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, 2007, any county or group of counties may apply for participation in the reinvesting in youth program.

Requires the department of social and health services juvenile rehabilitation administration to review county applications for funding through the reinvesting in youth program and shall select the counties that will be awarded grants with funds appropriated to implement this program. The department, in consultation with the Washington state institute for public policy, shall develop guidelines to determine which counties will be awarded funding in accordance with the reinvesting in youth program. At a minimum, counties must meet the following criteria in order to participate in the reinvesting in youth program: (1) Counties must match state moneys awarded for research-based early intervention services with nonstate resources that are at least proportional to the expected local government share of state and local government cost avoidance that would result from the implementation of such services;

(2) Counties must demonstrate that state funds allocated pursuant to this section are used only for the intervention service models authorized pursuant to this act;

(3) Counties must participate fully in the state quality assurance program established in this act to ensure fidelity of program implementation. If no state quality assurance program is in effect for a particular selected research-based service, the county must submit a quality assurance plan for state approval with its grant application. Failure to demonstrate continuing compliance with quality assurance plans shall be grounds for termination of state funding; and

(4) Counties that submit joint applications must submit for approval by the department of social and health services juvenile rehabilitation administration multicounty plans for efficient program delivery.

Provides that, every four years, beginning in calendar year 2006, for use in fiscal year 2008, the Washington state institute for public policy shall review and update the methodology for calculating cost savings resulting from the implementation of this program. The institute shall use the technical advisory committee established in this act to review and provide comments on its methodology and cost calculations.

Provides that, every four years, beginning in calendar year 2006, for use in fiscal year 2008, the department of social and health services juvenile rehabilitation administration shall establish a distribution formula to provide funding local governments that implement research-based intervention services pursuant to this program.

Directs 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 by October 1, 2006.

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