Senate Commerce Committee Statement to Senate, No. 3927 (State of New Jersey, December 12, 2024)

Summary

Senate Commerce Committee statement to Senate, No. 3927 with committee amendments, State of New Jersey, dated December 12, 2024. The committee reports favorably and with committee amendments Senate Bill No. 3927, which as amended establishes penalties for appraisers who engage in discriminatory real estate appraisals. The statement says that if the State Real Estate Appraiser Board finds discrimination, the appraisal is deemed void and, for a first violation, the board is to fine the holder, order restitution of the cost of the appraisal, and require attendance at an anti-bias seminar. It says a second violation requires the board to suspend the credential, and a third violation requires revocation after appropriate notice and a hearing.

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     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                  SENATE, No. 3927
                   with committee amendments



 STATE OF NEW JERSEY
                   DATED: DECEMBER 12, 2024

    The Senate Commerce Committee reports favorably and with
committee amendments Senate Bill No. 3927.
   As amended, this bill establishes penalties for appraisers who
engage in discriminatory real estate appraisals and requires certain
information to be provided to present and prospective owners or
occupants of real estate.
   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 State Real Estate Appraiser Board determines
that the holder of the credential has engaged in a discriminatory
appraisal of real estate on the basis of the race, color, religion, sex,
actual or perceived sexual orientation, actual or perceived gender
identity, age, actual or perceived marital status, disability, familial
status, or national origin of either the prospective owners or
occupants of the real estate or real property, the present owners or
occupants of the real estate or real property, or the present owners
or occupants of the real estate or real properties in the vicinity of
the property, or on any other basis prohibited by federal, State, or
local law.
   If the board finds a holder of a credential discriminated in the
appraisal of real estate, the appraisal is deemed void and, for a first
violation, 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 after a period of suspension of no less than 30 days. If a
third violation is committed, the board, after appropriate notice and
a hearing, is to revoke the credential of the holder and order the
holder to make restitution of the discriminatory appraisal. A holder
of a credential who discriminates in the appraisal of real estate is
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also subject to civil penalties of varying amounts depending on the
violation—up to $10,000 for a first violation; up to $25,000 for a
second violation occurring within five years of the first; and up to
$50,000 for a third violation. A complainant is also granted the
right to initiate a lawsuit in Superior Court.
   Additionally, the bill provides that within three days of receiving
a mortgage loan application, a licensed mortgage broker or licensed
real estate broker, broker-salesperson, or other mortgage
salesperson must provide the mortgage applicant with a document,
provided free of charge, that contains information, in a form and
manner as prescribed by the board, informing the applicant 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.
This requirement will apply to all applications for mortgages for
residential real estate.
   Finally, the bill requires that, when receiving a report of an
alleged discriminatory appraisal, the Division on Civil Rights must
ascertain the basis for the allegation and solicit from the
complainant relevant demographic information, including but not
limited to the identity of the complainant. The complainant may
provide the demographic information solicited by the division on a
voluntary basis. The division must compile any demographic
information provided by the complainants and report in the
aggregate the demographic information collected to the Governor
and to the Legislature on or before July 1, 2026.

COMMITTEE AMENDMENTS
    The committee amended the bill to:
    (1) allow a complainant to initiate a lawsuit in Superior Court
pursuant to the “Law Against Discrimination;”
    (2) stipulate that the requirement that the distribution of document
on how to report suspicions of a discriminatory appraisal by the holder
of an appraising credential will be solely performed by mortgage
salespersons to mortgage applicants;
    (3) clarify that the requirement to provide mortgage applicants
with a document informing the applicants of the opportunity to report
suspicions of a discriminatory real estate appraisal will apply to all
mortgage applications for residential real estate; and
    (4) make certain technical changes.


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