The provisions of the bill addressing felony sanctions are the subject of this analysis. The bill would amend the Health and Safety Code to exclude hemp from the definition of a controlled substance and marihuana. Under current statute, the possession or delivery of substances containing hemp is punished under the offenses of possession or delivery of marihuana at both the misdemeanor and felony level with the punishment level based on the specific circumstances of the offense. The bill would also amend the Agriculture Code to create a third degree felony for the falsification of a laboratory report involving hemp or the transportation of hemp under certain circumstances. A first degree felony is punishable by confinement in prison for life or a term from 5 to 99 years; a second degree felony is punishable by confinement in prison for a term from 2 to 20 years; a third degree felony is punishable by confinement in prison for a term of 2 to 10 years; and a state jail felony is punishable by confinement in a state jail for a term from 180 days to 2 years or Class A misdemeanor punishment. In addition to confinement, most felony offenses are subject to an optional fine not to exceed $10,000.

Reducing the list of behaviors for which a criminal penalty can be applied is expected to result in fewer demands upon the correctional resources of counties or of the state due to a decrease in individuals placed under community supervision or sentenced to a term of confinement within state correctional institutions. The bill may have a positive population impact by decreasing the number of people placed under felony community supervision or incarcerated within state correctional institutions. Whether the bill would result in a significant impact on state correctional populations cannot be determined due to the lack of data or information related to the number of people who are prosecuted under current statute for the possession or delivery of substances containing hemp as outlined in the bill's provisions. In fiscal year 2018, 6,774 people were arrested, 1,158 were placed under felony community supervision, and 781 were admitted into state correctional institutions for the offense of possession or delivery of marihuana. Creating a new criminal offense for the falsification of a laboratory report involving hemp or the transportation of hemp under certain circumstances is expected to result in additional demands upon the correctional resources of the counties and of the state due to an increase in individuals placed under supervision in the community or admitted into state correctional institutions. This analysis assumes the provisions of the bill creating new criminal offenses would not result in a significant impact on state correctional populations or the demand for state correctional resources.