Abolishes the department of social and health services effective July 1, 2011, and creates: (1) The department of economic services, which will conduct financial eligibility evaluations for all the newly created agencies;

(2) The department of medical assistance;

(3) The department of health and rehabilitative services, which will consist of the long-term care, developmentally disabled, vocational-rehabilitation, mental health, and drug and alcohol substance abuse programs, and the special commitment center; and

(4) The department of children's services.

Directs the office of financial management and the department of social and health services to develop a plan to implement the act and report to the legislature during the 2010 legislative session.

Directs the code reviser to propose changes to the Revised Code of Washington for the 2012 legislative session to make technical corrections necessary as a result of implementing the act.

Requires the governor, by July 1, 2009, to appoint a transition team to direct the details of administration of the act.

Requires the transition team, by January 1, 2010, to submit a plan and necessary implementing legislation to the legislature for the division of the department of social and health services so that the new agencies will be operating by July 1, 2011.