The provisions of the bill addressing felony sanctions are the subject of this analysis. The bill would amend various codes as they relate to penalties for small amounts of marihuana and certain controlled substances.  Under the provisions of the bill, the penalty for marihuana under two ounces would be reduced to a Class C misdemeanor and would no longer be subject to enhancement if the offense occurred in a drug-free zone, the penalty for certain controlled substances weighing less than one gram would be reduced from a state jail felony to a Class A misdemeanor, and the drug-free zone enhancement reduced from a third degree to a state jail felony. A third degree felony is punishable by confinement in prison for a term from 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. In addition to confinement, most felonies are punishable by an optional fine not to exceed $10,000. A Class A misdemeanor is punishable by confinement in county jail for a term not to exceed one year and an optional fine not to exceed $4,000. A Class C misdemeanor is punishable by a fine not to exceed $500 (up to 180 days of deferred disposition and no confinement).

Decreasing the penalty for any offense is expected to result in fewer demands upon the correctional resources of counties or of the state due to a decrease in the number of people placed under felony community supervision, a decrease in the length of stay on felony community supervision, a decrease in the number of people admitted to state correctional facilities, and a decrease in the length of stay in correctional facilities.  From fiscal year 2018 through 2020, an annual average of 10,483 individuals were placed on felony community supervision and 6,773 were sentenced to terms of confinement in state correctional institutions for the controlled substance offense which would now, under the provisions of the bill, be punished as a Class A misdemeanor.  Additionally, in this same period, an annual average of 156 individuals were placed on felony community supervision and 58 were sentenced to terms of confinement in state correctional institutions for the drug-free zone enhancement which would now, under the provisions of the bill, be punished as a state jail felony. Estimated populations are based on the adult incarceration projections included in the January 2021 Adult and Juvenile Correctional Population Projections report, include a time lag, and assume sentencing patterns and policies not addressed in the bill remain constant. The probable impact on adult correctional populations of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: