Directs the Washington state institute for public policy, in consultation with the employment security department, to conduct a study to address the impacts of Washington state's minimum wage law, and must report its findings to the legislature by December 1, 2006. The study shall address: (1) The extent to which the minimum wage is paid in various industries and occupations in Washington;

(2) A demographic analysis of persons earning the minimum wage, including race, ethnicity, gender, marital status, age, household composition, the number of dependents a minimum wage earner supports, and whether or not the person is the sole wage earner in the household;

(3) The average amount of time an employee who remains with the same employer is paid the minimum wage;

(4) A comparison of minimum wage laws in other states;

(5) The impact of the minimum wage on job creation and job loss from 1990 to the present;

(6) Whether there is any correlation between changes in the state minimum wage and the state unemployment rate, or the unemployment rate in a particular industry;

(7) Wage compression or expansion for workers earning up to one hundred thirty percent of the minimum wage;

(8) Economic activity and wage progression in industries with large numbers of low-wage workers compared to economic activity and wage progression in moderate to high-wage industries in Washington;

(9) The minimum wage's effect on the federal poverty level rates of low-income workers in this state;

(10) The rate at which minimum wage workers and their families use public benefits;

(11) Differences in economic activity attributable to the minimum wage in comparison with similar activity in Oregon, Idaho, and other states similar in economic size and industrial base to Washington; and

(12) The potential impact on employers and employees of a minimum tipped wage.