The proposed bill amends Title 7 of the Pennsylvania Consolidated Statutes to create a new section titled "PART III COMMUNITY REINVESTMENT," which focuses on enhancing community reinvestment efforts by both banks and nonbank entities. Key provisions require banks to define their local communities, collect and report loan data, maintain public files, and provide notices about their community reinvestment performance, particularly emphasizing the inclusion of low- and moderate-income neighborhoods. The Department of Banking and Securities is tasked with assessing banks' performance in meeting community credit needs, including fair housing efforts and support for delinquent mortgage customers, and will publicly evaluate and rate their performance.

Additionally, the bill introduces specific amendments to existing banking regulations, including the creation of a confidential section in performance evaluations that protects sensitive information while allowing disclosure to banks under certain conditions. It establishes criteria for evaluating banks' applications for branches or mergers based on their community credit performance and mandates the department to compile an annual list of poorly rated banks, which will be barred from receiving state deposits. The bill also extends these community reinvestment requirements to nonbank entities, such as community credit unions and mortgage lenders, mandating them to delineate assessment areas and maintain public access to their performance evaluations. The act is set to take effect 365 days after its passage.