Replaces school impact fees and provides additional revenue to high growth school districts.

Requires that, by December 1, 2007, the superintendent of public instruction shall prepare a report to the appropriate committees of the house of representatives and senate on the amount of impact fees as defined in RCW 82.02.090 and mitigation fees pursuant to RCW 43.21C.060 received by each school district in the 2006-07 school year.

Declares that, on or after the effective date of this act, cities and counties may not impose impact fees for system improvements for school facilities.