This bill establishes a community reinvestment law in New Jersey, mandating the Department of Banking and Insurance to evaluate and rate regulated financial institutions, such as banks and credit unions, based on their lending practices and services provided to low- and moderate-income consumers. The evaluations will occur every three years and will assess institutions' compliance with consumer protection laws, community development efforts, and overall financial services. Institutions that receive low ratings, specifically those deemed "needs to improve" or "substantial noncompliance," will be prohibited from accepting deposits from state agencies. Additionally, the bill requires these institutions to create community benefits plans with measurable goals to enhance their contributions to underserved communities.

To further support transparency and accountability, the bill mandates the Department to conduct disparity studies to identify underserved populations and areas, with findings to inform future evaluations. Each regulated financial institution must display a public notice regarding their performance evaluations in their offices and on their websites. The Commissioner of Banking and Insurance is responsible for adopting the necessary rules and regulations to implement this act. The bill also includes the repeal of P.L.1991, c.294, and is set to take effect immediately upon passage.