 of³ the “Law Against Discrimination,” P.L.1945, c.169 ³[(C.10:5-1 et seq.)¹] (C.10:5-12)³ 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 ³[board determines, after appropriate investigation, that the]³ holder of a license, ³[certification] certificate³, or registration ³[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] is found, for a first violation, to have discriminated in the appraisal of real estate in violation of³ subsection a. of this section¹, the ³discriminatory appraisal shall be void and of no effect and the³ board ¹[may] shall ³[void the discriminatory appraisal and]:

(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 shall³:

(a)¹ suspend ¹[or revoke]¹ the license, ³[certification] certificate³ or registration¹[,] ³[;

(b)¹ levy a fine ¹[or impose a civil penalty,] against the holder that shall recoup] and order the holder to make restitution of³ the cost of the discriminatory appraisal; and

³[(c)   shall] (b)³ 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.

³[(2)  A suspended] (3) The board may restore the³ license, ³[certification] certificate³, or registration ³[shall be restored if] of a holder found to have committed a violation of subsection a. of this section upon proof that³ the holder ³[pays the fine levied] made restitution required³ pursuant to paragraph (1) of this subsection and ³[attends] attended³ the anti-bias seminar approved by the board ³after a period of suspension of no less than 30 days.³

³[(3)] (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)³ The holder of a suspended ³or revoked³ license, ³[certification] certificate³, 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 ³[and subsequent]³ violation ³[occurring within seven years of the second]³.  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, ³[certification] certificate³ 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.).  ³The 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.).³

¹[2.] 4.¹     a.  Prior to the initiation of a ¹[residential]^{1 3}[property] real estate³ appraisal, a holder of a license or ³[certification] certificate³ 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 Safety^{2 1}Internet¹ website or telephone number, any suspicion of a discriminatory appraisal by the holder of a license, ³[certification] certificate³ 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 ³[ask the complainant if they believe that the value of the appraised property is below market value.  The division shall also collect] ascertain the basis for the allegation and solicit from the complainant relevant³ demographic information ³[regarding the complainant, which shall include, but not be] , including but not³ 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 ³[asked] solicited³ by the division on a voluntary basis. ³[The information shall include a contact telephone number, email address, and home address of the complainant.]³

(2)   The division shall compile the demographic information of the complainants ³[who believe that the value of the appraised property is below market value] provided pursuant to paragraph (1) of this subsection³ and shall report in the aggregate the demographic information collected to the ³Governor and to the³ 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 3}[property] real estate³, including the statutory basis for prohibition, shall be published on the Division of Consumer Affairs website. 

¹[3.] 5.        ³[a.¹]³  Upon first interaction with a property buyer ¹or 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, ³affectional or sexual orientation, sex, gender identity or expression, disability, creed³ or other characteristic ³[listed pursuant to] protected under subsection g. or h. of section 11 of³ the “Law Against Discrimination,” P.L.1945, c.169 ³[(C.10:5-1 et seq.)] (C.10:5-12)³ 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.

³[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.]³

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