A3674

An Act concerning the issuance of a professional license or other authorization to practice a profession and supplementing P.L.1945, c.169 (C.10:5-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. A person denied a license, certification, registration, or other authorization by an entity created under Title 45 or Title 52 of the Revised Statutes or by a principal department of the Executive Branch of State government, an entity within a department, or any entity created to license or otherwise regulate a profession and who claims the denial is the result of a policy or process promulgated or otherwise effectuated by the entity that causes a disparate impact on the issuance of a license, certification, registration, or other authorization on the basis of race or ethnicity shall have the right to file a verified complaint in writing with the Division of Civil Rights in the New Jersey Department of Law and Public Safety or the New Jersey Superior Court.

b. The process for filing a verified complaint pursuant to this act shall follow the provisions of section 12 of P.L.1945, c.169 (C.10:5-13) regarding filing, prosecution, jury trials, remedies and damages.

c. The individual filing the complaint shall have the burden to demonstrate, by a preponderance of the evidence, that an application for licensure was denied by a licensing entity as a result of a policy or process that causes a disparate racial or ethnic impact. The individual shall demonstrate that the disparate impact is caused by:

(1) a policy or process that has a disproportionate impact on individuals of a certain race or ethnicity;

(2) a policy or process that is applied inconsistently or unreasonably by the licensing entity; or

(3) factors considered by the licensing entity that are unrelated to the profession in which the individual seeks a license.

d. It shall be considered a defense against a complaint brought pursuant to paragraph (1) of subsection c. of this section that the rationale for a policy or process justifies the policy or process having an identifiable disparate impact on the basis of race or ethnicity. The rationale for a policy or process shall be considered justified if the licensing entity demonstrates that:

(1) the disparate impact is based on one or more legitimate, bona fide factors, such as training, education, experience, or examination, or the quality of services provided;

(2) the factor or factors are not based on, and do not perpetuate, a disparate impact based on race or ethnicity;

(3) each of the factors is applied reasonably;

(4) one or more of the factors account for the entire disparate impact; and

(5) the factors are related to the license being sought.

A factor shall not apply if the individual demonstrates that there are alternative policies or processes that would serve the same purpose without producing the disparate impact.

2. This act shall take effect immediately.

STATEMENT

This bill creates a private right of action for an individual who was denied a professional license, certification, registration or other authorization by an entity created under Title 45 or Title 52 of the Revised Statutes, or by a principal department of the Executive Branch of State government, an entity within a department or any entity created to license or otherwise regulate a profession and who claims the denial is the result of a policy or process promulgated or otherwise effectuated by the State entity that causes a disparate impact on the issuance of a license, certification, registration or other authorization on the basis of race or ethnicity. Under the bill, the individual has a right to file a verified complaint in writing with the Division of Civil Rights in the New Jersey Department of Law and Public Safety or the New Jersey Superior Court.

An individual must follow the provisions of the law against discrimination in order to bring an action pursuant to the bill. Additionally, under the bill, the individual filing a complaint has the burden of demonstrating, by a preponderance of the evidence, that an application for licensure was denied by a licensing entity as a result of a policy or process that causes a disparate racial impact.

The Division on Civil Rights or New Jersey Superior Court is to consider if the individual demonstrates that a disparate impact is caused by:

(1) a policy or process that has a disproportionate impact on individuals of a certain race or ethnicity;

(2) a policy or process that is applied inconsistently or unreasonably by a licensing entity; or

(3) factors considered by a licensing entity that are unrelated to the profession in which the individual seeks a license.

In the bill, it is considered a defense for a licensing entity if the rationale for a policy or process justifies the policy or process having an identifiable disparate impact on the basis of race or ethnicity. The rationale can be justified if the licensing entity demonstrates that:

(1) the disparate impact is based on one or more legitimate, bona fide factors, such as training, education, experience, or examination, or the quality of services provided;

(2) the factor or factors are not based on, and do not perpetuate, a disparate impact based on race or ethnicity;

(3) each of the factors is applied reasonably;

(4) one or more of the factors account for the entire disparate impact; and

(5) the factors are related to the license being sought.

The bill provides that a factor shall not apply if it is demonstrated that there are alternative policies or processes that would serve the same purpose without producing the disparate impact.