Fiscal Services Division
SF 378 – Marijuana Possession Penalty (LSB1653SV)
Analyst: Christin Mechler (515.250.0458) christin.mechler@legis.iowa.gov
Fiscal Note Version – New
Background
Under current law, a person who commits a first possession of marijuana offense commits a serious misdemeanor, punishable by confinement for up to six months, or by a fine of up to $1,000, or both. In FY 2018, there were 6,934 first offense possession of marijuana convictions. A serious misdemeanor is punishable by confinement for not more than six months, or by a fine of $1,000, or by both.
A simple misdemeanor is punishable by confinement of no more than 30 days, or by a fine of at least $65 but not more than $625, or both.
Assumptions
•The following will not change over the projection period: charge, conviction, and sentencing patterns and trends; prisoner length of stay (LOS); revocation rates; plea bargaining; and other criminal justice system policies and practices.
•A lag effect of six months is assumed from the effective date of this Bill to the date of first entry of affected offenders into the correctional system.
•Marginal cost for county jails cannot be estimated due to lack of data. For purposes of this analysis, the marginal cost of county jails is assumed to be $50 per day.
•50.0% of the 6,934 first possession of marijuana convictions in FY 2018 involved five grams or less.
•Collection rates for fines resulting from a conviction of a simple misdemeanor total approximately 29.9%. •Collection rates for fines resulting from a conviction of a serious misdemeanor total 21.3%. Correctional
Impact
Senate File 378 would result in an estimated 1,734 fewer serious misdemeanor convictions in FY 2020. This amount would increase to 3,467 fewer convictions in FY 2021. Additionally, there would be fewer jail, prison, Community-Based Corrections (CBC), and residential facility admissions, as well as fewer probation and parole placements. Table 1below shows estimates for sentencing to State prison, parole, probation, or CBC residential facilities; LOS under those supervisors; and supervision marginal costs per day for convictions of simple and serious misdemeanors. Please refer to the LSA memo addressed to the General Assembly, Correctional Impact Memo, dated January 8, 2019, for information related to the correctional system.
Table 1 — Sentencing Estimates and LOS Minority ImpactSenate File 378 is expected to have a positive minority impact on the African American community. In FY 2018, 20.7% of the persons convicted of first offense marijuana possession were African American. The U.S. Census Bureau estimates that as of July 1, 2017, the population of Iowa is 4.5% African American. Please refer to the LSA memo addressed to the General Assembly, Minority Impact Memo, dated January 7, 2019, for information related to minorities in the criminal justice system.Fiscal ImpactDuring FY 2020, it is estimated that there would be 35 fewer admissions to prison, 17 fewer admissions to a CBC residential facility, 745 fewer admissions to jail, and 867 fewer placements of individuals on probation status. These numbers are expected to double in FY 2021 and subsequent years. Tables 2 and 3 below shows the estimated cost savings to the justice system under SF 378 for both FY 2020 and FY 2021. Annual savings in subsequent fiscalyears will be similar to FY 2021. As fines related to convictions of simple misdemeanors are significantly lower than fines related to convictions of serious misdemeanors, it is likely that fine revenue will decrease as a result of SF 378. Due to limited data and low collection rates, potential fiscal impact cannot be determined at this time.Table 2: Estimated Justice System Fiscal Impact — FY 2020Percent to PrisonFY 18 Avg LOS Prison (months)FY 18 Marginal Cost/Day PrisonPercent to ProbationFY 18 Avg LOS Probation (months)FY 18 Avg Cost/Day ProbationPercent to CBC FY 18 Marginal Cost/Day CBCFY 18 Avg LOS Parole (months)FY 18 Marginal Cost/Day ParolePercent to County JailMarginal Cost/Day County JailSerious Misdemeanor (Non-Persons)2.0%6.419.93$ 60.0%13.15.38$ 1.0%11.85$ 6.85.38$ 70.0%50$ Simple Misdemeanor N/AN/A19.93$ N/AN/A5.38$ N/A11.85$ N/A5.38$ N/A50$ Conviction Offense ClassTotal ConvictionsPrison AdmissionsProbation PlacementEst. Annual Sta te CostCurrent Law:Serious Misdemeanor3,467701,9761,002,080$ Total1,002,080$ Proposed Law: Serious Misdemeanor1,73435988560,320$ Simple Misdemeanor1,733N/A12139,930$ Total600,250$ 401,830$ Total Est. Cost Savings FY 2020:
Table 3: Estimated Justice System Fiscal Impact — FY 2021Additionally, local governments may experience cost savings resulting from considerably fewer county jail admissions and shorter LOS.Sources Division of Criminal and Juvenile Justice Planning Department of Human RightsDepartment of CorrectionsMarch 11,2019The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
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