This bill establishes a community reinvestment law in New Jersey, mandating the Department of Banking and Insurance to evaluate and rate regulated financial institutions, including banks, mortgage companies, and credit unions, based on their lending practices and services provided to low- and moderate-income consumers. The legislation emphasizes the responsibility of these institutions to meet community needs, particularly in underserved areas. Key definitions are introduced, such as "assessment area" and "community benefits plan," and the criteria for evaluation include retail lending efforts and compliance with consumer protection laws. Institutions rated as needing improvement will be required to submit plans to enhance their performance.

Furthermore, the bill requires the department to conduct disparity studies to identify underserved populations and areas, with findings made publicly available. Financial institutions must collect and maintain data on community development lending, and the department will disseminate this information to promote transparency. Institutions rated poorly will be prohibited from receiving deposits from state agencies, and they must display public notices regarding their performance evaluations. The bill also includes the repeal of P.L.1991, c.294, and is set to take effect immediately upon passage.