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 the institutions' community development efforts and compliance with consumer protection laws. Institutions will receive ratings that range from "Outstanding" to "Substantial noncompliance," with those rated as "needs to improve" or "substantial noncompliance" being prohibited from receiving deposits from state agencies. The bill also requires the development of improvement plans for institutions that receive low ratings, incorporating public feedback.

Additionally, the bill mandates the department to conduct disparity studies to identify underserved populations and areas, ensuring that evaluations reflect the institutions' contributions to community development. Regulated financial institutions must display public notices about their performance evaluations in their offices and on their websites. The legislation repeals P.L.1991, c.294 and empowers the Commissioner of Banking and Insurance to adopt necessary rules and regulations for implementation. The act is set to take effect immediately upon passage.