Declares an intent to create incentives for local government investments in cost-effective intervention services that reduce crime by reimbursing local governments with a portion of the cost savings that accrue to the state as the result of local investments in such services.

Directs the department of social and health services juvenile rehabilitation administration to establish a reinvesting in youth program that awards grants to counties for implementing research-based early intervention services that target juvenile justice-involved youth and reduce crime, subject to the availability of amounts appropriated for this specific purpose.

Provides that, effective July 1, 2005, and continuing through June 30, 2007, a reinvesting in youth pilot program shall be established. The pilot program will test methods for reinvestment of state savings that result from local investments in evidenced-based services for juvenile justice-involved youth.

Provides that participation in the pilot program shall be limited to three counties or groups of counties including at least one charter county with a population of over eight hundred thousand residents and at least one county or group of counties with a combined population of three hundred thousand residents or less. Effective July 1, 2007, all counties shall become eligible to apply for participation in the program.

Provides that counties that participate in the pilot program shall have a portion of their costs of serving youth through the intervention service models paid for with moneys from the reinvesting in youth account established pursuant to this act. Distribution of funds from the account to the charter county with a population of over eight hundred thousand residents shall be based upon the number of youth that are expected to be served by the intervention service model, up to six hundred fifty-two thousand dollars for the 2005-2007 biennium. The department may distribute the remaining grant moneys to the other counties selected to participate in the pilot program. The total amount allocated for pilot programs grants established in this act is limited to amounts appropriated for this specific purpose and shall not exceed nine hundred ninety-seven thousand dollars from state sources.

Requires the department of social and health services juvenile rehabilitation administration to provide a report to the legislature on the initial cost savings calculation methodology and distribution formula on or before October 1, 2006.

Requires the department of social and health services juvenile rehabilitation administration to establish a state quality assurance program. The juvenile rehabilitation administration shall monitor the implementation of intervention services funded pursuant to this act and shall evaluate adherence to service model design and service completion rate.

Provides that the act shall be null and void if appropriations are not approved.