The proposed legislation, known as the Community Reinvestment and Equity Act, aims to address health disparities and economic disinvestment in qualified census tracts by imposing a five percent excise tax on certain businesses, specifically gas stations, convenience stores, and package liquor stores that sell alcohol and tobacco products. The tax will be effective starting January 1, 2027, and the revenue generated will be directed to a newly established Community Reinvestment Fund. This fund will support various initiatives, including healthcare, childcare, and community development, with a focus on low-income and moderate-income neighborhoods. The act also mandates that covered businesses file annual community reinvestment reports detailing their contributions to local services and initiatives.

Additionally, the legislation establishes a grant program administered by the Department of Economic Development, which will allocate funds based on specific criteria to support childcare, community development, health centers, and food access initiatives. The act emphasizes transparency and accountability by requiring the department to maintain a searchable database of business filings and grant awards. It also includes provisions for penalties for noncompliance and allows for appeals regarding fines imposed on businesses. Overall, the Community Reinvestment and Equity Act seeks to promote reinvestment in underserved areas while addressing public health and safety concerns.