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. The legislation also requires that demographic data be included in reports published by state agencies after June 30, 2030, and outlines the necessity for agencies to consult with state ethnic commissions and the governor's office of Indian affairs regarding appropriate categories for data collection.

Additionally, the bill establishes a multiagency committee managed by the Office of Financial Management to review and approve requests for exemptions or variances from the detailed data collection requirements. Each agency is required to develop a phased implementation plan addressing technology updates, data security, and other logistical considerations, with plans due by December 1, 2026. The bill also reenacts and amends existing law regarding the collection of student-level data in schools, aligning it with the new demographic data collection standards. Overall, the legislation seeks to ensure that demographic data collection is comprehensive, accurate, and reflective of Washington's diverse population.