The bill would amend the Health and Safety Code by creating the offense of diversion of controlled substance by registrants, dispensers, and certain other persons.  The offense would be punishable as a state jail felony if the person converts to the person’s own use or benefit of the controlled substance. The offense would be punishable as a felony of the third degree if the person diverts to the unlawful use or benefit of another person the controlled substance. The offense would only apply to a registrant, a dispenser, or a person not required registering for being an agent of a registered manufacturer, distributor, analyzer or dispenser, or a contract carrier of the controlled substance.

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.

Expanding the list of behaviors for which a penalty is applied for any criminal offense or 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, it is expected that individuals who would be affected under the provisions of this bill are currently being sentenced for other offenses. In fiscal year 2010, less than five persons were arrested, admitted to state jail or prison, or placed on felony community supervision for controlled substance offenses involving commercial matters. 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.