House Bill No. [insert number] proposes the enactment of the Louisiana Community Investment Fairness Act (LA-CIFA), which aims to enhance community investment by state-chartered financial institutions. The bill outlines the findings that state-chartered institutions benefit from public resources yet often underperform in lending to low-to-moderate income (LMI) and minority communities, a practice historically linked to redlining. The Act establishes a framework for community investment examinations, requiring the commissioner of the office of financial institutions to assess these institutions' lending practices, investments in community development, and accessibility of financial services to LMI and minority customers at least once every three years.

The bill mandates public disclosure of examination results and ratings, which will categorize institutions as "Outstanding," "Satisfactory," "Needs to Improve," or "Substantial Noncompliance." Institutions rated "Needs to Improve" must submit a corrective action plan, while those rated "Substantial Noncompliance" for two consecutive cycles may face significant consequences, including denial of applications for new branches or mergers. The Act also requires institutions to publicly display their ratings and for the commissioner to publish an annual report summarizing the performance of all regulated institutions, thereby promoting transparency and accountability in community investment practices.