The proposed bill amends Title 7 of the Pennsylvania Consolidated Statutes to create a new section titled "PART III COMMUNITY REINVESTMENT," which includes two chapters focusing on community reinvestment by banks and nonbank entities. Chapter 71 outlines the responsibilities of banks, including the requirement to define their local communities, collect and report loan information, and maintain public files on their community reinvestment performance. The Department of Banking and Securities is tasked with evaluating banks' compliance with community reinvestment laws and ensuring public access to performance evaluations. Additionally, banks must display community reinvestment notices in their offices to encourage public feedback.

The bill also introduces regulations for nonbank entities, such as community credit unions and mortgage lenders, mandating them to delineate assessment areas and evaluate their performance in meeting community credit needs. Nonbank entities are required to maintain public access to their performance evaluations and provide notices regarding their community reinvestment efforts. The Department will compile annual lists of both banks and nonbank entities rated poorly in their community reinvestment performance, which will affect their eligibility for certain approvals and funding. The act is set to take effect 365 days after its passage.