This bill establishes a community reinvestment law in New Jersey, mandating the Department of Banking and Insurance to evaluate and rate lending institutions based on their practices, investments, and services for low- and moderate-income consumers. The evaluations will occur every three years, with institutions rated on a scale from "Outstanding" to "Substantial noncompliance." Institutions that receive low ratings will be required to submit improvement plans, which will be subject to public comment. Additionally, the bill emphasizes the importance of public input during evaluations and requires institutions to collect and maintain data on community development lending and investments, enhancing transparency and accountability.

Furthermore, the bill mandates the department to conduct disparity studies to identify underserved populations and areas, ensuring that these findings inform future evaluations of financial institutions. Institutions rated as "needs to improve" or "substantial noncompliance" will be prohibited from receiving deposits from state agencies. The legislation also requires regulated financial institutions to display public notices regarding their performance evaluations in their offices and on their websites. The bill repeals P.L.1991, c.294 and empowers the Commissioner of Banking and Insurance to adopt necessary rules and regulations for implementation, with the act taking effect immediately.