The bill aims to enhance the collection of demographic data by state agencies in Washington to better assess the effectiveness and equity of state-supported programs. It mandates that all state agencies collect voluntary self-identification demographic data that goes beyond the minimum categories established by the federal Office of Management and Budget's statistical policy directive number 15. Specifically, the bill emphasizes the need for detailed subcategories within broader racial and ethnic groups, such as disaggregating the Asian demographic into specific ethnicities like Chinese, Vietnamese, and Filipino, among others. This detailed data collection is intended to provide a more accurate understanding of the diverse populations served by state programs and to inform racial equity analyses.

Additionally, the bill includes provisions for the collection and reporting of demographic data by school districts, requiring them to adopt the updated federal guidelines for student-level data collection starting in the 2025-26 school year. It specifies that reports must include disaggregated data by various subgroups, including Middle Eastern/North African students, and outlines the process for agencies to request exemptions or variances from these requirements. The bill also emphasizes the importance of consulting with ethnic commissions and the governor's office of Indian affairs to ensure the relevance of the demographic categories used in data collection. Overall, the legislation seeks to improve the quality and granularity of demographic data to better serve Washington's diverse population.