This bill aims to regulate the use of automated tenant screening tools in New Jersey to reduce discrimination in the rental application process. It defines an "automated tenant screening tool" as a machine-based system used by landlords to evaluate prospective tenants based on specific objectives. The bill mandates that such tools must undergo a bias audit within the past year before they can be sold or used, and it requires that the sale includes an annual bias audit service at no extra cost. Additionally, developers must implement recommendations from the most recent bias audit and provide a notice indicating that the tool is subject to the bill's provisions.

Furthermore, the bill prohibits landlords from using non-quantifiable metrics, such as race, gender, or age, in the screening process, ensuring that only quantifiable metrics like income and credit score are considered. Landlords are also required to inform prospective tenants in writing about the use of automated screening tools. The legislation establishes civil penalties for developers and landlords who fail to comply, with penalties increasing for repeated violations. Overall, the bill seeks to enhance transparency and promote fair practices in tenant screening.