WA HB1218

Requires courts to first consider alternatives to inpatient competency restoration for defendants charged with certain class C felonies, with prosecutors required to demonstrate a "compelling state interest" to pursue restoration treatment if no diversion program is available

Expands forensic navigator duties to include gathering collateral information on disabilities, injuries, and cognitive disorders; obtaining contact information for defendants and their families; and coordinating with tribes for American Indian or Alaska Native individuals

Creates a behavioral health diversion fund and incentive program for cities and counties that reduce inpatient competency referrals below baseline levels established from fiscal years 2018-2019 or achieve 40% reduction in overall competency service orders

Allows transfer from inpatient to outpatient competency restoration when a defendant's condition improves, with the department required to notify the court and schedule a hearing within 10 days to review the transfer

Requires counties to develop behavioral health diversion plans that include specific measures to reduce criminal justice system involvement for individuals with behavioral health needs, strategies to address housing and case management, and stakeholder collaboration including people with lived experience