House Bill 354

     SECTION 1. [NEW MATERIAL] COMMUNITY CRIMINAL JUSTICE DIVERSION PROJECT CREATED.--

          A. As used in this section:

                (1) "division" means the behavioral health services division of the health care authority;

                (2) "diversion" means an alternative procedure in a criminal case through which the prosecution is interrupted pursuant to an agreement between the prosecution and a defendant that provides for a declination to file charges or dismissal of charges filed in consideration of the defendant's commitment to participate in treatment or access services and includes procedures to prevent the commission of a crime;

                (3) "mobile crisis response team" means a team of first responders, including a licensed mental health professional, that responds to a person experiencing a nonviolent mental health crisis and includes crisis intervention services covered by the medical assistance division of the health care authority;

                (4) "participant" means an agency of the state or a political subdivision of the state selected to participate in the project; and

                (5) "project" means the community criminal justice diversion project.

          B. The "community criminal justice diversion project" is created as a six-year pilot project in the division to demonstrate that diverting certain offenders from the criminal justice system to community-based services and treatment will reduce crime, homelessness and recidivism and improve public health.

          C. The project shall be located in at least five counties in different judicial districts, including at least one class A county, one class B county with an assessed intermediate valuation and one class B county with an assessed high valuation.

          D. A participant shall design and implement a diversion program for persons in or at risk of entering the criminal justice system that includes the following program components:

                (1) a community referral process;

                (2) a mobile crisis response team;

                (3) a pre-arrest diversion policy for at least petty misdemeanor offenses or violations of municipal ordinances;

                (4) if approved by the local district attorney, a post-arrest diversion policy for at least some full misdemeanor offenses; and

                (5) a continuum of community-based services and treatment that shall include, at minimum, the provision of:

                     (a) immediate needs and stabilization services, including emergency shelter services, transportation and food;

                     (b) comprehensive health services, including acute and preventive medical treatment, inpatient and outpatient psychiatric treatment, treatment for addiction and substance use disorder and addiction recovery support; and

                     (c) long-term social support services, including a case manager, enrollment in social services, permanent supportive housing, employment supports and legal and protective services.

          E. In accordance with health care authority rules and subject to the availability of funding, a participant may be eligible for a grant award to establish a services continuum and pay costs associated with implementing a diversion program.

          F. Participants shall collect and analyze data regarding the implementation of the participants' diversion programs, and the division shall evaluate that data to determine if the diversion programs reduced crime, homelessness and recidivism and improved public health.

          G. The division shall:

                (1) establish a budget for the project that leverages all available funding and prioritizes the expenditure of federal medicaid funding for components of the diversion programs covered by the medical assistance division of the health care authority and submit that budget to the legislative finance committee on or before September 1, 2025;

                (2) begin accepting applications from prospective participants on or before December 31, 2025;

                (3) select participants on or before April 1, 2026;

                (4) periodically submit reports regarding the implementation of the project to the legislative health and human services committee and the interim legislative committee concerned with courts and corrections; and

                (5) submit a final report to the governor and the legislature by November 1, 2031.

          H. The "community criminal justice diversion project fund" is created in the state treasury as a nonreverting fund for the duration of the project. The fund consists of appropriations, gifts, grants, donations and income generated from investment of the fund. Money in the fund shall be used to administer the project and provide financial assistance to participants. Expenditures from the fund shall be by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of health care authority or the secretary's authorized representative. Any unexpended or unencumbered balance remaining in the fund at the end of fiscal year 2031 shall revert to the general fund.

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