The stated mission of the Department of Commerce (Commerce) is to strengthen communities in Washington. The agency administers a portfolio of more than 100 programs and several state boards and commissions. Programs administered by Commerce address a wide range of issues including homelessness assistance, crime victims advocacy, public safety, rural communities, and community economic opportunities, among others.
The Community Reinvestment Account (Account) is created in the State Treasury. Moneys in the Account may be spent only after appropriation. Expenditures from the Account may only be spent by Commerce for:
The Account is added to the statutory list of accounts that receive their proportionate share of earnings based on average daily balance.
The substitute bill makes the following changes to the original bill:
(In support) Studies have shown that the descendants of enslaved Africans have experienced long term effects of trauma. There must be more than an acknowledgment of the problem; there must be solutions offered. Systemic racism has led to racial disparities in education and poverty in the Black community. Access to funding is needed for healing and racial reconciliation. Cannabis revenue must be reinvested in communities harmed by the war on drugs.
Other states that are legalizing cannabis are doing so with an equity lens regarding how cannabis money is spent by reinvesting cannabis revenues into the communities impacted by the war on drugs. These communities need something more than just legal cannabis. Almost 80 percent of those in federal prison for drug crimes are Black and brown while most people making money off of legal cannabis are white. This bill will not take money away from other programs. The funds will be managed by Commerce which will ensure that the funds are reinvested into the targeted communities through support for economic development, civil and criminal legal aid, violence intervention and prevention, and reentry services.
Black and brown people have been unsuccessful in obtaining cannabis retail licenses due to barriers facing BIPOC-owned retail stores. Cannabis revenue must be reinvested in communities that were harmed by the war on drugs in order to promote economic development and serve those involved in the criminal justice system. The four areas in the bill are a direct response to recommendations by the Social Equity Cannabis Task Force. This bill can help build on existing efforts to address racial disparities in the state. Public safety includes a network larger than police; it includes early education, mentoring, and other community-based systems. Greater state-level investment in prevention will help communities.
For too long, the legal system has operated in ways that have disproportionately impacted people of color. A case does not end at sentencing. People need to get convictions vacated so they can get back to work. Access to an attorney means access to rights. This legislation is restorative by providing criminal and civil legal representation. Many drug convictions involve marijuana and were mainly attached to people of color. Consequences of these convictions may include economic injustice and housing instability. These individuals are left sidelined as Washington now prospers in the marijuana business. The Washington State Supreme Court led the charge with State v. Blake and now the Legislature has an opportunity to move the needle forward.
This bill is important because it centers on communities who have been excluded from opportunities such as the cannabis industry. The BIPOC communities are also impacted by health inequities, as highlighted by the pandemic; these inequities put the entire community at risk. Climate change will cause additional public health emergencies and communities need to be more protected. This bill will address past and current harms of racism but will also support recovery from COVID-19 and increase resiliency. The Cannabis Social Equity Task Force recommended 50 percent of cannabis money but $125 million is a start. There is a billion dollars worth of need, so this bill is only a down payment. There should be an increase in the funds.
The bill seems broad and should be narrowed down to Black and brown communities. Safeguards should be added to the bill to outline what the funds can and cannot be used for. Entities with a history of certain misconduct should be barred from using these funds. There should be solid fiscal oversight of the funds to protect the program against problems that have derailed similar cannabis social equity programs. We must be good stewards of public dollars.
(Opposed) None.
The second substitute bill sets requirements for how the Department of Commerce (Commerce) shall distribute funds provided in the Community Reinvestment Account (Account). During Phase 1 of implementation, which lasts until June 30, 2024, Commerce shall distribute funds through existing programs and networks. During Phase 2 of implementation, which begins after June 30, 2024, Commerce must distribute funds in accordance with a Community Reinvestment Plan (Plan).
The Plan must address criteria for eligible communities and programs, development of accountability measures, tracking of outcomes, and how projects and programs will meet certain requirements. Commerce must submit a report, including the Plan, to the Governor and the Legislature by December 1, 2023. Commerce must update the Plan every 10 years. The Office of Equity must review the Plan.
The second substitute bill removes support for 911 services as an eligible use of funds in the Account. The second substitute bill adds intent language.
(In support) The cannabis industry and small business owners support this bill. The Social Equity in Cannabis Task Force, as part of its work, discussed ways to reimagine the role that taxes and other revenues from cannabis sales can meet the needs of populations that were disproportionately impacted by the war on drugs, especially Black residents. The cannabis industry believes it makes sense to use cannabis revenues for these purposes. The community reinvestment grants proposed in the bill would provide direct funding for Black businesses and anchor institutions such as churches and nonprofits. Investing in small businesses is a proven method of spurring economic recovery and growth through providing services, jobs, and tax revenues.
(Opposed) None.