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 need to define their local communities, collect and report loan information, and maintain public access to their community reinvestment performance evaluations. The Department of Banking and Securities is tasked with assessing banks' performance in meeting the credit needs of their communities, particularly in low- and moderate-income neighborhoods. The bill also requires banks to provide public notices about their community reinvestment efforts and maintain public files with specific information, enhancing transparency and accountability.

In addition to regulations for banks, the bill introduces new requirements for nonbank entities such as community credit unions and mortgage lenders. These entities must delineate their assessment areas by January 1, 2023, and will be evaluated on their performance in meeting community credit needs. The Department will conduct periodic assessments and maintain public access to performance evaluations. Nonbank entities rated poorly will face restrictions on receiving funds and approvals for expansions or amendments. The legislation aims to promote equitable banking services and community involvement, with the act set to take effect 365 days after its passage.