The provisions of the bill that are the subject of this analysis are the provisions that would deal with felony sanctions. The bill would amend the penal provisions under The Securities Act to make dealing in any security or securities without being a registered dealer or agent, dealing in certain specified security or securities, making or causing to make a false or misleading statement in certain documents or proceedings, or rendering services as an investment adviser or representative without required registration, punishable as a felony of the third degree; rather than punishable as an unspecified felony, and on or upon conviction be sentenced to pay a fine of not more than $5,000 or imprisonment in the penitentiary for not less than two or more than 10 years, or by both such fine and imprisonment. The bill would make violating certain cease and desist orders punishable as a felony of the third degree; and making a false statement or representation concerning certain registration made or exemption claimed, or making an offer of certain security within this State punishable as a state jail felony; rather than punishable as an unspecified felony, and upon conviction be sentenced to pay a fine of not more than $5,000 or imprisonment in the penitentiary for not more than two years, or by both such fine and imprisonment. The bill would establish conditions for punishment enhancement for the penal provisions based on the penalties for repeat and habitual felony offenders provided in the Penal Code.
 
A state jail felony is punishable by confinement in a state jail for a term from 180 days to 2 years and, in addition to confinement, an optional fine not to exceed $10,000 or Class A Misdemeanor punishment (mandatory post conviction community supervision). A felony of the third degree is punishable by confinement in prison for a term from 2 to 10 years and, in addition to confinement, an optional fine not to exceed $10,000.
 
Increasing the penalty for any criminal offense is expected to result in increased demands upon the correctional resources of counties or of the State due to longer terms of probation, or longer terms of confinement in county jail, state jail or prison. In the case of this bill, the impact on correctional populations would depend on how many persons would be prosecuted under the provisions of the bill, and the extent to which punishment would be enhanced under the proposed statute compared to existing statute. In fiscal year 2010, less than 5 individuals were arrested, less than 5 were admitted to state jail or prison, and less than 10 were placed on community supervision for an unspecified felony offense under the penal provisions of The Securities Act. For this analysis, it is assumed the number of offenders convicted under this statute would not result in a significant impact on the programs and workload of State corrections agencies or on the demand for resources and services of those agencies.