I did not know Indiana had this distinction;
On the table was a proposal to set a monetary threshold for what would constitute a felony theft that carries prison time. According to the commission's researchers, Indiana is the only state in the nation that has no threshold, meaning a prosecutor can charge a suspect with a felony theft, no matter how big or small the value of the item stolen.
The commission is the one that's supposed to rewrite the state's criminal code. Its members apparently got into a lively philosophical discussion over stolen purses. Suppose the state sets $750 as the line between misdemeanor and felony theft. Why, asked state Sen. Randy Head, should a thief who steals a purse containing $749 be charged with a misdemeanor while a thief who steals one containing $750 is charged with a felony?
"Because the law should draw bright lines" is the best answer. As one participant pointed out, the more discretion judges and prosecutors have, the more inconsistent sentencing will be. There will also be more opportunity for corruption. One good argument for some discretion, though, is that it gives prosecutors leverage to get plea bargains.
There's also the matter of inflation. What seems like a good amount to set the felony at today might be pretty small potatoes in a year or too. Maybe the law should have an inflation-adjustment clause.