Declares that recognizing that all disasters are local disasters, the legislature therefore intends to strengthen local emergency response, mitigation, preparation, and coordination by establishing a stable source of funding with the intent that Washington state become the nationally recognized leader in emergency management. The funding will be dedicated to the development and coordination of local government emergency management programs by encouraging joint training, citizen and industry involvement, public education, and relationship building among local and state emergency management officials.

Provides that, in order to provide funds for emergency management, preparedness, and assistance, an annual surcharge of two dollars per policy must be imposed on every homeowner's, mobile homeowner's, tenant homeowner's, and condominium unit owner's insurance policy, and an annual four-dollar surcharge shall be imposed on every commercial fire, commercial multiple peril, and business owner's property insurance policy, issued or renewed on or after the effective date of this act.

Provides that, beginning in January 2008 and biennially thereafter, the department must conduct in conjunction with the emergency management council a strategic assessment of, and issue a report on, the ability of state, local, and tribal emergency management organizations to effectively provide for all phases of comprehensive emergency management.

Requires the joint legislative audit and review committee to study and review the performance of programs implemented under this act.

Requires the committee to provide a final report on this review by December 2008.