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 and will assess institutions' compliance with consumer protection laws, retail lending efforts, and community development initiatives. Institutions will be rated on a scale from "Outstanding" to "Substantial noncompliance," with public input solicited during the evaluation process. Those rated poorly will be required to submit improvement plans, which will also be open for public comment.

To further support underserved communities, the bill requires the department to conduct disparity studies to identify areas and populations lacking adequate financial services. Regulated financial institutions must collect and maintain data on their community development lending and investments, which will be publicly available to promote transparency. Additionally, institutions will be required to display public notices regarding their performance evaluations in their offices and on their websites. The bill also includes the repeal of P.L.1991, c.294, which previously governed similar matters, and it will take effect immediately upon passage.