This bill adds a new section to chapter 82.14 RCW creating a new local-option sales and use tax authority for qualifying counties. It authorizes a county legislative authority to adopt a resolution or ordinance imposing a sales and use tax collected from persons taxable under chapters 82.08 and 82.12 RCW on taxable events occurring within the county, with the rate capped at 0.1 percent of the selling price or value of the article used. The bill conditions adoption of the tax on the county having a behavioral health diversion plan that has been approved by the secretary of the Department of Social and Health Services (as defined in House Bill No. 1218, Laws of 2025). Proceeds must be used for programs to prevent individuals with behavioral health needs from entering the criminal justice system or to divert them out of it once they are involved. Enumerated allowable uses include measures to reduce entry or continued involvement for individuals whose highest charge is up to a class C felony; increase diversion away from the competency system; identify people with multiple prior findings of nonrestorability and use diversion options to prevent future competency evaluation or restoration orders; reduce recidivism for people likely to be referred for competency services within six months based on prior referrals, inpatient psychiatric treatment, criminal justice involvement, or homelessness; and a strategic plan to create programming and supports along each intercept in the sequential intercept model, including housing and case management. This is a new statutory authorization and procedural change (a local tax authority and conditions for its use), not a change to criminal penalties. The act takes effect only if House Bill No. 1218, Laws of 2025, is enacted by August 1, 2025. The extracted materials do not include the text or chapter number of House Bill No. 1218, the definition text for the behavioral health diversion plan, or the exact new section number inserted into chapter 82.14 RCW.

If enacted, counties that meet the bill’s condition can levy a small local sales and use tax of up to 0.1 percent on transactions already taxable under state law, so people buying taxable goods or services in those counties will pay up to 0.1 percent more. The money must be used to fund programs that prevent or divert people with behavioral health needs from entering or staying in the criminal justice system and to build services across the justice “intercepts” (including housing and case management), with specific priorities such as reducing entries for charges up to class C felonies, increasing diversion from competency procedures, identifying repeat nonrestorability cases, and reducing likely recidivism for those at risk of competency services. The groups most directly affected are county governments (which gain a small dedicated revenue option but must have a behavioral health diversion plan approved by the Department of Social and Health Services before imposing the tax), the Department of Social and Health Services (which must approve those plans), businesses or others who are taxable under state chapters 82.08 and 82.12 (who will collect the tax from consumers), and people with behavioral health needs (who are the intended beneficiaries). The revenue is likely to be modest because of the 0.1 percent cap, the funds are restricted to the listed diversion uses, and the measure only takes effect if the companion behavioral health bill (House Bill 1218) is enacted by August 1, 2025; key details about what must be in the required diversion plan are not included here, so some implementation requirements remain unclear.