Proposition 36, or the Substance Abuse and Crime Prevention Act of 2000, made significant changes to the State’s criminal justice and drug treatment systems. The measure changed State law so that certain adult offenders who used or possessed illegal drugs would receive drug treatment and supervision in the community, rather than being sent to State prison or county jail, or supervised in the community without treatment. The measure also provided State funds to counties to pay for the treatment programs. The most significant issues faced by the State in implementing Proposition 36 will be organizational, service, and funding. Close collaboration among agencies at every level of government will be required. The measure did not designate a single entity as being in charge at either the State or local level. Service issues included developing new or utilizing existing assessment tools to identify the treatment needs of individual offenders; ensuring that there was an adequate mix of treatment services to meet the needs of the population; and determining the types and levels of supervision and monitoring services needed for offenders. Funding issues included distribution of funds in 2001-2002 and beyond; county contributions to treatment efforts; and other funding sources identified by States and counties. Recommendations included: considering legislation to specify who was in charge at both the State and county levels; distributing current funds as quickly as possible in order to permit counties maximum time to develop treatment capacity; and not providing additional State funds until treatment needs and methods of supervising offenders had been more clearly determined.