It describes the program's components, provides a selected overview of the evaluation literature in the field, and explains in detail the rationale for the research design selected for the study. To examine whether the program was effective in reducing the number of new crimes compared to the handling of similar offenders by traditional methods, the analysts created a comparison group of 250 persons charged with felony crimes which was matched with 250 program participants. After 24 months at risk for each group, the program group experienced a 38.8 percent rearrest rate compared to 44.8 percent of the comparison group. However, by estimating likely outcomes for program participants diverted in 1978, it was determined that the program's impact on the prison system would be minimal. Thus, the program has a positive effect on participants' future crime, although the results are tempered by the relatively few cases diverted, given the total number of felony prosecutions within the jurisdiction. Overall, the program has the potential to achieve a favorable cost-benefit ratio, provided that it continues to be used more fully as an alternative to the system. A description of the program and of criminal procedure for felony complaints and other information are appended. Tables and 12 references are included.