wa-law.org > bill > 2025-26 > HB 2523 > Original Bill
The legislature finds that in order to address racial, economic, and social disparities in communities across the state created by the historical design and enforcement of state and federal criminal laws and penalties for drug possession and use in Washington state, aggressive approaches and targeted resources to support local design and control of community-based responses to these outcomes are required.
The legislature further finds that it initially appropriated $1,000,000 for the development of a community reinvestment plan and $200,000,000 for implementation of the plan in the 2023-2025 fiscal biennium through the community reinvestment account in RCW 43.79.567. The legislature subsequently appropriated an additional $60,000,000 and $50,000,000 for the 2025-2027 and 2027-2029 fiscal biennia. The legislature finds that the initial phase of the program required use of the department of commerce's existing programs and networks to distribute money as quickly as possible. The department of commerce and the office of equity published a preliminary report on December 1, 2022, a community reinvestment plan report on September 19, 2023, and a community investment plan implementation report in October 2025. The legislature intends to transfer an amount no less than $100,000,000 per year for continued implementation of the community investment plan, annual reporting on the plan, and updates to the plan.
The legislature recognizes that despite the development of a community investment plan and reporting on implementation of the plan, existing programs and networks may not reach the people who are most affected by the historic laws and penalties for drug possession. Therefore, the legislature intends for the next phase of implementation to include policy direction for expenditure of the legislative appropriations, annual reporting on distribution of the appropriated funds, direction to update the community investment plan every 10 years, and review of implementation of the program to date by the Washington state institute for public policy.
The community reinvestment account is created in the state treasury. Revenues to the account shall consist of appropriations and transfers by the legislature and all other moneys directed for deposit into the account. Moneys in the account may be spent only after appropriation.
Expenditures from the account may be used by the department of commerce for:
Economic development, which includes addressing wealth disparities to promote asset building such as homeownership and expanding access to financial resources including, but not limited to, grants and loans for small businesses and entrepreneurs, financial literacy training, and other small business training and support activities;
Civil and criminal legal assistance to provide postconviction relief and case assistance, including the expungement of criminal records and vacation of criminal convictions;
Community-based violence intervention and prevention services, which may include after-school programs focused on providing education and mentorship to youths;
Reentry services to facilitate successful transitions for persons formerly incarcerated in an adult correctional facility or juvenile residential facility in Washington; and
Agricultural and economic support and services available to historically marginalized communities.
The distribution of the grants under this section must be done in collaboration with "by and for community organizations" as defined by the department of commerce and the office of equity. "By and for community organizations" include, but are not limited to, those operated by and for Black, Latino, Native American, Asian, Native Hawaiian, and Pacific Islander communities.
The department shall, in partnership with the office of equity, and "by and for community organizations" as used in RCW 43.79.567, update the community reinvestment plan every 10 years to identify the distribution of funds allocated to the community reinvestment account in RCW 43.79.567. The plan must include criteria for eligible communities and programs, development of accountability measures to ensure that distribution and use of funding meets intended purposes, and tracking of outcomes for the funds.
At a minimum, the plan must address how the community reinvestment account funding will:
Produce significant long-term economic benefits to the state, a region of the state, or a particular community in the state;
Result in significant long-term economic benefits in the form of new jobs, job retention, increased personal wealth, or higher incomes for citizens of the state or a particular community in the state; and
Ensure that:
Projects or programs do not require continuing state support;
An expenditure will not supplant private investment;
An expenditure is accompanied by additional public or private investment; and
Nonprofit, faith-based, and grassroots organizations are prioritized for funding.
In updating the plan, the department is encouraged to incorporate existing and ongoing work from relevant task forces and work groups including, but not limited to, the social equity in cannabis task force, the statewide reentry council, and the homeownership disparities workgroup.
The department shall submit a report consistent with RCW 43.01.036 to the governor and relevant committees of the legislature by June 30, 2027, and every two years thereafter, that includes a summary of implementation of the plan, including outcome-based metrics.
The office of equity must review the plan and the report.
The department shall use the plan to guide the distribution of appropriated funds. The department must review and update the plan every 10 years, with the first update due in 2032.
For the purposes of this section, "plan" means the community reinvestment plan.
The Washington state institute for public policy must conduct a study researching, analyzing, and determining, to the extent practicable, the department of commerce's distribution of and the recipient organizations' use of the funds allocated under the community reinvestment account in RCW 43.79.567.
In conducting the study, the Washington state institute for public policy may conduct fact-finding and stakeholder discussions with the department of commerce, the office of equity, organizations that received funds, and organizations that were eligible for funds but did not receive funds.
The department of commerce and the office of equity must cooperate with the Washington state institute for public policy to facilitate access to data or other resources necessary to complete the work of this section.
By June 30, 2027, and in compliance with RCW 43.01.036, the Washington state institute for public policy shall submit a report to the appropriate committees of the legislature with the findings of its study under this section.
This section expires June 1, 2028.