Transfers powers, duties, and functions of the department of social and health services pertaining to the medical assistance program and the medicaid purchasing administration to the state health care authority to the extent necessary to carry out the purposes of the act.

Requires the secretary of the department of social and health services to enter into agreements with the director of the state health care authority to establish the division of responsibilities between the agencies with respect to mental health, chemical dependency, and long-term care services, including services for people with developmental disabilities.

Changes the head of the state health care authority from the administrator to the director.

Requires the code reviser to prepare legislation for the 2012 regular session that changes all statutory references to administrator of the state health care authority to director of the state health care authority.