This article examines outcomes for first-time juvenile marijuana possession offenders based on relationships between state policy and local prosecutor self-reported decision making. Specifically, relationships between state statutory penalty data for low-level marijuana possession offenses and prosecutor-reported case outcomes for first-offender juvenile marijuana possession cases are examined. A national sample of prosecutors was interviewed in 2000. Analyses included state statutory policy data in effect as of January 1, 1999, as well as community sociodemographic controls. Results indicated that state statutory policy significantly related to prosecutor-reported juvenile court processing as well as diversion and transfer to criminal court. State statutory policy appears to play a significant role among the legal, resource, and extralegal factors that affect prosecutorial discretion regarding juvenile substance offenders.