LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6304 NOTE PREPARED: Dec 2, 2021
BILL NUMBER: HB 1232 BILL AMENDED:
SUBJECT: Partial Marijuana Decriminalization.
FIRST AUTHOR: Rep. Payne BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill decriminalizes possession of two ounces or less of marijuana.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Felony Possession: This bill would have little or no effect on the
Department of Correction (DOC) offender population because five or fewer persons have been sentenced
to DOC for possessing marijuana in any given year between FY 2017 and FY 2021. All of these persons who
were convicted and sentenced for felony possession of marijuana would either be sentenced for a
misdemeanor or not be sentenced at all.
Under current law, persons who possess:
1. less than 30 grams of marijuana commit a Class B misdemeanor.
2. less than 30 grams of marijuana with a prior conviction for a drug offense commit a Class A
misdemeanor.
3. more than 30 grams of marijuana and have a prior conviction for a drug offense commit a Level 6
felony.
As proposed, persons who possess:
1. between two (56 grams) and four (113 grams) ounces of marijuana commit a Class B misdemeanor.
2. between two (56 grams) and four (113 grams) ounces of marijuana with a prior conviction for a drug
offense commit a Class A misdemeanor.
3. more than four ounces and have a prior conviction commit a Level 6 felony.
HB 1232 1 Explanation of State Revenues: Summary - Revenue loss is estimated to be between $122,100 and $144,000
to the state General Fund, $24,460 to the State User Fee Fund, and an indeterminable revenue loss to the
Common School Fund. [These estimates are based on 1,223 misdemeanor convictions in FY 2021. None of
the persons convicted of these misdemeanors could be charged or convicted for possession of marijuana as
a misdemeanor under this bill since the critical weight under current law is 30 grams (about 1.06 ounces).]
Additional Information - General Fund: Persons who commit a misdemeanor or felony pay a $120 court fee
and an additional $34 for the following: judicial salaries fee ($20), public defense administration fee ($5),
court administration fee ($5), judicial insurance adjustment fee ($1), and the DNA sample processing fee
($3).
The loss will depend on the percentage of these cases that are disposed in either trial courts (circuit or
superior courts) or city or town courts. If the case is filed in a circuit or superior court, 70% of the $120 court
fee is deposited in the General Fund. If the case is filed in a city or town court, 55% of the fee is deposited
in the General Fund.
State User Fee Fund: Persons who are found guilty and sentenced for a misdemeanor or felony are required
to pay an automated record keeping fee of $20.
Common School Fund: Persons who are found guilty of felonies and misdemeanors are liable for a maximum
criminal fine of $1,000 for Class B misdemeanors, $5,000 for Class A misdemeanors, and $10,000 for any
felony level.
Explanation of Local Expenditures: Effect on County Jails, Probation Departments and Community
Corrections Agencies: This provision would reduce the costs to counties for public defense expenses and
the pre and post trial jail confinement for persons who are charged with possession of marijuana as either
a misdemeanor or felony. The bill would also reduce the supervisory burden on community corrections
agencies and probation departments.
The following table shows the number of persons who have been convicted and sentenced for misdemeanor
possession of marijuana.
Persons Convicted and Sentenced
for Misdemeanor Possession Marijuana/Hashish/Hash Oil/ Salvia
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
3,650 3,756 3,499 2,482 1,223
For persons who were sentenced for marijuana possession as a Level 6 felony, about 85% were confined in
a county jail pretrial. In addition, 48% of these persons were confined in a county jail after trial for an
average 121 days, and 86% were supervised by a community corrections agency, a probation department,
or both. No similar information was available about persons convicted and sentenced for marijuana
possession as a misdemeanor.
A Class A misdemeanor is punishable by a maximum one year term in a county jail, and the maximum term
for a Class B misdemeanor is punishable by up to 180 days in jail. [The average daily cost of housing a
prisoner in jail is estimated to be $54 based on the per diem payments reported by U.S. Marshals to house
federal prisoners in 16 county jails across Indiana during federal FY 2017.]
HB 1232 2 Explanation of Local Revenues: The revenue loss for all county funds is estimated to be between $57,000
and $80,000.
The general funds of both counties and cities and towns with city and town courts would lose $36 from every
case that would be decided in a circuit or superior court and $54 from each case decided in a city or town
court.
Revenue from the marijuana eradication fee would be significantly reduced. The maximum fee of $300 is
assessed if a person is convicted of a drug-related crime which is either a misdemeanor or a felony. None of
the 1,223 persons who were convicted and sentenced for marijuana possession as a misdemeanor would pay
this fee under this bill. Revenue collected from the marijuana eradication program fee is deposited into the
county user fee fund.
State Agencies Affected: Department of Correction.
Local Agencies Affected: Trial courts; local law enforcement agencies.
Information Sources: Indiana Sheriffs’ Association; Indiana Supreme Court Abstracts of Judgment;
Department of Correction, U.S. Department of Justice Marshals Service.
Fiscal Analyst: Mark Goodpaster, 317-232-9852.
HB 1232 3