The 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 various factors, including retail lending and compliance with consumer protection laws. Institutions will be rated on a scale from "Outstanding" to "Substantial noncompliance," with those receiving low ratings required to submit improvement plans that will be open for public comment. Additionally, the bill prohibits institutions rated as needing improvement or in substantial noncompliance from receiving deposits from state agencies.

To further promote transparency and accountability, the bill requires regulated financial institutions to collect and maintain data on community development lending and investments, and to display public notices regarding their performance evaluations in their offices and on their websites. The legislation also mandates the Department to conduct a disparity study every three years to identify underserved populations and areas, with findings reported to the Legislature. Furthermore, the bill repeals P.L.1991, c.294, and is set to take effect immediately upon passage.