Community Reinvestment Account. The Community Reinvestment Account (Account) is an appropriated account that was created by the 2022 Supplemental Operating Budget with an initial $200 million transferred into the account.  Expenditures from the Account may be used by the Department of Commerce (Commerce) for the following purposes:

• economic development programs, including addressing wealth disparities through asset building and providing access to financial resources such as small business grants, loans and other training and support activities;
• civil and criminal legal assistance to provide postconviction relief and case assistance;
• community-based violence intervention and prevention services;
• 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.

Commerce must collaborate with the Governor's Office of Indian Affairs and by and for community organizations, as defined by Commerce and the Office of Equity, in distributing grants funded out of the Account.

Community Reinvestment Plan. The 2022 Supplemental Operating Budget provided $1 million to develop a Community Reinvestment Plan (Plan) to guide distribution of grants from the Account. Commerce, in partnership with the Office of Equity worked with communities across the state to develop recommendations for how Commerce should distribute the original $200 million in the Account across the state through more than 17 individual grant programs.

Reporting and Plan Updates. Starting in 2032, Commerce must, in partnership with the Office of Equity and by and for community organizations, update the Plan every ten years to identify the distribution of funds allocated to the Account. The Plan must include criteria for eligible communities and programs as well as the development of accountability measures for distribution and use of funds. At a minimum, the plan must address how the account funding will:

• produce long-term economic benefit to the state, a region of the state or a particular community in the state;
• result in significant long-term economic benefits; and
• ensure that projects or programs do not require continuing state support, expenditures will not supplant private investment, expenditures are accompanied by additional investment, and nonprofits, faith-based, and grassroots organizations are prioritized for funding.

By June 30, 2027 and every two years thereafter, Commerce must submit a report to the Governor and relevant committees of the Legislature that includes a summary of the implementation of the Plan. The Office of Equity must review both the Plan and report. Commerce must use the plan to guide the distribution of appropriated funds.

Use of Funds Study. The Washington State Institute for Public Policy (WSIPP) is required to study Commerce's distribution of and recipient organizations' use of funds allocated under the Account. WSIPP must submit a report with their findings to the appropriate committees of the Legislature by June 30, 2027.

Legislative Intent. The Legislature intends to transfer an amount no less than $100 million per year for continued implementation of the community investment plan, annual reporting, and updates to the plan.