Addresses the transfer and incarceration of youth, to or from the department of children, youth, and families (DCYF), the department of corrections (DOC), or the department of social and health services (DSHS).

Requires the DCYF to review the placement of an individual over age twenty-one who was placed in the custody of the DCYF following an adult court felony conviction for an offense committed before age eighteen to determine whether the individual should be transferred to the custody of the DOC.

Requires an individual in the custody of the DSHS or the DCYF on or before the effective date of this act, under the age of eighteen at the time of the offense and convicted as an adult, to remain in the custody of the DCYF until transfer to the DOC or release.

Requires the DOC and the DCYF to establish a multidisciplinary interagency team to conduct a case-by-case review of the transfer of individuals from the DOC to the DCYF.

Requires the state institute for public policy to assess the impact of this act on community safety, racial disproportionality, and youth rehabilitation and submit a report to the governor and the appropriate legislative committees of the legislature.