IN 1974 THE DEPARTMENT OF JUVENILE SERVICES IN ANNE ARUNDEL COUNTY, MD., UNDERTOOK A MAJOR RESTRUCTURING OF ITS JUVENILE INTAKE DIVISION. PRIOR TO THE CHANGE, A 45-DAY PERIOD EXISTED BETWEEN POLICE CONTACT WITH A YOUTH AND AN INTAKE HEARING CONDUCTED BY A YOUTH WORKER, USUALLY UNTRAINED IN LEGAL MATTERS. THE NEW COMMUNITY ARBITRATION PROGRAM PROVIDED THAT ALL MISDEMEANOR CASES INVOLVING YOUTH BE REFERRED BY THE POLICE THROUGH A CITATION TO AN ARBITRATION HEARING TO BE HELD WITHIN 10 DAYS OF THE ISSUING OF THE CITATION. THE HEARING, CONDUCTED BY A LAWYER DESIGNATED AS ARBITRATOR, WAS MORE FORMAL THAN THE PREVIOUS INTAKE PROCEEDINGS. ALL OF THE PEOPLE INVOLVED IN THE CASE, INCLUDING THE VICTIM, ARE PRESENT DURING MOST OF THE DECISIONMAKING PROCESS, AND MORE ATTENTION IS PAID TO SCREENING OUT CASES FOR INSUFFICIENT EVIDENCE. A PROGRAM OF COMMUNITY WORK, RESTITUTION TO THE VICTIM, COUNSELING REFERRAL, AND DIVERSION FROM FORMAL COURT INTERVENTION ARE THE PREFERRED DISPOSITIONS. IN EVALUATING THE ARBITRATION PROGRAM AND COMPARING IT TO PREVIOUS INTAKE PROCEDURES, ITS IMPACTS ON THE JUVENILE COURT AGENCY, VICTIMS, AND POLICE WERE EXAMINED. ONE OF THE MOST IMMEDIATE EFFECTS OF THE ARBITRATION PROGRAM ON THE OPERATION OF THE JUVENILE COURT AGENCY WAS THE REDUCTION IN DELAY BETWEEN POLICE APPREHENSION OF A YOUTH AND THE INTAKE HEARING; ALSO, THE USE OF A LAWYER AS ARBITRATOR PROFESSIONALIZED THE SCRUTINIZATION OF CASES FOR SUFFICIENCY OF EVIDENCE. THE PERCENTAGE OF CASES DISAPPROVED FOR LACK OF EVIDENCE INCREASED, AS DID THE PERCENTAGE OF CASES DISPOSED OF THROUGH INFORMAL SUPERVISION. THE NUMBER OF CASES FORWARDED FOR FORMAL COURT INTERVENTION SIGNIFICANTLY DECREASED. THERE WAS NO DIFFERENCE IN RECIDIVISM UNDER THE TWO INTAKE PROCEDURES. A SURVEY OF VICTIMS PARTICIPATING IN THE HEARINGS SHOWED THAT THEY TENDED TO PERCEIVE THE OFFENDER IN A MORE NEGATIVE LIGHT THAN BEFORE THE HEARING. POLICE WERE FAVORABLE TOWARD THE PROGRAM BECAUSE IT DID NOT REQUIRE TAKING OFFENDERS TO THE STATIONHOUSE OR MAKING TIME CONSUMING COURT APPEARANCES. DATA DERIVED FROM THE STUDY ARE PROVIDED, ALONG WITH REFERENCES. (RCB)