LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6526 NOTE PREPARED: Feb 13, 2025
BILL NUMBER: SB 138 BILL AMENDED: Feb 13, 2025
SUBJECT: Sale of Low THC Products to Persons Less than 21.
FIRST AUTHOR: Sen. Bohacek BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) The bill makes possession of low THC hemp extract or a cannabinoid
by a minor a Class B misdemeanor. It makes the sale of low THC hemp extract or a cannabinoid to a minor
a Class A misdemeanor, and increases the penalty under certain circumstances.
The bill makes possession of an e-liquid or a vapor product by a minor a Class D infraction, and increases
the penalty to a Class C infraction if the minor possesses an e-liquid that contains nicotine. It prohibits the
sale of a vapor product to a minor and the possession of a vapor product by a minor. It increases the penalty
for certain infractions involving minors and tobacco or e-liquids containing nicotine.
Effective Date: July 1, 2025.
Explanation of State Expenditures: (Revised) Penalty Provisons: The bill establishes a Level 6 felony for
selling or furnishing low THC hemp extract to a minor (an individual who is less than 21 years of age) if the
person convicted has a prior conviction and a Level 5 felony if the consumption, ingestion, or use of the
product is the proximate cause of serious bodily injury or death to any person.
A Level 6 felony is punishable by a prison term ranging from 6 to 30 months, with an advisory sentence of
1 year. A Level 5 felony is punishable by a prison term ranging from 1 to 6 years, with an advisory sentence
of 3 years. The sentence depends on mitigating and aggravating circumstances.
(Revised) Alcohol and Tobacco Commission (ATC): The ATC would enforce the provisions regarding a
delivery sale of an e-liquid or a vapor product to a minor. The bill’s requirements are within the agency’s
routine administrative functions and should be able to be implemented with no additional appropriations,
assuming near customary agency staffing and resource levels.
Explanation of State Revenues: (Revised) New and Increased Penalties: The bill could increase revenues
to the state as it creates and increases several infraction penalties and creates misdemeanor and felony
offenses. If additional court cases occur and fines are collected, revenue to both the Common School Fund
(criminal fines) and the state General Fund (court fees and infraction judgments) would increase. The
SB 138 1 maximum judgment for a Class D infraction is $25, for a Class C infraction is $500, and for a Class B
infraction is $1,000. The maximum fine for a Class B misdemeanor is $1,000, for a Class A misdemeanor
is $5,000, and for any level of felony is $10,000.
The total court fee revenue per case would range between $85.50 and $103 for infractions and between $113
and $138 for criminal cases. The amount of court fees deposited will vary depending on whether the case
is filed in a court of record or a municipal court. The following linked document describes the fees and
distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
Civil penalties for violations of the tobacco and nicotine provisions would be deposited in the Richard D.
Doyle Youth Tobacco Education and Enforcement Fund. The bill would increase civil penalty revenue to
the fund, but the revenue increase is expected to be small. [In FY 2024, the fund collected $282,075 in youth
tobacco fines.]
The following table shows the current penalty, if it exists, and the new or increased penalties.
Current Penalty Proposed Penalty
Possession By a Minor:
Vapor product --- Class D Infraction
E-liquid without nicotine Class C Infraction Class D or Class C Infraction
E-liquid containing nicotine Class C Infraction Class C Infraction
Low THC hemp extract --- Class B Misdemeanor
Delivery, Sale, or Distribution to a Minor:
E-liquid Class C infraction Class B infraction, if it contains
nicotine
Vapor product --- Class C Infraction
Tobacco Class C infraction Class B Infraction
Low THC hemp extract
---
Class A Misdemeanor
- with prior conviction Level 6 Felony
- if the consumption, ingestion,
use is the proximate cause of
serious bodily injury or death to
any person
Level 5 Felony
Explanation of Local Expenditures: (Revised) If more individuals are sentenced for misdemeanor offenses
or more felony defendants are detained in county jails prior to their court hearings, local expenditures for
jail operations may increase. A Class B misdemeanor is punishable by up to 180 days in jail, and a Class A
misdemeanor by up to one year in jail. The average cost per day is approximately $64.53 based on the per
diem payments reported by U.S. Marshals to house federal prisoners in 11 county jails across Indiana during
CY 2021.
Explanation of Local Revenues: (Revised) If additional court actions occur and guilty verdicts or infraction
SB 138 2 judgments are entered, more revenue will be collected by certain local units. For each case, the county
general fund will receive between $20 and $47.40, and qualifying municipalities will receive all or a share
of $2.10 to $46, depending on whether the case is criminal or an infraction and depending on whether the
case is filed in a court of record or a municipal court. The following linked document describes the fees and
distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
State Agencies Affected: Alcohol and Tobacco Commission; Department of Correction.
Local Agencies Affected: Counties; trial courts.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual; Department of Correction;
U.S. Department of Justice Marshals Service.
Fiscal Analyst: Heather Puletz, 317-234-9484; Nate Bodnar, 317-234-9476.
SB 138 3