LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6596 NOTE PREPARED: Dec 14, 2020
BILL NUMBER: SB 223 BILL AMENDED:
SUBJECT: Marijuana Legalization.
FIRST AUTHOR: Sen. Tallian BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
X DEDICATED
FEDERAL
Summary of Legislation: This bill provides that a person who knowingly or intentionally possesses more
than two ounces of marijuana commits the offense of possession of marijuana. (Current law provides that
the offense of possession of marijuana can be for any amount of marijuana.) It repeals the offense of
possession of marijuana, hash oil, hashish, or salvia as a Level 6 felony. It makes conforming amendments.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Repealer – This bill would have a minimal effect on DOC’s offender
population.
OFMA examined the records of 1,374 persons who were convicted and sentenced for possession of
marijuana as a Level 6 felony between January 1, 2014, and June 30, 2020. OFMA found that 5.5% of these
persons received an executed sentence of 453 days to be served in a DOC facility.
The average expenditure to house an adult offender in a DOC facility was $21,551 annually, or $59 daily,
during FY 2020. (This does not include the cost of new construction.) If offenders can be housed in existing
facilities with no additional staff, the marginal cost for medical care, food, and clothing is estimated at $3,524
annually, or $9.66 daily, per prisoner. These marginal cost estimates are based on contractual agreements
with food and medical vendors and projections based on prior years for clothing and hygiene. The estimated
average cost of housing a juvenile in a state juvenile facility was $89,998 annually, or $246.40 per day, in
FY 2020. The marginal cost for juvenile facilities was $3,969 annually or $10.87 daily.
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Explanation of State Revenues: Possession of Marijuana – If fewer court cases occur and less fines are
collected, revenue to both the Common School Fund and the state General Fund would decline. The
maximum fine for a Level 6 felony is $10,000. Criminal fines are deposited in the Common School Fund.
Because no information is available on the weight of the marijuana in each misdemeanor case, OFMA cannot
determine a definitive revenue loss.
There would also be a slight decline in other fees as well. If the case is filed in a circuit or superior court,
70% of the $120 criminal costs fee that is assessed and collected when a guilty verdict is entered is deposited
in the state General Fund. In addition, some or all of the following revenue is deposited into the state General
Fund: Automated Record Keeping Fee ($20), Judicial Salaries Fee ($20), Public Defense Administration Fee
($5), Court Administration Fee ($5), Judicial Insurance Adjustment Fee ($1), and the DNA Sample
Processing Fee ($3).
In addition, persons convicted of a drug-related offense may also be liable for a Drug Abuse, Prosecution,
Interdiction and Correction Fee ranging between $200 and $1,000. The revenue collected from this fee is
deposited in the State User Fee Fund and distributed to state and local programs.
Explanation of Local Expenditures: Summary – This provision would likely reduce the costs to counties
for public defense and the pretrial jail population. Because no information is available on the weight of the
marijuana in each felony case, OFMA cannot determine a definitive savings.
Pretrial Confinement – This bill could reduce the pretrial county jail population. Of the records examined,
88% of persons who were convicted and sentenced for possession of marijuana as a Level 6 felony were
confined in a county jail pretrial.
Supervision Post Trial and Prison – Persons who are convicted and sentenced for this Level 6 felony are
more likely to be supervised either after trial or after being released from prison. Of the persons that OFMA
found, 85% were supervised by a community corrections agency, a probation department, or both.
The average cost per day is approximately $54 based on the per diem payments reported by U.S. Marshals
to house federal prisoners in 16 county jails across Indiana during federal FY 2017.
Explanation of Local Revenues: If fewer guilty verdicts are entered, local governments would receive less
revenue from the following sources. The county general fund receive 27% of the $120 court fee that is
assessed in a court of record. Cities and towns maintaining a law enforcement agency that prosecutes at least
50% of its ordinance violations in a court of record may receive 3% of court fees. If the case is filed in a city
or town court, 20% of the court fee would be deposited in the county general fund and 25% would be
deposited in the city or town general fund. Because no information is available on the weight of the
marijuana in each felony case, OFMA cannot determine a definitive revenue loss.
There would also be a slight decline of other fees as well. Persons found guilty of a felony or misdemeanor
are also required to pay the document storage fee ($5), which is deposited into the clerk record perpetuation
fund, and the jury fee ($2) and the law enforcement continuing education fee ($4), which are both deposited
in the county user fee fund.
In addition, if a person is convicted of a drug-related offense, a sentencing court may assess a marijuana
eradication program fee of not more than $300, if the county has established a Weed Control Board. The
court may also assess an alcohol and drug services program fee of not more than $400 if a local government
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has approved the establishment of an alcohol and drug services program. Revenue collected from the
Marijuana Eradication Program Fee is deposited into the county user fee fund. Revenue collected from the
Alcohol and Drug Services Program Fee is deposited in the county or city or town user fee fund.
State Agencies Affected: Department of Correction.
Local Agencies Affected: Trial courts; local law enforcement agencies.
Information Sources: Indiana Sheriffs’ Association; Indiana Supreme Court Abstracts of Judgment;
Department of Correction; U.S. Department of Justice Marshals Service.
Fiscal Analyst: Mark Goodpaster, 317-232-9852.
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Statutes affected:
1. Introduced Senate Bill (S): 16-31-3-14, 22-15-5-16, 25-1-1.1-2, 35-48-4-11