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.

Additionally, the bill outlines the responsibilities of state agencies regarding data collection and reporting. Agencies must include the collected demographic data in their reports on race or ethnic origin starting June 30, 2025, and must justify their data collection methods. The bill also allows agencies to request exemptions or variances from the detailed data collection requirements if justified. Furthermore, it amends existing law regarding the collection of student-level data in schools, aligning it with the new requirements for demographic data collection. The bill 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.