SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reclassification to Ensure Smarter 
and Equal Treatment Act of 2017'' or the ``RESET Act''.

SEC. 2. RECLASSIFICATION OF LOW-LEVEL FELONIES.

    (a) In General.--Part D of the Controlled Substances Act (21 U.S.C. 
841 et seq.) is amended--
            (1) in section 404(a) (21 U.S.C. 844(a))--
                    (A) in the fourth sentence--
                            (i) by striking ``2 years'' and inserting 
                        ``1 year'';
                            (ii) by striking ``$2,500'' and inserting 
                        ``$1,000'';
                            (iii) by striking ``3 years'' and inserting 
                        ``1 year''; and
                            (iv) by striking ``$5,000'' and inserting 
                        ``$1,000''; and
                    (B) by striking the fifth sentence and inserting 
                the following: ``Notwithstanding any penalty provided 
                in this subsection, any person who commits an offense 
                under this subsection for the possession of a date rape 
                drug (as defined in section 401(g)(2)) after a prior 
                conviction under this title or title III, or a prior 
                conviction for any drug, narcotic, or chemical offense 
                chargeable under the law of any State, has become 
                final, shall be sentenced to a term of imprisonment for 
                not less than 15 days but not more than 2 years, and 
                shall be fined a minimum of $2,500 and if any person 
                commits such offense after 2 or more prior convictions 
                under this title or title III, or 2 or more prior 
                convictions for any drug, narcotic, or chemical offense 
                chargeable under the law of any State, or a combination 
                of 2 or more such offenses have become final, such 
                person shall be sentenced to a term of imprisonment for 
                not less than 90 days but not more than 3 years, and 
                shall be fined a minimum of $5,000.''; and
            (2) in section 422(b) (21 U.S.C. 863(b)), by striking 
        ``three years'' and inserting ``1 year''.
    (b) Elimination of Increased Penalties for Cocaine Offenses Where 
the Cocaine Involved Is Cocaine Base.--
            (1) Controlled substances act.--The following provisions of 
        the Controlled Substances Act (21 U.S.C. 801 et seq.) are 
        repealed:
                    (A) Clause (iii) of section 401(b)(1)(A).
                    (B) Clause (iii) of section 401(b)(1)(B).
            (2) Controlled substances import and export act.--The 
        following provisions of the Controlled Substances Import and 
        Export Act (21 U.S.C. 951 et seq.) are repealed:
                    (A) Subparagraph (C) of section 1010(b)(1).
                    (B) Subparagraph (C) of section 1010(b)(2).

SEC. 3. WEIGHING OF CONTROLLED SUBSTANCES MIXED WITH FOOD PRODUCTS.

    (a) In General.--Part D of the Controlled Substances Act (21 U.S.C. 
841 et seq.) is amended by adding at the end the following:

``SEC. 424. WEIGHING OF CONTROLLED SUBSTANCES MIXED WITH FOOD PRODUCTS.

    ``In determining the weight of a controlled substance or mixture of 
controlled substances that is in compound with a food product for 
purposes of this title or title III, the weight of the food product 
shall not be included.''.
    (b) Technical and Conforming Amendment.--The table of contents for 
the Controlled Substances Act (21 U.S.C. 801 et seq.) is amended by 
inserting after the item relating to section 423 the following:

``Sec. 424. Weighing of controlled substances mixed with food 
                            products.''.

SEC. 4. APPLICABILITY TO PENDING AND PAST CASES.

    (a) Pending Cases.--This Act, and the amendments made by this Act, 
shall apply to any offense that was committed before the date of 
enactment of this Act, if a sentence for the offense has not been 
imposed as of such date of enactment.
    (b) Past Cases.--In the case of a defendant who, before the date of 
enactment of this Act, was convicted of an offense for which the 
penalty is amended by this Act and was sentenced to a term of 
imprisonment for the offense, the sentencing court may, on motion of 
the defendant or the Director of the Bureau of Prisons, or on its own 
motion, reduce the term of imprisonment for the offense, after 
considering the factors set forth in section 3553(a) of title 18, 
United States Code, to the extent the factors are applicable, if such a 
reduction is consistent with--
            (1) this Act and the amendments made by this Act; and
            (2) applicable policy statements issued by the United 
        States Sentencing Commission.

SEC. 5. EMERGENCY AUTHORITY FOR UNITED STATES SENTENCING COMMISSION.

    (a) Review and Amendment.--As soon as practicable after the date of 
enactment of this Act, the United States Sentencing Commission, 
pursuant to its authority under section 994 of title 28, United States 
Code, shall review and, if appropriate, amend the Federal sentencing 
guidelines and policy statements applicable to any person convicted of 
an offense affected by section 2, 3, or 4.
    (b) Authorization.--In carrying out subsection (a), the Commission 
may amend the Federal sentencing guidelines in accordance with the 
procedures set forth in section 21(a) of the Sentencing Act of 1987 (28 
U.S.C. 994 note) as though the authority under that section had not 
expired.

SEC. 6. ESTABLISHMENT OF THE SAFE NEIGHBORHOODS AND SCHOOLS FUND.

    (a) Establishment.--A fund to be known as the ``Safe Neighborhoods 
and Schools Fund'' is hereby created within the Department of Justice 
and is continuously appropriated without regard to fiscal year for 
carrying out the purposes of this chapter. For purposes of the 
calculations required, funds transferred to the Safe Neighborhoods and 
Schools Fund shall be considered general fund revenues which may be 
appropriated pursuant to Article I.
    (b) Funding Appropriation.--
            (1) In general.--On or before July 31, 2018, and on or 
        before July 31 of each fiscal year thereafter, the Department 
        of Justice shall calculate the savings that accrued from the 
        implementation of the act adding this chapter (``this act'') 
        during the fiscal year ending June 30, as compared to the 
        fiscal year preceding the enactment of this act. In making the 
        calculation required by this subdivision, the Department shall 
        use actual data or best available estimates where actual data 
        is not available. The calculation shall be final and shall not 
        be adjusted for any subsequent changes in the underlying data. 
        The Department of Justice shall certify the results of the 
        calculation to Congress no later than August 1 of each fiscal 
        year.
            (2) Transfer of funds.--Before August 15, 2018, and before 
        August 15 of each fiscal year thereafter, the Department shall 
        transfer from the General Fund to the Safe Neighborhoods and 
        Schools Fund the total amount calculated. Funds transferred to 
        the Safe Neighborhoods and Schools Fund shall be used 
        exclusively for the purposes of this act and shall not be 
        subject to appropriation or transfer by the Legislature for any 
        other purpose. The funds in the Safe Neighborhoods and Schools 
        Fund may be used without regard to fiscal year.
    (c) Distribution of Moneys From the Safe Neighborhoods and Schools 
Fund.--
            (1) In general.--By August 15 of each fiscal year beginning 
        in 2018, the Controller shall disburse moneys deposited in the 
        Safe Neighborhoods and Schools Fund as follows:
                    (A) Fifteen percent to the Department of Education, 
                to administer a grant program to public agencies aimed 
                at improving outcomes for public school pupils in 
                kindergarten and grades 1 to 12, inclusive, by reducing 
                truancy and supporting students who are at risk of 
                dropping out of school or are victims of crime.
                    (B) Ten percent to the Federal Crime Victim 
                Assistance Fund, to make grants to trauma recovery 
                centers to provide services to victims of crime 
                pursuant to 42 U.S.C. 112.
                    (C) Twenty-five percent to Federal Reentry/Drug 
                Court programs operated by the U.S. District Courts, 
                U.S. Probation Office, Federal Public Defender and U.S. 
                Attorney's Office to administer a grant program to 
                public agencies aimed at supporting mental health 
                treatment, substance abuse treatment, and diversion 
                programs for people in the criminal justice system, 
                with an emphasis on programs that reduce recidivism of 
                people convicted of less serious crimes, such as those 
                covered by this measure, and those who have substance 
                abuse and mental health problems.
                    (D) Fifty percent to the General Treasury in order 
                to pay down the national debt.
            (2) Limitation.--For each program set forth in paragraphs 
        (1) to (3), inclusive, of subdivision (a), the agency 
        responsible for administering the programs shall not spend more 
        than 5 percent of the total funds it receives from the Safe 
        Neighborhoods and Schools Fund on an annual basis for 
        administrative costs.
            (3) Audit.--Every 2 years, the Department of Justice shall 
        conduct an audit of the grant programs operated by the agencies 
        specified in paragraphs (1) to (3), inclusive, of subdivision 
        (a) to ensure the funds are disbursed and expended solely 
        according to this chapter and shall report his or her findings 
        to the relevant Congressional committees.
            (4) Costs of program.--Any costs incurred by the Department 
        of Justice in connection with the administration of the Safe 
        Neighborhoods and Schools Fund, including the costs of the 
        calculation and the audit required, shall be deducted from the 
        Safe Neighborhoods and Schools Fund before the funds are 
        disbursed pursuant to subdivision (a). The funding established 
        pursuant to this act shall be used to expand programs for 
        public school pupils in kindergarten and grades 1 to 12, 
        inclusive, victims of crime, and mental health and substance 
        abuse treatment and diversion programs for people in the 
        criminal justice system. These funds shall not be used to 
        supplant existing State or local funds utilized for these 
        purposes.
            (5) Prohibition.--Agencies shall not be obligated to 
        provide programs or levels of service described in this chapter 
        above the level for which funding has been provided.
Reclassification to Ensure Smarter and Equal Treatment Act of 2017 or the RESET Act This bill amends the Controlled Substances Act to reduce the potential sentence for possession of a controlled substance by a person with one or more prior convictions. The bill repeals the provision providing for up to three years' imprisonment for the possession of a date rape drug and revises the penalties for possession of such drugs after a prior drug-related conviction.  The maximum term of imprisonment for the sale or use of the mails to transport, or for importation or exportation of, drug paraphernalia is reduced to one year. The bill eliminates increased penalties for cocaine offenses where the cocaine involved is cocaine base.  In determining the weight of a controlled substance or mixture of controlled substances that is in a compound with a food product, the weight of the food product shall not be included. Amendments made by this bill are applicable to both defendants who committed the offense and/or were convicted before the bill's enactment.  The U.S. Sentencing Commission shall review and, if appropriate, amend the federal sentencing guidelines and policy statements applicable to any person convicted of an offense affected by this bill. There is established within the Department of Justice the Safe Neighborhoods and Schools Fund, for expenditures to:  improve outcomes for public school pupils in kindergarten and grades 1 through 12 by reducing truancy and supporting students who are at risk of dropping out or are victims of crime; provide services to crime victims;  support mental health treatment, substance abuse treatment, and diversion programs for people in the criminal justice system; and pay down the national debt. 
Reclassification to Ensure Smarter and Equal Treatment Act of 2017