Recognizes that improvements in the quality of health care lead to better health care outcomes for the residents of Washington state and contain health care costs. The improvements are facilitated by the adoption of electronic medical records and other health information technologies.

Declares an intent to encourage all hospitals in the state of Washington to adopt health information technologies by the year 2012.

Directs the department of corrections to create a demonstration project with one county jail system, one city jail system in the same county as the county jail system, and one state prison to demonstrate an integrated electronic health records system to facilitate and expedite the transfer of inmate health information between state and local correctional facilities.

Requires the demonstration project to at a minimum be partially operational prior to September 1, 2006.

Requires the demonstration project data to be available to the legislature by December 31, 2006.