Bill Text: NJ A4693 | 2024-2025 | Regular Session | Introduced
Bill Title: Reduces membership of State Real Estate Appraiser Board and prohibits discriminatory practices in property appraisals.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-09-12 - Introduced, Referred to Assembly Regulated Professions Committee [A4693 Detail]
Download: New_Jersey-2024-A4693-Introduced.html
Sponsored by:
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
SYNOPSIS
Reduces membership of State Real Estate Appraiser Board and prohibits discriminatory practices in property appraisals.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the State Real Estate Appraiser Board and amending and supplementing P.L.1991, c.68.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1991, c.68 (C.45:14F-3) is amended to read as follows:
3. There is created within the Division of Consumer Affairs in the Department of Law and Public Safety a State Real Estate Appraiser Board. The board shall consist of [11] seven members who are residents of the State, two of whom shall be public members and one of whom shall be a State executive department member appointed pursuant to the provisions of section 2 of P.L.1971, c.60 (C.45:1-2.2). Of the remaining [eight] four members, [three] one shall be a State licensed real estate [appraisers] appraiser, [three] one shall be a State certified real estate [appraisers] appraiser, and two shall be representatives of the appraisal management company industry, each of whom shall be State certified real estate appraisers or State licensed real estate appraisers. One representative of the appraisal management company industry shall be affiliated with an appraisal management company that is owned, in whole or in part, by a federally regulated financial institution, and one representative of the appraisal management company industry shall be affiliated with an appraisal management company that is not owned, in whole or in part, by a federally regulated financial institution. The initial real estate appraiser members of the board may hold a real estate appraisal designation from an organization recognized by the Appraisal Foundation, but these appointments shall not be granted or denied on the basis of organizational membership alone.
The Governor shall appoint the public members, the real estate appraiser members, and the representatives of the appraisal management company industry to the board [with the advice and consent of the Senate] as follows: three members of the board shall be appointed upon recommendation of the Speaker of the General Assembly, one of whom shall be a public member, one of whom shall be a State licensed real estate appraiser, and one of whom shall be a representative of the appraisal management company industry and affiliated with an appraisal management company that is not owned, in whole or in part, by a federally regulated financial institution; and three members shall be appointed upon recommendation of the Senate President, one of whom shall be a public member, one of whom shall be a State certified real estate appraiser, and one of whom shall be a representative of the appraisal management company industry and affiliated with an appraisal management company that is owned, in whole or in part, by a federally regulated financial institution.
The Governor shall appoint each member for a term of three years[,except that with regard to the real estate appraiser members first appointed, two shall serve for terms of three years, two shall serve for terms of two years, and two shall serve for terms of one year]. Each member shall serve until his successor has been qualified. Any vacancy in the membership of the board shall be filled for the unexpired term in the manner provided by the original appointment. No member of the board shall serve more than two successive terms in addition to any unexpired term to which [he] the member has been appointed. The Governor may remove a member of the board for cause.
(cf: P.L.2017, c.72, s.24)
2. (New section) a. Consistent with the provisions of section 8 of P.L.1978, c.73 (C.45:1-21), a holder of a license or certificate pursuant to P.L.1991, c.68 (C.45:14F-1 et seq.) or registration pursuant to P.L.2017, c.72 (C.45:14F-27 et al.) shall not discriminate in the appraisal of real estate on the basis of the actual or perceived race, color, or national origin of the property buyer, property owner, agent of the property buyer or owner, or present owners or occupants of the properties within the neighborhood of the property subject to appraisal.
b. For the purpose of this section, "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 a transaction does not involve the associated parcel or tract of land.
3. (New section) a. Complaints of alleged discrimination pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be received and investigated by the Department of Law and Public Safety. If, upon investigation, a finding of discrimination is made, the department shall forward its findings to the board and shall direct the board to take disciplinary action against 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.).
b. (1) If the holder of a license, certificate, or registration is found by the department to have committed a violation of subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), the discriminatory appraisal shall be void and of no effect and, for a first violation, the board shall:
(a) order the holder to make restitution of the cost of 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.
(2) If the holder of a license, certificate, or registration is found to have committed a second violation of subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall:
(a) suspend the license, certificate, or registration; and
(b) order the holder to make restitution of the cost of the discriminatory appraisal.
(3) After a period of suspension of no less than 60 days, the board may restore the license, certificate, or registration of a holder found to have committed a second violation of subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) upon proof that the holder made restitution required pursuant to subparagraph (b) of paragraph (2) of this subsection.
(4) If 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.) is found to have committed a third violation of subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall, after appropriate notice and hearing, revoke the license, certificate, or registration for a period of no less than two years and order the holder to make restitution of the coast of the discriminatory appraisal.
(5) 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.) who is found, pursuant to paragraphs (2) and (4) of this subsection, to have committed two or more violations of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall also be subject to a civil penalty not exceeding $5,000 for a second violation occurring within five years of the first, and $10,000 for a third and subsequent 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.).
4. Section one of this act shall take effect one year next following the date of enactment and sections two and three shall be applicable to appraisals performed on or after the date of enactment.
STATEMENT
This bill reduces the membership of State Real Estate Appraiser Board and prohibits discriminatory practices in property appraisals.
Under the bill, the State Real Estate Appraiser Board will be reduced from its present composition of 11 members to seven members. The form in which appointments to the board are handled will change as well, with the Governor appointing the public members, real estate appraiser members, and representatives of the appraisal management company industry only upon recommendation of the Senate President and Speaker of the General Assembly. The Senate President and Speaker of the General Assembly will each be able to recommend the appointment of three board members.
The bill also prohibits discriminatory practices in property appraisals and requires the Department of Law and Public Safety to investigate and resolve complaints against a real estate appraiser or appraisal management company.
The bill additionally provides that the department direct the State Real Estate Appraiser Board to take disciplinary action against any real estate appraiser or appraisal management company found by the department to have discriminated in the appraisal of real estate. The board will be directed by the department to void any appraisal found to be discriminatory and require that the violating appraiser or appraisal management company make restitution of the cost of the discriminatory appraisal. The board will also be directed to require a violating appraiser, for their first violation, to attend an anti-bias seminar and, depending on the number of violations committed, suspend the license, certificate, or registration of the appraiser or appraisal management company for a certain period of time. An appraiser or appraisal management company with multiple violations will also be subject to a civil penalty not to exceed $5,000 for a second violation occurring within five years of the first, and $10,000 for a third and subsequent violation.
