House Bill Analysis, HB 2523 - Community Reinvestment Program (Hearing Date 1/27/26)
Summary
House Bill Analysis of HB 2523, Concerning the community reinvestment program, prepared by the Office of Program Research for the Technology, Economic Development, & Veterans Committee, with a hearing date of 1/27/26. The sponsors listed begin with Representatives Reeves, Hill and Davis. The brief summary says the bill requires the Department of Commerce to update the Community Reinvestment Plan and review and update it every 10 years, beginning in 2032, and requires the Washington State Institute for Public Policy to study the distribution and use of the funds allocated under the Plan by June 30, 2027. The analysis lists Appropriation: None and a fiscal note requested on January 19, 2026.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“House Bill Analysis, HB 2523 - Community Reinvestment Program (Hearing Date 1/27/26).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2026-01-27-a33763-d292184-bill-analysis-5a0f186edb/
, SHA-256 8da8c8dc848cef36730fbe15c11a1d519609046d9b4b0110be1f2cb50fe5fbf8.Full text
Washington State BILL
House of Representatives
Office of Program Research ANALYSIS
Technology, Economic Development, &
Veterans Committee
HB 2523
Brief Description: Concerning the community reinvestment program.
Sponsors: Representatives Reeves, Hill, Davis, Gregerson, Parshley, Ormsby, Santos, Donaghy,
Scott and Obras.
Brief Summary of Bill
• Requires the Department of Commerce (Commerce) to update the
Community Reinvestment Plan (Plan) for distribution of the funds in the
Community Reinvestment Account, specify minimum Plan content, and
review and update the Plan every 10 years, beginning in 2032.
• Requires the Office of Equity to review the Plan, and requires Commerce
to report on Plan implementation every two years, beginning in June
2027.
• Requires the Washington State Institute for Public Policy to study
Commerce's distribution of, and the recipient organizations' use of, the
funds allocated under the Plan by June 30, 2027.
Hearing Date: 1/27/26
Staff: Martha Wehling (786-7067).
Background:
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
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.
House Bill Analysis -1- HB 2523
including homelessness assistance, crime victims advocacy, public safety, rural communities,
and community economic opportunities, among others.
The Community Reinvestment Account (Account) was created in the State Treasury in 2022.
Moneys in the Account may be spent only after appropriation. Expenditures from the Account
may only be spent by Commerce for:
• economic development, which includes addressing wealth disparities to promote asset
building such as home ownership 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 post-conviction relief and case assistance,
including the expungement of criminal records and vacation of criminal convictions;
• 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 to historically marginalized communities.
Commerce is required to distribute funds under the Account in collaboration with "by and for
community organizations," which include those operated by and for Black, Latino, Native
American, Asian, Native Hawaiian, and Pacific Islander communities.
Summary of Bill:
Commerce, in partnership with the Office of Equity and "by and for community organizations",
must update the Community Reinvestment Plan (Plan) every 10 years, beginning in 2032. 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 Account funding will:
• produce long-term economic benefits to the state;
• result in significant long-term economic benefits or higher incomes for citizens; and
• ensure that: (1) projects and programs do not require continuing state support; (2) an
expenditure will not supplant private investment; and (3) nonprofit, faith-based, and
grassroots organizations are prioritized for funding.
Commerce is encouraged to incorporate existing work from relevant task forces. The Office of
Equity must review the Plan. Every two years, beginning by June 30, 2027, Commerce is
required to submit a report to the Legislature on Plan implementation, including outcome-based
metrics. Commerce must use the Plan to guide the distribution of appropriated funds.
The Washington State Institute for Public Policy is required to study Commerce's distribution of,
and the recipient organizations' use of, the funds allocated under the Plan by June 30, 2027.
Appropriation: None.
House Bill Analysis -2- HB 2523
Fiscal Note: Requested on January 19, 2026.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is
passed.
House Bill Analysis -3- HB 2523
File and source
- File
- 2026-01-27_a33763_d292184_bill-analysis.pdf
- Size
- 41,572 bytes
- SHA-256
- 8da8c8dc848cef36730fbe15c11a1d519609046d9b4b0110be1f2cb50fe5fbf8
- Original
- No public link identified.