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 6961 NOTE PREPARED: Jan 3, 2022
BILL NUMBER: SB 354 BILL AMENDED:
SUBJECT: Marijuana Offenses.
FIRST AUTHOR: Sen. Pol BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
A. Chemical Test – It adds to the defense of operating a vehicle and committing a traffic offense with
a controlled substance that the substance was identified as marijuana through a chemical test offered
by a law enforcement officer.
B. Marijuana Possession – It provides that possession or consumption of marijuana by a minor is a
delinquent act. It provides that a person who knowingly or intentionally possesses more than two
ounces of marijuana commits the offense of possession of marijuana. (Current law provides that the
offense of possession of marijuana can be for any amount of marijuana.) It repeals the offense of
possession of marijuana, hash oil, hashish, or salvia as a Level 6 felony. It establishes a penalty for
a minor who possesses or consumes marijuana. It provides for the suspension of the minor's driving
privileges if the minor possessed or consumed the marijuana while operating a motor vehicle.
C. It makes conforming amendments.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Marijuana 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:
SB 354 1 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. more than two ounces (56.6 grams) of marijuana commit a Class B misdemeanor.
2. more than two ounces (56.6 grams) of marijuana with a prior conviction for a drug offense commit
a Class A misdemeanor.
There would be no Level 6 felony.
Explanation of State Revenues: Chemical Test – Under current law, this defense applies in cases where
there was an accident involving serious injury or death. This provision would permit this defense to be
applied in the course of traffic stops if a law enforcement officer has probable cause to believe that a person
is operating a vehicle while intoxicated. Under certain conditions, a person could avoid being convicted of
operating a vehicle with a Schedule I or II drug in the person’s blood as a Class C misdemeanor. These
conditions are that the controlled substance is marijuana or a metabolite of marijuana; the person was not
intoxicated and did not cause a traffic accident; and the person consented to take a blood test. If fewer court
cases are prosecuted and no fines are collected, revenue to both the Common School Fund and the state
General Fund would decline by a minimal amount.
Marijuana Possession – The revenue loss is estimated to be between $122,000 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 would be charged or convicted for possession of marijuana as a
misdemeanor under this bill since the critical weight is 30 grams (about 1.05 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 $500 for Class C misdemeanors, $1,000 for Class B misdemeanors, $5,000 for Class A
misdemeanors, and $10,000 for any felony level.
Explanation of Local Expenditures: Chemical Test – This provision could reduce county jail populations
and could also reduce the costs of public defense and pre and post trial jail confinement. A Class C
SB 354 2 misdemeanor is punishable by up to 60 days in jail. Some persons can also be sentenced to probation for 60
days.
Marijuana Possession – 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.]
Juvenile Penalties – This bill could increase the number of cases that might be filed in juvenile courts
statewide. Persons who are convicted under this new juvenile offense would be more likely to be placed on
either juvenile probation or in a juvenile detention facility. Any added workload to the courts or supervisory
programs cannot be determined.
Explanation of Local Revenues: Chemical Test – For each misdemeanor case in which the defendant is not
found guilty because of this new defense, a county would lose $36 of the $120 court fee if the case was filed
in a circuit or superior court and $54 if the case was filed in a city or town court.
Marijuana Possession – 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
SB 354 3 county user fee fund.
Juvenile Penalties – Courts with juvenile jurisdiction may receive more revenue from juvenile court fees and
probation user fees. The additional fee revenue cannot be determined.
State Agencies Affected: Department of Correction; Department of Homeland Security; Office of the State
Building Commissioner; Professional Licensing Agency
Local Agencies Affected: Trial courts; local law enforcement agencies; juvenile probation departments;
juvenile detention centers
Information Sources: Indiana Sheriffs’ Association; Indiana Supreme Court Abstracts of Judgment and
Odyssey Data for Misdemeanors; Department of Correction, U.S. Department of Justice Marshals Service.
Fiscal Analyst: Mark Goodpaster, 317-232-9852.
SB 354 4