Finds that healthy children are ready to learn. In order to provide students with the opportunity to become responsible citizens, to contribute to their own economic well-being and to that of their families and communities, and to enjoy productive and satisfying lives, the state recognizes the importance that access to appropriate health services and improved health brings to the children of Washington state. In addition, fully immunized children are themselves protected, and in turn protect others, from contracting communicable diseases.

Provides that, consistent with the goals established in RCW 74.09.402, through the program authorized in this act, the department shall provide affordable health care coverage to children under the age of nineteen who reside in Washington state and whose family income at the time of enrollment is not greater than two hundred fifty percent of the federal poverty level as adjusted for family size and determined annually by the federal department of health and human services, and effective January 1, 2009, and only to the extent that funds are specifically appropriated therefor, to children whose family income is not greater than three hundred percent of the federal poverty level. In administering the program, the department shall take such actions as may be necessary to ensure the receipt of federal financial participation under the medical assistance program, as codified at Title XIX of the federal social security act, the state children's health insurance program, as codified at Title XXI of the federal social security act, and any other federal funding sources that are now available or may become available in the future. The department and the caseload forecast council shall estimate the anticipated caseload and costs of the program established in this act.

Requires the department, in collaboration with the department of health, health carriers, local public health jurisdictions, children's health care providers including pediatricians, family practitioners, and pediatric subspecialists, parents, and other purchasers, to identify explicit performance measures that indicate that a child has an established and effective medical home, such as: (1) Childhood immunization rates;

(2) Well child care utilization rates, including the use of validated, structured developmental assessment tools that include behavioral and oral health screening;

(3) Care management for children with chronic illnesses;

(4) Emergency room utilization; and

(5) Preventive oral health service utilization.

Requires performance measures and targets for each performance measure to be completed by September 1, 2007.

Declares that it is the goal of Washington state to ensure that: (1) By 2010, all K-12 districts have school health advisory committees that advise school administration and school board members on policies, environmental changes, and programs needed to support healthy food choice and physical activity and childhood fitness; and

(2) By 2010, only healthy food and beverages shall be available on school campuses.

Repeals RCW 74.09.405, 74.09.415, 74.09.425, 74.09.435, and 74.09.450.