Well I don't know what the state to state issues might be. Did you go through a recovery program in Illinois? When I completed my program here in CA my record was expunged - so there is no record on my California license. If Illinois is a compact state you may just be able to apply for a job under you current license I'm not sure how any of that works. If at all possible I would do whatever you can to avoid getting caught up in Califonia's diversion program. It won't kill you but will add an extra element of stress you don't need if you truley have been in recovery 10 years and are living sober.
As for Job prospects Phych is a challenging field. I did acute psych for 5 years and loved it ( I guess it helped that I am a little nuts myself). Depending on where you live I know a facility that would most likely hire you. It's an acute in-patient psych facilty and they do hire nurses in recovery - even those on probation and/or diversion. It's located in Covina CA. I left there on very good terms and am friendly with the DON. So if it sounds like something you want to try let me know.
Peace and Namaste
Hppy